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Global Craft Bags Market to Reach US$2.0 Billion by 2030

The global market for Craft Bags estimated at US$1.7 Billion in the year 2024, is expected to reach US$2.0 Billion by 2030, growing at a CAGR of 2.8% over the analysis period 2024-2030. Block Bottom Craft Bags, one of the segments analyzed in the report, is expected to record a 2.5% CAGR and reach US$908.9 Million by the end of the analysis period. Growth in the Paper Carry Craft Bags segment is estimated at 2.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$450.1 Million While China is Forecast to Grow at 5.3% CAGR

The Craft Bags market in the U.S. is estimated at US$450.1 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$377.8 Million by the year 2030 trailing a CAGR of 5.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.1% and 2.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.5% CAGR.

Global Craft Bags Market - Key Trends & Drivers Summarized

What Is Driving the Rising Appeal of Craft Bags in a Mass-Produced World?

Craft bags, once associated mainly with handmade gifts or artisanal fairs, are gaining widespread popularity across both retail and lifestyle segments due to growing consumer demand for aesthetic, eco-conscious, and reusable packaging options. These bags, often made from paper, jute, cotton, or canvas, reflect a growing cultural shift toward personalized and sustainable alternatives to plastic-based packaging. Whether used for gifting, branding, or shopping, craft bags represent a blend of function and visual appeal, making them popular with individuals, boutique brands, and corporate gift suppliers alike.

The appeal of craft bags lies in their versatility and visual storytelling. Small businesses and high-end retailers are increasingly customizing these bags with logos, colors, and textures that align with their brand identity, transforming them into walking advertisements. The rise of gifting culture-spanning weddings, festivals, holidays, and corporate occasions-has created continuous demand for aesthetically pleasing packaging that aligns with premium presentation and sustainability values.

How Are Design, Material, and Sustainability Trends Redefining Craft Bag Production?

Material innovation plays a central role in redefining the value proposition of craft bags. Recycled kraft paper, biodegradable cotton, hemp fibers, and digitally printed canvas are being adopted to create visually distinct and environmentally friendly alternatives to plastic or synthetic gift bags. Craft bag manufacturers are also investing in non-toxic inks, embossing techniques, and die-cut handles that add both utility and design flexibility without sacrificing eco-performance.

The shift toward minimalism and conscious consumption is influencing the design of craft bags as well. Monochrome themes, earthy palettes, and handmade aesthetics are dominating style trends, while the introduction of reusable elements like drawstrings, zippers, or inner linings is elevating their utility. Consumers increasingly prefer packaging that can serve secondary purposes, such as storage or everyday carry, which further reduces waste and enhances product value. This intersection of design, functionality, and sustainability is broadening the adoption of craft bags across demographics and industries.

Which End-Use Sectors Are Driving Demand for Craft Bags Globally?

Retail and gifting remain the dominant end-use sectors for craft bags, with increasing penetration in boutique clothing stores, organic food outlets, and artisanal gift shops. E-commerce platforms are also contributing to demand, as businesses seek packaging that aligns with eco-branding and enhances unboxing experiences. Events and hospitality industries use craft bags as part of gift hampers and promotional giveaways, customizing them to suit branding goals and occasion-specific themes.

Education institutions, art and hobby supply retailers, and DIY communities are emerging as niche segments with rising demand for craft bags as part of art kits and creative activities. In parallel, sustainable packaging mandates in several countries are compelling retail chains to switch from plastic carriers to reusable or recyclable paper and cloth bags. This has opened up bulk procurement opportunities for manufacturers catering to eco-friendly packaging solutions across large-format retail.

What Factors Are Driving Growth in the Craft Bags Market?

The growth in the craft bags market is driven by rising demand for eco-conscious packaging solutions, increasing customization options, and expanding applications in gifting, retail, and e-commerce. One major growth driver is the regulatory push against plastic bags, especially in North America, Europe, and parts of Asia-Pacific, which has forced retailers to shift to sustainable alternatives. At the same time, heightened consumer preference for environmentally responsible and aesthetically pleasing packaging is boosting craft bag adoption.

Advancements in biodegradable materials, printing technologies, and scalable design formats are allowing manufacturers to serve both small-scale boutique orders and large commercial contracts efficiently. The expanding gifting culture, growing popularity of DIY projects, and rising influence of premium presentation in retail are also strengthening market traction. These material, policy, and aesthetic shifts collectively underscore the momentum behind the global craft bags market.

SCOPE OF STUDY:

The report analyzes the Craft Bags market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:

Product (Block Bottom Craft Bags, Paper Carry Craft Bags, Confectionery Craft Bags, Other Products); Application (Food & Beverages Application, Homecare & Personal Care Application, Healthcare Application, Other Applications)

Geographic Regions/Countries:

World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 48 Featured) -

AI INTEGRATIONS

We're transforming market and competitive intelligence with validated expert content and AI tools.

Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

TABLE OF CONTENTS

I. METHODOLOGY

II. EXECUTIVE SUMMARY

III. MARKET ANALYSIS

IV. COMPETITION

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