Future of the paper bag industry

The UN Environment Assembly’s upcoming treaty on plastic pollution is expected to strengthen the regulations on single-use plastic (SUP) by a first-of-its-kind legally binding instrument on 193 member states very soon. In 2019, 170 member states have already committed to significantly reducing the use of SUPs by 2030 in the UNEA at Nairobi, Kenya.

04 Jul 2024 | By Sushant Gaur

The UN Environment Assembly’s upcoming treaty on plastic pollution is expected to strengthen the regulations on single-use plastic (SUP) by a first-of-its-kind legally binding instrument on 193 member states very soon. In 2019, 170 member states have already committed to significantly reducing the use of SUPs by 2030 in the UNEA at Nairobi, Kenya.

The responsibility of successfully eradicating single-use plastics (SUP) will soon shift from regulatory bodies to sustainable packaging providers. The paper bag industry is currently 3% the size of the plastic bag industry implying a required compound annual growth rate (CAGR) of 55.01% up until 2030 for the entire industry to replace plastic bags.

However, is the mandate truly the responsibility of the paper bag industry? Are paper bags the perfect replacement for plastic bags? With the formation of the Forest Stewardship Council, improvements in recycled paper, fibres being sourced from agricultural waste and tree farming, the answer is yes. Almost all large corporations have started their switch to paper bags with priority being given to bags made from recycled post-consumer waste paper that is available abundantly in India.

According to Novolex, the per capita usage of single-use bags in the state of New York is 200 bags per person per annum. The New York State Department of Environmental Conservation regulated the use of plastic bags in October 2020 but has only taken enforcement action 26 times in 2 years. The lack of proper implementation of the regulation is due to a shortage of alternates. The same story is being played out in India and other parts of the world.

Ever since India started exporting virgin-grade recycled paper, the West has woken up to its benefits. Recycled paper is sustainable, environment-friendly, cheaper, and can be made as strong as required for takeaway packaging. Two million tonnes of added capacities for recycled grade kraft have been added in the US during the pandemic.

A cause for concern for India is that there is no waste segregation according to fibre length. We are losing 100% of the imported fibres to mixed kraft and are dependent on imported waste for paper bag-grade kraft. Moving forward, India will get less waste as consumption-driven economies are moving towards circularity.

To summarise, the paper bag industry is seeing tremendous growth moving forward and for the next 5 years demand will remain ahead of supply. We have half a decade to get circular economies in motion and make an ecosystem to enable a large industry to be born.
 

Latest Poll

What is the point of focus for the packaging industry, currently?

Results

What is the point of focus for the packaging industry, currently?

Margins

 

18.92%

Reverse auctions

 

29.73%

Safety norms

 

27.03%

Wastage

 

24.32%

Total Votes : 37

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