Australia Retail Bags Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Australia Retail Bags Market Outlook

The Australia retail bags market size reached USD 573.02 million in 2024. The market is expected to grow at a CAGR of 5.05% between 2025 and 2034, reaching almost USD 878.40 million by 2034.

Key Takeaways:

• More than two-third of the Australian population prefer shopping in a brick-and-mortar store, standing as an important touch point for shopping.

• Further, approximately 50% of the Australian prefer brick-and-mortar store for a personalised customer service.

• As per Australian Bureau of Statistics, retail turnover witnessed an increase of 1.1% in January 2024.

Increased retail spending, rising number of supermarkets and retail stores, evolving consumer preferences for sustainable packaging options are expected to aid in the demand for Australia retail bags market

The Australian retail sector's growth, driven by a surge in shopping centres, supermarkets, and other retail establishments, has significantly boosted consumer demand for retail bags. This demand is further fuelled by a growing consumer preference for eco-friendly packaging options, leading to a strong expansion in the market for reusable and sustainable bags.

Further, in response to growing environmental concerns and a shift towards reusable options, retail stores are increasingly offering unit bags for small purchases alongside paper and natural fibre bags for larger items. This move coincides with the expected rise in online spending across various categories in Australia, including homeware, appliances, groceries, liquor, personal care items, recreational goods, fashion, and takeaway food, further highlighting the need for sustainable packaging solutions. This trend is expected to aid in the demand for Australia retail bags market.

Australia's 2025 National Packaging Targets, established in 2018 through collaboration between industry and government, represent a significant shift towards a circular economy for packaging. These ambitious goals, aligned with global sustainability efforts, aim to reform the entire packaging lifecycle in Australia. By the end of 2025, all packaging should be reusable, recyclable, or compostable. Additionally, the initiative targets a 70% recycling or composting rate for plastic packaging and a 50% average recycled content inclusion (increased from the initial 30% target). Furthermore, problematic, and unnecessary single-use plastic packaging will be phased out entirely.

Market Segmentation

Australia Retail Bags Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Paper and Natural fibre

• Plastic

Market Breakup by End Use

• Grocery Stores

• Hospitality

• Industrial

• Food Service

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

The Australia retail bags market key players are Detmold Holdings Pty. Ltd., Pacific National Enterprises Pty Ltd., Gispac Pty Ltd., Environmental Resources Pty Ltd. (Biotuff), Bag People Australia, Polypac Converting, Albury Enviro Bags, PrimePac, United Paper, and JMP Holdings, among others.

Key Highlights of the Report