Garbage bag market in Europe projected to reach US$2.52 bln by 2026

10-May-17

After witnessing multiple garbage crises occurring across European countries, the European Union (EU) strives to ensure that all sorts of waste remains locked & sealed in disposable bags. Changing lifestyles and growing urbanisation observed across European countries has triggered the use of garbage bags, compelling people to avert health hazards emanating from open dumping. Future Market Insights’ latest research report on Europe’s garbage bags market estimates that in 2016, more than US$ 1.5 billion worth of garbage bags were consumed. It has been projected that by the end of 2026, Europe’s garbage bag sales will rise steadily at 5% CAGR and reach US$ 2.52 billion in value. 
Although, the report also reveals that in terms of volume, Europe’s garbage bags market will soar at a moderate CAGR of 3.7%. According to the report, the waste management rules imposed by EU haven’t entirely favoured the use of garbage bags. The European Environment Agency has laid down strict rules that curb the use of plastic or polythene garbage bags, thereby bringing ambiguity among European citizens and civic authorities in regards to managing waste on a daily basis. Moreover, several landfill sites have been shut down across Europe over the past decade, giving rise to strikes by garbage collectors.

High-Density Polyethylene (HDPE) material type segment is expected to register the highest CAGR in the Europe garbage bag market over the forecasted period. High-performance characteristics and excellent tensile strength are anticipated to increase the market share of HDPE garbage bags. This segment accounted for a revenue share of close to 30% in the garbage bag market in Europe in 2016 and is likely to gain more than 100 basis points by 2026. Revenue contribution of the HDPE segment is projected to register a CAGR of 5.5% during the forecast period. The HDPE segment is a relatively cost-effective option and therefore likely to experience a rapid Y-o-Y growth rate during the forecast period. Its cost-effectiveness and ability to hold a significant weight is anticipated to propel the market for HDPE garbage bags over the period of assessment. HDPE garbage bags are relatively inexpensive and can hold considerable weight compared to other material types. The segment is projected to expand 1.7x during the forecast period. By value, the segment is likely to create an incremental opportunity of more than US$ 300 Mln between 2016 and 2026.

The biodegradable quality of HDPE garbage bags is likely to drive its demand across the European region. The waste management policies in Europe aim to reduce the environmental and health impacts of waste and improve the region’s resource efficiency. The policy also strives to enhance the use of oxo-biodegradable or oxo-degradable garbage bags, to collect waste generated in households, industries, and institutions. This is expected to fuel the demand for HDPE garbage bags over the forecast period. Disposable income and purchasing power of consumers is leading to increasing demand for convenient and cost-effective garbage bags for collecting waste. These macroeconomic factors are anticipated to positively impact the demand for HDPE garbage bags in Europe. Furthermore, improvement in Europe’s economic performance and the rising standards of living of the middle income population group is expected to strengthen the sale of HDPE garbage bags.

Biodegradable plastic garbage bags such as HDPE bags are made up of domestic biomass materials, which reduce dependency on oil and provide a domestic solution to plastic resin or film manufacturers. They are also easier to recycle and can be used more frequently. Moreover, with the mounting pressure of consumers and legislators to address the environmental issues caused by harmful garbage bags, the demand for HDPE garbage bags is anticipated to grow significantly over the assessed period. Demand for premium garbage bags is likely to gain traction particularly in the advanced economies of Germany and the U.K. Two major trends fuelling their sales are their stretchable strength and odour control nature. Consumers are willing to pay a premium for these features. This particular factor is creating robust development in the HDPE garbage bag segment. Among all European countries, Germany is projected to be the largest consumer of garbage bags in Europe. Throughout the projected period, around one-fourth of Europe’s garbage bag market value will be accounted by Germany alone. The consumption of garbage bags will also be considerably high in the UK, France, and Italy. 

Europe’s retail & consumer industry has been identified as the largest end-user of garbage bags. With over 40% revenue share, garbage bags worth over a billion dollars will be sold across retail & consumer verticals in Europe by the end of 2026. On the other hand, institutional and industrial end-use of garbage bags will collectively account for sales of every other garbage bag being manufactured in Europe during the forecast tenure. Depending on their use, the report reveals higher demand for garbage bags bearing around 20 to 30 gallons in volume. In 2016, close to US$ 470 million revenues were amassed from sales of 20-30 gallon garbage bags in Europe. In the years to come, the demand for 32-35 gallon garbage bags will also gain momentum across the region.

Increasing taxation and stringent government policies pertaining to the ban of HDPE plastic bags is anticipated to hinder its growth during the projected period. The government of Europe is actively imposing regulations in order to restrict sales of lightweight bags, with various countries such as France and Italy enforcing a complete ban on single-use HDPE plastic bags. These bans on plastic bags can help mitigate harmful impacts on the environment particularly oceans, rivers, lakes, and the wildlife inhabiting them. This is one of the major restraints faced by HDPE plastic garbage bags, which is influencing manufacturers to shift to the production of eco-friendly and green plastic garbage bags. Governments across Europe are increasing taxation and imposing extra charges on the use of plastic garbage bags. Customers at large retail outlets and convenience stores are charged extra for plastic garbage bags. Such initiatives play a major role in reducing consumption of HDPE garbage bags and compel manufacturers to shift production towards more eco-friendly and biodegradable garbage bags.

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