According to Verified Market Research, U.S. Trash Bag Market was valued at USD 2.40 Billion in 2021, and it is projected to reach USD 3.83 Billion by 2027, registering a growth of 7.98% during 2022-2027. Garbage bags, usually made of polyethylene, are strong, lightweight and hold trash securely without leaking or overflowing. Thus, they are adopted in various industries of residential, commercial and industrial end users.
However, governments and related regulatory bodies are imposing bans on plastics to reduce the plastic footprint. The resulting ban on the use of plastic may significantly affect the trash bag market. For example, in recent years, New York lawmakers imposed a statewide ban on most types of single-use plastic bags from retail, changing the lifestyle of million New Yorkers, as lawmakers seek to reduce the pervasive source of litter.
As trash bags are increasingly adopted in end-user sectors, such as residential, commercial, and retail, businesses are looking for alternatives to dispose of the waste generated by the use of the bags. The ban on the use of plastic trash bags allows trash bag manufacturers to develop biodegradable or recyclable trash bags that enable them to support their business operations, thereby boosting the growth of the market.
Bag market scope
Residential waste generated in urban and rural households across the United States is increasing significantly, driving the growth of the market. According to the Bureau of Labor Statistics, the producer price index for waste collection and remediation services in the United States was 136 in 2020 compared to 131.5 in 2019.
With the outbreak of COVID-19, there has been a very minimal and short-term impact for trash bag manufacturers. Some of the effects of the closures include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages and price fluctuations which can impact production of the final product.
In the first phase of the COVID-19 pandemic, the demand for trash bags peaked due to the unavailability of PPE kits. In some hospitals, doctors and nurses resorted to trash bags slung over their arms for protection as they worked to save patients, as hospitals ran out of disposable coats. For example, frontline nurses at New York’s Mount Sinai Hospital wore trash bags as protective gear.
Trash bags are disposable bags that allow the user to safely contain their waste without the problems of leakage. Garbage bags are usually made from plastics in different sizes and options. The report segments the trash bag market by end user (retail, commercial and industrial).
Main market trends
The residential sector holds the largest market share, like to constant dumpster rentals to remove the trash. The residential sector of the US trash bag market generates a significant amount of waste. Hence, the penetration of trash bags is significant for the consumer segment. Players operating in the market are focusing on developing innovative products for household waste management, which is further boosting the growth of the segment.
According to US Census data and the Simmons National Consumer Survey (NHCS), 49.78 million Americans used 25 or more inner trash bags in 2020. HDPE trash bags are good for light trash and are generally favorites at home.
Americans are often impulsive in their food purchases, buying more food than necessary and wasting it, ignoring sustainability issues. An average US household is estimated to produce 19.36 metric tons of food waste per year, which is one of the highest amounts in the world (source: US Environmental Protection Agency). Such cases lead to a high demand for recyclable bags and trash cans.
According to waste management experts at Easy Albuquerque Dumpster Rentals, non-durable goods, such as clothing and newspapers, account for an additional 20% of U.S. waste, with yard waste (13.3%) and food and other organics (14.9%) also accounting for an additional 20%. substantial part (source: Columbia University study).
The growing penetration of recyclable bags is driving significant growth in the segment. In January 2020, the Glad business of the Clorox Company announced that it had introduced recyclable food bags as part of its integration with TerraCycle’s Loop pilot program in the United States. The Glad Products Company specializes in kitchen and outdoor trash bags and food protection products. Through such a program, consumers will be able to order products online, then receive and recycle their favorite food bags in a reusable container and return pouch.
During COVID-19, government authorities were regulating new policies to increase household safety. For example, in March 2020, the City of Kingston increased the number of trash bags allowed per household from one to four per week without requiring bag tags. This limit took effect immediately and was in place until May 2020. This measure was put in place to help families who are self-isolating dispose of their waste safely.
The commercial sector will show the highest growth rate
Retail, convenience stores, healthcare, food service, hospitality, and office buildings are some of the critical commercial industry establishments that make up a significant share of the market.
According to the National Retail Foundation (NRF), there were more than one million retail establishments in the United States in 2020. The country has seen nearly 4% year-over-year growth in retail sales since 2010. NRF reports also suggest that for every retail company closing its stores, another five companies open their retail stores. Convenience stores are at 97%, compared to 3% of stores closing.
About 30% of the food in American grocery stores is thrown away. US retail stores generate approximately 16 billion pounds of food waste each year. Food wasted from the retail sector is valued at about twice the profit from food sales (source: United States Department of Agriculture).
Recently, organizations have become more conscious about managing and reducing their waste. While some organizations are content with having a waste removal or disposal system, more proactive organizations put more effort into managing their waste. Some examples of common waste in office buildings include trash, paper products, and electronics. Office supplies, such as staplers, pens and glue sticks, are thrown in the trash and sent to landfill.
Additionally, waste in the US healthcare system amounts to $760 billion-$935 billion annually, or 25% of total medical spending, according to a new analysis published in JAMA (Journal of the American Medical Association).
The United States spends more on health care than any other country, with costs approaching 18% of GDP. Previous studies have estimated that around 30% of healthcare expenditure could be considered waste. Despite efforts to reduce overtreatment, improve care, and tackle overpayments, substantial waste in US healthcare spending likely remains (source: Journal of the American Medical Association). Biohazardous waste goes in red bags and containers, while infectious waste is usually kept in plastic bags. These factors meet the large demand for trash bags.
Competitive waste management landscape
The competitive rivalry in the US trash bag market is high due to some key players, such as Berry Global Inc. and Hefty (Reynolds Consumer Products LLC). Market players are involved in strategic partnerships that have enabled them to develop new products, fueling the growth of the market.
The U.S. Department of Energy (DOE) announced $13.4 million in funding for next-generation plastics feasytechnologies that reduce energy consumption and carbon emissions from single-use plastics. Led by industry and academia, seven selected R&D projects could convert plastic films into more valuable materials and design new plastics that are more recyclable and biodegradable.
