Paper Bags vs Plastic Bags: A Sustainability & Costs Guide

As a business owner, the “paper bags vs plastic bags” debate may have crossed your mind more often than you’d like. The pressure to make the “right choice” between the two intensifies as shoppers continue to value eco-friendly options. Around 53% of respondents to the 2025 Two Sides poll believe that paper helps to conserve natural resources.

At the same time, however, switching to paper can come at a higher cost. A UBS Group AG report says that producing sustainable alternatives can be 1.5 to 2 times more expensive than plastic.

The dilemma puts you in a tough spot. How can you balance satisfying customer preferences while managing your bottom line? Let’s discuss the environmental impact, cost, and practicality of each option for your business.

Paper Bags vs Plastic Bags: Environmental Impact Comparison

Is paper or plastic better for the environment? To understand the impacts of packaging materials on the planet, let’s examine their entire lifecycle. Here’s how each packaging choice fares across key ecological factors.

Production Process and Resource Consumption

Chemicals used in plastic production are derived from refined crude oil and petroleum byproducts. These substances are produced from burning fossil fuels, a leading contributor to greenhouse gas emissions.

One study in the UAE revealed that 24 million gallons of oil are required to produce one billion plastic bottles. Flame retardants and substances that make plastic resistant to water, stains, and grease are also among its “ingredients.”

Meanwhile, research conducted by GreenMatch UK shows that producing paper bags requires roughly four times more water than making plastic bags. A 2024 study by Indonesian researchers found that converting one kilogram of pulpwood into paper consumes 300 liters of water and 21.6 megajoules of electricity. 

Biodegradability and Decomposition Rates

Paper bags can decompose in a few weeks to a few months, depending on environmental conditions and other factors. Meanwhile, plastic bags take much longer. Let’s take a look at how they break down.

Recycling Process and Reusability

Less than 10% of plastic worldwide is recycled, contributing to a challenging waste stream, according to The Lancet. 

The process of recycling plastic bags can be costly and laborious. Plastics need to be sorted because different types of plastics have varying melting points. Sorting is also necessary because plastic with food residue or adhesives can hinder its recyclability. 

Chemical recycling can accommodate mixed plastic wastes, including contaminated materials. However, the equipment cost and power requirements are higher than those of mechanical recycling.

Meanwhile, the latest data from the American Forest and Paper Association showed robust paper (up to 64%) and cardboard (up to 74%) recycling rates nationwide. Around 80% of US paper mills use recycled paper. In Europe, 94.7% of containerboard and 40% of cartonboard come from recycled materials, according to CEPI statistics.

Impact on Wildlife and Ecosystems

Pollution and the harm to land and marine animals are at the heart of the “paper bags vs plastic bags” war. 

Refining fuel to produce ethane and propane, which are necessary for making plastic, releases toxic gases. At the same time, fuel extraction for plastic production loosens soil and land, which can cause mudslides. 

Mining companies can dump excavated soil into nearby waterways. Doing so disturbs and pollutes these water bodies. Discarded plastics in landfills, including high-density polyethylene containers, can emit methane gas as they degrade. Meanwhile, seabirds, fish, sea turtles, and other marine life can ingest or get trapped by plastics polluting oceans.

Paper production also dents ecosystems because wood is its primary raw material. It requires clearing forests to harvest trees or establish pulpwood plantations. When this happens, wildlife, such as elephants, rhinoceroses, and tigers, lose their natural habitat.

Practical Considerations: Paper Bags vs Plastic Bags

Choosing between plastic and paper bags goes beyond environmental costs. Everyday functionality is significant in consumer decision-making. Below, we’ll compare the two packaging types based on durability, convenience, cost, and reusability.

Durability and Strength

Are plastic bags better than paper bags when it comes to weight limits? According to several sources, regular grocery plastic bags can carry up to 17 pounds, higher than the 15 pounds that can be loaded onto paper bags. 

It all depends on the materials used. Kraft paper bags are sturdier and more water-resistant than regular paper bags. Reinforced handles and thicker material help make these bags support heavier weights. 

Meanwhile, multi-use plastic bags are stronger than single-use pieces. They don’t tear when wet; instead, they protect contents from moisture.

Convenience and Storage

You can fold and stack paper bags for easy storage. They can stand on their own when opened, making it easier to store items. However, they’re more preferable for dry goods as they can easily absorb moisture. You can also spend more on shipping or transport because they can’t be compressed like plastic.

Meanwhile, plastic bags are lightweight and less bulky, meaning you can transport larger quantities per vehicle. This results in lower transportation costs and air pollution.

Cost Effectiveness

One paper packaging specialist on LinkedIn noted that paper bags can range from $0.05 to $0.25 each, depending on their thickness and size. Meanwhile, a plastic bag can be worth $0.01 to $0.05. 

According to Arizona State University’s Sustainability Solutions Service, stores incorporate the cost of free plastic grocery bags into the price of goods sold. Several US states, such as New York and Colorado, have set laws requiring retailers to charge customers for paper bags.

Reusable Options

Bag manufacturers now use thicker materials to produce plastic bags or paper bags. Kraft paper with reinforced handles can hold more weight than single-use paper. However, they can weaken when wet. 

Meanwhile, multi-use plastic bags can carry heavier loads and resist moisture. But they raise the same end-of-life issues as regular plastic.

Government Regulations and Industry Trends 

As the push for sustainability grows, governments and industry players accelerate the move toward eco-conscious packaging. This section highlights key policies, retailer preferences, and breakthroughs in biodegradable materials shaping the packaging landscape.

Bans and Restrictions on Plastic Bags

Amid the “paper bags vs plastic bags” battle, local officials tend to favor banning plastic bags due to the litter and environmental damage they produce. According to Britannica, 19 US states and territories have bans on one or more single-use plastic bags as of March 2025.

Meanwhile, a UN paper featured in a 2024 Statista report states that 91 countries have bans or restrictions on the production, distribution, and importation of plastic bags. 

Retailer Preferences and Eco-Friendly Initiatives

Plastic bag bans and the consumers’ demand for environmentally friendly options drive stores to shift toward paper packaging. More than making paper bags part of your branding, you can incorporate sustainability into your retail business model through:

Incentives and Loyalty Programs

A grocery store may offer a few cents off a shopper’s total bill for every reusable bag they use. Some of them reward consistent reusable bag owners with store credits or points.

Plastic Ban Fees or Full Plastic Bag Ban

In places with limited government regulations, stores may charge for the use of shopping bags. They may also independently ban plastic bags entirely.

Packaging Reduction and Corporate Social Responsibility

Some retail chains adopt “zero-waste” policies or pledge to reduce paper and plastic litter. They may also announce their sustainability targets or programs, such as transitioning to paper or compostable bags.

Partnerships with Eco-Conscious Brands, Groups

Retailers may collaborate with bag producers who use recycled or non-plastic products as raw materials. They include manufacturers of cotton bags and non-woven polypropylene bags. Stores may also partner with NGOs to promote sustainable lifestyles.

Insight: Bag policies affect more than operations. They shape how shoppers view your brand. Charging a paper bag fee can make customers feel penalized if you don’t explain your “why.” 

Clear signage and training cashiers on how to communicate your policy can make a difference. Providing a clear sustainability message helps win acceptance and loyalty.

Advancements in Biodegradable and Compostable Bags

In 2025, sustainability trends will reshape product packaging, with innovative materials and green practices leading the way.

Novel Biomaterial

• Seaweed absorbs carbon dioxide during growth and is compostable.
• Mycelium (mushroom roots) can be mixed with hemp to create sturdy, biodegradable alternatives to plastic.

Agro-Waste Fibers and Starch-Based Plastics

• Pineapple leaf fibers can be processed into fabrics for reusable shopping bags and custom packaging.
• Starch from crops, such as corn, sugarcane, and cassava, as well as emerging solutions like banana peels and other fruit seeds, can be converted into polylactic acid (PLA), a type of bioplastic.

Manufacturing and Barrier Properties

• Advanced molding equipment can accept biodegradable materials to create complex-shaped products. 
• Antimicrobial and antioxidant agents enhance the barrier properties of packaging material to prolong shelf life and protect product contents from contaminants.

Consumer Decision-Making: Choosing the Right Bag 

The paper bags vs plastic bags discussion covers more than environmental considerations. You should balance functionality with sustainability. This section explores when paper bags are ideal, when plastic bags make sense, and sustainable alternatives your consumers will want to be seen carrying.

When to Use Paper Bags vs Plastic Bags

The table below lists when each type of bag is a more practical choice.

Sustainable Alternatives to Paper and Plastic 

While both paper and plastic bags are widely used, other sustainable products and recycled materials are gaining traction. Reusable cloth bags, jute bags, and hemp bags are washable, long-lasting, and stylish. Recycled PET bags made from plastic bottles repurpose waste into strong carriers.

Meanwhile, biodegradable plastics, such as PLA, degrade more quickly than reusable bags made from plastic. However, they work best for lighter loads.

Paper Bags vs Plastic Bags? The Choice is Yours

The debate over paper bags vs plastic bags shows there’s no perfect solution, only trade-offs. Plastic is cost-efficient but harmful in the long term. Meanwhile, paper requires more resources but biodegrades and recycles more easily. Consumers also prefer paper as the greener option, helping build trust and loyalty.

Refine Packaging can help your business tap into that perception with custom paper bags that showcase your identity while reducing solid waste. From luxurious to playful design ideas, you’ll find the ideal match to reflect your brand’s unique style.

FAQs

Are Paper Bags Better Than Plastic Bags for the Environment? 

The environmental impact of paper bags vs plastic bags depends on several factors. The key points to consider include the following:

• Paper bags decompose more quickly than plastic, reducing long-term pollution.
• Plastics can persist in the environment for centuries, potentially clogging waterways and causing ocean pollution.
• Producing a paper bag requires more resources, increasing its carbon footprint.
• Plastic bags are lightweight and use less energy during manufacturing and distribution.

Overall, both materials have pros and cons. Also, their environmental benefits depend primarily on recycling rates and material sourcing. 

Why Are Paper Bags Considered a More Eco-Friendly Option Than Plastic?

Most consumers perceive paper bags as more sustainable than plastic bags, mainly due to their biodegradability and recyclability. However, the true eco-impact also depends on factors such as production methods, reuse, and proper disposal.

Why Do Some People Argue That Plastic Bags Are Better Than Paper?

Although these bags significantly contribute to plastic pollution, they have advantages in terms of resource efficiency during production. They consume fewer resources and have lower carbon emissions at the production stages. Plastic bags are more durable and water-resistant. Their compact design also reduces transportation costs.

Are Paper Bags Biodegradable?

Yes, paper bags are biodegradable. However, their decomposition time depends on the coatings used, material type, and environmental conditions, such as moisture, temperature, and the presence of microbes.

Are Plastic Bags Recyclable? 

Yes, plastic bags are recyclable. However, recycling rates are lower due to the special equipment required for processing. Moreover, contamination from food or dirt hampers their recyclability.

Which Is More Cost-Effective: Paper Bags vs Plastic Bags? 

Plastic bags are initially more cost-effective, thanks to their lower manufacturing and shipping costs. However, paper bags can offer better long-term value. They appeal to environmentally conscious shoppers. Their durability also contributes to customer satisfaction. These factors can justify the higher upfront costs.

Furthermore, businesses with sustainability as a core value may find paper bags more aligned with their company identity. This leads to potential long-term cost savings from brand loyalty and positive consumer perception. For instance, Refine Packaging’s gable packaging is an option to consider.

Why Are Paper Bags Sometimes Considered Bad for the Environment? 

Paper bags use more energy and water during production. However, they decompose faster than plastic.

Should We Use Paper Bags Instead of Plastic? 

Settling your “inner turmoil” over paper bags vs plastic bags comes down to priorities:

• Paper bags: Biodegradable, recyclable, eco-friendly in image, but resource-heavy, more expensive, and less durable
• Plastic bags: Affordable, durable, water-resistant, but non-biodegradable, polluting, and challenging to recycle