PE sacks and bags market in Bulgaria

Earlier Report Observations

Between 2018 and 2020, the imposition of a product tax on thin polymer bags with a thickness under 25 microns led to a decline in both production and market volume for PE sacks and bags in Bulgaria. The tax, targeting specific disposable bags, incentivized a shift towards more durable alternatives, reducing overall polyethylene consumption. This regulatory pressure was reflected in falling production, which decreased from 88 039 t in 2018 to 82 238 t in 2020, while the market size contracted from 45 387 t to 39 339 t over the same period. During this adjustment, major local producer NOVIZ AD obtained DIN CERTKO certification for producing biodegradable polymer packaging, aligning with the demand for compliant products.

The market rebounded strongly in 2022, with production reaching 89 011 t and market volume hitting 50 055 t. This growth was likely driven by regulatory changes to financial aid conditions for agriculture, which boosted demand for polyethylene sacks and bags used in farming. However, this expansion was short-lived. In 2023, production fell sharply to 70 800 t and market volume dropped to 37 307 t. This decline was primarily caused by the implementation of the European Green Deal and new EU-wide rules mandating compostable packaging for certain applications, including thin plastic bags, which displaced traditional polyethylene products.

Entering 2024, the regulatory landscape evolved with the mid-year repeal of the tax on thin plastic bags due to the availability of sustainable substitutes. However, the sector continued to face significant headwinds from the war in Ukraine and persistently high energy prices, which increased production costs for polymers and finished goods. Concurrently, established manufacturers like Polygroup invested in new technologies and expanded their production capacities for polyethylene packaging, helping to modernize the industry's base amidst these challenging conditions.

Production PE sacks and bags in Bulgaria

In value, 2017-2020, M $ US

Production of PE sacks and bags in Bulgaria declined for the second consecutive year. In 2020, output was valued at 137.7 million US dollars, representing a 3.4% decrease compared to the previous year. Between 2017 and 2020, production fell by 4.9%, which translates to an annualized decline of 1.7%. The highest value was recorded in 2018 at 147.7 million US dollars. The largest decline occurred in 2019 with a drop of 3.4%, while the largest increase was in 2018 at 2.0%.

Annual dynamics of production in Bulgaria in value, 2017-2020, M $ US

In kind, 2017-2020, t

Bulgaria's production volume of PE sacks and bags declined for the second year in a row. In 2020, the country produced 82 238 tonnes, showing a slight decrease of 0.6% from the previous year. From 2017 to 2020, production dropped by 6.3%, averaging an annual decline of 2.1%. The peak volume was in 2018 at 88 039 tonnes. The most significant decline was in 2019 with a 6.1% drop, while the largest increase was in 2018 at 0.4%.

Annual dynamics of production in Bulgaria in kind, 2017-2020, t

Exports PE sacks and bags from Bulgaria

Exports in kind, t

In 2020, Bulgaria's exports of PE sacks and bags totaled 49 750 tonnes, showing no significant change compared to 2019. Between 2017 and 2020, exports grew by 12.6%, with an annualized increase of 4.0%. The highest export volume was recorded in 2018 at 50 404 tonnes. The largest decline occurred in 2019 with a 1.4% decrease, while the largest increase was in 2018 at 14.1%.

Annual dynamics of product's exports from Bulgaria in kind, 2017-2020, t

From 2017 to 2020, Germany, the Netherlands, and Belgium were the top contributors to Bulgaria's exports of PE sacks and bags in volume terms. Germany accounted for 55.3% of exports, the Netherlands for 11.6%, and Belgium for 8.7%. Together, these three countries represented 75.6% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bulgaria in kind, 2017-2020

Exports in value, K $ US

Bulgaria's exports of PE sacks and bags declined for the second consecutive year. In 2020, export value reached 78.977 million US dollars, indicating a moderate decline of 4.9% from the previous year. The peak value was recorded in 2018 at 88.765 million US dollars. The largest decline was in 2019 with a 6.5% drop, while the largest increase was in 2018 at 13.3%.

Annual dynamics of product's exports from Bulgaria in value, 2017-2020, K $ US

Between 2017 and 2020, Germany, the Netherlands, and Belgium were the principal destinations for Bulgaria's exports of PE sacks and bags in value terms. Germany accounted for 43.2% of exports, the Netherlands for 12.8%, and Belgium for 7.7%. Collectively, these three markets made up 63.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bulgaria in value, 2017-2020

Imports PE sacks and bags to Bulgaria

Imports in kind, t

In 2020, Bulgaria imported 7 200 tonnes of PE sacks and bags, reflecting a slight increase of 0.7% compared to 2019. Between 2017 and 2020, imports decreased by 2.1%, averaging an annual decline of 0.7%. The lowest import volume was in 2019 at 6 803 tonnes, while the highest was in 2018 at 7 753 tonnes. The largest decline occurred in 2019 with a 12.3% drop, and the largest increase was in 2018 at 10.7%.

Annual dynamics of product's imports to Bulgaria in kind, 2017-2020, t

From 2017 to 2020, Turkey, Germany, and Greece were the main sources of PE sacks and bags imports to Bulgaria in volume terms. Turkey accounted for 24.0% of imports, Germany for 16.8%, and Greece for 14.4%. Together, these three countries absorbed 55.2% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bulgaria in kind, 2017-2020

Imports in value, K $ US

Imports of PE sacks and bags to Bulgaria declined for the second consecutive year. In 2020, import value stood at 17.427 million US dollars, which is 0.9% lower than the previous year. The peak import value was recorded in 2018 at 20.897 million US dollars. The largest decline was in 2019 with a 15.8% drop, while the largest increase was in 2018 at 20.3%.

Annual dynamics of product's imports to Bulgaria in value, 2017-2020, K $ US

Between 2017 and 2020, Germany, Turkey, and Greece were the principal markets for Bulgaria's imports of PE sacks and bags in value terms. Together, these three countries accounted for 55.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bulgaria in value, 2017-2020