The end of the Swedish bag tax spells comeback for GAIA’s Compostable carrier bags

The upcoming removal of the plastic bag tax has rejuvenated the domestic interest for GAIA’s compostable carrier bags, which had all but vanished after the introduction of the tax. Several Swedish companies have reached out to GAIA, declaring an interest in selling the bags once the tax is removed, with one company willing to jump the gun and reintroducing the bags immediately, citing the desire to walk the talk when it comes to sustainability; both from the company, as well as its customers.

In the years prior to the tax, GAIA experienced a rapid increase of its market share, with customers favouring its compostable and biodegradable bags made from Biodolomer over the standard plastic counterparts. That all came to an abrupt end, with sales volumes reduced by more than 95% year on year, upon the introduction of the tax.

Viewed by many as a flop that ended up bringing in a fraction of its estimated revenue, while the sales of non-taxed plastic bags increased sharply, the Swedish plastic bag tax will be removed on November 1st of this year, meaning that the additional cost of 3,60 SEK and 0,40 SEK (incl. VAT), for carrier bags and fruit & vegetable pouches respectively, will become a memory of the past.

Being one of the more vocal adversaries of the tax, GAIA fought hard to have the tax removed, writing opinion pieces criticizing the law, and meeting with several members of the Swedish parliament’s tax and environmental committees to gain support for our standpoint. We now look forward to once again being able to offer the Swedish market what we consider a superior solution, without being hamstrung by a regulation that should never have been introduced in the first place.