The paper bag problem arises from durability issues, environmental concerns, and production costs. While paper bags are biodegradable, they are more susceptible to tearing when exposed to moisture compared to plastic alternatives. Additionally, large-scale paper bag production requires significant resources, including water and energy, raising concerns about their overall environmental impact. Some businesses struggle with the higher costs associated with premium paper bags, especially those requiring reinforced handles and custom branding. Addressing the paper bag problem requires innovations in material strength, sustainable sourcing, and cost-efficient production methods.