Pokémon Go Bag Upgrade has been increased. Previously, you could only purchase Bag Upgrades to hold up to 2,000 items. With the update, you can now get upgrades up to 3,000.
Pokémon Go Bag Upgrade Limit Increased
Bag Upgrades cost 200 PokéCoins in the shop, and each upgrades gives you 50 more slots. You still have to buy multiple upgrades to get the space you need.
It's unknown what prompted the need for an item storage increase, but players may start noticing a surplus of items as Niantic produces more PokéCoin bundles and opportunities to play from home are still limited.
While the increase in item storage is welcome, some players have lamented that Pokémon storage is more important and that there should have been an upgrade to that as well. Items are consumable, but players who have been collecting Pokémon since the game's launch have been hitting the storage limit.