Green Packaging Market Overview

The global green packaging market value was US$ 284,767 million in 2021. This market is expected to grow at a 5.7% CAGR from 2023-2032. The industry's growth is expected to be driven by consumer awareness and strict bans on single-use plastics. The food and beverage industry, increasingly using recyclable and biodegradable packaging, will continue to drive industry growth. Single-use plastic straws, cups, lids closures, and food plates are being replaced by products made of paper or compostable materials in the food service industry. Because of consumer preference for convenience and packaged food, there will be an increase in product demand within the foodservice sector.

Global Green Packaging Market Analysis

Packaging Type Analysis

With a share of 63%, the segment with recycled content dominated in 2021. This category includes recyclable materials, including paper, plastic, glass, and metal. Manufacturers can reuse these materials to make new packaging products. This helps curb excess packaging waste. The plastic type in the recycled segment is widely used across many applications and provides vital packaging properties. Plastics are cost-effective, making them a favorite choice in emerging markets where the cost of the product is important. Flexible pouches are expected to grow in the plastics industry during the forecast period. Paper is another recycled content packaging because it is easy to find, accessible, and popular with consumers. Flexible as well as rigid packaging options can be used with paper. Paper packaging enjoys increased market penetration thanks to improved functionalities like waterproofing through coatings and laminates. Paper is still used in bakery items and food service applications.

The reusable segment includes plastic containers and drums that can be reused for long-term or multiple uses. Drums are used to transport fluids, including a wide range of chemicals. They can be reused for other purposes like garbage bins and have a long shelf-life. Plastic containers are becoming more popular among vegetable and fruit sellers because they can be used for longer and are easily stored and transported.

Request Covid - 19 Impact

Application Analysis

Food and beverages applications held significant global revenue in 2021. The rise in the popularity of green packaging is driving the food and beverage segment. Many fast-food chains, restaurants, packaged food businesses, and casual dining venues have adopted molded pulp packaging.

Many personal care product manufacturers are now shifting to green packaging. Partly, this shift is due to consumers' concern about how sustainable packaging affects the environment. Many consumers have criticized personal care product manufacturers for over-packaging that serves aesthetic purposes and is unnecessary. Companies have adopted paperboard packaging mixed with thin plastic packaging whenever necessary. Despite the stringent regulations governing product packaging, the healthcare market has shown promising growth. A large portion of the pharmaceutical sector uses glass packaging, which is inert and safe for different packaging drugs. Aluminum foil can also be used for packaging capsules and pills.

Companies in the healthcare market are developing innovative molded pulp packaging products that can replace reusable utensils in hospitals. The demand for disposable eco-friendly products will increase due to increasing hospital pressures from the COVID-19 epidemic.

Key Market Segments

By Packaging Type

• Degradable Packaging
• Reusable Packaging
• Recycled Content Packaging

By Application

• Healthcare
• Personal Care
• Food & Beverages
• Other Applications

Market Dynamics

A growing American beverage and consumer goods market is expected to grow significantly. Manufacturers from the region are adapting to consumer preferences and shifting towards more sustainable alternatives. Global players such as Unilever, Procter & Gamble, and other consumer goods companies have begun using post-consumer recycling plastics in their packaging to support their green initiatives.

Premium clothing brands such as H&M follow this trend. H&M uses organic chemicals to label and print its products and aims for a 100% circularity. This has resulted in a worldwide trend for green packaging that all companies will have to adopt if they want to stay competitive. Fast Moving Consumer Goods (FMCG) are the best examples of green packaging. These goods have lower profit margins per unit and are more rigid to cost markups. These companies have adopted light weighing measures to reduce transport costs and save money on raw materials. The consumer's behavior directly impacts packaging solutions in food- and beverage applications. Despite the COVID-19 epidemic, the food & beverages industry has experienced significant growth. It is predicted that this will continue over the next few years, positively impacting the green packaging sector. Consumer convenience is a key focus of the food and beverage industry. They offer convenient on-the-go products, increasing the packaging in food and beverage applications. Healthcare packaging has had to face many challenges with sustainable packaging. This was evident after COVID-19. This is partly due to companies' constraints when packaging products are manufactured.

Hygiene is a critical issue in healthcare packaging. However, the industry has not yet adopted sterile barrier packaging or recycled raw materials. The lack of certainty in the product's biocompatibility with the medicine or drug is the reason for this reluctance. Major industry players are working with end-user companies to reinvent packaging materials and rethink designs. This collaboration aims to improve packaging materials' reusability and energy efficiency and increase the use of recyclable and degradable materials.

Regional Analysis

Europe dominated 2021's market with a 38% share due to strict regulations imposed by the European Union and other European countries regarding single-use plastics. European Directive created the concept of a circular economy. It has established guidelines and set goals for sustainability. European companies follow the circular economic roadmap and embrace recyclable, degradable, and recycled materials.

The Asia Pacific ranked second in 2021. The region is experiencing a rise in government regulations encouraging manufacturers to use green packaging. China, the world's largest manufacturing center, is changing its packaging and materials to be eco-friendlier. The sheer volume of Chinese products will make this a major impact on regional market growth. The Australian government has targeted making 100% recyclable packaging available by 2025. This will create a dramatic upward market value trend over the period.

The aggressive efforts of the governments in the region have helped North America to be on par with the Asia Pacific in terms of market share. Canada's government has set up numerous recycling infrastructures to encourage recycling. Canada banned using polystyrene cups and containers in Vancouver to decrease solid waste disposal. The government's initiatives support the growing consumer demand for eco-friendly packaging and products. This has driven the region's demand.

Key Regions and Countries covered in thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Industries are now focusing their R&D efforts on new plant-based materials miming existing plastics' properties. Companies are redesigning the packaging to use less material and reduce the amount of waste. Tetra Laval, Nampak, and Sealed Air are the most prominent companies in this market. Evergreen Packaging has promoted Corporate Social Responsibility, such as Carton 2 Garden, to increase awareness and encourage sustainable packaging. Market players are increasingly investing in new packaging designs and materials that can be recycled infinitely and have high material strengths.

Маrkеt Кеу Рlауеrѕ:

• Amcor Plc
• DS Smith Plc
• DuPont de Nemours Inc.
• Tetra Laval Corp.
• Ball Corp.
• Evergreen Packaging
• Nampak Ltd.
• Sealed Air Corp.
• Other Key Players

For the Green Packaging Market research study, the following years have been considered to estimate the market size: