Green Packaging Market

Market Overview

The global green packaging market size was valued at USD 229.46 billion in 2021. It is expected to reach USD 409.2 billion by 2030, growing at a CAGR of 7.5% during the forecast period (2022–2030).

A great deal of packaging circulates across the world. Amazon, USPS, FedEx, and UPS, among others, ship millions of packages daily. Green packaging, often called sustainable packaging, employs materials and manufacturing processes for packaging goods that have a negligible impact on energy consumption and the environment. In place of plastic and Styrofoam, biodegradable and recyclable materials are frequently used in environmentally friendly packaging. In addition, green manufacturing processes take measures to limit their electricity production and greenhouse gas emissions. Most manufacturers employ sustainable packaging to eliminate the toxins and chemicals that degrade the planet's water, soil, and atmosphere, following government standards.

Packaging materials significantly contribute to the global waste problem. Plastic bags, plastic wrappings, plastic containers, styrofoam sheets, styrofoam packing peanuts, and plastic bubble wrap will pollute and litter our landscapes, waterways, and oceans for more than 400 years. Numerous suppliers are experimenting and producing reusable packaging options to fulfill consumer demand. Additionally, sustainable packaging plays a crucial part in the expanding circular economy. In the conventional linear economy, goods are manufactured, consumed, and then discarded, contributing to the global waste problem. Through recycling, harvesting, reusing, and refurbishing, resources are kept in use for a more extended period in a circular economy. Overall, the market for green packaging is anticipated to expand significantly over the projected period because of rising demand from end-user industries and environmental awareness.

Market Dynamics

Global Green Packaging Market Drivers

Strict Government Regulations and Increased Awareness

The European Union has experienced a strong dynamic since the Single-Use Plastics Directive and the release of the new EU Commission's European Green Deal, which got more vital in 2020. The primary components of the European legal framework for plastics are currently being revised. This opens up new possibilities for the green packaging industry, which might be crucial in realizing the European Union's goal of a circular economy that is low-carbon and resource-efficient. State-wide restrictions on plastic bags were implemented in the United States. Eight states already approved laws outlawing single-use plastic bags, and three more did it in 2020: California, Hawaii, and Oregon.

Asia-Pacific nations have taken similar measures to combat single-use plastics. For instance, China launched a comprehensive plan to eliminate single-use plastics nationwide, aiming to ban non-biodegradable bags in all cities and towns by 2022, starting with the major cities. Numerous governments of various countries have enacted the prohibition on single-use plastics in recent years, which has fueled the emergence of green packaging options as alternatives to traditional packaging.

Additionally, the growing demand for sustainable products by consumers and industry is driving the growth in the use of green packaging solutions. In addition to the bioplastics industry's ongoing breakthroughs and discoveries in new materials with superior qualities and functions, this is due to a growing awareness of the environmental effects and the need to reduce reliance on fossil fuels. Furthermore, many brands are converting to sustainable packaging by employing green packaging options. Colgate makes use of recyclable toothpaste tubes, for instance. The green packaging market is anticipated to be driven throughout the forecasted period by all this innovation and dedication from companies and consumers to sustainable packaging products.

Global Green Packaging Market Restraints

Inadequate Supply of Bio-Plastics and Other Materials

A global shortage of PLA is causing the need for eco-friendly substitutes for conventional plastic disposables to rise. Companies that supply biobased products, like Bio Futura, have been experiencing stock issues on a global scale; just a few manufacturers generate the basic materials for PLA products. The availability of raw materials for bioplastic and biodegradable packaging solutions is also impacted by natural disasters like floods, tornadoes, and earthquakes because these raw materials are typically derived from fruits, vegetables, and agricultural items. In addition, the bioplastic market is a tiny, specialized one. The mechanical strength of bioplastics is lower than that of their petrochemical-based counterparts, and production costs are also limiting the market's expansion.

Global Green Packaging Market Opportunities

Growing Focus on Major Brands

There is a significant environmental carbon footprint due to the rising use of non-recyclable, non-biodegradable plastic packaging. As a result, many large companies, including Tetrapak, Google, and Amazon, are working to attain net-zero carbon emissions, which is projected to open up many new opportunities for the green packaging industry. By 2025, Google promised to pack all its products entirely without plastic and with recyclable materials. The business also pledged that by 2022, all its manufacturing sites would be certified as zero waste to landfill.

The Nestle United States has also been moving forward with new projects and a brand promise to attain net zero since 2020. The company's stepwise strategy seeks to achieve net-zero emissions by 2050 and cut Nestle emissions in half by 2030. Additionally, the business is supplying its brand-new Bite-Sized Chocolate Chip Edible Cookie Dough to a few stores in a flexible plastic bag that is entirely recyclable, right down to the zipper. Major businesses worldwide are investing and taking steps to attain net zero, opening up many opportunities for the green packaging market.

Regional Analysis

Asia-Pacific Commands Maximum Market Share

By region, the global green packaging market includes North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific will command the market, expanding at a CAGR of 9% over the forecast period. The regional market in Asia-Pacific is driven primarily by China. Due to the growing interest of businesses in China, it has the largest economy in Asia-Pacific. China's economy is among the fastest-growing in the world. As a result of expanding per capita income, living standards, and population, nearly all end-user industries have experienced growth. Based on a study released by the National Bureau of Statistics of China, Chinese plastic producers create a sizeable portion of the world's plastic, with 4.89 million tons produced in 2019 against 6.12 million in 2020. The government is now forced to focus on sustainable packaging alternatives.

Additionally, the nation has been building a green packaging standard system by establishing national standards like the Green Product Assessment -Packings for Express Service and the specifications for information sharing of express Items in air transport. Concerns over environmental pollution have prompted directives from Beijing and the possibility of a ban on conventional plastics, such as single-use non-biodegradable plastics like cutlery, plastic bags, and packaging. As a result, manufacturers have also been concentrating on the increased use of corn, sugar, and other crops to develop biodegradable plastics.

North America is expected to account for USD 100 billion by 2030, growing at a CAGR of 6%. The United States and Canada are the major market contributors. Throughout the projection period, it is anticipated that increasing consumer awareness of environmental issues and supportive government laws would fuel demand for green packaging in the United States. According to the Environmental Protection Agency, the United States produces up to 80 million metric tons of packaging waste annually. Food and beverage goods account for around half the packaging waste in the United States. The agency noted that major food companies like Nestle and Unilever produce most plastic garbage.

Numerous of these businesses have recently promised to lessen the environmental impact of their packaging in response to public pressure and recognition of this problem. Other smaller companies are taking similar actions in the food and beverage sector, some of which have long been at the forefront of packaging advancements. Manufacturers are taking advantage of the opportunities presented by the rising demand for environmentally friendly packaging from food chains like McDonald's, which plans to adopt 100% sustainable packaging by 2025 rather than resist change. Additionally, it opens up a huge opportunity for green packaging producers to enter and increase their market share.

Segmental Analysis

The global green packaging market is segregated by packaging type, end-user, and region.

On The Basis of Packaging Type

By packaging type, the global green packaging market includes Recycled Content Packaging, Degradable Packaging, and Reusable Packaging.

The Recycled Content Packaging section is projected to expand at a CAGR of 7.41% and hold the largest market share over the forecast period. Recycled content packaging is further sub-segmented into Paper, Metal, Plastic, and Glass. Paper is widely used in such types of packaging. The most popular sustainable packaging strategies businesses use are reducing the size or weight of packaging and utilizing more recycled and renewable materials. As a result, more companies are using paper and cardboard in diverse capacities. Additionally, it makes sure the packaging is recyclable for future use, which is eco-friendly. The general population is becoming increasingly accustomed to paper-based flexible packaging as customers want more environmentally friendly packaging options.

The Reusable Packaging section will hold the second-largest market share. Drums, Plastic Containers, Intermediate Bulk containers, etc. are some of the widely used reusable packaging means. Drums are the most versatile and flexible green packaging solutions, enabling many large-scale end-user sectors, such as chemicals, food and drinks, and construction, to conduct daily operations with a low carbon footprint or waste production. With improved manufacturing techniques, engineers have improved the performance and dependability of drums while simultaneously reducing the number of raw materials required.

On The Basis of End-User

By end-user, the global green packaging market includes Food, Beverage, Pharmaceutical, Personal Care, and Others.

The Food section is projected to advance at a CAGR of 6.57% and hold the largest market share over the forecast period. People are steadily becoming more ecologically aware, which suggests they are selecting more purchases with sustainability in mind. As a result, the food packaging business is witnessing a shift in consumer preferences. In the food sector, plastic has been one of the most favored materials for almost two decades. Companies are utilizing recycled plastics due to the cheap cost of manufacturing plastics, which enables them to make packages at low cost and follow sustainability standards.

The Beverage section will hold the second-largest market share. The New York Times reported that some areas of San Cristóbal de las Casas, the regional center of Los Altos, Mexico, have running water only occasionally and that many residents are forced to buy additional water from tanker trucks. Therefore, several residents use carbonated beverages, which can be more accessible than bottled water and are almost as inexpensive. This has considerably driven the plastic packaging sector in the United States.

Recent Developments

• 2022 - Amcor Limited opened its newest Innovation Center in Jiangyin, China. The new center contributes to regional prosperity and innovation by bringing cutting-edge packaging technology and more environmentally friendly material science to Asia-Pacific.