Global Statistics Representing Green Packaging Market Scenario
Green packaging is the sustainable way of manufacturing and the use of raw materials that will have no or less impact on both the environment and energy consumption. Green packaging is manufactured using eco-friendly materials, including biodegradable and recyclable materials and alternative energy sources. Materials such as synthetic plastics, Styrofoam, and polystyrene, among others, are strictly prohibited. Energy conservation, increased recycling rate, waste reduction, and cleaner manufacturing are some of the benefits of green packaging.
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COVID-19 Impact on the Packaging Industry
COVID-19 pandemic has been a critical factor restraining the growth of the green packaging market across the globe. The pandemic has resulted in disruptions between supply and demand as primary consumers and producers of packaging products are profoundly affected by the COVID-19 outbreak. For instance, Procter and Gamble are facing challenges regarding packaging for its more than 17,000 different finished products as it’s access to more than 370 Chinese suppliers is restricted due to factory closures in China.
Packaging stakeholders’ activities that involve advanced technologies and strategies to adopt are on halt, which also has negatively affected the trading activities across the packaging industry. For instance, events like Amsterdam-based Plastics Recycling Show Europe and Germany-based Interpak are postponed considering the global pandemic.
Increasing Packaging Waste Compelling Companies to Adopt Green Packaging Solutions
Packaging waste has been the foremost environmental concern since the last decade; hence, green packaging has been increasingly highlighted by regulatory institutions and governments across the globe. According to the Environmental Protection Agency (EPA), packaging holds a significant portion of municipal solid waste and accounted for approximately 30% of the total waste generated. According to the EPA, in 2017, roughly 268 million tons of municipal solid waste is produced, of which containers and packaging amounted to 80.08 million tons.
Figure: Containers and Packaging in MSW by Weight in the U.S., 1960–2017 (Thousands of U.S. Tons)
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Plastic is a non-biodegradable material, and every piece of plastic produced on the planet leads to the critical environmental issue. Out of the total plastic produced, more than 40% is consumed by the packaging industry. Huge plastic consumption and lower recycling rates are leading to the rising adoption of green packaging across the globe.
Notable Brands Inclining Toward Green Packaging
Notable brands in the FMCG and consumer goods sector, including Procter & Gamble, Puma, Coca-Cola, Danone, Tetra, Heinz, IKEA, among others, are shifting toward the green packaging for their products. For instance, in June 2019, Procter and Gamble (P&G) announced a 30% reduction in the synthetic plastic packaging for its Ariel and Lenor brands by 2026 across Europe. Coca Cola has developed PlantBottle for its several consumer products. PlantBottle packaging accounts for more than 32% of the company’s total packaging volume in North America, while at global levels, it accounts for approximately 8%. In 2018 Amcor plc announced its vision to replace all the packaging with recycled and multi-use packaging by 2025. Additionally, TetraPak announced in 2018 that 70% of its TetraPak carton will be produced by sustainable timber.
Global Shift Leaning Toward Plant-Based Plastics
Presently, most of the plastic materials used on a daily basis are non-biodegradable and produced from fossil fuels. The critical concern nowadays is the increasing non-degradable waste on the planet and limited reserves of non-renewable energy sources. Hence, there is a dire need for bioplastics as they are polymers of biomass, mainly carbon-based compounds derived from vegetable oils and fats, starch corn, and others. According to the European Bioplastics Association, bioplastics accounts for only 1% of the approximately 320 million tons of plastic produced annually. However, increasing awareness regarding environmental concerns has encouraged a lot of efforts concerning the development of various biodegradable plastics. Several bioplastics and biopolymer companies operating in the market are engaged in R&D to develop advanced green materials, which ultimately supports the growth of the green packaging market.
Favorable Government Policies and Stringent Waste Management Regulations to Bolster Market Growth
The green packaging market is expected to witness significant growth during the forecast period (2020–2029), owing to the rising adoption of sustainable packaging, favorable government policies, stringent waste management regulations, and increasing human health concerns. The stringent regulation set by the administrative bodies with respect to the result in carbon reduction by the major producers is expected to drive the green packaging market. Additionally, limited petroleum resources and fluctuations in the oil costs have prompted the organizations to look for alternative sources of raw material.
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North America is expected to lead the global green packaging market during the forecast period (2019–2026) on account of the strict environmental regulations regarding waste management and government initiatives for promoting green and sustainable packaging. Asia has the highest production capacity across the globe when it comes to bio-plastic manufacturing and recycling facilities; however, North America leads the actual consumption of green packaging, where the U.S. is the largest global consumer for green packaging
Asia-Pacific’s Growing Awareness Concerning Green Packaging
Asia-Pacific is expected to be the next hub for the green packaging market in the upcoming years, owing to the rapidly growing production, increasing awareness regarding the benefits of green packaging, and the existence of numerous players operating in the market. The region dominates the raw material production for green packaging. According to the European Bioplastics Association, Asia holds more than 50% of the total global production capacity and is expected to rise during the forecast period.
Rising awareness about bioplastics packaging is superseding synthetic plastics across India and China. Asia-Pacific is one of the primary consumers and producers of synthetic plastic packaging; therefore, the region posses lucrative opportunities for the green packaging market. The higher production cost of raw materials, including bioplastics and biopolymer, is expected to hamper the growth of the green packaging market. Lower labor costs, availability of advanced infrastructure, and favorable government policies are some of the other factors fueling the growth of the regional green packaging market. However, companies are working on the development of the alternative technology and production process to lower the production cost.
Prominent players in the global green packaging are Amcor plc, Dupont de Nemours, Inc., DS Smith Plc, BASF SE, Evergreen Packaging LLC, Mondi plc, Nampak Ltd., Tetra Pak International S.A., BALL CORPORATION, Sealed Air Corporation, Ardagh Group S.A., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, Elopak AS, and Catalyst Paper among others.
The green packaging market is witnessing a rising number of small scale producers across the globe. Thus, large players are facing fierce competition from these small scale players. Partnerships and acquisition are the key strategies adopted by the companies to strengthen their position in the green packaging market.
In May 2019, Walki Group announced the acquisition of Plastiroll Oy, a sustainable packaging material producer from Finland. The acquisition would enhance the company’s green packaging portfolio.
In October 2018, Unilever and Veolia entered into a partnership to work on sustainable technologies, improve waste collection, and to develop recycling infrastructure. This was a part of Unilever’s commitment to covert all the packaging into fully reusable, recyclable, or bio-degradable by 2025.
In November 2019, New Zealand courier company Aramex announced a partnership with the eco-packaging brand, the Better Packaging Co., to incorporate sustainable packaging across the supply chain.
Green Packaging Market Segmentation
- Polylactic Acid
- Starch-Based Plastics
By Packaging Type
- Recycled Content Packaging
- Reusable Packaging
- Degradable Packaging
- Food & Beverages
- Personal Care
- Consumer Durables
- U K.
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of Latin America
- Saudi Arabia
- Rest of ME
- South Africa
- Rest of Africa
Frequently Asked Questions (FAQs)
Amcor plc, Dupont de Nemours, Inc., DS Smith Plc, BASF SE, Evergreen Packaging LLC, Mondi plc, Nampak Ltd., Tetra Pak International S.A., BALL CORPORATION, Sealed Air Corporation are the top players in Green Packaging Market.
North America is expected to hold the highest market share in Green Packaging Market.
Rising awareness about bioplastics packaging, increasing packaging waste compelling companies is the key factors expected to drive Green Packaging Market during the forecast period.
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