Green Packaging Market

The global green packaging market size was valued at $1,64,176.6 million in 2020, and is projected to reach $3,37,542.0 million by 2031, registering a CAGR of 6.6% from 2022 to 2031. The recycle content packaging segment was the highest revenue contributor to the market with a CAGR of 6.5%.    

The green packaging market is emergent, and is anticipated to show significant growth in the next six years fueled by the advent of bioplastic, environmental concerns on sustainable development, and enforcement of stringent rules and policies by regulatory authorities. Rise in awareness among consumers for luxury goods toward green packaging techniques that use bioplastics as raw material across various sectors, including FMCG, personal body care, and pharmaceuticals has driven the market growth. The amount of solid waste generated is not at par with the recycling capacity, thus  restraining the market growth.

A wide range of oil-based polymer is currently used in packaging applications. This material is non-biodegradable in nature and is difficult to recycle or reuse, as it can become contaminated. Biodegradable plastics were developed from renewable resources to overcome the drawbacks of non-biodegradable products.

Green packaging can reduce greenhouse gas emissions as it uses less fossil fuels in its production, and the products are biodegradable in nature. Land-filled organic food and garden waste releases methane gas that is used as renewable energy and the compost by-product is used to enhance soil quality which will have a positive impact on the green packaging market growth.

Moreover, high production and set up cost have refrained businesses to adapt green packaging. In addition, lack of government initiatives especially in developing countries through subsidies for recycling and lack of space for storing recycled material hinder the market growth. 

Food & beverage industry has rapidly embraced green packaging. This is attributed to the rise in awareness among consumers and preference of manufactures to increase their product shelf life. Moreover, decrease in landfill sites, increase in the efficiency of reverse logistics operation of recycled products, and eco-friendly legislations from government and UN are the key drivers for the market. 

The global population explosion has led to the scarcity of natural resources and limited space for waste disposal. The government legislations on environment are expected to increase the market demand. 

Sustainable initiatives by multinational companies such as Dow Chemical Company, Henkel AG & KGaA, and Mitsubishi Corporation to promote sustainable development by forming a community called ‘Together for Sustainability’ is a platform for the green packaging market. This initiative supports the United Nations Global Compact and Responsible care to achieve sustainable development. 

Despite the unfavorable situation, there are some positive scenarios that occurred during the pandemic. The development of vaccines and their approval in few countries has provided some relief. The global green packaging market is expected to witness a V-shaped recovery post-pandemic. However, an upward trend has been noticed in the revenue of the key market players in the fourth quarter of 2020-2021.

According to the green packaging market analysis, the market is segmented on the basis of application, packaging type, material, and region. On the basis of application, the market is segmented into food & beverage, personal care, health care, and others. By packaging type, the market is segmented into recycled content packaging, reusable packaging and degradable packaging. Based on material paper, plastic, metal, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.   

By application, the green packaging market is segmented into food & beverage, personal care, health care, and others. Food & beverage packaging was the highest revenue generator with 60.66% of the total revenue generated by application in green packaging market. This segment includes packaging of FMCG products, dairy products, beverages, and others.  

By packaging type, recycled content packaging held the major green packaging market share in the market. Recycled content packaging offers better utilization of eco-friendly techniques and resources. It comprises various material such as paper, plastic, metal, glass, and others. 

Region wise, Europe held the major share in the market. Germany, the UK, Italy, and France are expected to increase their revenue generated during the green packaging market forecast period. The technological advancement in these countries and stringent government regulations are expected to drive the market.   

The key leading players operating in this market include Amcor Limited, E. I. DuPont de Nemours and Company, Mondi Limited, Sealed Air Corporation, TetraPak International S.A., Ardagh Group Co., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, and ELOPAK AS. 

Key Benefits For Stakeholders 

• The report provides a quantitative analysis of the current green packaging market trends, estimations, and dynamics of the market size from 2020 to 2031 to identify the prevailing opportunities.       
• The Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network. 
• In-depth analysis and the market size and segmentation assist to determine the prevailing green packaging market opportunities.      
• Drivers and restraints are analyzed depending on type in the green packaging industry.   

 Green Packaging Market Report Highlights