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2022

Sustainable Packaging Market

Sustainable Packaging Market Size, Share, Competitive Landscape and Trend Analysis Report by Material Type (Paper and Paperboard, Plastics, Aluminum, Others), by Packaging Type (Rigid Packaging, Flexible Packaging), by End Use (Food and Beverage, Personal Care, Healthcare and Pharmaceuticals, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031

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Author's: Prakhar Jain | Eswara Prasad
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Sustainable Packaging Market Research, 2031

The global sustainable packaging market size was valued at $93.6 billion in 2021, and sustainable packaging industry is projected to reach $190.6 billion by 2031, growing at a CAGR of 7.4% from 2022 to 2031.

Sustainable packaging is crucial for preserving the product's shelf life and minimizing negative environmental effects, which are magnified by the use of non-biodegradable plastics in packaging. The five R’s involved in sustainable packaging include Removing, Reducing, Recycling, Renewing, and Reusing. Sustainable packaging also has a smaller environmental impact. This therefore creates a foundation for ecofriendly, healthful, and sensible packaging methodology. Sustainable packaging is used in practically every sector vertical, although it has mostly found a significant stake in the food & beverage, FMCG, retail trade, wholesale, and healthcare industries, to name a few. This new concept of packaging has also brought in a new dimension for innovations giving a whole lot of opportunities for the entrepreneurs to explore various untapped dimensions in this field.

Sustainable Packaging Market

Consumers' growing environmental concern is one of this industry's main drivers. The health of the environment has been harmed by non-biodegradable plastic, which has a number of negative effects including soil pollution, landfills, and a loss of soil fertility. This has had an effect on the current social environment. Most countries have strict regulations in place regarding the usage of plastic carriers and bags. South Africa, Uganda, Somalia, Rwanda, Botswana, Kenya, and Ethiopia are just a few of the nations that have outright banned the use of plastic bags. Another major force in the industry is the rise in consumer demand for the use of eco-friendly packaging for organic foods.

Many businesses throughout the world, including Hovis, have introduced bread that is packaged with renewable polyethylene. Gillette Razor, Dixie Egg Company, Wolfgang Puck Coffee and others have come up with some amazing packaging formats. This packaging style is not only environmentally friendly, but also attracts customers' attention. A major constraint in this industry is overcapacity. Due to their low prices, non-biodegradable plastic bags are still considered the best and most popular packaging material around the world. As a result, packaging companies cannot balance sales volume and production capacity.

Plastic bags and pouches are expected to remain the standard form of packaging during the forecast period due to their ability to preserve food freshness and extend product shelf life. Additionally, petroleum-based plastic bags and pouches offer great visual aesthetics and are sustainable, which adds to the marketing advantages of their products. Companies are focusing on developing bio-based PVC. In October 2021, Cargill announced the addition of its biobased plasticizer, Biovero®, to its bioindustry solutions portfolio. It is used in a variety of product manufacturing applications such as flooring, clothing, wire, cable, plastic films and sheets to serve industrial customers. Throughout North America, there are plans to expand the product worldwide. Such cases are expected to drive the adoption of sustainable PVC in the coming years.

Also, Companies are offering new technologies to integrate sustainable plastic packaging. In May 2020, his YPACK for EU project developed an innovative sustainable plastic food packaging that extends the shelf life of food. YPACK's compostable packaging contains sustainable biopolymers, poly(3-hydroxybutyrate-co-3-hydroxyvalerate) (PHBV), produced by-products, cheese whey, and microcellulose from almond shells. The U.S. Food and Drug Administration recognizes PLA plastic as safe for all food packaging applications and is widely used in many single-use packaging applications. Other uses of PLA are automotive, textiles, foams and foils.

Providers such as his WeforYou, a developer and producer of biopolymers and sustainable packaging solutions, offer pure PLA bags, PLA compounds, and laboratory and compounding services. PLA plastic is expensive compared to traditional petroleum-based plastics. On the other hand, they have less mechanical and physical properties. The sustainable packaging market forecast is classified on the basis of material type, packaging type, end-use industry and region. On the basis of material type, the market is bifurcated into paper & paperboard, plastics, aluminum and others. On the basis of packaging type, the market is divided into rigid packaging and flexible packaging. On the basis of end-use industry, the market is bifurcated into food & beverage, personal care, healthcare and pharmaceuticals and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

Sustainable Packaging Market by Material Type

As per sustainable packaging market analysis, by material type, the paper and paperboard segment dominated the global sustainable packaging market share in 2021. This is due to increased government campaigns to educate consumers about the benefits of paper packaging and eco-friendly products, which is expected to benefit sustainable packaging market growth. Paper is used in many flexible packaging applications such as confectionery, pet food and dry food. After years of declining demand, paper-based flexible packaging is gaining popularity among the general public as end-users seek more sustainable packaging solutions.

Sustainable Packaging Market by Packaging Type

By packaging type, the rigid packaging segment accounted for the highest market share of around 56.2% in 2021 and is projected to maintain the same during the forecast period. Increase in awareness for environment protection activities has made the customer become more linear toward using bioplastics-based flexible packaging films in various end use sectors including food & beverage, agriculture, and other end use sectors. This is projected to further boost the growth of the bioplastics market for rigid packaging applications.

Sustainable Packaging Market by End Use

By end use, the food & beverage segment held the largest share of the market in 2021 and is expected to remain dominant during the forecast period owing to huge demand for packaged and branded products. Sustainable packaging has become a necessity in the food and drink industries. To remain competitive in today's market and thrive in the future, food and beverage companies' packaging must be sustainable. Consumer wants and demands are driving R&D budgets for food and beverage manufacturers around the world. As countries like India and China continue to increase their gross domestic product, the food and beverage market expands and their packaging comes under fire. Another motivation for food and beverage manufacturers is consumer health. Therefore, demand for sustainable packaging is expected to grow, with increase in demand for food and beverages during the forecast period.

Sustainable Packaging Market by Region

By region, Asia-Pacific accounted for the largest share in the global sustainable packaging market in 2021. China's major courier companies and e-commerce platforms are taking proactive measures to reduce packaging consumption. For example, SF Express used recyclable packaging that can be reused about 10 times on average. The developments in India's middle class, rapid expansion of organized retail, growth in exports, and India's burgeoning e-commerce sector should enable further growth. This has created a need for sustainable packaging that can reduce environmental impact while maintaining the highest quality.

Impact of Covid-19 on Global Sustainable Packaging Market

The COVID-19 pandemic has had a moderate impact on the sustainable packaging market. Due to the strict lockdown, the production of sustainable packaging products were halted. However, the market showed a significant growth after relaxation of lockdown.

The growth of market was mainly due to the consumption of sustainable packaging products in different end-use industries including food & beverage industry, healthcare, cosmetics & personal care, and e-commerce. There is an increase in flexible, rigid plastics, and corrugated packaging. The food packaging industry continued to robust the demand of the sustainable packaging products owing to the increase in awareness regarding the hygiene. Moreover, there was high growth for rigid packaging for e-commerce and grocery deliveries. There was an incline towards the growth of sustainable packaging products in healthcare sector, including flexible blister foils, pumps, closures and rigid plastics. Also, the packaging used in dietary supplements such as vitamins and for essential supplies, such as allergy medication has boosted the market.

Consumers across the globe are going to be increasingly inclined to buy their products through different channels from those they used before the pandemic, leading to a strong acceleration of e-commerce shipments and other home-delivery services. There has been a shift towards online grocery stores in different regions.

For instance, in China, the online sales of fresh food by a large online retailer grew more than 200% during a ten-day period in late January 2020 compared with the same period in 2019. Moreover, UK government and World Health Organization guidelines recommended not touching loose foods unless one intend to buy them. So, DS Smith has innovative mid-term solutions to meet some of these challenges, including corrugated boxes, punnets, trays and latest innovation ECO Bowl which all reduce plastic significantly but still protect the product from damage, food waste or hygiene-related concerns. In this way, there has been a continuous rise in the demand for sustainable packaging products.

Competitive Landscape

The key players operating in the global sustainable packaging market are Amcor plc, Ardagh Group S.A., Ball Corporation, BASF SE, Crown Holdings, Inc., DS Smith, Elopak AS, Emerald Packaging, Mondi, Nampak Ltd., Plastipak Holdings, Inc., Sealed Air, Sgf packaging Co. Ltd, Smurfit Kappa Group PLC, Sonoco Products Company, Tetra Pak and WestRock Company. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their market shares.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the sustainable packaging market analysis from 2021 to 2031 to identify the prevailing sustainable packaging market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the sustainable packaging market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global sustainable packaging market trends, key players, market segments, application areas, and market growth strategies.

Sustainable Packaging Market Report Highlights

Aspects Details
Market Size By 2031
Market Size By 2031

USD 190.6 billion

Growth Rate
Growth Rate

CAGR of 7.4%

Forecast period
Forecast period

2021 - 2031

Report Pages
Report Pages

347

Sustainable Packaging Market By Material Type
By Material Type
  • Paper and Paperboard
  • Plastics
    • Type
      • Biodegradable
      • Bio-based
  • Aluminum
  • Others
Sustainable Packaging Market By Packaging Type
By Packaging Type
  • Rigid Packaging
  • Flexible Packaging
Sustainable Packaging Market By End Use
By End Use
  • Food and Beverage
  • Personal Care
  • Healthcare and Pharmaceuticals
  • Others
Sustainable Packaging Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, Italy, Spain, UK, Rest Of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest Of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, Saudi Arabia, Rest Of LAMEA)
Key Market Players
Key Market Players

Sonoco Products Company, Smurfit Kappa Group PLC, Tetra Pak, SGF Packaging Co., Ltd., WestRock Company, Plastipak Holdings, Inc., Emerald Packaging, BASF SE, Amcor plc, Mondi plc, Crown Holdings, Inc., Elopak AS, DS Smith plc, Sealed Air Corporation, Nampak Ltd., Ball Corporation, Ardagh Group S.A.

Analyst Review

According to CXO Perspective, Sustainable packaging refers to the development and use of packaging with improved sustainability. Growing environmental awareness has led to a shift to eco-friendly packaging. Consumer preference for low cost, lightweight and biodegradable packaging has increased the need for lightweight, recyclable and sustainable packaging. Therefore, the adoption of sustainable packaging in the packaging industry projects significant growth for the sustainable packaging market during the forecast period.

Growing public awareness of the concept of recycling and reusing products to protect the environment from harmful effects has led to the growth of the sustainable packaging market. In addition, the use of biodegradable packaging materials provides consumers with an eco-friendly and healthy option. This concept has played a key role in creating new dimensions of innovation. The sustainable packaging industry offers a wide range of opportunities for both suppliers and manufacturers. suppliers can provide raw materials to new entrants who have invested in the sustainable packaging industry, such as Dell. Dell has started shipping products in packages containing mushroom ingredients that combine mushrooms and straw.

Author Name(s) : Prakhar Jain | Eswara Prasad
Frequently Asked Questions?

Rise in demand for sustainable food packaging and government regulations favoring sustainable packaging are the key factors boosting the Sustainable packaging market growth.

The market value of Sustainable packaging in 2031 is expected to be $190.6 billion

Amcor plc, Ardagh Group S.A., Ball Corporation, BASF SE, Crown Holdings, Inc., DS Smith, Elopak AS, Emerald Packaging, Mondi, Nampak Ltd., Plastipak Holdings, Inc., Sealed Air, Sgf packaging Co. Ltd, Smurfit Kappa Group PLC, Sonoco Products Company, Tetra Pak and WestRock Company

Packaging industry is projected to increase the demand for Sustainable packaging Market

The sustainable packaging market is segmented on the basis of material type, packaging type, end-use industry and region. On the basis of material type, the market is divided into paper & paperboard, plastics, aluminum and others. On the basis of packaging type, the market is classified into rigid packaging and flexible packaging. On the basis of end-use industry, the market is categorized into food & beverage, personal care, healthcare and pharmaceuticals and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

High demand from end-use industries is the Main Driver of Sustainable packaging Market.

Post covid-19, The growth of market was mainly due to the consumption of sustainable packaging products in different end-use industries including food & beverage industry, healthcare, cosmetics & personal care, and e-commerce. There is an increase in flexible, rigid plastics, and corrugated packaging. The food packaging industry continued to robust the demand of the sustainable packaging products owing to the increase in awareness regarding the hygiene. Moreover, there was high growth for rigid packaging for e-commerce and grocery deliveries. There was an incline towards the growth of sustainable packaging products in healthcare sector, including flexible blister foils, pumps, closures and rigid plastics. Also, the packaging used in dietary supplements such as vitamins and for essential supplies, such as allergy medication has boosted the market.

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Sustainable Packaging Market

Global Opportunity Analysis and Industry Forecast, 2021-2031