Sustainable Packaging Market - Global Industry Analysis

Sustainable Packaging Market By Application (Food & Beverages, Personal Care, Healthcare, and Others.). By Packaging Type (Recycled Content Packaging (Paper, Plastic, Metal, Glass, Others), Reusable Packaging (Drum, Plastic Container, Others), Degradable Packaging) and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2028

Published Date: 06-May-2022 Category: Packaging Report Format : PDF Pages: 188 Report Code: ZMR-1356 Status : Published

The Sustainable Packaging Market was worth around USD 265.9 billion in 2021 and is estimated to grow to about USD 358.3 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.10 percent over the forecast period.

Description

Industry Prospective:

The Sustainable Packaging Market was worth around USD 265.9 billion in 2021 and is estimated to grow to about USD 358.3 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.10 percent over the forecast period. The report analyzes the private hospital market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the private hospital market.

Sustainable packaging is the use of packaging materials and solutions that are biodegradable and readily recycled and reused. Sustainable packaging materials are harmless to the environment which means that they are safe for the environment. Sustainable packaging methods also have a positive impact on the environment. The growing consumer awareness regarding sustainable packaging, the strict bans regarding the usage of single-use plastics, rising environmental concerns caused by the packaging waste that ends up in landfills are some of the major factors that will drive the growth of the market in the forecast period. Furthermore, rising research and development capabilities, rising need for flexible packaging materials and solutions, and rising technical breakthroughs in packaging equipment and technology are some of the other factors that will push market expansion in the future years. The business is expected to increase steadily in the future years as a result of the expanding food and beverage industry, which is increasingly adopting packaging produced from biodegradable and recyclable materials. Single-use plastic straws, lids, closures, caps, cups, and food trays are being replaced by goods made of paper or biodegradable alternatives in the food service business. Moreover, stringent regulations imposed by the government on the use of non-biodegradable packaging solutions, increased proliferation of the e-commerce industry, and rising availability of space-saving packaging solutions will contribute to the growth of the market in the approaching years.

COVID-19 Impact:

The COVID-19 pandemic hit the sustainable packaging market industry severely, causing huge revenue losses to end-users like personal care, and pharmaceuticals. The healthcare packaging market also faced enormous challenges regarding sustainable packaging during COVID-19. Single-use plastic straws, lids, closures, caps, cups, and food trays are being replaced by goods made of paper or biodegradable alternatives in the food service business. The sustainable packaging market, on the other hand, is quickly returning to normal, as seen by continuously growing demand. Increased manufacturing activities and demand for storage and distribution applications are expected to provide further market possibilities.

Despite the Covid-19 epidemic, the food and beverage sector has grown significantly and is predicted to increase more during the forecasted time, favorably benefiting the green packaging business. The food and beverage sector is continually catering to the convenience of consumers by delivering on-the-go consumption items, which is likely to increase demand for packaging in food and beverage applications.

Sustainable Packaging Market: Growth Drivers

Increasing Demand for Sustainable Food Packaging to Drive Market Growth

The factors like environmentally friendly materials such as bioplastics, recyclable paper & plastics, plant-based biomaterial, organic fabrics, refurbished products, easy to use and biodegradable in nature, less environmental effect, non-reactive with food, and keeping food safe from contamination and other environmental repercussions, there is a significant demand in the market for green food packaging. The growing need for sustainable food packaging among consumer packaged goods industries is projected to fuel the trend for convenience foods. Recent advances in sustainable packaging, such as edible packaging of materials with a major focus on reduced carbon footprint and waste reduction, are economically enticing to both producers and customers, fueling future market growth. Food technology has been an enabler and motivator for customers to gravitate toward convenience foods since these technologies can quickly supply comfort food, which have also been significant in supporting the expansion of the convenience food industry, which is projected to favour the growth of the global green packaging market over the forecast period.

Global Sustainable Packaging Market

Sustainable Packaging Market: Restraints

Concerns about the environment are putting a damper on the demand for sustainable packaging solutions.

There are various environmental challenges with packaging solutions, such as the use of biodegradable additives and compostable materials, as well as recycling concerns. The Institute of Scrap Recycling Industries, or ISRI, presented a series of clarifications and new policy statements on the use of biodegradable additives in the packaging in 2017. The paper emphasized that the degradable chemicals have not been fully evaluated, and we do not know the degree of the harm they potentially represent to the environment and human health. To make people feel good about composting, many restaurants and public venues are moving to plant fibre bowls and containers. The fluorinated substances used to make this packaging are not biodegradable. However, biodegradable items have also been connected to questionable suppliers. For instance, the production of some palm fibre packaging, for example, has been linked to the destruction of rainforest habitats. Such limitations are projected to limit the market's expansion in the approaching years.

In addition, the recycling firms are unable to market plastic and paper goods at rates that generate profits, in particular, because it involves a series of steps from collection to recycling, which makes it labor-intensive.

Sustainable Packaging Market: Segmentation

The Sustainable Packaging Market is segregated based on Application and Packaging Type.

By application, the market is classified into Food & Beverages, Personal Care, Healthcare, and Others. The food & beverage packaging segment acquired the highest share of the market in the forecast period. The growth is attributed to the rising popularity of green packaging, many restaurants, fast food chains, packaged food companies, and casual dining venues are adopting molded pulp packaging and compostable packaging. This segment includes the packaging of FMCG products, dairy products, beverages, and others. Because of its portability, long shelf life, and ease of manufacture, convenience food is driving the demand for food and beverage packaging. The high use of convenience food has resulted from rising demand due to consumers' hectic lifestyles, as well as the geriatric population. Many personal care product manufacturers are moving toward greener options by reducing the amount of material used in packaging. Part of the reason for the shift is consumer awareness of the importance of product packaging sustainability. Many consumers have begun to criticise personal care product manufacturers for using excessive packaging for purely aesthetic reasons. Wherever possible, companies have replaced paperboard packaging with thin plastic packaging.

By Packaging Type the market is classified into Recycled Content Packaging (Paper, Plastic, Metal, Glass, Others), Reusable Packaging (Drum, Plastic Container, Others), Degradable Packaging. The recycled content segment held the largest share of the market in the forecast period. Materials that can be recycled, such as paper, plastic, glass, and metal, are included in this segment. These materials are reused as raw materials by manufacturers to create new packaging products, reducing pollution caused by packaging waste. Increased use of recycled content packaging by companies aiming to demonstrate environmental sustainability and differentiate their products, combined with increased collection and processing capacity, would promote gains in recycled content packaging. The segment's growth will be aided by efforts by industry groups, brand owners, packaging companies, and others to encourage sustainability programmes that increase the recycling rates of various types of packaging materials. The plastic-type in recycled content segment held the largest share as it is widely used across several applications and offers vital packaging properties that materials such as paper fail to deliver. Plastics are also very cost-effective, making them a popular material choice, particularly in emerging economies where product cost is a major consideration.

Report Scope:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

Recent Developments

  • In 2021, Amcor partners with Nestle to bring sustainable packaging to shelves. The new packaging technology, which is used across the Smarties Chocolate Block and Bar product range, is fully recyclable and can be disposed of in household recycling bins, reaffirming Amcor's commitment to more environmentally friendly packaging today and in the future.

Regional Landscape

The Asia Pacific dominated the market in the forecast period. This domination is attributed to the growing government regulations and initiatives that are encouraging manufacturers to opt for green packaging. The presence of countries in the region like China, the biggest manufacturing hub in the world, is changing the world’s packaging habits and materials to make them more environmentally friendly. Due to the large volume of the products shipped out of China, this move will have a great impact on the market growth in the region.

North America is expected to show considerable growth in the market due to the aggressive efforts put forth by the governments in the region. The government initiatives support consumer demand for green packaging and environmentally friendly products, which is driving demand in the region. For instance, the government of Canada has established numerous recycling infrastructures to facilitate recycling in the country and has imposed a major ban on the use of polystyrene containers and cups, intending to lower the disposal of solid waste.

Competitive Landscape

Some of the main competitors dominating the Sustainable Packaging Market include - Amcor; Be Green Packaging; DS Smith; DuPont; Evergreen Packaging; Mondi; Nampak; Ball Corporation; Sealed Air; Tetra Laval

Sustainable Packaging Market is segmented as follows:

 By Application Outlook

  • Food & Beverages
  • Personal Care
  • Healthcare
  • Others

 By Packaging Type Outlook

  • Recycled Content Packaging
  • Reusable Packaging
  • Degradable Packaging

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

Free Analysis

The term sustainable packaging refers to the development and use of packaging materials that improve the sustainability of a material. It is designed to safeguard the product throughout its lifecycle. The different materials used for sustainable packaging are glass, metal, and plastic, among others. 

In the last few years, it has been observed that the consumer preference is shifting toward the recyclable and eco-friendly materials. This is one of the major growth drivers for the sustainable packaging market. Global environmental concerns regarding sustainable development and enforcement of stringent rules by various governments globally have increased the usage of sustainable packaging material. The development of alternative materials, such as bioplastics, is likely to increase the demand for environment-friendly packaging in the forecast time period. The key market players are also taking various steps toward the development and growth of this market. For instance, Hovis, one of the major key players, launched renewable packaging polyethylene, which is used in bread packaging. However, the lack of awareness about the importance of sustainability in some emerging economies might restrain the sustainable packaging market. However, the growth of the e-commerce industry is likely to provide lucrative growth opportunities in the global sustainable packaging market.

Global Sustainable Packaging Market

The global sustainable packaging market can be segmented based on material, function, process, application, and layer. By material, the market includes paper and paperboard, plastic, metal, glass, and others. By layer, the market is segmented into primary, secondary, and tertiary packaging. By process, the market includes recycle, reusable, and degradable processes. The function segment includes active, molded, and alternate fiber packaging. Based on application, the sustainable packaging market is fragmented into food and beverage, personal care, healthcare, and others. The food and beverage segment is likely to be the dominant segment of this market in the future. Increase in the demand for packaged food and beverages is expected to drive the demand for sustainable packaging in the upcoming years.

Based on regions, the sustainable packaging market is classified into Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific held the most significant share of the sustainable packaging market in terms of volume during 2017. This can be attributed to the huge demand for food and beverages in developing regions, such as China, India, etc. The North American sustainable packaging market is also likely to witness noteworthy growth during the forecast time period.

Some major players of the global sustainable packaging market are Sealed Air Corporation, Bemis Company, Inc., Mondi PLC, Westrock Company, Sonoco Products Company, Smurfit Kappa Group PLC, Tetra Laval International S.A., Huhtamaki OYJ, BASF SE, and Amcor Limited, among others.

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FrequentlyAsked Questions

The growing consumer awareness regarding sustainable packaging, the strict bans regarding the usage of single-use plastics, rising environmental concerns caused by the packaging waste that ends up in landfills are some of the major factors that will drive the growth of the market in the forecast period.

 

According to the Market Research report, the Sustainable Packaging Market was worth about 265.9 (USD billion) in 2021 and is predicted to grow to around 358.3 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 5.1 percent.

The Asia Pacific dominated the market in the forecast period. This domination is attributed to the growing government regulations and initiatives that are encouraging manufacturers to opt for green packaging. The presence of countries in the region like China, the biggest manufacturing hub in the world, is changing the world’s packaging habits and materials to make them more environmentally friendly. Due to the large volume of the products shipped out of China, this move will have a great impact on the market growth in the region.

 

Some of the main competitors dominating the Sustainable Packaging Market include - Amcor; Be Green Packaging; DS Smith; DuPont; Evergreen Packaging; Mondi; Nampak; Ball Corporation; Sealed Air; Tetra Laval

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