Sustainable Packaging Market Analysis

Global Sustainable Packaging Market Overview

Sustainable Packaging Market Size was valued at USD 336.7 billion in 2021. The sustainable packaging industry is projected to grow from USD 371.4 billion in 2022 to USD 737.6 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.30% during the forecast period (2024 - 2030). Growing consumer awareness of sustainable packaging, strict bans on the use of single-use plastics, and rising environmental concerns caused by packaging waste in landfills are the key market drivers enhancing sustainable packaging market growth.

Sustainable Packaging Market Trends

• 
  

  Rising consumer awareness of the risks associated with using plastic materials for packaging to propel the market growth

  
  

The market for sustainable food packaging is expanding due to rising consumer awareness of the negative effects of utilizing single-use and non-biodegradable plastic goods for food packing. The widespread use of single-use and non-biodegradable plastic packaging materials negatively impacts the environment. Plastic takes hundreds of years to disintegrate in a landfill. Throughout that time, it will remain in the environment, harming the environment in various ways and ultimately endangering the lives of people, animals, and plants. For instance, the World Economic Forum study states that Austria and Germany lead the world in recycled waste at 52% and 56%, respectively. Additionally, some nations, like Wales, have high expectations regarding recycling. While the E.U. is considering setting a 2030 target of at least 65%, Wales aims for zero waste by 2050. Therefore, over the next few years, it is anticipated that growing consumer awareness of the risks associated with using plastic materials for food packaging will fuel the market CAGR.

Figure 1: Use of plastics in different sectors on a daily basis

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Furthermore, numerous programs and laws have been put in place to support manufacturers of sustainable packaging as governments all over the world are aware of the concerns related to environmental issues. Favorable government policies providing subsidies to package producers, particularly in industrialized nations, give attractive opportunities for market participants to increase their current output levels. As a result, the sustainable packaging market is expanding primarily due to increased government measures to limit the amount of plastic trash dumped in landfills. By 2025, the U.K. Government's Industrial Strategy Challenge Fund for the Smart Sustainable Plastic Packaging Initiative intends to reduce plastic waste dramatically. The amount invested in projects to establish the U.K. as a leader in intelligent and sustainable plastic packaging has increased to £60 million (USD 80.51 million).

Additionally, plant-based packaging materials are becoming increasingly popular in the cosmetics industry since they are recyclable, compostable, and biodegradable. L'Oréal Group, a cosmetics and personal care product manufacturer, is committed to using sustainable packaging materials. Manufacturers are increasingly choosing the packaging of personal care products. In November 2022, Procter & Gamble Fabric and Home Care collaborated with machining manufacturer Paboco to trial its Lenor liquid fabric conditioner brand in 'first-generation' paper-based bottles in the Netherlands. Therefore, it is projected that increased investment in sustainable packaging will drive market value in the coming years.

However, leaders in the consumer goods industry, like Unilever and P&G, are moving toward sustainable packaging options. Hindustan Unilever, for instance, has promised to switch to sustainable packaging by 2025. The leading market players' initiative is anticipated to fuel the expansion of the market. Thus, it acts as another trend driving the growth of the sustainable packaging market revenue.

Sustainable Packaging Market Segment Insights

Sustainable Packaging Packaging Type Insights

The sustainable packaging market segmentation, based on packaging type, includes tubes, bags & pouches and corrugated boxes. The corrugated box category held the majority share in 2021 regarding the sustainable packaging market revenue due to the box's frequent use as a shipping container. Since this type of packing is designed for longer storage times, manufacturers across industries need lightweight but sturdy shipping boxes to ensure packaged products' safety and protection throughout shipment.

Sustainable Packaging Material Insights

The sustainable packaging market segmentation is based on materials, paper & paperboard, glass, metal and plastic. The paper & paperboard segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The sector is anticipated to grow due to increased government campaigns to inform customers about the advantages of paper & paperboard packaging and ecologically friendly products. Hence, this would have a positive impact on market growth.

August 2020 To broaden the range of Sonoco's sustainable packaging options, the company purchased Sustainable Paper Can Solutions Producer.

Figure 2:  Sustainable Packaging Market by Material, 2021 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Sustainable Packaging Process Insights

The sustainable packaging market data has been segmented by process into degradable packaging, recycled packaging and reusable packaging. The recycled packaging segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Customers are becoming more concerned about the environmental effects of packaging, and many merchants are using recycled content in packaging as a remedy.

In April 2022, Amcor launched innovative and sustainable pharmaceutical industry-focused packaging solutions, including low-carbon recycle-ready High Shield laminates, expanding the product range in the firm's pharmaceutical packaging portfolio.

In March 2023, the Canadian Government declared that it had invested in three companies that manufacture Friendlier, Omnia Packaging Inc., and Unified Flex Packaging Technologies with sustainable packaging in order to make the country free from plastics.

In September 2022, Sealed Air reported the introduction of its product portfolio through a new line of protective packaging solutions made from over 50% recycled plastic under its ‘BUBBLE WRAP' brand.

Sustainable Packaging Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific sustainable packaging market accounted for USD 145.5 billion in 2021 and is expected to exhibit a 43.20 % CAGR during the study period. This dominance is linked to the escalating government programs and laws that motivate firms to choose environmentally friendly packaging. The biggest manufacturing powerhouse in the world, China, is present in the region, altering packaging practices and materials to be more environmentally friendly.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  SUSTAINABLE PACKAGING MARKET SHARE BY REGION 2021

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North American sustainable packaging market accounts for the second-largest market share because of the active efforts made by the regional administrations. The region's demand is driven by customer desire for environmentally friendly products and green packaging, supported by government programs. For instance, the Canadian government has developed several recycling infrastructures to aid recycling around the nation and has severely restricted the use of polystyrene cups and containers to reduce the amount of solid waste disposed of. Further, the U.S. sustainable packaging market held the largest market share, and the Canada sustainable packaging market was the fastest-growing market in the North American region.

The European sustainable packaging market growth is expected to grow at a substantial CAGR from 2022 to 2030. The need for sustainable packaging has grown across Europe due to strict government controls on single-use plastics and greater sustainability awareness. The government's actions to encourage sustainable packaging solutions are a key component in the market's expansion. Moreover, U.K. sustainable packaging market held the largest market share, and the France sustainable packaging market was the fastest-growing market in the European region.

Sustainable Packaging Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their product lines, which will help the sustainable packaging industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

Major market players are investing a lot in R&D to expand their product offerings, which will spur further growth in the sustainable packaging industry. Additionally, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, market developments, and collaborating with other organizations as part of various strategic activities to expand their presence. To grow and remain in a market that is becoming more competitive and growing, industry competitors must provide affordable products.

One of the primary business strategies manufacturers adopt in the sustainable packaging industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, sustainable packaging industry has provided medicine with some of the most significant benefits. The sustainable packaging market major player such as Amcor Limited, Ardagh Group S.A., Ball Corporation, Crown Holdings Incorporated, DS Smith PLC, Elopak AS, Emerald Packaging, Mondi Group, Nampak Ltd, PlastiPak Holdings Inc, Sealed Air Corporation, Sonoco Products Company, SGF packaging Co. Ltd and Tetra Pak International S.A.

A packaging and paper company, Mondi plc employs around 21,000 people and has about 100 production facilities in more than 30 nations, mostly in Europe, North America, Russia, and South Africa. In July 2022, for the Italian luxury pasta product maker Antico PastificioUmbro, Mondi and converter FioriniInternational worked together to create a novel paper packaging solution. The new packaging, which is 100% recyclable and can be used for all pasta products, can reduce the annual usage of plastic by up to 20 tonnes.

Also, the Sonoco Products Company, based in the United States, is the world's largest manufacturer of composite cans, tubes, and cores. It also provides a variety of consumer packaging, industrial products, protective packaging, and packaging supply chain services. In September 2021, Sonoco collaborated with AMP Robotics, a leader in artificial intelligence (A.I.), robotics, and infrastructure for the garbage and recycling business, to add stiff paperboard cans as a new material category to AMP's neural network.

List of the Key Companies in the sustainable packaging market includes

• Amcor Limited


• Ardagh Group S.A.


• Ball Corporation


• Crown Holdings Incorporated


• DS Smith PLC


• Elopak AS


• Emerald Packaging


• Mondi Group


• Nampak Ltd


• PlastiPak Holdings Inc


• Sealed Air Corporation


• Sonoco Products Company


• Sgf packaging Co. Ltd


• Tetra Pak International S.A.

Sustainable Packaging Industry Developments

In June 2022, Carlsberg Group, a leading brewery, announced the development of a new fiber bottle using plant-based PEF polymer liner and Sustainable Packaging Market. Similarly to Mondi that is the global leader in sustainable packaging, EcoVantage Paper made from recycled fibers is offered by it. The paper has high strength yet printable and attractive appearance. Therefore, market statistics are fueled by the increasing usage of recyclable materials and eco-friendly products.

In August 2023, Leading packaging manufacturer Sonoco Products Company announced the availability of two new sustainable packaging solutions with EnviroFlex Paper Pre-Qualifications specifically designed for the How2RecycleR Labeling range.

In December 2022, BASF & StePac collaborated and introduced a novel shelf-life extension sustainable packaging solution for fresh produce. This will help maintain some balance between generating as much ecologically friendly plastic packaging as possible and keeping fresh produce longer.

In October 2022, Berry Global unveiled its bespoke 14-litre HDPE reusable container as part of a novel refill solution company taking a central role in Refill Coalition's newly developed refill packaging solution.

In June 2022, Ball Corporation released an aluminum aerosol can, which is most sustainable since it only leaves half the carbon footprint of any conventional can for expanded use among consumers. The launch will enable the company to fulfill its ambition of achieving science-based targets by 2030 and net zero emissions before 2050.

Sustainable Packaging Market Segmentation

Sustainable Packaging Packaging Type Outlook

• Tubes


• Bags & Pouches


• Corrugated Box

Sustainable Packaging Material Outlook

• Material


• Paper & Paperboard


• Glass


• Metal


• Plastic

Sustainable Packaging Process Outlook

• Degradable Packaging


• Recycled Packaging


• Reusable Packaging

Sustainable Packaging Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  • Rest of the World
  
  
  
  


• Middle East
  
  
  
  • Africa
  
  
  • Latin America