Green Packaging Market: Industry Analysis and Forecast(2023-2029)

Green Packaging Market Overview:

Green packaging, also known as sustainable packaging, uses less energy and has fewer negative environmental effects than traditional packaging. Green packaging solutions, in contrast to products like plastic and Styrofoam, use biodegradable and recyclable materials. Green packaging also saves energy and minimises the amount of greenhouse gas emissions produced. Green Packaging Market Covered the Segment by Type of Packaging, End use, and Region.

 

Green packaging has a reduced carbon footprint than traditional synthetic packaging, which contributes to long-term human and environmental sustainability. Green packaging also necessitates waste reduction and pollution reduction measures during the production process. Growing awareness of environmental protection and sustainable living is one of the market's key driving forces of the Green Packaging Market. This, combined with stringent government environmental regulations and an industrial inclination toward using renewable resources in the manufacturing process, is accelerating demand growth of Green Packaging Market.

 

Across the forecast period of 2023 to 2029, the Green Packaging Market is estimated to grow at a CAGR of 5.3 percent. As the COVID-19 epidemic grew into a pandemic, media attention shifted away from sustainability and toward the virus and its global consequences. Plastic waste has also increased as a result of the pandemic. According to SMR, a lot of public-use personal protection equipment (PPE) is abandoned carelessly. The opposition to single-use plastic bans has increased demand for bottled water, plastic bags, disposable wipes, and hand sanitizers.

 

 

 

 

 

 

Green Packaging Market Dynamics:

Driving Factors

 

• The environmental impact and concerns about plastic bottles have developed in the beverage and food industry, forcing several companies to include recycled plastic (rPET) into their bottle designs, resulting in Green Packaging Market growth. The rising consumer and corporate awareness about environmental concerns has fuelled the growth of the green packaging market.

 

• Environmentally friendly processes and packaging are becoming increasingly important as the general public grows more aware of environmental issues. As a result of sustainability operations, manufacturers have decreased the source material by downgrading, developing leaner and lighter packaging, and reducing waste. Questions about sustainability, the ecology, ethics, quality, safety, and product pricing are already becoming highly significant when it comes to purchasing items. Many of these issues are also governed by law, which is expected to have a significant impact on the global green packaging market.

 

• Coca-Cola European Partners (CCEP) and Coca-Cola Western Europe accelerated their joint action plan to collect, recycle, and reuse their packaging in October 2019, stepping up their objectives for a World without Waste. The two partners are raising the bar on This is Forward, their Western European sustainability action plan, which pledged that by 2025, Coca-Cola would collect a can or bottle for every product sold, ensure that all of its packaging is 100 percent recyclable, and ensure that at least 50 percent of the content of its plastic bottles is recycled. They set new goals to speed up the delivery of a Western Europe-wide sustainable packaging plan, ensuring that all of their packaging is collected, repurposed, and reused.

 

• Nestlé announced in January 2020 that it would invest up to 2 billion Swiss francs (USD 2.1 billion) on switching from virgin plastics to food-grade recycled plastics and expanding the development of more sustainable packaging. Between 2020 and 2025, the food giant stated it will purchase up to 2 million metric tonnes of food-grade recycled plastics and spend more than USD 1.6 billion to pay a premium for these materials. In addition, the corporation will form a sustainable packaging venture fund with a fund size of 250 million Swiss francs (USD 260 million) to invest in start-ups in these fields.

 

• Packaging news in the first half of 2020 was dominated by headlines about helping the environment and becoming as sustainable as feasible. In the packaging business, many companies were transitioning to eco-friendly alternatives and developing novel technology to benefit the environment. Alternatives such as edible or biodegradable packaging have been actively discussed.

 

Increasing Demand for Sustainable Food Packaging:

Bioplastics, recyclable paper and plastics, plant-based biomaterials, organic fabrics, and refurbished products are among the environmentally friendly materials utilised in green packaging. These goods are simple to use and biodegradable, making them a viable alternative to standard plastics with a lower environmental impact. They are non-reactive with food and protect it against infection as well as other undesirable environmental effects. This has resulted in a huge Green Packaging Market demand for green food packaging.

 

Food technology has been a driving element for consumers to switch to convenience foods because it is easier to deliver comfort food with technology. Other types of technology, such as transportation and communication, have also played a role in boosting the convenience food market, which is projected to benefit the global green packaging market throughout the forecast period. The majority of packaging manufacturers are concentrating on product safety and long-term viability.

 

Convenience food items are likely to benefit from the growing need for sustainable food packaging among consumer-packaged goods companies. It appeals to both manufacturers and consumers on a financial level.

 

In 2018, the European Union tightened the present packaging and packaging waste restrictions dramatically. Plastic packaging must be recyclable by 2030, with a successful recycling rate of 55%. Only roughly 30% of all plastic packaging is actually recycled.

 

Green Packaging Market Regulations:

Most countries are working to establish sustainable packaging standards, however at varying speeds and in different depths. Seven out of eight European countries surveyed have launched regulatory initiatives focused on reduction or on recycling and reuse.

 

Number of countries with regulatory incentives per focus area-

 

	Reduction, limitation	Packaging design and safety	Labelling, traceability	Collection, sorting, EPR	Recycling and reuse
Asia (7 countries)	6	7	5	6	4
Europe (8 countries)	7	6	6	8	7
Latin America (4 countries)	3	2	2	4	1
Middle East (7 countries)	5	5	4	7	4
North America (3 countries)	2	2	2	3	1

 

Restraining Factors:

Environmental Concerns hampering the demand for Green Packaging Market

Packaging solutions raise a number of environmental concerns, including the use of biodegradable additives and compostable materials, as well as recycling challenges. A series of clarifications and new policy statements on the use of degradable additives in packaging was presented by ISRI, i.e. The Institute of Scrap Recycling Industries. The report stated that degradable chemicals have not been thoroughly evaluated and that we do not know the extent of the damage they can represent to the environment and human health. Because it needs a variety of stages from collecting to recycling, which makes it labour-intensive, recycling companies are unable to offer plastic and paper items at profitable prices. As a result, they impose additional costs to make up the difference.

 

Many restaurants and public spaces are switching to plant fibre bowls and bins, which help consumers feel good about composting. The fluorinated substances utilised in the production of this packaging do not degrade. Compostable items, on the other hand, have been linked to questionable sources. The production of some palm fibre packaging, for example, has been linked to the deforestation of Malaysian rainforest habitats. Such limitations are projected to limit the Green Packaging market's growth during the forecast period.

 

Segment Analysis:

By end-usGreen Packaging Markete segment, the food and beverage category accounted for the largest market share of xx% the Green Packaging market in 2029. The food and beverage industry are a significant player in the green packaging market. Food and beverage packaging's main purpose is to decrease food waste and extend the shelf life of food goods. To achieve sustainability, global players are seeking to use novel packaging materials made of degradable and recyclable elements. Due to a shortage of time, consumers seek out convenient foods. The food and beverage industry's sustainable packaging market are being driven by consumer demands for food quality, hygiene, and increased health awareness.

 

Green Packaging Market Regional Insights:

The APAC region is expected to hold the highest share of the green packaging market during the forecast period. Between 2023 and 2029, APAC is expected to lead the green packaging market in terms of both value and volume. 

 

According to the World Bank, in terms of population and economic growth, APAC was the fastest-growing area. Due to increased development activities and quick economic expansion, countries like India and China are likely to see rapid growth in the sustainable plastic packaging market. These countries' expanding populations provide a large customer base for FMCG products and consumer durables.

 

The green packaging market in APAC is being driven by rising public awareness of the necessity of eco-friendly, renewable packaging, the developing food and beverage industry, and cheap manufacturing and labour costs.

To understand the Green Packaging industry and study the market trends. Focusing on the Food green packaging, knowing the drivers and challenges of the same. Understanding the market segment geographically to gauge the growth potential.

 

The report includes analytical models like the Porter’s Five Forces, which helps in understanding the operating environment of the competition in the Green Packaging Market and thereby study the stakeholders to derive an efficient strategy; and PESTLE Analysis to gain a macro perspective of the Green Packaging Industry in terms of political aspects like Government stability, policies, trade regulation and economic aspects like market trends, taxes and inflation. It also provides the effect of environmental factors and influence of social and legal aspects on the Green Packaging Market.

 

Green Packaging Market Scope:

 

Green Packaging Market Scope
Market Size in 2022	USD 282.02 Bn.
Market Size in 2029	USD 404.84 Bn.
CAGR (2023-2029)	5.3 Percent
Historic Data	2017-2021
Base Year	2022
Forecast Period	2023-2029
Segment Scope	by Type of Packaging   Recycled – Paper, Metal, Plastic, Glass Reusable–Drums, Plastic containers Degradable
	by End User Food Beverage Pharmaceutical Personal Care
Regional Scope	North America- United States, Canada, and Mexico   Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

Green Packaging Market Major Players

• Amcor Limited (Zurich, Switzerland)
• Ball Corporation (Broomfield, Colorado, USA)
• Caraustar Industries Incorporated (Austell, GA, USA)
• Ardagh Group SA (Dublin, Ireland)
• Braskem SA (Sao Paulo, Brazil)
• Cascades Incorporated (Canada)
• TetraPak International SA (Sweden)
• DS Smith PLC (London, UK)
• Mondi Group (Austria)
• Sealed Air Corporation (USA)
• Sonoco Products Company (USA)
• Huhtamaki OYJ (Finland)
• Berry Global Inc. (USA)
• DuPont deNemours, Inc. (Holyoke, MA, USA)
• Plastipak Holdings, Inc. (Plymouth, Michigan, USA)