GREEN PACKAGING MARKET ANALYSIS

Global Green Packaging Market was valued at US$ 2,08,000 Mn in 2022 in terms of revenue, exhibiting a CAGR of 4.97% during the forecast period (2023 to 2030).

Green packaging  refers  to usage  of packaging materials and implementation of manufacturing methods that have low impact on energy consumption and environment. Green packaging involves the usage of recyclable and biodegradable materials and thus is referred as energy-efficient or sustainable packaging. Furthermore, bio-degradable plastics, bio-based plastics, Solid Bleach Sulfate, and recycled papers are some of the key materials used for the manufacture of green packaging products. Factors such as wide- spread awareness among consumers regarding environmental safety and benefits of green packaging are the key factors propelling growth  of global green packaging market. Moreover, initiatives of regulatory bodies in recommending adoptions of eco-friendly alternatives by the manufacturers, will further boost growth of the global green packaging market during the forecast period.

Drivers

Strict Government Regulations and Increased Awareness

European Union experienced a strong dynamic since the Single-Use Plastic Directive and the release of the new EU Commission’s European Green Deal, which got more vital in 2020. The primary components of the legal framework for plastics are currently  under revision. This will open up new possibilities for the green packaging industry, which might be crucial in realizing the European Union’s goal of the circular economy is low-carbon and resource efficient. State wide-restrictions on plastic bags were implemented in the U.S. Eight states already approved law outlawing single-use plastic bags, and California, Hawaii, and Oregon did in 2020.

Growing demand for sustainable products by consumers

Growing demand for sustainable products by consumers and industry is driving the green packaging market growth.  Moreover, bio-plastics industry’s ongoing breakthroughs and discoveries in new materials with superior qualities and functions is due to the growing awareness of the environmental effects and need to reduce the reliability on fossil fuels. Furthermore, many brands are converting to sustainable packaging by employing green packaging options. For instance, Colgate makes use of recyclable toothpaste tubes. The green packaging market is anticipated to be driven throughout the forecasted period, till all this innovation and dedication for companies and consumers to sustainable packaging products.

Figure 1. Global  Green Packaging Market Value Share (%), By Region, 2022

To learn more about this report, request sample copy

 North America dominated the global green packaging Market in 2022, accounting for 35 % share in terms of revenue, followed by Europe, Latin America, Asia Pacific and MEA, respectively.

Restraints

High Cost of Green Packaging

Green packaging used for product packaging is expensive, due to high processing cost of recycled products. Thus, very few industries, especially in the developing nations, can afford such high green packaging cost. This factor is likely to hinder the global green packaging market share growth of the next few years. Moreover,  few people, in rural areas of developing countries, are aware about the availability of sustainable and environment friendly packaging solutions in the market. Thus, this factor is further expected to impede the market growth in the predicted time period.

Global Green Packaging Market- Trends- Growing Prevalence of Sustainable Food Packaging

Green packaging uses eco-friendly materials such bio plastics, recyclable paper and plastics, plant-based biomaterials, organic fabrics, and repurposed goods. These goods can easily replace conventional plastics and have a smaller impact on the environment because  it is simple to use and is naturally biodegradable. These substances do not react with food, thus preventing contamination and other negative environmental effects. This reason is driving market demand for eco-friendly food packaging. As these technologies, make it simple to deliver comfort food,  it has been an enabling factor in motivating  customers to switch to convenience foods. In 2018, the European Union drastically strengthened its regulations on packaging and packaging waste. By 2030, all plastic packaging must be recyclable, with 55 percent success rate. In today’s world, only around 30% of plastic packaging is collected. The maintenance of product quality, dose and dispensing, convenience of use and storage, and the provision of crucial information regarding product use and ingredients, are all vital roles that are fulfilled by the product packaging. For instance, L'Oreal announced the creation of the first paper-based cosmetic tube, in October 2019, to enhance packaging's environmental impact. Hence, all these factors is growing the  global green packaging market CAGR across the globe in the recent years.

 Global Green Packaging Market- Impact of Coronavirus (Covid-19) Pandemic:

The occurrence of COVID-19 pandemic have negative impact on global green packaging market growth.  Impact of COVID-19 pandemic had a severe impact on the health and wellbeing of the people across the world, the fear of infection and its severe symptoms have settled in the patients. Amidst  high rate of corona virus transmission and prevalence of serious symptoms, government imposed lockdown worldwide, due to which many industries stopped their manufacturing units. Thus, the requirement of green packaging material for product packaging decreased severely. This factor has decreased the green packaging market share in the pandemic year. However, green packaging market also experienced a positive growth in the COVID-19 pandemic period. During pandemic, people shifted their shopping preference towards online shopping. E-commerce generally uses paper-based packaging for delivering products. This factor fueled the global green packaging market growth in the pandemic time period.

Figure 2. Global Green Packaging Market value Share (%), By End-use, 2022

To learn more about this report, request sample copy

 Green Packaging Market, Segment Analysis, By End-use:

Based on End-use, the market is segmented into food & beverages, pharmaceuticals & nutraceuticals, and others. The food & beverages segment accounted for the largest market share in the Green Packaging Market in 2022; however, the pharmaceuticals & nutraceuticals segment is projected to grow at the fastest CAGR over the forecast period. The rising applications of green packaging the pharmaceuticals & nutraceuticals industry are driving the market growth.

Recent Developments

• On January 16, 2023, Amcor, a global leader in developing and producing responsible packaging solutions, announced that it had entered into an agreement to acquire Shanghai-based MDK,  a leading provider of medical device packaging.  MDK generates annual sales of approximately $50 million and is, is a key priority growth segment for Amcor. MDK’s coating capabilities, medical paper-based packaging offerings, and customer base complements Amcor’s existing portfolio, further enhancing its leading position in the Chinese medical device packaging market. This acquisition of MDK will also strengthen Amcor’s leadership in the broader Asia Pacific medical packaging segment, which now comprises of four manufacturing sites serving the China, India, and Southeast Asia markets.
• On October 3, 2022, Sealed Air announced the opening of SEE Pack forum South America. It is designed to create a technology-driven experience, the center provides customers an instant access to new packaging solutions, designs, and applications. Onsite or virtually, visitors can learn about global market and consumer trends and collaborate on new ideas, innovations and digital and automated packaging solutions.
• On January 20, 2023, Cargill announced it has completed the acquisition of Owensboro Grain Company, a fifth-generation family-owned soybean processing facility and refinery located in Owensboro, Ky. This acquisition of Owensboro Grain is an essential step on Cargill’s journey in creating a connected, resilient, and modernized grain experience for the customers and the markets it serves. The addition of Owensboro Grain Company would enhance Cargill’s efforts to increase capacity across its North American oilseeds network to support growing demand for oilseeds driven by food, feed and renewable fuel markets.

Competitive Section

The major players operating in the market of green packaging include Amcor Limited, Bemis Company Inc., Sealed Air Corporation, Tetra Laval International SA, Mondi Plc., Sonoco Products Company, Cargill Incorporation, Graham Packaging Company Incorporation, and Huhtamaki OYJ, among others.