GREEN PACKAGING MARKET ANALYSIS

Market Challenges And Opportunities

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.

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.