The global green packaging market size was valued at $1,64,176.6 million in 2020, and is projected to reach $3,37,542.0 million by 2031, registering a CAGR of 6.6% from 2022 to 2031. The recycle content packaging segment was the highest revenue contributor to the market with a CAGR of 6.5%.
The green packaging market is emergent, and is anticipated to show significant growth in the next six years fueled by the advent of bioplastic, environmental concerns on sustainable development, and enforcement of stringent rules and policies by regulatory authorities. Rise in awareness among consumers for luxury goods toward green packaging techniques that use bioplastics as raw material across various sectors, including FMCG, personal body care, and pharmaceuticals has driven the market growth. The amount of solid waste generated is not at par with the recycling capacity, thus restraining the market growth.
A wide range of oil-based polymer is currently used in packaging applications. This material is non-biodegradable in nature and is difficult to recycle or reuse, as it can become contaminated. Biodegradable plastics were developed from renewable resources to overcome the drawbacks of non-biodegradable products.
Green packaging can reduce greenhouse gas emissions as it uses less fossil fuels in its production, and the products are biodegradable in nature. Land-filled organic food and garden waste releases methane gas that is used as renewable energy and the compost by-product is used to enhance soil quality which will have a positive impact on the green packaging market growth.
Moreover, high production and set up cost have refrained businesses to adapt green packaging. In addition, lack of government initiatives especially in developing countries through subsidies for recycling and lack of space for storing recycled material hinder the market growth.
Food & beverage industry has rapidly embraced green packaging. This is attributed to the rise in awareness among consumers and preference of manufactures to increase their product shelf life. Moreover, decrease in landfill sites, increase in the efficiency of reverse logistics operation of recycled products, and eco-friendly legislations from government and UN are the key drivers for the market.
The global population explosion has led to the scarcity of natural resources and limited space for waste disposal. The government legislations on environment are expected to increase the market demand.
Sustainable initiatives by multinational companies such as Dow Chemical Company, Henkel AG & KGaA, and Mitsubishi Corporation to promote sustainable development by forming a community called ‘Together for Sustainability’ is a platform for the green packaging market. This initiative supports the United Nations Global Compact and Responsible care to achieve sustainable development.
By Application
Health Care segment would witness the fastest growth, registering a CAGR of 7.4% during the forecast period.
Despite the unfavorable situation, there are some positive scenarios that occurred during the pandemic. The development of vaccines and their approval in few countries has provided some relief. The global green packaging market is expected to witness a V-shaped recovery post-pandemic. However, an upward trend has been noticed in the revenue of the key market players in the fourth quarter of 2020-2021.
According to the green packaging market analysis, the market is segmented on the basis of application, packaging type, material, and region. On the basis of application, the market is segmented into food & beverage, personal care, health care, and others. By packaging type, the market is segmented into recycled content packaging, reusable packaging and degradable packaging. Based on material paper, plastic, metal, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Packaging Type
Degradable Packaging segment would witness the fastest growth, registering a CAGR of 10.4% during the forecast period.
By application, the green packaging market is segmented into food & beverage, personal care, health care, and others. Food & beverage packaging was the highest revenue generator with 60.66% of the total revenue generated by application in green packaging market. This segment includes packaging of FMCG products, dairy products, beverages, and others.
By packaging type, recycled content packaging held the major green packaging market share in the market. Recycled content packaging offers better utilization of eco-friendly techniques and resources. It comprises various material such as paper, plastic, metal, glass, and others.
By Material
Metal segment would witness the fastest growth, registering a CAGR of 7.3% during the forecast period.
Region wise, Europe held the major share in the market. Germany, the UK, Italy, and France are expected to increase their revenue generated during the green packaging market forecast period. The technological advancement in these countries and stringent government regulations are expected to drive the market.
The key leading players operating in this market include Amcor Limited, E. I. DuPont de Nemours and Company, Mondi Limited, Sealed Air Corporation, TetraPak International S.A., Ardagh Group Co., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, and ELOPAK AS.
By Region
Europe would witness the largest segment registering a major share of 36.1% during the forecast period.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current green packaging market trends, estimations, and dynamics of the market size from 2020 to 2031 to identify the prevailing opportunities.
- The Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assist to determine the prevailing green packaging market opportunities.
- Drivers and restraints are analyzed depending on type in the green packaging industry.
Green Packaging Market Report Highlights
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Analyst Review
The rise in awareness for health & hygiene coupled with environmental concerns have paved the way for green packaging market to flourish especially in health care and food and beverage segments. Biodegradable products associated with bioplastics have flourished in healthcare and pharmaceutical applications, and are accepted as an alternative for polymer oil-based products. In addition, reverse logistics coupled with increase in number of legislations for ecological packaging techniques have facilitated the recycle of municipal wastes. Furthermore, companies such as Dow Chemicals, Henkel have promoted the sustainable products by developing ecological platforms for green packaging market.
Europe has registered the maximum demand in bioplastic in 2020, and holds scope to flourish with applications in healthcare sectors. Asia-Pacific region has emerged as a lucrative segment for green packaging market with increase in consumptions of sustainable packaged food products.
The global green packaging market size was valued at $1,64,176.6 million in 2020, and is projected to reach $3,37,542.0 million by 2031, registering a CAGR of 6.6% from 2022 to 2031.
The forecast period in the Green Packaging Market report is from 2022-2031.
2020 is the base year calculated in the Green Packaging Market report.
The key leading players operating in this market include Amcor Limited, E. I. DuPont de Nemours and Company, Mondi Limited, Sealed Air Corporation, TetraPak International S.A., Ardagh Group Co., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, and ELOPAK AS.
Recycled content packaging held the major green packaging market share in the market.
Europe held the major share in the market.
Based on the product offerings, product penetration, and financial revenue, the company profile was selected.
The global green packaging market size was valued at $1,64,176.6 million in 2020.
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