Green Packaging Market Research, 2031
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.
Market Dynamics
The increasing awareness of environmental issues, such as plastic pollution and carbon emissions, is driving consumer demand for eco-friendly packaging solutions. Consumers today are more informed about the environmental impact of traditional packaging materials, leading to a shift toward biodegradable, compostable, and recyclable alternatives. Additionally, the rise of social media and digital activism has amplified discussions on sustainability, pressuring brands to adopt green packaging to maintain a competitive edge. Major brands like Nestlé, Unilever, and Coca-Cola have set ambitious sustainability goals, such as reducing single-use plastics and increasing the use of recycled materials. This shift is particularly evident in industries like food & beverage, personal care, and e-commerce, where packaging plays a crucial role in consumer perception. As sustainability becomes a key purchasing factor, companies are investing in innovative materials like plant-based bioplastics, mushroom packaging, and paper-based solutions. The increasing willingness of consumers to support environmentally responsible brands continues to fuel the growth of the green packaging market globally.
Governments worldwide are implementing strict environmental regulations to curb plastic waste and promote sustainable packaging practices. Policies such as single-use plastic bans, Extended Producer Responsibility (EPR) programs, and higher taxes on non-recyclable materials are compelling companies to adopt greener alternatives. For instance, the European Union’s Single-Use Plastics Directive mandates a reduction in plastic consumption, while the U.S. Plastics Pact aims for 100% recyclable or compostable packaging by 2025. Similarly, Asian economies like China and India have introduced stringent regulations on plastic usage, accelerating the adoption of biodegradable materials.
In response to regulatory pressures, corporations are proactively integrating sustainability into their business models. Many leading companies have set zero-waste and carbon-neutral goals, investing in biodegradable films, recycled paperboard, and edible packaging. Major retailers like Walmart and Amazon are encouraging suppliers to minimize packaging waste, reinforcing industry-wide adoption of sustainable practices. As regulations tighten and corporate sustainability commitments grow, the market is expected to expand rapidly, fostering innovation and reducing environmental impact on a global scale.
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.
Despite the increasing demand for green packaging, the high production costs and lack of adequate recycling infrastructure remain significant challenges. Biodegradable and compostable materials, such as PLA (polylactic acid) and PHA (polyhydroxyalkanoates), require specialized manufacturing processes that are often more expensive than conventional plastic production. Additionally, sourcing sustainable raw materials, such as bamboo, cornstarch, or seaweed, can be costly and dependent on seasonal availability. This results in higher costs for manufacturers and consumers, limiting widespread adoption.
Another major issue is the insufficient recycling and composting infrastructure, especially in developing economies. While developed nations like Germany and Sweden have advanced waste management systems, many countries lack proper facilities to process biodegradable plastics or recycle multi-layered sustainable packaging. This results in green packaging materials ending up in landfills, negating their environmental benefits. Furthermore, inconsistent global regulations on compost ability and recyclability create confusion among manufacturers and consumers, further slowing down adoption rates. Unless costs are reduced through technological advancements and economies of scale, and waste management infrastructure improves, the green packaging market may face slower growth in price-sensitive regions.
Segments Overview
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
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 market. This segment includes packaging of FMCG products, dairy products, beverages, and others.
By Packaging Type
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.
By Region
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.
By Region
Europe would witness the largest segment registering a major share of 36.1% during the forecast period.
Competitive Analysis
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.
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 green packaging market segmentation and size 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
| Aspects | Details |
 By Application |
|
 By Packaging Type |
|
 By Material |
|
 By Region |
|
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.
Loading Table Of Content...
