Sustainable Packaging Market Expected to Reach $190.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Sustainable Packaging Market," The sustainable packaging market size was valued at $93.6 billion in 2021, and sustainable packaging industry is estimated to reach $190.6 billion by 2031, growing at a CAGR of 7.4% from 2022 to 2031.

Sustainable packaging is the use of packaging materials and solutions that are biodegradable and readily recycled and reused. It is a type of packaging wherein the best practices are followed with respect to materials, their use, and recycling opportunities. Materials involved in packaging are bio-degradable and compostable. It focusses on reusing the packaging or recycling the same for extended usage. Sustainable packaging offers various benefits such as improving storage space, reducing carbon footprint, decreasing use of natural resources and improving the appearance of products.

The growing use of sustainable packaging in healthcare, pharmaceutical industry, automobile industry, nutraceuticals and fashion is one the driving factors stimulating the growth of the market. Also, the increasing plastic pollution has boosted the market growth. The amount of trash produced by individuals worldwide is rising quickly due to the change in lifestyle that encourages the use of disposable products. Plastic pollution in particular has increased due to the buildup of non-disposable waste worldwide. For plants, animals, wildlife, and the general public, this accumulating non-biodegradable trash poses a serious concern. Toxic substances, which are known to cause serious illness, make up the majority of this waste. Groundwater contamination, air pollution, land pollution, GHG emissions, and climate change are just a few of the negative effects of plastic pollution that have already begun to harm life. This has triggered the need of using sustainable packaging products.

Furthermore, modern agricultural practices employ a wide range of sustainable packaging products to help improve productivity, such as mulch films, tunnel and greenhouse films and nets, irrigation tubes, silage films, bags and sacks. Sustainable packaging products offer various features such as strength, transparency, insulation and water resistance which has been the main reason for its extensive use in different industries.

The sustainable packaging market forecast is classified on the basis of material type, packaging type, end-use industry and region. On the basis of material type, the market is classified into paper & paperboard, plastics, aluminum and others. On the basis of packaging type, the market is divided into rigid packaging and flexible packaging. On the basis of end-use industry, the market is categorized into food & beverage, personal care, healthcare and pharmaceuticals and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

On the basis of material type, paper and paperboard holds the largest sustainable packaging market share. Paper and paperboard material are more recyclable, biodegradable and non-toxic as compared to other materials. Also, it has low environmental impact. Based on packaging type, rigid packaging holds a significant share in the sustainable packaging market. It is suitable for a wide range of products, including food, medicine, electronics, toys, personal care items, office supplies, tools and others. Moreover, it is highly impact-resistant and affordable.

On the basis of end-use industry, food and beverage accounts maximum market share owing to extend the shelf life of food and to reduce food wastage. Also, the development of online apps for grocery and food ordering has increased the use of sustainable packaging products. Based on region, Asia-Pacific holds the highest market share. Asia-Pacific is projected to grow at the highest CAGR from 2021 to 2031. This is mainly due to the large manufacturing industry in the region, mainly healthcare, pharmaceutical industries and cosmetic.

Key findings of the study

• Asia-Pacific would exhibit CAGR of 7.8% during 2022-2031.
• As per global sustainable packaging market analysis, by material type, the paper and paperboard segment accounted for the largest share in 2021.
• By packaging type, rigid packaging was the leading segment in 2021.
• By end use, food and beverage segment has largest market share in 2021.

Impact of Covid-19 on Global Sustainable Packaging Market

The COVID-19 pandemic has had a moderate impact on the sustainable packaging market. Due to the strict lockdown, the production of sustainable packaging products were halted. However, the market showed a significant growth after relaxation of lockdown. The growth of market was mainly due to the consumption of sustainable packaging products in different end-use industries including food & beverage industry, healthcare, cosmetics & personal care, and e-commerce.

There is an increase in flexible, rigid plastics, and corrugated packaging. The food packaging industry continued to robust the demand of the sustainable packaging products owing to the increase in awareness regarding the hygiene. Moreover, there was high growth for rigid packaging for e-commerce and grocery deliveries. There was an incline towards the growth of sustainable packaging products in healthcare sector, including flexible blister foils, pumps, closures and rigid plastics. Also, the packaging used in dietary supplements such as vitamins and for essential supplies, such as allergy medication has boosted the market.

Consumers across the globe are going to be increasingly inclined to buy their products through different channels from those they used before the pandemic, leading to a strong acceleration of e-commerce shipments and other home-delivery services. There has been a shift towards online grocery stores in different regions. For instance, in China, the online sales of fresh food by a large online retailer grew more than 200% during a ten-day period in late January 2020 compared with the same period in 2019.

Moreover, UK government and World Health Organization guidelines recommended not touching loose foods unless one intend to buy them. So, DS Smith has innovative mid-term solutions to meet some of these challenges, including corrugated boxes, punnets, trays and latest innovation ECO Bowl which all reduce plastic significantly but still protect the product from damage, food waste or hygiene-related concerns. In this way, there has been a continuous rise in the demand for sustainable packaging products.

Competitive Landscape

The key players operating in the global sustainable packaging market are Amcor plc, Ardagh Group S.A., Ball Corporation, BASF SE, Crown Holdings, Inc., DS Smith, Elopak AS, Emerald Packaging, Mondi, Nampak Ltd., Plastipak Holdings, Inc., Sealed Air, Sgf packaging Co. Ltd, Smurfit Kappa Group PLC, Sonoco Products Company, Tetra Pak and WestRock Company.