by The Green Packaging Market is estimated to be valued at US$ 2,08,000 Mn in 2022 and is expected to exhibit a CAGR of 4.97% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Green packaging involves the use of environment-friendly packaging materials and renewable energy sources for manufacturing. It aims to reduce carbon footprint and promote sustainability. Some common green packaging materials include recycled paper, glass, aluminum and bioplastics. Packaging made from these materials have low toxic emissions and are reusable or recyclable. They are widely used for food, beverages, personal care and homecare products to appeal eco-conscious consumers.
Market Dynamics:
Green packaging market is primarily driven by the increasing environment concerns and stringent government regulations toward conventional plastics. Major countries and regions have either banned or levied heavy taxes on single-use plastics due to the pollution caused by plastic wastes. For instance, the European Union passed a directive to ban single-use plastic items by 2021. This is prompting packaging manufacturers to adopt green alternatives. Growing consumer preference for sustainable products has also fueled the demand for green packaging solutions. However, high costs of green packaging materials compared to conventional plastics and lack oftechnology innovations are some factorsrestraining the market growth.
Segment Analysis
The green packaging market can be segmented on the basis of packaging type, material, and end-use industry. Based on packaging type, the market is divided into recycled content packaging, reusable packaging, and degradable packaging. Among these, degradable packaging dominates the market as it is environment-friendly and decompose easily. With growing concerns towards plastic waste, the demand for degradable packaging including plastic made from bioplastics is increasing rapidly.
PEST Analysis
Political: Governments across the globe are introducing stringent regulations towards single-use plastic to reduce plastic waste. For example, the European Commission has banned single-use plastic products. This is encouraging shifting towards green packaging.
Economic: The rising disposable incomes have increased the demand for sustainable packaging from end-use industries like food and beverages. However, high costs associated with green packaging restricts its adoption.
Social: Increasing public awareness about environmental protection and sustainability is driving the shift towards eco-friendly packaging solutions. Social media is playing a major role in changing consumer preferences.
Technological: Advancements in material science have facilitated the development of new biodegradable and compostable materials for packaging like bio-based plastics. Many companies are investing in R&D to commercialize new green technologies.
Key Takeaways
The global Green Packaging Market Share is expected to witness high growth, exhibiting CAGR of 4.97% over the forecast period of 2023-2030, due to increasing consumer demand for sustainable packaging. The market size is projected to reach US$ 3,15,000 Mn by 2030 from US$ 2,08,000 Mn in 2022.
Regional analysis indicates that North America dominates the green packaging market currently due to stringent regulations and environmental awareness. Europe is also a major market driven by policies banning single-use plastics. However, Asia Pacific is expected to be the fastest growing market led by countries like India and China on account of rapid industrialization and increasing food packaging demand.
Key players operating in the green packaging market are 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. These companies are investing in new technologies and acquisitions to strengthen their market position and meet the growing demand for sustainable packaging solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
