Sustainable Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 292.71 Billion |
| Market Size (2029) | USD 423.56 Billion |
| CAGR (2024 - 2029) | 7.67 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Sustainable Packaging Market Analysis
The Sustainable Packaging Market size is estimated at USD 292.71 billion in 2024, and is expected to reach USD 423.56 billion by 2029, growing at a CAGR of 7.67% during the forecast period (2024-2029).
- Sustainable packaging involves developing and utilizing packaging solutions that enhance sustainability. It relies heavily on life cycle assessments and inventories to guide decisions and minimize environmental impact.
- In recent years, consumer interest in sustainability has surged significantly. The rise of circular economics has further underscored the importance of sustainable packaging. Governments worldwide, responding to public concerns over packaging waste, particularly single-use plastics, are enacting stringent regulations to curb environmental harm and bolster waste management.
- Leading the charge, countries like France, Germany, and the United Kingdom are not only enforcing robust recycling measures within the European Union but are also adopting extended producer responsibilities (EPRs). In Asia, Thailand implemented a nationwide ban on single-use plastic bags in major stores starting January 1, 2020, with the ultimate goal of reducing plastic pollution.
- According to the Ocean Conservancy statistics, 8 million metric tons of plastic enter the oceans annually, adding to the estimated 150 million metric tons already present. This is a critical issue. To put this in perspective, it is akin to dumping a New York City garbage truck's load of plastic into the ocean every minute for a year. The survey identifies 2025 as a pivotal year for eco-friendly packaging, with over 40% of respondents planning to adopt innovative and sustainable packaging techniques. Companies are increasingly pivoting toward a circular economy, utilizing compostable materials and biodegradables and rethinking container designs to reduce waste.
- However, the use of non-recyclable, non-biodegradable plastic packaging is on the rise, exacerbating carbon emissions. In response, major corporations like Amazon, Google, and Tetrapak are setting ambitious targets, aiming for net-zero carbon emissions, a move expected to entail significant capital investments.
Sustainable Packaging Market Trends
The Recycled Packaging Segment to Hold Significant Share in Market
- Increasing consumer demand for sustainable products is driving the growth of recycled packaging. As environmental awareness rises, consumers are actively seeking brands that prioritize sustainability, particularly in their packaging choices. This consumer shift is compelling companies across sectors to pivot toward recycled packaging, aligning with both consumer expectations and bolstering their corporate social responsibility standings. Simultaneously, advancements in recycling technologies are streamlining the incorporation of recycled materials into packaging, enhancing cost-effectiveness for manufacturers, and further amplifying market growth.
- Global governments and regulatory bodies are pivotal in expanding the recycled packaging market. They are enacting stringent regulations and policies, with a primary focus on curbing plastic waste and promoting recycling. Notably, initiatives like the European Union's Circular Economy Action Plan and plastic waste reduction mandates in countries like the United States and Canada are nudging companies toward sustainable packaging investments. These directives not only mandate the use of recycled materials but also foster innovation in packaging design and material science, aiming to bolster recyclability and minimize environmental footprints.
- Technological strides in recycling processes are pivotal for the growth of the recycled packaging market. Innovations like chemical recycling, which breaks down plastics into their original monomers, are paving the way for high-quality recycled materials in packaging. These advancements are addressing limitations seen in traditional mechanical recycling, like material degradation and the restricted recyclability of certain plastics. With ongoing technological evolution, the quality and efficacy of recycled packaging are poised to elevate, further stoking market demand.
- Businesses are increasingly recognizing the economic merits of recycled packaging. By embracing recycled materials, companies can diminish their dependence on virgin resources, trim production costs, and buffer themselves against supply chain disruptions. Moreover, brands adopting recycled packaging not only resonate with environmentally conscious consumers but also carve out a distinct niche from their competitors, bolstering their market appeal. Consequently, both major players and smaller enterprises in the packaging realm are channeling substantial investments into recycled packaging solutions, underpinning the market's robust growth trajectory.
Asia-Pacific Expected to Register Significant Market Growth
- Chinese e-commerce giants and express delivery services are actively cutting down on packaging materials. For example, SF Express introduced recyclable packaging boxes, each capable of being recycled approximately ten times. In major cities, including first-tier and several second-tier ones, the company deployed over 100,000 of these boxes. Its primary aim is to replace traditional paper boxes and plastic bags, thereby reducing the usage of foam blocks and tape. SF Express emphasized that these efforts align with China's push for sustainable logistics growth. The company has also invested in research and development to create more durable and eco-friendly packaging solutions, ensuring that the materials used can withstand multiple cycles of use without compromising the safety and integrity of the contents.
- The rise of India's middle class, the rapid expansion of organized retail, increasing exports, and the booming e-commerce industry are all paving the way for the growth of the market studied. This growth, however, necessitates environmentally friendly packaging that ensures top-notch quality with minimal environmental repercussions. Consequently, the adoption of sustainable packaging practices by companies is gaining paramount importance. Companies are increasingly focusing on biodegradable materials, reducing plastic usage, and implementing innovative designs that minimize waste. Additionally, government regulations and consumer awareness are driving the shift toward greener packaging solutions, with many firms setting ambitious sustainability targets to meet these new standards.
- A recent survey by Capgemini delved into sustainability and changing consumer behavior. It revealed that 79% of consumers are altering their buying patterns, primarily driven by social responsibility, inclusivity, and environmental concerns. Notably, 53% of all consumers and a significant 57% of those aged 18 to 24 are gravitating toward lesser-known brands due to their eco-friendliness. Moreover, over half (52%) of respondents expressed an emotional connection with businesses prioritizing sustainability. The survey also highlighted that consumers are willing to pay a premium for sustainably packaged products, indicating a strong market demand for eco-friendly options. Brands that adapt to these preferences avoid losing market share to more environmentally conscious competitors.
- Key players in the region are spearheading innovations, propelling the growth of the sustainable packaging market. These innovations include the development of new materials such as plant-based plastics, advanced recycling technologies, and smart packaging solutions that enhance product shelf life while reducing environmental impact. Collaborative efforts between industry leaders, startups, and research institutions are also fostering a culture of continuous improvement and sustainability in the packaging industry.
Sustainable Packaging Industry Overview
The sustainable packaging market exhibits a high degree of fragmentation, with prominent players such as Amcor Limited, TetraPak International SA, WestRock Company, Smurfit Kappa Group PLC, and Sonoco Products Company. These companies are actively engaged in developing innovative and eco-friendly packaging solutions to meet the growing demand for sustainable practices. They invest significantly in research and development to enhance the recyclability and biodegradability of their products, striving to reduce the environmental impact of packaging materials. Additionally, these key players often collaborate with other stakeholders in the supply chain to encourage sustainability and adhere to stringent regulatory standards.
- May 2024: Amcor and AVON, a leading cosmetics company, announced the launch of the AmPrima Plus refill pouch for AVON's Little Black Dress shower gels in China. This strategic initiative aims to reduce both carbon footprint and water consumption.
- March 2024: TOPPAN, a global player in printing and packaging solutions, revolutionized sustainable packaging with the launch of GL-SP, a barrier film utilizing biaxially oriented polypropylene (BOPP) as the substrate. This new product has been added to the GL BARRIER series, renowned for its transparent vapor-deposited barrier films, which hold a leading share in the global market.
Sustainable Packaging Market Leaders
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Amcor Limited
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Westrock Company
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TetraPak International SA
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Sonoco Products Company
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Smurfit Kappa Group PLC
*Disclaimer: Major Players sorted in no particular order
Sustainable Packaging Market News
- July 2024: Black Swan Graphene Inc. announced a significant advancement in sustainable packaging with the introduction of its latest product, the Graphene Enhanced Masterbatch (GEM) S27M. This new offering, the fifth in the GraphCore-01 product line, is set to transform the industry by delivering superior mechanical properties and reinforcing sustainability initiatives.
- July 2024: The 2M Group of Companies expanded its portfolio by launching a new business division, 'Sustainable Packaging Technologies.' This strategic initiative underscores the company's commitment to advancing biomaterial technologies and meeting the rising market demand for eco-friendly packaging solutions.
- July 2024: SIG, a prominent provider of food and beverage packaging solutions, launched an innovative recycle-ready bag-in-box packaging for water in Australia. This new packaging utilizes a mono-polymer composition, eliminating the need for aluminum in the bag's structure.
Sustainable Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness: Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Threat of New Entrants
- 4.3.4 Intensity of Competitive Rivalry
- 4.3.5 Threat of Substitute Products
- 4.4 Assessment of the Impact of Microeconomic Factors on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government Initiatives Toward Sustainable Packaging
- 5.1.2 Downsizing of Packaging
- 5.1.3 Shift in Consumer Preferences Toward Recyclable and Eco-friendly Materials
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5.2 Market Restraints
- 5.2.1 Capacity Constraint of Manufacturing Plants
- 5.2.2 High Cost of Raw Materials
6. MARKET SEGMENTATION
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6.1 By Process
- 6.1.1 Reusable Packaging
- 6.1.2 Degradable Packaging
- 6.1.3 Recycled Packaging
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6.2 By Material Type
- 6.2.1 Glass
- 6.2.2 Plastic
- 6.2.3 Metal
- 6.2.4 Paper
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6.3 By End User
- 6.3.1 Pharmaceutical and Healthcare
- 6.3.2 Cosmetics and Personal Care
- 6.3.3 Food and Beverage
- 6.3.4 Other End Users
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6.4 By Geography
- 6.4.1 North America
- 6.4.2 Europe
- 6.4.3 Asia-Pacific
- 6.4.4 Latin America
- 6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Amcor Limited
- 7.1.2 Westrock Company
- 7.1.3 TetraPak International SA
- 7.1.4 Sonoco Products Company
- 7.1.5 Smurfit Kappa Group PLC
- 7.1.6 Sealed Air Corporation
- 7.1.7 Mondi PLC
- 7.1.8 Huhtamaki OYJ
- 7.1.9 BASF SE
- 7.1.10 Ardagh Group SA
- 7.1.11 Ball Corporation
- 7.1.12 Crown Holdings Inc.
- 7.1.13 DS Smith PLC
- 7.1.14 Genpak LLC
- 7.1.15 International Paper Company
8. INVESTMENT ANALYSIS
9. MARKET OUTLOOK
Sustainable Packaging Industry Segmentation
Sustainable packaging is the development and use of packaging, resulting in improved sustainability. The study aims to analyze and understand the sustainable packaging market's current growth, opportunities, and challenges. The sustainable packaging market is segmented by process (reusable packaging, degradable packaging, and recycled packaging), material type (glass, plastic, metal, and paper), end user (pharmaceutical and healthcare, cosmetics and personal care, food and beverage, and other end users), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Process | Reusable Packaging |
| Degradable Packaging | |
| Recycled Packaging | |
| By Material Type | Glass |
| Plastic | |
| Metal | |
| Paper | |
| By End User | Pharmaceutical and Healthcare |
| Cosmetics and Personal Care | |
| Food and Beverage | |
| Other End Users | |
| By Geography | North America |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Sustainable Packaging Market Research FAQs
How big is the Sustainable Packaging Market?
The Sustainable Packaging Market size is expected to reach USD 292.71 billion in 2024 and grow at a CAGR of 7.67% to reach USD 423.56 billion by 2029.
What is the current Sustainable Packaging Market size?
In 2024, the Sustainable Packaging Market size is expected to reach USD 292.71 billion.
Who are the key players in Sustainable Packaging Market?
Amcor Limited, Westrock Company, TetraPak International SA, Sonoco Products Company and Smurfit Kappa Group PLC are the major companies operating in the Sustainable Packaging Market.
Which is the fastest growing region in Sustainable Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Sustainable Packaging Market?
In 2024, the North America accounts for the largest market share in Sustainable Packaging Market.
What years does this Sustainable Packaging Market cover, and what was the market size in 2023?
In 2023, the Sustainable Packaging Market size was estimated at USD 270.26 billion. The report covers the Sustainable Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sustainable Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which sector is leading in the adoption of Sustainable Packaging?
The food and beverage sector leads in adopting sustainable packaging due to growing consumer demand for eco-friendly products and stringent regulations regarding food safety and packaging waste.
Which sector is leading in the adoption of Sustainable Packaging?
The food and beverage sector leads in adopting sustainable packaging due to growing consumer demand for eco-friendly products and stringent regulations regarding food safety and packaging waste.
Sustainable Packaging Industry Report
The Sustainable Packaging Industry is witnessing remarkable growth, fueled by stringent sustainability regulations, a shift in consumer preferences towards eco-friendly solutions, and a ban on single-use plastics. This surge is particularly notable in the food & beverage and personal care sectors, which are rapidly adopting biodegradable and recyclable packaging to reduce carbon footprints and ensure product safety. With a focus on minimizing environmental impact, the industry offers a variety of materials like paper, plastic, metal, and glass, and innovative solutions such as active and molded pulp packaging. As the market moves towards recyclable and reusable options, sustainable packaging is becoming essential for long-term ecological sustainability. This growth is backed by industry commitment to innovation and new technologies. According to Mordor Intelligence™ Industry Reports, the sustainable packaging market is expanding, with detailed analysis and forecasts available in their free report PDF download, highlighting market share, size, revenue growth, and a historical overview, underscoring the industry's significant potential and contribution to a sustainable future.
