By 2022, it is estimated that the global green packaging market will exceed $306.73 billion, and this growth rate shall be compounded annually at its CAGR of 6.5%.
Eco-friendly packaging solutions made from sustainable materials such as paper, plant-based materials, recycled materials and other compostable materials help reduce carbon emissions throughout the life cycle of them, from production to disposal.
Global Demand
Increasing consumer awareness of the negative environmental impact of single-use plastic products has encouraged manufacturers and suppliers to adopt environmentally friendly packaging solutions. as the preferred option. For example, Returnity Innovations Inc., a US-based packaging company, focuses on reducing plastic packaging waste in landfills by providing sustainable packaging solutions such as polymail bags, garment bags and other reusable packaging products.
In addition, many programs and initiatives promoting green packaging solutions in the country are underway. For example, in September 2022, Green Seal, a US-based nonprofit, launched a sustainable packaging solutions program that encourages manufacturers and manufacturers in domestic and commercial markets, use packaging with recycled content to reduce plastic waste in landfills.
The green packaging market has been segmented into recyclable content packaging, reusable packaging and compostable packaging. Among these, packaging with recycled content dominates with a market share of more than 60.0% by 2023. Packaging with recycled content is segmented into paper, plastic, glass, metal and others. Because of its cost-effectiveness compared to alternative materials, recycled plastic from polyethylene phthalate or HDPE is commonly used in a wide variety of packaging products including bags, bottles and containers. The packaging paper sub-segment with recycled content is expected to grow at a rapid CAGR. This growth is due to its improved properties such as waterproofing through the use of thin layers and coatings, making it more effective for a wider range of uses and applications.
Reusability
Reusable packaging is divided into cartons, plastic containers and others made from durable materials that can be reused for longer. Reusable drums are mainly used for storing and transporting industrial chemicals, food and beverage raw materials, health care products and other products. This type of packaging eliminates the need to recycle or repackage single-use packaging solutions that can contribute to landfill waste. Additionally, reusable packaging solutions consume up to 65% less energy than single-use plastic packaging, further driving the segment’s demand. Plastic containers are usually lighter and more economical than other materials, such as metal or glass.
Based on application, the green packaging market has been segmented into food & beverage, personal care, healthcare and others. The food and beverages sector has the highest market share in 2023 at around 61%, which is attributed to an increasing trend for sustainability packaging solutions like compostable pulp and plastic boxes or drinks. Products for dog and cat food. The healthcare segment is expected to grow at a significant CAGR during the forecast period, driven by the increasing use of green packaging such as molded pulp packaging solutions, instead of consumer products. Traditional reuse in hospitals and healthcare facilities, for convenience. The personal care segment recorded a large market share in 2023, thanks to the widespread use of recycled PET bags, bottles and boxes for creams, lotions, gels and others. Additionally, personal care product manufacturers are increasingly realizing the importance of sustainability to their brand reputation, as it helps communicate the company’s commitment to sustainability and responsibility. duty. for consumers, driving demand for this segment. For example, Olive Natural Skincare provides 100% recycled packaging for all of its products and has achieved zero carbon certification.
Regional Analysis
Europe holds the largest market share of over 38.0% in the green packaging industry. It is because, as well as the increased demand for ecofriendly packaging solutions in sectors such as health care, consumers have become aware of the impact of plastic packaging material on the environment, health care, food and beverage. The use of bioplastics made from renewable sources, such as cane or corn starch, has also contributed to the growth of the market by providing better biodegradability and lower carbon footprint.
Germany dominates the European market as it is one of the main producers and promoters of recycled packaging solutions. Several manufacturers and suppliers of personal care products such as HCP Packaging have adopted green packaging through various government initiatives to promote sustainable packaging in the country. These include the Packaging Act, which requires organizations to collect and recycle their packaging waste, and the Green Dot system, which encourages the use of recyclable materials in manufacturing, fabrication and distribution. ‘packaging’. This helps drive market demand for green packaging. The Asia-Pacific region is expected to grow at the fastest CAGR thanks to the growth of the recyclable packaging market, especially in the food and beverage sector. beverages on the market.
Growing awareness of the importance of circular economy principles in reducing waste and promoting sustainability is driving increased investment in recycling infrastructure and materials and technology development. New technology in waste recycling, packaging in Asia-Pacific. Furthermore, the growing demand for FMCG products in the region has led to a corresponding increase in the production of eco-friendly packaging solutions to protect and transport these products.
This leads to an increasing demand for sustainable packaging solutions that can meet the needs of the FMCG industry, while minimizing waste and environmental impact, thus contributing to growth in demand. demand for green packaging.
China is a producer and consumer of eco-friendly packaging due to various government regulations and policies, such as prevention and control of environmental pollution caused by solid waste and treatment restrictions. and overflow. solid waste. In addition, in order to respond to growing demand from consumers for sustainable packaging as well as compliance with governmental policies, a number of retailers have adopted green packaging solutions. For example, Alibaba, an e-commerce retailer, encourages sellers to use sustainable packaging materials for their products and offers incentives, driving market growth.
Market Growth
The growth of the green packaging market in North America is driven by a growing trend towards innovation and sustainable packaging design, such as lightweight and reusable packaging, which reduces the impact impact on the environment of the packaging. packaging and reduce costs for manufacturers. Moreover, the region is home to several important ecofriendly packaging companies such as Ball Corporation, Dupont and Seal Air that continue to have a strong influence on market growth in this area.
The Canadian government’s initiatives to reduce plastic waste by actively investing in businesses and helping them develop sustainable packaging innovation initiatives are expected to boost the packaging market. green envelope. in this country. For example, the Canadian Government said in March 2023 that it was investing in three sustainable packaging producers, such as Friendlier, Omnia Packaging Inc. and United Flex Packaging Technologies, with a view to achieving zero plastic waste in this country. Tyson Foods and Amcor team up to deliver new sustainable packaging. To introduce more sustainable packaging for consumer goods, Tyson Foods, one of the world’s largest food companies and a globally renowned protein leader, will once again partner with Amcor, the The world’s leading developer and manufacturer of responsible packaging solutions.
Recent Development
Fres-co System USA, a flexible packaging solutions provider, has partnered with Trex Company, the world’s largest producer of wood substitutes, to ensure the sustainability of flexible coffee packaging mine.