Green Packaging Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Green Packaging Market is Segmented By Packaging Type (Paper, Plastic, Metal, Glass), By Reusable Packaging Type (Drums, Plastic Containers, Others), By End-User Type (Food industry, Healthcare industry, Personal Care Industry, Others ), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Green Packaging Market Size

The Global Green Packaging Market reached USD 255.1 billion in 2022 and is expected to reach USD 350.5 billion by 2030, growing with a CAGR of 7.2% during the forecast period 2024-2031. Owing to the advent of bioplastic, environmental concerns about sustainable development and regulatory bodies' strict enforcement of rules, the global green packaging market is expected to rise significantly over the forecast period. It is also anticipated to increase along with rising transportation and energy prices.

Green packaging solutions with a low carbon footprint lower their carbon footprint from manufacture to disposal using sustainable materials, including paper, plant-based materials, recycled materials, and other biodegradable materials. The global market for green packaging is expanding due to the garbage and waste stream management strategy of "reduce, reuse, recycle and recover.”

Green Packaging Market Summary

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Green Packaging Market Dynamics

Growing Awareness of Environmental Concerns 

Owing to the growing consumer awareness of the adverse environmental impacts of single-use plastic products, manufacturers and suppliers are increasingly choosing environmentally friendly packaging alternatives. According to the EPA, packaging waste makes up about one-third of the trash dumped in landfills yearly. The U.S. government's stringent regulations and rules governing plastic packaging options have aided the green packaging industry. 

For instance, the government has focused on green packaging through initiatives like the Sustainable Packaging Coalition to encourage suppliers and manufacturers to use eco-friendly packaging. A U.S.-based nonprofit organization called Green Seal launched its sustainable packaging solutions program in September 2022 to promote market businesses using recycled packaging to cut down on plastic waste in landfills.

High Costs of Products

Green packaging alternatives usually have higher costs than conventional packaging options. Not all businesses or regions can easily get or buy all kinds of bio-based or biodegradable items. It makes harder to utilize environmentally friendly packaging, triggered by factors including rising production costs, a scarcity of raw materials or high processing requirements. 

Businesses frequently have the most concerns about the cost of sustainable packaging, which was one of the key barriers to their investment in green packaging market. Packaging also raises the price of goods and increases the expense of garbage disposal. USD 1 of every USD 10 spent on commodities is spent on packaging. It amounts to 10% of consumer spending on packaging that will be discarded. 

Green Packaging Market Segment Analysis

The Global Green Packaging Market is segmented based on material, type, end-user and region.

The Rising Awareness of Green Packaging Drives the Food & Beverage Sector

The food and beverage category held the largest market share of about 35.2% in 2022 due to the rising demand for eco-friendly packaging materials, such as compostable and molded pulp, in fast food establishments, restaurants, frozen foods, dairy products, drinks and pet food products. Additionally, Mondi anticipated expanding its sustainable packaging offering with its "Grow&Go" line in June 2022. 

The entire Grow&Goportfolio of Mondi Group consists completely of paper and adheres to food contact standards. Burger King, a well-known fast-food restaurant, offers sustainable forks, knives, spoons, French fry containers and other widely used consumer goods. Starbucks Coffee Company also offers reusable cups with recycled elements that are 50% made of recycled materials.

Source: DataM Intelligence Analysis (2023)

Green Packaging Market Geographical Share

Rising Need to Minimize Greenhouse Gas Emissions

In 2022, Europe is anticipated to hold the largest share for the green packaging market having about 1/3rd of the market. Growing consumer awareness of the negative environmental effects of plastic materials and the increased need for green packaging solutions in fields like healthcare and food & beverage are to blame. Local businesses are working to reduce their greenhouse gas emissions.

The Financial Times named Tetra Pak a European Climate Leader 2023 in honor of its successes in lowering greenhouse gas (GHG) emissions and its constant commitment to climate change. Additionally, Smurfit Kappa Bag-in-Box introduced a new thermo-laminated film in November 2021 in Spain. The Smurfit Kappa Bag-in-Box Ibi facility began producing bags using the M-Compact 77 thermo-laminated metalized film, which is new and more environmentally friendly.

Source: DataM Intelligence Analysis (2023)

Green Packaging Market Players

The major global players include BASF SE, WestRock Company, Amcor Limited, Sealed Air, Mondi PLC, Bemis Company Inc., The Dow Chemical Company, Ball Corporation, L’Oreal International and Tetra Pack.

COVID-19 Impact on Green Packaging Market

COVID Impact

The COVID-19 outbreak has significantly impacted the Global Market For Green Packaging. Due to the pandemic, consumer preferences and behaviors have changed. Consumers prioritize convenience and safety over sustainability in uncertain times, limiting the development of eco-friendly packaging alternatives. 

A surge in single-use plastics for product packaging has been seen in supermarkets. For the global health and safety of people, this was the immediate safety response that was put in place. Despite Thailand's ban on plastic bags in January 2020, the amount of plastic garbage generated there increased by 15% during COVID-19.

AI Impact 

Artificial intelligence (AI) has the potential to significantly impact the global market for green packaging by encouraging innovation, efficiency and sustainability across a range of aspects of the packaging industry. Machine learning algorithms may analyze data on packaging requirements, product attributes and environmental impact to identify the best package designs and materials that limit waste, lower carbon emissions and encourage recyclability.

Additionally, AI is being used to develop more efficient and waste-free packaging solutions. AI-driven packaging solutions can be created to optimize the package's size, shape and material composition. It reduces the quantity of material required for each package, using fewer resources and producing less waste.

Russia-Ukraine War Impact

The present crisis between Russia and Ukraine had a variety of impacts on the global green packaging market. Variations in currency exchange rates, export/import restrictions or a lack of essential components can drive up costs and put a risk in the supply chain for manufacturers of green packaging. 

Over 300 significant Western corporations have left the country as a result of the conflict and numerous production and packaging facilities in both Russia and Ukraine have been shut down. The largest glass factory in Ukraine, owned by Swiss glass packaging company Vetropack, decided to send all of its workers home. The plant, located in Gostomel, Kiev, was severely damaged by the conflict in March 2022.

Key Developments

• In February 2023, Liquibox, a producer of environmentally friendly liquid packaging, was acquired by Sealed Air, a packaging company headquartered in North Carolina, U.S. With the acquisition, Sealed Air expects to increase the range of products it offers for the food and beverage industry, to fulfill the rising demand from consumers for eco-friendly packaging options.
• WestRock Company, an American company for corrugated packaging and Recipe Unlimited, a Canadian company operating several chains of restaurant, announced a cooperation in April 2022 to introduce a line of recyclable paperboard products to keep 31 million plastic containers out of Canada's landfills annually. In October 2021, the bundle began to emerge in Swiss Chalet restaurants and it is now offered everywhere.
• In September 2022, Sealed Air, a packaging company headquartered in North Carolina, U.S. announced the debut of a new product line of protective packaging solutions under its "BUBBLE WRAP" brand that contains more than 50% recycled plastic.

Why Purchase the Report?

• To visualize the Global Green Packaging Market segmentation based on material, type, end-user and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of green packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Green Packaging Market Report Would Provide Approximately 61 Tables, 60 Figures And 204 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies