Green Packaging Market

Market Overview:

The global green packaging market size reached US$ 246 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 334 Billion by 2028, exhibiting a growth rate (CAGR) of 5.3% during 2023-2028. The growing environmental concerns, increasing demand for bioplastics, and favorable government policies represent some of the key factors driving the market.

Rising Awareness About Environment Conservation Augmenting Market Growth

The growing awareness among the masses about protecting the environment represents one of the key factors driving the market for green packaging. People are showing concerns for the safety of the environment around the world. This trend is increasing the focus on more sustainable methods in every aspect of life, including packaging. In addition, key manufacturers are adopting green packaging solutions as compared to conventional bags for the purpose of sustainability. Moreover, the rising demand for environment-friendly bags among individuals is positively influencing the market.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is fragmented with several small and large players operating in the industry. The volume of new entrants is moderate in the green packaging industry due to little product differentiation and fragmented nature of the market. However, stringent government regulations and requirement of economies of scale negates the effect.

What is Green Packaging?

Green packaging, also known as sustainable packaging, is a type of packaging made from materials that require less energy during production and have a low impact on the environment. It also involves the usage of alternative energy sources, such as wind, solar and biofuels, in the transportation process. Green packaging is produced by maximizing the usage of sustainable materials, such as recyclable or biodegradable elements, and limiting packaging waste generation. It utilizes biodegradable and plant-based plastics along with recycled molded packaging and used polyethylene bags to produce various products. As it can be manufactured using plant-based products, such as mushrooms, grapes, and biodegradable waste, the demand for green packaging is rising across the globe.

COVID-19 Impact:

The COVID-19 pandemic outbreak created a risk to the green packaging industry and continues to grapple countries with unprecedented challenges. Like in many other sectors, the pandemic caused a significant disruption in the green packaging sector. Due to the lockdowns, closure of ports, and trade restrictions, the supply chains have been disrupted abruptly, leading to shortages and high raw materials prices. In turn, this resulted in reduced production of green packaging-related products. Several countries witnessed curfew-like situations where businesses were not allowed to operate. In addition, the shutting down of restaurants, hotels, and several industrialized plants has significantly impacted the demand for green packaging due to its high consumption in these sectors. Moreover, a considerable drop in the supply and procurement of raw materials due to the slowdown of logistic services is hindering the market growth. However, this decline in the green packaging industry is temporary and is anticipated to recover once the economy returns to normalcy.

Green Packaging Market Trends:

At present, there is an increase in the demand for green packaging due to the growing environmental concerns among the masses. This, along with the rising transportation and energy costs across the globe, represents one of the key factors supporting the growth of the market. In addition, the growing utilization of green packaging to reduce carbon footprints, which helps to support human and ecological health, is offering a favorable market outlook. Moreover, green packaging comprises ways that limit the amount of waste and emissions generated in the manufacturing process. In line with this, green packaging follows garbage and waste stream management strategy, such as reduce, reuse, recycle, and recover, which is propelling the growth of the market. Besides this, governing agencies of various countries are promoting the usage of recyclable packages over non-decomposable packages. Additionally, key players are investing in research and development (R&D) activities for innovation of new sustainable packages, which is strengthening the growth of the market. Apart from this, the increasing demand for bioplastics to reduce reliance on fossil fuels is offering lucrative growth opportunities to industry investors.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global green packaging market report, along with forecasts at the global and regional level from 2023-2028. Our report has categorized the market based on packaging type and end use industry.

Packaging Type Insights:

• Recycled Content Packaging 
  • Paper
  • Plastic
  • Metal
  • Glass
  • Others
• Reusable Packaging
  • Drum
  • Plastic Container
  • Others
• Degradable Packaging
   

The report has provided a detailed breakup and analysis of the green packaging market based on the packaging type. This includes recycled content packaging (paper, plastic, metal, glass, and others); reusable packaging (drum, plastic container, and others); and degradable packaging. According to the report, recycled content packaging (paper, plastic, metal, glass, and others) represented the largest segment due to the rapid eradication of single-use plastic packaging. In addition, the increasing demand for recycled content packaging including paperboard, metal and glass is propelling the growth of the market. Moreover, the rising demand for recycled content packaging in the food and beverage (F&B) industry due to diverse consumer preferences and minimal waste generation practices is offering a favorable market outlook. Additionally, the growing consumption of on-the-go and ready-to-eat (RTE) food items is positively influencing the market.

End Use Industry Insights:

• Food Industry
• Beverage Industry
• Healthcare Industry
• Personal Care Industry
• Others
   

A detailed breakup and analysis of the green packaging market based on the end use industry has also been provided in the report. This includes the food industry, beverage industry, healthcare industry, personal care industry, and others. According to the report, the food industry accounted for the largest market share as green packaging is safe and healthy for carrying food. In addition, food packaging is essential as food quality will be compromised if not packed properly. Besides this, as green packaging is lightweight, eco-friendly and easy to decompose, the demand for green packaging is increasing in the food and beverage (F&B) sector. Moreover, green packaging used by the food industry can be effectively recovered and utilized in biological or industrial cradle-to-cradle cycles.

Regional Insights:

• Asia Pacific
• Europe
• North America
• Middle East and Africa
• Latin America
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Asia Pacific, Europe, North America, the Middle East and Africa, and Latin America. According to the report, Asia Pacific was the largest market for green packaging. Some of the factors driving the Asia Pacific green packaging market included the growing environmental concerns, rising consumer awareness, and increasing demand for biodegradable and sustainable packaging. In addition, green packaging finds applications in various sectors, such as food and beverage (F&B), cosmetics, personal care, and pharmaceutical. Moreover, the incorporation of advanced packaging technologies is replacing virgin packaging materials with recyclable ones, which is impelling the growth of the market. Apart from this, the rapid urbanization and the rising economic development in the region is contributing to the growth of the market.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global green packaging market. Some of the companies covered in the report include:

• Amcor Limited
• DuPont
• Mondi Limited
• Sealed Air Corporation
• TetraPak International S.A.
• Ardagh Group Co.
• PlastiPak Holdings, Inc.
• Bemis Company, Inc.
• Uflex limited
• ELOPAK AS
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the green packaging market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global green packaging market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the green packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.