Green packaging involves using environmentally friendly materials and processes that emit fewer pollutants and reduce energy use in manufacturing. Materials such as paper, bioplastics from renewable biomass sources, and aluminum are increasingly used in green packaging applications. Packaging made from these materials offer comparable functionality to traditional plastics but have lower manufacturing carbon footprints. They are also easier to recycle and breakdown after intended use. The global green packaging market comprises various products made from these sustainable materials including boxes, clamshells, bags, wraps, pouches and other specialty containers used in food, beverage, pharmaceutical, personal care and other industrial applications. The market for green packaged products has grown significantly as consumers and brand owners seek sustainable alternatives.
The global Green Packaging Market is estimated to be valued at US$ 218337.6 Mn in 2023 and is expected to exhibit a CAGR of 15.% .% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Growing consumer demand for eco-friendly packaging is a key trend in the green packaging market. Surveys show more shoppers are willing to pay premium prices for products with sustainable packaging over those packaged in plastic. This consumer preference has made sustainability a business imperative for brand owners and retailers. Green packaging allows them to appeal to environmentally conscious buyers and millennials. Meanwhile, regulatory push for recycling and restrictions on single-use plastics in many countries are further driving packaged goods companies to seek greener alternatives. Advanced material science research is also expanding the portfolio of bio-based and recyclable packaging solutions.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established buyers allow new companies to enter the green packaging market. However, existing players have significant brand recognition and supply chain advantages.
Bargaining power of buyers: Large retail and consumer goods firms have significant buyer power to negotiate lower packaging prices and demand sustainable materials. Smaller brands have less influence over suppliers.
Bargaining power of suppliers: A limited number of raw material producers and machinery providers gives them some leverage over packaging makers. However, intangible assets keep suppliers from significantly raising costs.
Threat of new substitutes: Bio-based plastics and edible plant-based films pose a risk but have not replaced traditional materials at scale due to higher costs and unfamiliarity.
Competitive rivalry: Major green packaging manufacturers vigorously compete for contracts from multinational corporations and grocery chains. Collaboration and industry standards also influence competition.
Key Takeaways
The global Green Packaging Market Demand is expected to witness high growth over the forecast period of 2023 to 2030.
North America currently dominates the market due to stricter environmental regulations and strong consumer demand for sustainable products in the region. Major brands have pledged to use recyclable or compostable materials by certain deadlines, driving packaging producers to innovate.
Regional analysis: Europe is another fast-growing market for green packaging due to the European Union’s legislation banning various single-use plastic items by 2021. Asia Pacific is poised to experience the highest CAGR during the forecast period with growth in e-commerce and rising health awareness in populous nations like India and China.
Key players: Key players operating in the green packaging market are ad notam AG, Evervue, Gentex Corporation, Magna International Inc., Murakami Kaimeido, Panasonic Corporation, Perseus Mirrors, Pro Display, Samsung Electronics Co., Ltd., and Tech2O. These companies offer a variety of plant-based resins, recyclable paper products, and innovative material science solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.