by Green packaging refers to the use of materials and processes that have a lesser environmental impact over the packaging’s lifecycle from extraction and processing, through transportation and use, to disposal and final decomposition. Some of the key green packaging materials include recycled content, recyclable content, reusable packaging, biodegradable/compostable material, and lower carbon footprint. The global green packaging market is witnessing significant growth driven by increasing regulations related to reducing the environmental impact of packaging and rising demand for sustainable solutions from end-use industries. Green packaging helps companies improve brand image and reputation by promoting their sustainability efforts.
The global green packaging Market is estimated to be valued at US$ 218,337.6 million in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing Demand for Sustainable Packaging Solutions is Expected to Boost the Green Packaging Market over the Forecast Period. Stringent government regulations pertaining to reducing the environmental impact of packaging materials and promoting recyclable and sustainable packaging solutions are fueling demand for green packaging products. Major brand owners and retailers focus on developing sustainable packaging as part of their corporate responsibility and commitments towards reducing carbon footprint. Growing concerns over proper waste management and minimizing landfill disposal are also driving packaging manufacturers to develop green alternatives. Rising environmental awareness among consumers has increased demand for eco-friendly packaged products. However, high costs associated with green packaging raw materials and technologies poses a major challenge to widespread adoption.
Segment Analysis
The green packaging market is dominated by recyclable packaging sub-segment. Recyclable packaging accounted for around 45% market share in 2022. This is because of the growing regulations regarding the use of recyclable and reusable packaging across globe. Growing awareness about environmental protection and sustainability is also driving the demand for recyclable packaging materials like paper, glass, plastic etc.
PEST Analysis
Political: Packaging regulations across regions are focussed on promoting sustainable packaging. Various policies incentivize use of eco-friendly materials and restrict usage of single use plastics.
Economic: Cost of raw materials for green packaging is generally higher compared to regular packaging. However, subsidies and tax benefits aim to reduce industry compliance cost and encourage sustainable practices.
Social: Rising environmental consciousness among public is increasing demand for sustainable packaged products. Customers especially milennials prefer brands promoting green/eco-friendly initiatives.
Technological: Advances in material science are facilitating development of innovative green packaging solutions. Biodegradable and compostable materials offer exciting opportunities for brands to strengthen sustainability credentials.
Key Takeaways
Global Green Packaging Market Size is expected to witness high growth over the forecast period due to stringent regulations and customer preference for sustainable products.
Regional analysis
The Asia Pacific region is anticipated to register fastest growth in green packaging market during 2023-2030. China and India have implemented extensive regulations to curb plastic usage and promote bio-degradable and recyclable materials. This has boosted domestic manufacturing capacities of green packaging suppliers in the region. Furthermore, growing environmental awareness and disposable income also support market expansion.
Key playersÂ
Key players operating in the green packaging market are Amcor PLC, Tetra Pak International SA, Mondi PLC, Sealed Air Corporation, Ball Corporation. These players are focusing on developing innovative and sustainable packaging solutions by investing in R&D. They also attract customers through marketing campaigns highlighting their green packaging portfolio and credentials.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
