Sustainable Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Paper & Paperboard, Glass, Plastic, Metal, and Others), By Product Type (Boxes & Cartons, Bags & Pouches, Bottles & Cans, Films & Wraps, Trays, Mailers, and Others), By Application (Food & Beverages, Personal Care & Cosmetics, Pharmaceuticals, Consumer Goods, E-commerce, and Others), and Regional Forecast, 2023-2030

The global sustainable packaging market size was valued at USD 310.00 billion in 2022 and is projected to be worth USD 329.26 billion in 2023 and reach USD 518.33 billion by 2030, exhibiting a CAGR of 6.70% during the forecast period. North America dominated the sustainable packaging market with a market share of 32.5% in 2022. Moreover, the sustainable packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 143.86 billion by 2032, driven by the manufacturers focusing on lightweight packaging materials, optimizing packaging design to use less material, and eliminating unnecessary packaging components.

Sustainable packaging refers to developing and utilizing sustainable packaging materials to wrap, store, ship, or shelve products, resulting in enhanced sustainability. The growing awareness regarding environmental issues among consumers, along with the rising need for such packaging solutions, led to the rapid adoption of sustainable packaging by businesses. In addition, the increasing disposable income and the changing lifestyle trends of consumers have led to a rise in demand for packaged food & beverages, further propelling the market growth.

COVID-19 IMPACT

Increased Demand for Eco-friendly Packaging Products Boosted the Market Growth during COVID-19

COVID-19 impacted numerous end-use industries globally. The sudden occurrence of the COVID-19 virus led to the shutdown of businesses and several production units in the packaging industry. The e-commerce, pharmaceutical, and food & beverage industries witnessed a crucial rise in sales during the pandemic, which boosted the demand for green packaging solutions. With a rise in packaging waste due to the increased online shopping trends during the pandemic, many businesses explored sustainable and eco-friendly packaging solutions that propelled market growth. Developments regarding manufacturing more environmentally friendly packaging solutions & minimizing the environmental footprint of packaged food products were on the rise, further driving the market growth during the pandemic.

Sustainable Packaging Market Trends

Growing Refillable and Eco-Friendly Packaging Demand from the Personal Care Sector to Drive Market Expansion

Using plant-based materials for packaging has gained massive traction in the personal care & cosmetics industry owing to its recyclable, reusable, and degradable properties. The rising demand for eco-friendly packaging solutions from these industries is boosting the market growth. For instance, according to the L'Oréal Group’s Plastic Packaging Policy 2022, the company is focused on adopting environment-friendly materials for cosmetic packaging. In addition, several cosmetics and personal care products brands are demanding such eco-friendly packaging solutions, which, in turn, emerges as a critical trend. Moreover, the augmenting demand for refillable packaging options is also emerging as a significant growth trend for sustainable packaging. Refillable packaging consists of recyclable materials that leading brands can renovate or re-develop when the consumers return their empty packaging, turning it into a valuable packaging substitute for companies that aim to eliminate their environmental impact.

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Sustainable Packaging Market Growth Factors

Increasing Demand for Biodegradable and Compostable Packaging Drives Market Growth

Demand for environmentally friendly and compostable packaging solutions is increasing due to consumers' rising awareness related to environmental issues. Compostable packaging solutions are essential as they help diminish a large portion of plastic pollution by driving it away from waterways and landfills. It also reduces the greenhouse gas emissions from organics. Companies are looking for ways to eliminate their carbon footprint and fulfil the increasing demand for sustainable product packaging, ranging from eco-friendly and biodegradable packaging solutions to renewable materials. Such factors are regarded as the significant global drivers for sustainable packaging market growth. In addition, the increased demand for biodegradable packaging solutions also propels market growth. Such packaging lowers the carbon emissions and environmental pollution. Biodegradable packaging materials are developed from renewable resources and are considered to be more sustainable, leading to huge demand and further driving market growth.

Increased Utilization of Recycled Plastic Packaging is Propelling the Market Growth

Demand for recycled plastic packaging among manufacturers and consumers has increased. Recycled plastic packaging is essential as it is more environmentally friendly than regular plastic packaging. It leaves a considerably reduced carbon footprint compared to manufacturing new plastic, as it can be used again for other packaging products. It is also gaining tremendous traction among the food and beverage industries, as the material is highly resistant to chemicals & heat, making it an ideal choice to store food and for use in microwaves, fridges, and freezers. Moreover, the low production costs of such materials make it more sustainable and a cost-effective packaging alternative to traditional plastic packaging. The rising utilization of lightweight recycled plastic packaging, such as R-PET, which reduces transportation costs, is boosting market growth. Moreover, as it is highly resistant to abrasion and breakage, it is utilized by several end-use industries for product packaging, further contributing to the market growth.

RESTRAINING FACTORS

High Costs and Limited Raw Material Availability to Hinder Market Growth

There is a limited availability and inconsistency of sustainable materials for packaging, which hampers the supply chain, further restraining the market growth. The limited availability of raw materials results in manufacturers having difficulty in planning their production schedules and fulfilling customers' demands, leading to high costs. It also restricts the flexibility and creativity of manufacturers in designing their packaging offerings. Moreover, switching packaging from traditional to eco-friendly can be expensive for several companies, especially small-scale companies. Thus, the high costs of sustainable packaging may hinder market growth. Additionally, some packaging types may not fulfil the standards or requirements of some end-use industries, which may hamper market growth.

Sustainable Packaging Market Segmentation Analysis

By Material Analysis

Recyclability and Cost-effective Features Drives the Paper & Paperboard Segment Growth

Based on material, the market is segmented into paper & paperboard, glass, plastic, metal, and others.

The paper & paperboard segment is dominating the market. Paper & paperboard material is a renewable and biodegradable packaging solution as it can be easily recyclable. The material is also crucial in eliminating the carbon footprint and is highly cost-effective. Using paper & paperboard for packaging highly contributes to sustainable practices and promotes a greener environment, owing to which the material is gaining a huge demand from packaging manufacturers. The material is more bio-degradable and durable, further leading to segmental growth.

The plastic segment is the second-dominating segment in the market and is expected to witness crucial growth over the forecast period. The growing production of recycled plastic material, especially for the pharmaceutical industry, drives the segment’s growth.

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By Product Type Analysis

Significant Benefits Offered by Bags & Pouches to Boost Bags & Pouches Segment Growth

Based on product type, the market is segmented into boxes & cartons, bags & pouches, bottles & cans, films & wraps, trays, mailers, and others.

The bags & pouches segment dominates the market. Bags & pouches manufactured with sustainable materials are highly reusable. The carbon footprint during the manufacturing, transportation, and distribution of bags & pouches is significantly lesser than the bulkier packaging that creates more waste. They cut down transportation & shipping costs and are lightweight and compact, owing to which several end-use industries utilize them.

The bottles & cans segment is the second largest product type segment and is expected to attain noteworthy growth during the forecast period. The bottles & cans manufactured with aluminium or glass are highly sustainable and recyclable. The product type is majorly used to reduce waste & save natural resources.

By Application Analysis

Mounting Demand for Sustainable Product Packaging in the Food & Beverages Sector Drives the Segment Growth

Based on application, the market is segmented into food & beverages, personal care & cosmetics, pharmaceuticals, consumer goods, e-commerce, and others.

The food & beverages segment is leading the market and is anticipated to grow considerably during the forecast period. Sustainable type of packaging solutions have become a necessity in the food & beverage sectors. The rising health concern of consumers among food & beverage manufacturers and growing health-conscious consumers drive the demand for sustainable products. The rising demand for sustainable packaging solutions, such as tray boxes in food outlets, restaurants, and takeaway services, is also driving segmental growth.

Personal care & cosmetics is the second-dominating application segment in the market. The growing demand for tubes, bottles, and films & wraps for cosmetic products will boost the segmental growth.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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North America is the dominating in the sustainable packaging market share. The growing government regulations, changing consumer preferences, presence of top players and food packaging manufacturers in the U.S., and sustainability initiatives are the major factors impacting the market growth in the North American region. The region's well-established paper & paperboard recycling infrastructure also contributes to the market growth.

Asia Pacific is the second most dominating region and is expected to witness massive growth during the projected period. The increasing sales of pharmaceutical industries and the region's massive availability of raw materials propels the market growth. Moreover, the growing food & beverage industries and the development and use of packaging that is highly recyclable will generate crucial opportunities for the growth of the sustainable product packaging market in the Asia Pacific.

The European region is experiencing a remarkable growth in the market. The ban on single-use plastic, the growing demand from consumers for more environmentally friendly products, and the rising focus of manufacturers on offering recyclable packaging solutions are the prime factors impacting the market growth in Europe. The presence of key players from major European countries such as the U.K., Germany, and others is also driving the market.

Latin America will witness moderate growth during the forecast period. The rising food & beverage industry in the region is creating demand for sustainable products for packaging. The Middle East & Africa is anticipated to witness steady development owing to the region's growing healthcare and pharmaceutical industries.

List of Key Sustainable Packaging Market Companies

Key Market Participants to Witness Significant Growth Opportunities with New Product Launches

The global sustainable packaging market is highly fragmented and competitive. A few significant players are dominating the market by offering innovative packaging solutions in the packaging industry. These major players constantly focusing on expanding their customer base across regions by innovating their existing product range.

Major players in the sustainable packaging industry include Amcor Plc, Ardagh Group S.A., Ball Corporation, Crown Holdings Inc., DS Smith, and others. Numerous other companies operating in the market are focused on delivering advanced packaging solutions driving market expansion.

List of Key Companies Profiled:

• Amcor Plc (Switzerland)


• Ardagh Group S.A. (Luxembourg)


• Ball Corporation (U.S.)


• Crown Holdings Inc. (U.S.)


• DS Smith (U.K.)


• Sealed Air Corporation (U.S.)


• Mondi Group (U.K.)


• Sonoco Products Company (U.S.)


• Tetra Pak International S.A. (Switzerland)


• WestRock Company (U.S.)


• Smurfit Kappa (Ireland)


• Huhtamaki Oyj (Finland)


• International Paper (U.S.)


• Berry Global (U.S.)


• Gerresheimer AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Leading packaging manufacturer Sonoco Products Company has declared the launch of new sustainable packaging solutions with two EnviroFlex Paper Pre-qualifications, especially for the How2Recycle® Labeling range.


• December 2022 – BASF & StePac collaborated and launched a sustainable packaging solution for shelf-life extension of fresh produce. The partnership will help maintain a balance between generating plastic packaging that is as eco-friendly as possible and keeping fresh produce longer.


• October 2022 – Berry Global announced the new product offering with its bespoke 14-litre HDPE reusable container, an ideal refill solution. With the launch, the company plays a central role in a new refill packaging solution from the Refill Coalition.


• June 2022 – Ball Corporation declared the launch of its most sustainable aluminium aerosol can with only half the carbon footprint of a standard can. The launch will support the company’s ambition to achieve 2030 science-based targets & net-zero emissions before 2050.


• April 2022 – Amcor introduced innovative and sustainable packaging solutions, especially for the pharmaceutical industry. The new low-carbon, recycle-ready and High Shield laminates boost the product range in the company’s pharmaceutical packaging portfolio.

REPORT COVERAGE

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The report provides detailed market analysis and focuses on key aspects, such as top market players, competitive landscape, product/service types, market segmentation, porters's five forces analysis, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments in the sustainable packaging industries. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

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