Sustainable Packaging Market

The sustainable packaging market is expected to reach a value of US$ 266.4 billion by 2023, exhibiting a strong compound annual growth rate (CAGR) of 7.2% throughout the forecast period. Looking forward, the market is projected to maintain its growth momentum and surpass US$ 533.9 billion by 2033, presenting significant opportunities for businesses operating in the packaging industry.

The Increasing Popularity of Compostable Packaging in the Sustainable Packaging Sector

With growing environmental awareness among consumers, there is a rising demand for sustainable packaging solutions. Companies are actively seeking ways to reduce their carbon footprint and cater to the increasing demand for eco-friendly products by offering packaging that is environmentally friendly, biodegradable, compostable, or recyclable. This trend is expected to persist during the forecast period, making sustainable packaging a major driver of growth in the packaging industry.

Consumer Demand for Plastic-Free Packaging: Transforming Sales Strategies

Advancements in sustainable packaging materials are opening up new avenues for manufacturers to minimize their environmental impact and meet the consumer demand for eco-friendly products. Companies are exploring various options, including renewable and plant-based materials, as well as plastic-free packaging, to decrease waste generation and enhance sustainability. As more companies adopt these innovative approaches, the sustainable packaging industry is likely to experience sustained growth and increased investments.

Innovative Sustainable Materials: Key to Addressing Challenges in the Sustainable Packaging Sector

While the demand for sustainable packaging solutions is growing, manufacturers encounter several challenges in meeting this demand. One significant challenge is finding economically viable and scalable solutions for producing sustainable packaging materials. Another hurdle is meeting regulatory requirements and ensuring that sustainable packaging materials meet the same quality standards as traditional packaging materials. To overcome these obstacles, manufacturers must invest in new technologies and processes that enhance efficiency, reduce costs, and maintain high-quality standards.

Historical Outlook (2018 to 2023) for Sustainable Packaging Industry

The sustainable packaging industry experienced significant growth from 2018 to 2022, as consumers demanded more eco-friendly products, governments imposed stricter regulations, and the negative impacts of plastic packaging became more evident. The industry also invested heavily in innovation and R&D to create new sustainable materials and packaging solutions.

2018 to 2020: The market value of the sustainable packaging industry reached US$ 225.3 billion in 2020, growing at a CAGR of 5.8% during this period. The main drivers of this growth were the rising preference for biodegradable and compostable packaging solutions, and the widespread use of sustainable packaging by key industries such as food and beverage, cosmetics, and healthcare.

2020 to 2022: The sustainable packaging market maintained its growth momentum during this period, with a CAGR of 6.2%. The COVID-19 pandemic boosted the demand for sustainable packaging, as consumers became more aware of their environmental footprint and the health hazards of single-use plastics. The period also witnessed an increase in the use of renewable packaging materials and novel packaging formats such as paper-based bottles and edible packaging.

2022 to 2023: The sustainable packaging industry is projected to grow steadily during this period, with a CAGR of 6.5%. The market is likely to be influenced by factors such as enhanced government support for sustainable packaging, increased consumer awareness, and the ongoing focus on R&D activities to develop new sustainable packaging solutions.

Category-wise Insights

Paper-based Sustainable Packaging Gains Popularity and Drives Market Growth in 2023

Paper and paperboard are the leading material types in the sustainable packaging industry, accounting for about 37% of the market share in 2023. This is because of the material’s biodegradability, recyclability, and renewability, which make it a preferred choice for packaging applications in various industries. Moreover, governments are encouraging the use of paper packaging through various initiatives and campaigns, further boosting the growth of the segment.

How Sustainable Packaging Formats are transforming the Industry

 Bags & sacks are expected to be the dominant sustainable packaging format, with an estimated market share of 25% in 2023. However, trays & clamshells, cartons & boxes, and pouches & sachets are also expected to grow significantly. The demand for sustainable packaging formats such as biodegradable bags, compostable trays, and paperboard cartons is expected to rise, driven by the need for eco-friendly packaging solutions.

Sustainable Packaging Goes Direct: The Rise of Manufacturer Sales

A Growing Trend in Sustainable Packaging Manufacturers are expected to have the largest market share of around 55% in the sustainable packaging industry in 2023. Direct sales by manufacturers are becoming more popular as companies seek to establish a closer relationship with their customers and save costs associated with intermediaries. However, distributors and retailers are still expected to have a significant role in the distribution of sustainable packaging solutions.

Sustainable Packaging for a Sustainable Future: The Role of Different Industries

The food and beverage industry is expected to have the largest market share of around 45% in the sustainable packaging industry in 2023. The increasing use of sustainable packaging solutions in the food and beverage industry is driven by the need to reduce food waste and provide consumers with eco-friendly packaging options. Other industries such as cosmetics & personal care and pharmaceuticals are also expected to increase their use of sustainable packaging solutions.

Country-wise Insights

Sustainable Packaging Industry is Dominated by the United States Due to High Awareness and Favorable Regulations

By 2023, the sustainable packaging industry in North America is projected to have a substantial share of 25.7%. The United States is leading the sustainable packaging market in the region and is expected to maintain its leadership during the forecast period. The growth of the United States sustainable packaging industry is due to the increased consumer awareness about sustainable packaging and the rising demand for eco-friendly products.

The United States government also supports the growth of the sustainable packaging industry with favorable regulations. Moreover, the United States has the largest number of food and beverage companies in the world, and as they adopt more sustainable practices, the demand for sustainable packaging solutions is also increasing.

East Asia: China and Japan Drive the Growth of the Sustainable Packaging Industry with Increased Emphasis on Eco-Friendly Products

The sustainable packaging industry in East Asia is projected to have a share of 18.5% in 2023. China and Japan are the leading countries in the region, boosting the growth of the sustainable packaging market with a greater focus on eco-friendly products. China is the world’s largest producer and consumer of packaging, and the growing awareness about environmental issues has led to a transition towards sustainable packaging solutions.

The Chinese government has also implemented policies to promote the use of sustainable packaging materials. In Japan, consumer awareness and government initiatives drive the demand for sustainable packaging. The Japanese government has set a target to reduce plastic waste by 25% by 2030, which has led to the use of sustainable packaging solutions by businesses.

South Asia & Pacific: India Emerging as a Dominating Country with Growing Demand for Sustainable Packaging Solutions

The sustainable packaging industry in South Asia & Pacific is projected to have a share of 12.6% in 2023. India is the leading country in the region, boosting the growth of the sustainable packaging industry with the rising demand for eco-friendly products, including sustainable packaging materials. The Indian government has launched various initiatives to encourage the use of eco-friendly products.

The growing consumer awareness about environmental issues and the need for eco-friendly products has also led to the use of sustainable packaging by businesses in India. Moreover, the increasing disposable income and changing lifestyles of consumers have led to an increase in demand for packaged food and beverages, which has further driven the growth of the sustainable packaging market in India.

Western Europe: Germany Leading the Sustainable Packaging Industry with Strong Emphasis on Sustainable Practices

The sustainable packaging industry in Western Europe is projected to have a share of 16.4% in 2023. Germany is dominating the sustainable packaging industry in the region with a high focus on sustainable practices. The German government has introduced various policies and initiatives to support sustainable practices in the country, which has led to the use of sustainable packaging solutions by businesses.

The consumer awareness about environmental issues and the need for eco-friendly products also drives the demand for sustainable packaging in Germany. In addition, the large number of food and beverage companies in Germany has led to an increase in demand for sustainable packaging solutions in the country.

Key Players in the Sustainable Packaging Industry

• Amcor Plc
• Stora Enso Oyj.
• Berry Global Inc.
• Huhtamaki Oyj.
• WestRock LLC
• DS Smith Plc
• The Mondi Group plc
• International Paper Company
• Detmold Group
• Sealed Air Corporation
• Dart Container Corporation
• Duni AB
• Vegware Ltd.
• Pactiv LLC
• RKW Group
• Novolex Holdings, Inc

Latest Developments in the Sustainable Packaging Industry:

• WestRock Company and Recipe Unlimited announced a partnership in April 2022 to create a range of recyclable paperboard packages that would prevent 31 million plastic containers from ending up in Canada’s landfills every year. The package first appeared in Swiss Chalet restaurants in October 2021; it is now available everywhere.
• Sealed Air announced a collaboration on an advanced recycling program in April 2022. Its aim is to recycle flexible plastics from the food supply chain and turn them into new, certified circular food-grade packaging.
• In July 2022, the converter Fiorini International and the luxury pasta products manufacturer Antico Pastificio Umbro in Italy teamed up to create a new paper packaging solution. The new packaging, which is 100% recyclable and can be used for all pasta products, has the potential to reduce the annual consumption of plastic by up to 20 tonnes.
• In April 2022, DS Smith launched a corrugated cardboard package for the online delivery of medical devices. The corrugated cardboard box uses a single-material solution instead of adhesive packaging with a single-use plastic insert.

Key Segments Covered in the Market Report

By Material Type:

• Paper & Paperboard
  • Coated Unbleached
  • Bleached Paperboard
  • Molded Fiber Pulp
  • Kraft Paper
  • Corrugated Board/Boxboard
• Plastic
  • Poly Lactic Acid (PLA)
  • Polybutylene Succinate (PBS)
  • Polyhydroxyalkanoates (PHAs)
  • Starch based Plastics
  • Others (PVA, PVOH, PBAT, etc.)
• Metal
  • Steel
  • Aluminium
• Glass
• Fabric
• Wood

By Packaging Type:

• Bags & Sacks
• Trays & Clamshells
• Cartons & Boxes
• Cans
• Bottles & Jars
• Films & Wraps
• Pouches & Sachets
• Drums
• IBC
• Vials & Ampoules
• Tapes & Labels
• Others (Jerry Cans, Bowls, Cutlery, etc.)

By Distribution Channel:

• Manufacturer (Direct Sales)
• Distributors
• Retailers

By End Use:

• Food
  • Bakery & Confectionery
  • Dairy
  • Fresh Produce
  • Snack Food
  • Other Processed Food
• Beverages
  • Non-alcoholic
  • Alcoholic
• Cosmetics & Personal Care
• Chemical
• Healthcare
• Agriculture
• Other Industrial