Green Packaging Market by Type (Recyclable, Reusable, and Degradable), Application (Food & Beverages, Pharmaceuticals & Healthcare, and Chemical), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Green Packaging Market Analysis

The global green packaging market was valued at $267.5 billion in 2020 and is projected to reach $451.7 billion by 2028, registering a CAGR of 7.0%.

Market Synopsis

Increased awareness among people about the benefits of green packaging on the environment is expected to drive the green packaging market size growth in the forecast time period.

However, high cost of green packaging for products is likely to restrain the green packaging market share growth.

According to the regional analysis of the market, the Asia-Pacific green packaging market is anticipated to grow at a CAGR of 7.8%, by generating a revenue of $112.5 billion during the review period.

Green Packaging Overview

Green packaging is also known as sustainable packaging. Packaging is the most important feature of the finished goods as it helps in protecting the quality and texture of products. Sustainable packaging includes recycled or reused packaging which helps in reducing waste and energy.

COVID-19 Impact on the Global Green Packaging Market

The occurrence of COVID-19 pandemic has proved to have a moderate impact on green packaging market size growth. As the impact of COVID-19 pandemic has had a severe impact on the health and wellbeing of the people across the world, the fear of infection and its severe symptoms have settled in the patients. Amid high rate of corona virus transmission and prevalence of serious symptoms, government had imposed lockdown, worldwide, due to which many industries stopped their manufacturing units. Thus, the requirement of green packaging material for product packaging decreased severely. This factor has decreased the green packaging market share growth in the pandemic year.    However, green packaging market also experienced a positive growth in the COVID-19 pandemic period. During pandemic, people shifted their shopping preference towards online shopping. E-commerce generally uses paper-based packaging for delivering products. This factor is likely to flourish the market growth in the pandemic time period.

Increasing Knowledge about Importance of Green Packaging to Surge the Market Growth

Rapidly growing knowledge about the benefits of green packaging among consumers is expected to accelerate the green packaging market share growth in the forecast time period. Green packaging is a sustainable form of packaging which not only reduces packaging waste accumulation but also helps in reducing greenhouse gas thus, protecting environment. Apart from this, introduction of biodegradable packaging materials such as bioplastics and biopolymers for packaging of various products like food and beverages by the companies is further anticipated to generate huge green packaging market size growth in the predicted time period.

To know more about global green packaging market drivers, get in touch with our analysts here.

High Cost of Green Packaging to Restrain the Market Growth

Green packaging used for product packaging is very expensive. This is mainly due to high processing cost of recycled products. Thus, not many industries, especially in the developing nations, can afford such high green packaging cost. This factor is likely to hinder the green packaging market share growth of the next few years. Also, not many people, like in rural areas of developing countries, are aware about the availability of sustainable and environment friendly packaging solutions in the market. Thus, this factor is further expected to impede the market growth in the predicted time period.

Sustainable Packaging of Product by Major Companies to Fuel the Market Growth

Owing to the strict regulations set by the government to use sustainable packaging for their products packaging, the industries have now started focusing on the use of recycled packaging materials. For instance, according to a report published on the official site of Amcor Plc, a packaging company, on November 18, 2021, the company claimed that 86% of all its products can be recycled after use. Also, by their sustainable packaging approach, they rose their product sales by 76% in last few years. Such factors are estimated to register a huge green packaging market share growth in the coming years.

To know more about global green packaging market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The recyclable green packaging sub-segment is predicted to have the highest revenue in the global market and register a revenue of $275.4 billion during the forecast period. Recycled packaging products have become very popular due to their advantages including biodegradability. This factor is likely to surge the sub-segment market growth in the future. Also, recycling of packaging waste reduces energy wastage and environmental pollution which is further anticipated to promote green packaging market share growth in the next few years.

Source: Research Dive Analysis

The food & beverages sub-segment is predicted to have a dominating market share in the global market and register a revenue of $261.8 billion during the forecast period. The sub-segment growth is owing to continuously growing food & beverages industry across the world. As the industry is growing rapidly, the demand for recyclable food packaging has increased to reduce the amount of waste produced by the food companies. Such factors are likely to flourish the market growth in the future.

Source: Research Dive Analysis

The Market for Green Packaging in Europe to be the Most Dominant

The Europe green packaging market accounted $93.9 billion in 2020 and is projected to register a revenue of $157.6 billion by 2028. The growth is attributed to market penetration of green packaging products in the region by major market players like Amcor. Also, strict rules made by the government to increase the use of green or sustainable packaging for the products are further anticipated to accelerate the growth of the market in the forecast years.

The Market for Green Packaging in Asia-Pacific to Observe Fastest Growth

The Asia-Pacific green packaging market is expected to observe the fastest growth and register a revenue of $112.5 billion in the predicted time span. The growth of the region is subjected to rapidly increasing knowledge about the importance of sustainable packaging solutions for products and role of recycled packaging in reducing waste landfills. Also, government is constantly promoting the green packaging concept in the developing countries like India to aware people about the uses of recycled packaging. These factors are likely to flourish the green packaging market growth in the next few years.

Competitive Scenario in the Global Green Packaging Market

Product launches and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

The companies involved in the green packaging market are Amcor Limited, E. I. DuPont de Nemours and Company, Mondi Limited, Sealed Air Corporation, TetraPak International S.A., Ardagh Group Co., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, and ELOPAK AS.

Porter’s Five Forces Analysis for the Global Green Packaging Market

• Bargaining Power of Suppliers: The suppliers in the green packaging market are growing in number. Thus, they have to provide best quality products at an optimum price range to attract customers.
  Thus, the bargaining power suppliers is moderate.
• Bargaining Power of Buyers: Buyers are growing in number and have huge bargaining power. Since the suppliers are growing in the market, the buyers have a high choice to select the best product in their range.
  Thus, the bargaining power of the buyers is high.
• Threat of New Entrants: New companies entering the green packaging market are adopting new green packaging techniques in the market in minimum period. 
  Thus, the threat of the new entrants is high.
• Threat of Substitutes: Since green packaging is a substitute to harmful packaging materials, there are no threats of substitute.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players. These companies are launching their new green packaging products in the international market and strengthening the footprint worldwide. 
  Therefore, competitive rivalry in the market is high.