The Green Packaging Market Projected to Grow at a CAGR of 7.0% and Garner a Revenue of $451.7 Billion in the 2021-2028 TimeframeDownload Sample Reports Overview
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%.
COVID-19 Impact on the Green Packaging Market
During the prevalence of COVID-19 pandemic, the green packaging market observed a moderate growth. Green packaging market growth experienced a positive growth in the COVID-19 time. As the viral infection became prevalent in the surroundings, across the world, people started focusing on adopting healthy habits among which shifting to sustainable packaging products is one. Sustainable packaging not only reduces environmental waste accumulation but also helps in reducing greenhouse gas emission. However, green packaging market size growth experienced a negative impact as many industries were forced to shut down their production unit due to strict regulations laid by the government with an aim to contain the effect and transmission of viral infection. As a result, the demand and requirement of green packaging was reduced which has impeded the market growth in the pandemic time period.
Green Packaging Market Analysis:
Rising concern about harmful effects of packaging waste like plastic and tin on the environment, among millennial, is expected to drive the green packaging market share technology in the next few days. Green packaging includes recycled, degradable, or reusable packaging material which does not pose much threat to the environment. It is the sustainable option for of packaging and is now widely accepted for reducing the emission of harmful gases in the air like Sulphur when treated or disposed. Such factors are anticipated to generate huge green packaging market revenue growth in the coming years.
However, high cost of the green packaging is likely to restrain green packaging market size growth. Also, lack of awareness among people, especially in rural areas, about the importance of sustainable packaging in improving environment quality is further likely to impede the market growth in future.
Due to growing demand for sustainable packaging products among customers owing to raised awareness about benefits of sustainable packaging on environment, many companies like Amcor have got opportunities to launch new sustainable packaged products in the market. Such factors are likely to flourish the market growth in the coming years.
Green Packaging Market, Segmentation
The green packaging market is segmented based on type, application, and region.
Based on type, the global green packaging market is segmented into recyclable, reusable, and degradable. 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. The sub-segment growth is due to increased recycled sustainable packaging product launches by the companies. Also, growing demand among people for recycled packaging products due to rising knowledge among people about impact of using recycled products in reducing waste accumulation is further anticipated to generate huge revenues for green packaging market.
Based on application, the global green packaging market is segmented into food & beverages, pharmaceuticals & healthcare, personal care, and others. 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. Food & beverage industry is growing rapidly due to which demand for sustainable packaging solutions has also increased. Many companies like Nestle have introduced a policy for using recycled packaging materials for their products. Such factors are expected to drive the sub-segment market growth in future.
Based on region, 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 regional growth is attributed to the presence of well-established food & beverage industries where maximum amount of green packaging material is used. Also, strict government regulations and emphasis for companies to use recycled packaging materials for their products are further likely to increase the market growth of green packaging in the future.
Key Players in the Green Packaging Market
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
- ELOPAK AS.
Porter’s Five Forces Analysis for the Green Packaging Market
- Bargaining Power of Suppliers: The number of suppliers in the green packaging market is increasing owing to which they have to optimize their product range in order to attract large number of consumers.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: Buyers are high in number and they have too many options for purchasing sustainable packaging materials.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Since the market is growing rapidly, new companies entering the market have started launching new and advanced green packaging products to attract the consumers and establish their market presence.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There is no substitute for green packaging in the market.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive rivalry is present among the market players as the green packaging market is growing and there is a huge scope for high growth.
Therefore, competitive rivalry in the market is high.