Green Packaging Market Size Projected to Generate a Revenue of $561.6 Billion by 2031Download Sample Reports Overview
The Global Green Packaging Market is predicted to be valued at $561.6 billion by 2031, surging from $253.8 billion in 2021, at a CAGR of 8.7%.
Impact Analysis of COVID-19 on the Green Packaging Market
The impact of COVID-19 on the green packaging market has been moderate, creating both challenges and opportunities for companies operating in the industry. The pandemic affected economies globally thereby disrupting supply chains. The COVID-19 pandemic had a significant impact on the global packaging industry, including the green packaging market. Green packaging refers to environmentally friendly packaging materials and practices that aim to reduce the environmental impact of packaging. The pandemic also led to an increase in the demand for packaged goods, including food and healthcare products, as people stayed at home and engaged themselves in online shopping. This increase in demand for green packaging led to an increase in the production of packaging materials, which is expected to have negative environmental consequences, such as increased waste and pollution. The pandemic also led to a greater awareness of the need for sustainable packaging solutions, as people have become more environmentally conscious and aware of the impact of their actions on the planet. This has led to an increase in demand for green packaging solutions, such as biodegradable and compostable materials, as well as more sustainable packaging practices, such as reducing the use of plastic and increasing the use of recycled materials. While there has been an increase in demand for packaging materials due to changes in consumer behavior, there has also been an increased awareness of the need for sustainable packaging solutions.
Global Green Packaging Market Analysis
The rising demand for advances in technology and materials science has made it possible to create new and innovative green packaging solutions that are both environmentally friendly and functional. This has helped to drive the demand for green packaging and encouraged further innovation in the industry. With the development of new materials and production processes, companies are now able to create eco-friendly packaging that is both practical and efficient, meeting the demands of consumers and businesses. Innovative solutions such as biodegradable plastics, plant-based materials, and compostable packaging are becoming increasingly popular, as they offer a more sustainable alternative to traditional packaging options. In addition, technological advancements have also enabled manufacturers to create packaging that is light in weight and requires less energy to produce, reducing its environmental impact further. These are the major factors anticipated to boost the green packaging market share during the forecast time.
However, the inadequate availability of sustainable materials for packaging is expected to limit the green packaging market in some regions. This can make it difficult for companies to adopt green packaging, especially if they have specific packaging requirements. In addition, some companies may have specific packaging requirements, such as the need for certain types of packaging to protect their products during transportation or to meet regulatory standards. If sustainable materials that meet these requirements are not readily available, it can make it difficult for these companies to adopt green packaging solutions. Despite these challenges, there are initiatives underway to increase the availability and accessibility of sustainable packaging materials that can hamper the market expansion.
Innovations are taking place in sustainable packaging materials that are environmentally friendly, cost-effective, and perform well in terms of protecting and preserving the products they contain. Companies that can develop these materials and bring them to market are expected to have a competitive advantage. The growing demand for eco-friendly packaging is predicted to create significant growth opportunities for the green packaging market players. Consumers are increasingly concerned about the environmental impact of packaging waste, and they are looking for more sustainable options. Companies that can offer customized sustainable packaging solutions for specific industries or products are expected to be in high demand during the forecast period. For example, packaging solutions for food and beverage products may require different materials and designs than packaging solutions for electronics or household products. There are major factors predicted to generate excellent opportunities for the key players operating in the market.
Global Green Packaging Market, Segmentation
The green packaging market is segmented on the basis of packaging type, application, and region.
The packaging type segment is further classified into recyclable, reusable, and degradable. Among these, the recyclable sub-segment accounted for the highest market share in 2021. The widespread use of recyclable materials such as plastic, glass, metal, and paper has boosted the growth of this market. These materials are recycled by manufacturers to create new packaging, resulting in significant waste reduction. It is now the most widely used and accepted type of green packaging. Furthermore, the use of recycled plastic is becoming increasingly popular around the world due to the low cost of plastic and its high durability. The low cost of recycled plastic has quickly gained traction in developing countries. As a result of the increasing adoption of recycled plastic across various end-use verticals, this segment has gained global dominance.
The application segment is further classified into food & beverage industry, pharmaceuticals and healthcare, personal care, and others. Among these, the personal care sub-segment is anticipated to show the fastest growth by 2031. Many personal care product manufacturers are moving towards greener alternatives by reducing the number of materials used in packaging. Consumer awareness of the sustainability of product packaging is driving the change. Companies operating in the market have thus adopted paperboard packaging with thin plastic packaging wherever possible.
The green packaging market in Asia-Pacific is projected to show the fastest growth by 2031. The rise in government regulations and initiatives in the region is encouraging manufacturers to opt for green packaging. China, the world's largest manufacturing hub, is changing its packaging habits and materials to be more environmentally friendly. Furthermore, the Australian government has set a target of adopting 100% recyclable packaging by 2031, which will result in a sharp increase in market value during the forecast period. Moreover, green packaging manufacturers in China, India, Japan, and South Korea are focusing more on sustainable packaging solutions owing to rising environmental concerns among consumers, which is expected to boost the regional market growth.
Key Players in the Global Green Packaging Market
Some of the leading green packaging market players are
- Tetra Laval
- Evergreen Packaging
- DS Smith
- Ball Corp.
- Sealed Air
- Be Green Packaging
In June 2021, Amcor debuted environmentally friendly chocolate packaging in South America. The company designed and produced reusable plastic cocoa powder containers. The packaging reduced the carbon effect by 53% as compared to the previous packing. In April 2021, Amcor created a revolutionary method of healthcare packaging. The revolutionary AmSky blister system has been added to the line of recyclable healthcare packaging products.