Sustainable Packaging Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[214+ Pages Report] According to Facts & Factors, the global sustainable packaging market size was valued at USD 230.33 billion in 2023 and is predicted to surpass USD 441.60 billion by the end of 2032. The sustainable packaging industry is expected to grow by a CAGR of 7.50% between 2024 and 2032.

Market Overview

Sustainable packaging refers to the use of packaging solutions that minimize the environmental impact and carbon footprint throughout their life cycle. These packaging solutions work on reduce, reuse, and recycle principles. These are made up of biodegradable, compostable materials that can break down naturally in the environment without causing harm to the surroundings.

Some of the materials using sustainable packaging include bio-based plastics, reusable materials, paper, and paperboard. Also, sustainable packaging solutions have many economic advantages in the long term as they eliminate waste management costs and lower material usage.

Key Insights

• As per the analysis shared by our research analyst, the global sustainable packaging market size is estimated to grow annually at a CAGR of around 7.50% over the forecast period (2024-2032).
• In terms of revenue, the global sustainable packaging market size was valued at around USD 230.33 billion in 2023 and is projected to reach USD 441.60 billion by 2032.
• Rising consumer awareness is driving the growth of the global sustainable packaging market.
• Based on the end-users, the food & beverage segment is growing at a high rate and is projected to dominate the global market.
• Based on the packaging types, the bags segment is projected to swipe the largest market share.
• Based on materials, the paper & paperboard segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Rising consumer awareness is driving the growth of the global market.

Growing awareness among people regarding the environmental impact of plastic waste is driving the demand for eco-friendly packaging solutions in the market. Consumer behavior is shifting significantly, which is further fostering the adoption of sustainable packaging solutions in the market.

Moreover, the strong preference of people for paper packaging materials all across the globe also supports the growth trajectory of the sustainable packaging industry. Gen Z and the millennial population are more inclined towards brands that are more environmentally responsible. Therefore, all these factors are responsible for the high growth rate of the market.

Sustainable packaging also reduces transportation costs because of its lightweight, thereby improving and optimizing logistics. Moreover, the manufacturer's view on the cost of sustainable packaging solutions has also changed. Earlier, they were viewed as more expensive, but nowadays, with development in the market and economies of scale, these are becoming more cost-effective, which is further driving the growth of the industry. The circular initiatives are also promoting the growth of sustainable packaging solutions as they encourage recycling and reusable materials instead of disposing of them.

Therefore, all these factors are likely to significantly propel the growth of the global sustainable packaging market manifolds in the coming years. For instance, Mondi and Fiorini International collaborated to come up with new paper packaging solutions for Antico Pastificio Umbro, an Italian premium pasta product, in 2022. It is 100% recyclable and lowers the plastic usage by around 20 tonnes annually.

Restraints

• Infrastructure and compatibility issues are likely to hamper the growth of the global market.

There is a need for a proper infrastructure for recycling, sorting, and collection of packaging materials. However, the lack of efficient infrastructure and management capabilities is likely to negatively impact the growth trajectory of the industry.

Also, not all sustainable packaging materials offer the same type of performance, such as shelf life and barrier properties, which are also barriers in the market. Also, not all the materials align with the regulator package standards. Therefore, all these factors are likely to hinder the growth of the sustainable packaging industry.

Opportunities

• Brand image and marketing initiatives are fostering growth opportunities in the global market.

Companies are adopting sustainable packaging solutions to enhance their brand image in the market. Nowadays, people are more inclined towards sustainable brands. Therefore, in order to appeal to a large environmentally conscious consumer base, they are making themselves more environmentally responsible brands, which is expected to foster growth opportunities in the global sustainable packaging market.

Also, advancements in technology are further driving innovations in the market, such as the use of bio-based materials, nanotechnology, and many others, to improve the recycling process. All these factors are likely to support the growth trajectory of the industry in the coming years. For instance, Sealed Air partnered to come up with an advanced recycling initiative to focus on recycling flexible plastics in 2022. It is likely to remake them into new certified circular food-grade packaging.

Challenges

• Limited availability of raw materials is a big challenge in the global market.

The unavailability of required materials like bio-based plastics and paper is a big challenge in the sustainable packaging industry. Also, the rising complexities in the supply chain are further hindering the growth of the industry. Reconfiguring the entire supply chain to accommodate new recycling processes, suppliers, and materials is complex and costly, which further restricts the market's growth.

Segmentation Analysis

The global sustainable packaging market can be segmented into end-users, packaging types, materials, and regions.

On the basis of end users, the market can be segmented into agriculture, healthcare, chemical cosmetics & personal care, food & beverages, and others. The food & beverage segment is likely to dominate the sustainable packaging industry. Governments all across the globe are implementing strict regulations, particularly in the food and beverage sector, to promote the usage of biodegradable and recyclable materials for food safety and the elimination of plastic waste.

Moreover, several companies are committing to sustainability goals in the food and beverage industry, which is further likely to boost the growth of the segment. For instance, Coco Cola recently came up with recycled PET bottles.

Therefore, such initiatives are driving the demand for sustainable packaging in the food and beverage sector. The rise in packaged food consumption is another major factor driving the demand for sustainability packaging solutions in the market. The boom of e-commerce and online food delivery trends is further posing the requirement for durable, eco-friendly packaging to withstand external factors while transporting. Such market dynamics are likely to drive the growth of the segment manifolds in the coming years.

On the basis of packaging type, the market can be segmented into tapes & labels, vials & ampoules, IBC, drums, pouches & sachets, films, bottles, cans, cartons, trays, and bags. The bag is the fastest-growing segment in the global sustainable packaging market. Consumers are looking forward to sustainable and environmentally friendly packaging solutions because of the growing awareness among people regarding the environment and food safety.

The rising trend of packaging is further boosting the demand for bag packaging format because of the convenience and design factors. Also, governments are promoting the adoption of recyclable packaging materials by offering incentives and rebates, which in turn is also fostering the demand for bags in the market.

Additionally, the advancements in material science are further widening the scope of the segment. The development of sustainable bags made from compostable materials that meet both consumer and regulatory demands is further attracting manufacturers.

On the basis of material, the market can be segmented into wood, fabric, glass, metal, plastic paper & paperboard, and others. The paper & paperboard segment will account for the largest share of the sustainable packaging industry during the forecast period. Paper and paperboard materials are much in demand because of their renewal, recyclability, and biodegradability factors. These materials are made from wood pulp, which lowers the reliance on fossil fuels and also reduces the carbon footprint of packaging materials.

Furthermore, the rising awareness regarding environmental health is further boosting the demand for paper packaging material. Packaging materials are more aesthetic and appealing when compared to other available options, which is also a major factor in the high growth rate of the segment.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global sustainable packaging market during the forecast period. The regional market has a strict regulatory framework, which is the primary factor for the high growth rate of the industry in the region. For instance, the Environmental Protection Act is a sustainable material management program that promotes the use of sustainable packaging solutions in the region.

Moreover, state and federal-level initiatives also support sustainable packaging by encouraging the adoption of reusable packaging materials. The US is the largest market in the region. Legislation like a ban on single-use plastic is further boosting the market's growth. Canada is also making notable initiatives because of its commitment to sustainability.

Also, the rising demand for eco-friendly materials in the region from consumers because of the growing awareness regarding the environmental impact of plastic packaging solutions is expected to boost the growth of the market manifolds in the coming years. Giant brands and retailers are making public commitments to using compost and recyclable materials, which in turn is further expected to contribute towards the growth of the regional market.

Asia Pacific is another major region likely to see significant developments in the coming years. China is the leading country in APAC because of the growing emphasis on eliminating plastic waste. Also, the presence of a large consumer base demanding eco-friendly packaging material because of the negative impact of plastic on the environment is a crucial factor for growth in the market. India is also a lucrative country for the sustainable packaging industry because of the changing lifestyle of consumers.

Growing awareness among consumers is making a significant shift in the region. Increasing people's disposable income is supporting this change. South Korea and Japan are making significant advancements in packaging technology, which is further contributing to the growth of the APAC market. For instance, DS Smith came up with a corrugated cardboard box in 2022. These packaging solutions are for the e-commerce shipment of medical devices.

Competitive Analysis

The key players in the global sustainable packaging market include:

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

For instance, WestRock Company successfully collaborated with Recipe Unlimited in 2022 to deploy a series of recyclable paperboard packages across Canada each year. The program is aimed at diverting 31 million plastic containers from landfills in the region.

The global sustainable packaging market is segmented as follows:

By End-Users Segment Analysis

• Agriculture
• Healthcare
• Chemical
• Cosmetics & Personal Care
• Food & Beverages
• Others

By Packaging Types Segment Analysis

• Tapes & Labels
• Vials & Ampoules
• IBC
• Drums
• Pouches & Sachets
• Films
• Bottles
• Cans
• Carto
• Trays
• Bags

By Materials Segment Analysis

• Wood
• Fabric
• Glass
• Metal
• Plastic
• Paper & Paperboard
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America