Government mandates across the world and growing environmental consciousness have made the marketing of packaging solutions more cause-driven. Recycled packaging solutions are helping companies differentiate their products in the market along with reaching their sustainability goals. For instance, Amcor is pledging to develop all of its packaging to be recyclable or reusable by 2025.
Factors like increasing urbanization, the rise in demand for off-the-shelf products, are some of the factors, further driving the market. The growing solar energy market, due to increasing dependence on renewable energy sources, along with the subsidies available for energy storage, is anticipated to propel the growth of the market, thus, accelerating the glass demand in the market.
However, increasing number of governments, in even countries, like China and India, who have so far neglected sustainable packaging initiatives, have banned the use of lightweight single-use plastic bags or have started taxing them heavily. This has compelled businesses to look beyond the use of petroleum-based plastics to alternatives derived from plants, or even synthesized by microorganisms, and is considered to be the key to a sustainable future. These biodegradable alternatives to existing solutions in the market are likely to stall the market.
Growing Conscientious Population Adopting Sustainable Solutions
World population has exceeded 7.2 billion, out of which, it is estimated 2.5 billion are ‘millennials’ (of the age 15-35), and unlike the other generations they actually share a deep concern about environmental issues. Majority of these consumers are skeptical about the corporate responsibility claims made and have brought an ethical consumer revolution demanding ethically produced goods.
According to a study done by Wrap, a social organization in the United Kingdom, that works with businesses together in order to drive social and economic improvement within the environmental limits of the planet by making the use of resources and production of goods more efficient and sustainable, 82% of the customers are concerned about wasteful packaging, while 35% consider what packaging is made of when buying in-store and 62% do consider what the packing material is made of when they come to dispose it.
Further, according to a similar study done by Carton Council of North America, 86% of the consumers expect food & beverage brands to actively help to recycle their packages and 45% of them said, that their loyalty to a food & beverage brand would be impacted by the brands engagement with environmental causes, thus driving the demand for recycled materials for packaging. (Source: Carton Council of North America)
Paper Based Packaging Solutions to Dominate the Market
Companies around the world are adopting sustainable packaging solutions, which include usage of biodegradable paper and recyclable paper. Both the markets are witnessing huge adoption owing to cleaner environment movements across the globe. However, recycling remains one of the major trends observed in the industry. Although paper products are biodegradable, the process has been identified to be inconsistent in landfills owing to the presence of external elements. The impact of landfills is creating concerns among the municipalities. Thus, governments and organizations are pushing recycling over landfill disposables, with biodegradable packaging having high recyclability, owing to the absence of additional artificial elements. As product recyclability is growing, many industries are demanding recycled paper products over virgin solutions, owing to their lower energy consumption.
Chinese Market Expected To Witness Turbulence
Stricter enforcement of regulations on food safety, clean production, hygienic packaging, together with modern Chinese consumers’ sophisticated requirements and attitudes toward product packaging, has pressured large downstream clients to progressively implement advanced, innovative, environmental-friendly packaging solutions.
At the end of 2017, China banned most imports of foreign recyclables to focus on waste produced by its residents. The country had been the largest world market for plastics and other recycled materials.
This specifically targets imports of plastics scrap for recycling, and could include tighter customs controls nationwide and restrictions on imported waste plastics coming into China through smaller ports.
As a result, only 9.3 tonnes of plastic scrap was approved to enter China in January 2018. It is stressed that this is more than a 99% reduction as compared with the 3.8+ million tonnes approved to be imported at the start of 2017. The drastic change has caused the market with a supply gap of around 5 million tonnes of plastic scrap.
Key Developments in the Market
- January 2018: McDonald's announced that all its packaging worldwide would come from sustainable sources by 2025. The restaurant chain will aim to get all items like bags, straws, wrappers, and cups from recycled or renewable materials. McDonald's also wants 100% of its restaurants to recycle packaging by then, compared with only 10%, as of now.
- January 2018: European Union regulators declared a new agenda with the goal to make all plastic packaging in the European Union market recyclable or reusable by 2030, which could potentially involve levying taxes and modernizing plastics production to kickstart a behavioral change.
Reasons to Purchase the Report
- To understand how the increasing consciousness towards a cleaner environment is driving the growth in demand for recycled packaging solutions.
- For analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis.
- To know which end-user vertical is likely to witness the highest adoption.
- For identification of the latest developments, market shares, and strategies employed by the major market players.
- 3-month analyst support along with the Market Estimate sheet (in Excel).
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1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
4.2.1 Growing Conscientious Population
4.2.2 Stringent Government Regulations
4.3.1 Growth and Advancement in Biodegradable Plastics
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness – Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products or Services
4.5.5 Competitive Rivalry among Existing Competitors
5. Market Segmentation
5.2 Industry Vertical
5.2.1 Food & Beverages
5.2.2 Personal Care and Household
5.2.3 Healthcare and Pharmaceutical
5.2.5 Electronics and Appliances
5.2.7 Others (Agriculture, Fashion)
5.3 By Geography
5.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 Rest of the World
188.8.131.52 Latin America
184.108.40.206 Middle East & Africa
6. Competitive Intelligence – Company Profiles
6.1 Amcor Ltd.
6.2 Be Green Packaging LLC
6.3 Berkley International Packaging
6.4 Biopac UK Ltd
6.5 Evergreen Packaging LLC
6.6 International Paper
6.7 Kruger Inc.
6.8 Mondi Group
6.9 Ranpak Corp
6.10 Smurfit Kappa Group
6.11 Tetra Laval
*List not Exhaustive
7. Investment Analysis
8. Future of the Market