Environmentally Friendly Packaging Market Global Market Report 2024

Environmentally friendly packaging refers to packaging solutions designed to be safe for both people and the planet. It prioritizes features such as recyclability, the use of recycled or eco-friendly materials, and reduced energy consumption and natural resource usage during production. This type of packaging aims to contribute to environmental conservation and sustainability.

The main categories of environmentally friendly packaging include recycled content packaging, reusable packaging, and degradable packaging. Recycled content packaging involves the use of materials that have been previously used, contributing to environmental protection. This type of packaging encompasses a variety of products, such as bags, pouches, sachets, boxes, containers, films, trays, tubes, bottles, jars, and cans. The materials utilized in manufacturing environmentally friendly packaging solutions include paper and paperboard, plastic, metal, glass, and starch-based materials. Various techniques, such as active, moulded, and alternate fibre packaging, are employed in the production process. Additionally, environmentally friendly packaging may involve multiple layers, categorized as primary, secondary, and tertiary packaging.

The environmentally friendly packaging market research report is one of a series of new reports that provides environmentally friendly packaging market statistics, including environmentally friendly packaging industry global market size, regional shares, competitors with an environmentally friendly packaging market share, detailed environmentally friendly packaging market segments, market trends and opportunities, and any further data you may need to thrive in the environmentally friendly packaging industry. This environmentally friendly packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The environmentally friendly packaging market size has grown strongly in recent years. It will grow from $229.81 billion in 2023 to $246.06 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The expansion observed in the historical period can be attributed to several factors, including the increased awareness among consumers regarding environmental impact, the implementation of government regulations, the adoption of circular economy principles, a shift in consumer preferences towards eco-friendly options, and growth in the healthcare sector. These elements collectively contributed to the overall growth observed during that timeframe.

The environmentally friendly packaging market size is expected to see strong growth in the next few years. It will grow to $331.07 billion in 2028 at a compound annual growth rate (CAGR) of 7.7%. The anticipated growth in the forecast period can be attributed to various factors, including the expanding Fast-Moving Consumer Goods (FMCG) sector, the growth of the food industry, the continued expansion of e-commerce, the thriving electronics industry, and an increase in disposable income. Noteworthy trends expected in this period encompass the utilization of plant-based and biodegradable materials in packaging, the adoption of minimalist packaging approaches, the integration of smart packaging solutions, the preference for lightweight packaging, and a focus on transparency and eco-labeling

The environmentally friendly packaging market is anticipated to witness significant growth due to the increasing awareness of environmental concerns among consumers. Globally, people are becoming more conscious of environmental pollution and its adverse effects on climate change. This awareness is driving consumers to opt for environmentally friendly packaging, contributing to a reduction in plastic usage. A study by Mastercard Inc. revealed that, in 2021, 54% of adults across 24 countries considered it important to reduce their carbon footprint post-COVID-19. Additionally, 75% of US consumers expressed concerns about the environmental impact of the products they purchase. Consequently, the heightened awareness among consumers is a key factor propelling the growth of the environmentally friendly packaging market.

The growth of the environmentally friendly packaging market is further fueled by the expansion of the e-commerce industry. E-commerce, involving the online exchange of goods and services, is influencing manufacturers and suppliers to adopt sustainable materials and eco-friendly practices to meet consumer expectations for environmentally conscious shipping. The International Trade Administration reported that consumer e-commerce constituted 30% of the UK's overall retail sector in September 2022, with an annual revenue exceeding $120 billion. The rise in e-commerce has increased online retail sales' share of total retail sales from 16% to 19% in 2020, according to the United Nations Conference on Trade and Development. Hence, the expanding e-commerce industry is a significant driver of the environmentally friendly packaging market.

Innovations in product offerings represent a key trend in the environmentally friendly packaging market. Major companies are introducing new products to enhance their market position, such as PET containers made from post-consumer recycled content (PCR) resin. A notable example is Singha Corporation Co. Ltd., a Thailand-based beverage company, which launched 100% biodegradable packaging in December 2022. This initiative aims to reduce plastic waste by 2 million pieces annually, resulting in a decrease of 30,930 kilograms of carbon dioxide equivalent (kgCO2e) emissions per year. The trend towards introducing innovative and sustainable packaging solutions is shaping the growth trajectory of the environmentally friendly packaging market.

Leading companies in the environmentally friendly packaging market are strategically focusing on the introduction of cost-effective packaging solutions to enhance their competitive positioning. Cost-effective packaging involves the utilization of materials, design, and production methods that optimize the equilibrium between product protection, transportation efficiency, and affordability. For example, in January 2023, Cascades, a Canadian packaging company, unveiled a novel eco-friendly packaging solution for fresh fruits and vegetables. This closed basket, constructed from recycled and recyclable corrugated cardboard, offers an environmentally conscious alternative to challenging-to-recycle food packaging. By incorporating recycled materials, Cascades aids its customers in reducing their environmental footprint and meeting the growing consumer demand for eco-friendly packaging. The design of this new packaging adheres to recognized eco-design principles and aligns with a circular economy approach.

In February 2022, HP (Hewlett-Packard), a US-based information technology company, successfully acquired Choose Packaging for an undisclosed sum. This acquisition enables HP to integrate Choose Packaging's portfolio into its Personalization & 3D Printing business, providing scalability in technology and client outreach. HP aims to disrupt the single-use plastics market by introducing fiber-based, plastic-free packaging solutions through this strategic acquisition. Choose Packaging, a UK-based company, specializes in manufacturing plastic-free packaging solutions.

Major companies operating in the environmentally friendly packaging market market include Amcor PLC, Bemis Company Inc., Tetra Laval International SA, Mondi Group, BASF SE, ELOPAK Group, E. I. du Pont de Nemours and Company (DuPont), Ardagh Group S.A., Ball Corporation, Crown Holdings Inc., DS Smith PLC, Emerald Packaging Inc., Nampak Limited, Plastipak Holdings Inc., Sealed Air Corporation, Smurfit Kappa Group PLC, Sonoco Products Company, WestRock Company, Sgf packaging Co. Ltd., Tetra Pak International S.A., Uflex Limited, Huhtamaki Oyj, Constantia Flexibles Group GmbH, Innovia Films Limited, Winpak Ltd., Biopak Pty Ltd., Vegware Ltd., Eco-Products Inc., Stora Enso Oyj, Evergreen Packaging LLC, International Paper Company

Western Europe was the largest region in the environmentally friendly packing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the environmentally friendly packing market during the forecast period. The regions covered in global environmentally friendly packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The countries covered in the environmentally friendly packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The environmentally friendly packaging market consists of sales of compostable packaging, corrugated packaging, glassine packaging, and cellulose packaging among others. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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