Global Green Packaging Market (by Packaging Type, Material, Application, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)

Green packaging, also known as sustainable packaging or eco-friendly packaging, refers to packaging designs that have as little environmental impact as possible. They achieve this by reducing packaging waste, using sustainable materials (such as recyclable or biodegradable packaging elements), and manufacturing with renewable energy. In a nutshell, sustainable packaging is concerned with the company's carbon footprint.

The growing concern for the environment and growing awareness of the benefits of using biodegradable materials has taken centre stage around the world, and it is expected to pay significant dividends to the global sustainable packaging market over the forecast period. Green packaging is used to achieve sustainability goals in the e-commerce, logistics, and delivery food packaging sectors. Green packaging ticks all the boxes as it has low-cost structure, is manufactured using 100% recyclable materials, and complies with sustainability initiatives. Besides that, strict environmental protection and government regulation has further encourage the trend in green packaging usage. The government in recent years has also put out regulations that support use of recycled materials and eco-friendly products by imposing taxes on plastic packaging. Global green packaging market is expected to reach US$238.39 billion in 2023, growing at a CAGR of 6.44% during the forecast period.

Segment Covered

By Packaging Type: In terms of packaging type, the report offers insights of the global green packaging market into three segments: Recycled Content Packaging, Reusable Packaging and Degradable Packaging. Recycled Content Packaging segment acquired highest share in the market, owing to increasing demand for bio plastics, increasing government regulation are the parameters that are helpful for increasing the market growth. These materials are reused as raw materials by manufacturers to create new packaging products, reducing excess pollution created by packaging waste. Whereas, Degradable Packaging segment is expected to grow at a significant CAGR in the future as biodegradable packaging is generally defined as any type of packaging that will disintegrate and decay organically. This indicates that both bio-based and fossil-based polymers can be used to create biodegradable packaging, which would increase the demand for this market.

By Application: The global green packaging market has further been split into four segments based on the applications: Food and beverage, Healthcare, Personal Care and Other Application. Food and beverage segment acquired maximum share in the market, owing to the rising population coupled with demand for packaged readymade food and beverages. Whereas, Personal Care segment is expected to have the highest CAGR in the future as many personal care product makers are moving toward greener solutions by lowering the amount of material used in packaging. Because they are recyclable, compostable, and biodegradable, plant-based packaging materials have gained popularity in the cosmetics industry.

Geographic Coverage

According to this report, the global green packaging market can be divided into four regions: Europe, Asia Pacific, North America and Rest of the World. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes the UK, Germany, France, Italy, Spain and the Rest of Europe. Moreover, China, Japan, India, South Korea and the Rest of Asia Pacific are included in the Asia Pacific region. Europe green packaging market enjoyed the dominant market share, primarily owing to the European Union's and other European countries' strict bans on single-use plastics, the European Directive introduced the concept of a circular economy, as well as sustainability principles and goals. Companies in Europe have begun to embrace recyclable, recycled, and biodegradable products as part of the circular economy roadmap. A circular economy has set standards and objectives for sustainability. Several Europe-based businesses follow the circular economy blueprint by embracing recyclable, recycled, and biodegradable materials.

Top Impacting Factors

Growth Drivers

• Expanding Demand for Food & Beverages
• Upsurge in E-Commerce Sales
• Increasing Awareness of Green Packaging and Adoption of Recyclable Materials
• Growing Demand For Bio-based Resins As A Packaging Material

Challenges

• Global Issues and Rise in the Prices of Green Packaging Solutions
• Lack of Supply of Bio-plastics and Related Materials

Trends

• High Demand for Paper & Paperboard Materials
• Increasing Focus By Major Brands/Company's To Achieve Net Zero
• Rise In Adoption Of Plantable Packaging
• Bio Plastic

Driver: Upsurge in E-Commerce Sales

Many consumers have become savvier and aware of their environmental impact. As a result, Ecommerce companies are having to step up their packaging efforts to become more eco-friendly. Ecommerce has seen substantial growth over the past ten years, especially in contrast with traditional retail. Online shopping means a lot more shipping, with most products purchased online being handled numerous times before finally reaching the customer. Consumers are becoming more environmentally conscious, and they view packaging as a barometer for sustainability, which will influence their purchasing patterns and brand loyalty. Given that receiving a delivery through the mail can be a customer's first experience with a business, green packaging has become an important aspect of the online retail strategy for ecommerce brands in particular.

Challenge: Lack of Supply of Bio-plastics and Related Materials

There is a worldwide shortage of PLA (resin) to increase the demand for sustainable alternatives for regular plastic disposables; there is a worldwide shortage of PLA (resin). Companies like biofutura that biobased supply products have faced stock problems worldwide; only a few factories produce the raw material for PLA products. Natural calamity, such as floods, tornados, and earthquakes, also affects the supply of bioplastic and biodegradable packaging solutions. These raw materials are mostly based on fruits, vegetables, and agricultural products. Also, the raw materials for bioplastics may come from crop biomass that can face competitive pressures from agricultural and biofuels interests. In addition, the use of genetically modified bacteria and plants in the production of crops for Bioplastics is controversial, as some believe they may lead to systematic degradation of biodiversity in ecosystems in the future.

Trend: High Demand for Paper & Paperboard Materials

Expansion in the logistics & transportation sector and increase in the import & export of packaging products are driving the green packaging market. Paper & paperboard packaging is cost-effective and can be recycled multiple times. This makes the packaging suitable for use in various end-use industries. Paper & paperboard materials are majorly employed for packaging food & beverage products due to their low cost, lightweight, high-quality graphics printability, and biodegradable features. They are also non-reactive with food products and maintain the quality and taste of food items. Several companies in e-commerce, pharmaceuticals, automobiles, electronics, chemicals, agriculture, and cosmetics & personal care industries increasingly rely on paper & paperboard packaging to achieve their sustainability goals. However, paperboards offer lower durability as compared to plastics. Thus, vendors in the market are investing significantly in the R&D of high quality and highly durable, reliable, and sustainable products to broaden their customer base.

The COVID-19 Analysis

The pandemic of COVID-19 has had a minor influence on the green packaging business. As a result of the pandemic, several manufacturing facilities were forced to close. However, the increased production of vaccines and other medicines has resulted in a significant need for environmentally friendly packaging options. As lockdowns were relaxed in numerous cities, demand for takeout and food delivery surged, as did awareness of the necessity of eco-friendly packaging.

Analysis of Key Players

Global green packaging market is moderately fragmented. Key players of global green packaging market are Sonoco Products Company, Amcor PLC (Bemis Company, Inc.), Mondi PLC, WestRock Company, Sealed Air Corporation, Tetra Laval Group (TetraPak International S.A), Pactiv Evergreen Inc. (Evergreen Packaging), DS Smith PLC, Uflex Limited, Ardagh Group S.A., Nampak Limited, Plastipak Holdings Inc., Elopak, and Ball Corporation.