Plastic Free Packaging Market Report 2026

The plastic free packaging market size has grown strongly in recent years. It will grow from $6.58 billion in 2025 to $7.19 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to rising environmental awareness among consumers, implementation of plastic reduction policies, increased availability of alternative packaging materials, expansion of sustainable packaging suppliers, growth of eco-conscious consumer brands.

The plastic free packaging market size is expected to see strong growth in the next few years. It will grow to $10.24 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to increasing bans on single-use plastics, rising investments in sustainable packaging innovation, growing demand from food and beverage brands, expansion of circular economy packaging models, increasing adoption of biodegradable materials. Major trends in the forecast period include increasing adoption of paper-based packaging solutions, rising use of compostable and plant-based materials, growing demand for plastic-free food packaging, expansion of recyclable mono-material designs, enhanced focus on regulatory-compliant sustainable packaging.

The increasing popularity of e-commerce and online retail is expected to drive the growth of the plastic-free packaging market in the future. E-commerce refers to the buying and selling of goods and services via the internet, while online retail specifically focuses on the direct sale of products to consumers through digital platforms. The rise of e-commerce and online retail is fueled by factors such as convenience, broader product selections, competitive pricing, and the growing adoption of digital technologies by consumers. Plastic-free packaging benefits e-commerce and online retail by enhancing sustainability, minimizing environmental impact, and meeting consumer demand for eco-friendly options, all while ensuring product safety and appealing to environmentally conscious shoppers. For example, according to data from the United States Census Bureau, in the second quarter of 2024, U.S. retail e-commerce sales reached $291.6 billion, reflecting a 6.7% increase compared to the same quarter in 2023 and a 1.3% rise from the first quarter of 2024. As a result, the growing popularity of e-commerce and online retail is contributing to the growth of the plastic-free packaging market.

Key players in the plastic-free packaging market are focusing on the development of bio-based material innovations, such as seaweed-derived thermoplastic resins, to enhance sustainability, compostability, and provide alternatives to conventional plastics. Seaweed-derived thermoplastic resins are plant-based polymers produced from ocean-farmed seaweed and designed for processing with existing plastic manufacturing equipment, enabling applications such as flexible film production, heat sealing, and compatibility with standard packaging machinery. For example, in February 2024, Sway, a US-based sustainable materials and packaging company, introduced TPSea Flex Film, a seaweed-derived thermoplastic material intended to replace single-use plastic films in flexible packaging. The product features a petroleum-free composition, a compostable end-of-life profile, and processability on standard converting lines. TPSea Flex Film supports environmental sustainability, reduces reliance on plastics, and promotes the adoption of circular packaging solutions.

In December 2024, Cartonpack Group, an Italy-based provider of flexible packaging, acquired a majority stake in FIMAT S.p.A. for an undisclosed amount. With this acquisition, Cartonpack seeks to expand its portfolio of sustainable packaging solutions and strengthen its position in the market for ecological packaging of fresh and perishable products. FIMAT S.p.A. specializes in eco-friendly packaging solutions for fresh and perishable goods using sustainable materials.

Major companies operating in the plastic free packaging market are WestRock Company, International Paper Company, Amcor plc, Tetra Pak International S.A., Huhtamaki OYJ, Mondi plc, Futamura Group, Beatson Clark Limited, Vegware Ltd., TemperPack Technologies Inc., PaperFoam B.V., BioPak Pty Ltd, Pappco Greenware Pvt. Ltd., TIPA Corporation Ltd., Alter Eco Americas PBC, Sulapac Ltd., No Evil Foods Inc., Ecologic Brands Inc., EnviGreen Biotech Pvt. Ltd., Loop Industries Inc.

North America was the largest region in the plastic free packaging market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the plastic free packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the plastic free packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The plastic-free packaging market consists of sales of packaging solutions, rigid packaging, flexible packaging, and hybrid packaging. Values in this market are ‘factory gate’ values, meaning the value of goods sold by manufacturers, whether to other entities (such as wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services provided 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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