Sustainable Materials Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The global sustainable materials market size reached around USD 370.33 Billion in 2024. The market is projected to grow at a CAGR of 15.70% between 2025 and 2034 to reach nearly USD 1.59 trillion by 2034. There is a growing recognition of environmental challenges such as climate change, pollution, and the depletion of natural resources, prompting both consumers and businesses to prioritise sustainable materials.

Global Sustainable Materials Market Report Summary

Market Size 2024

• USD Billion 370.33

Market Size 2034

• USD Billion 1591.92
• CAGR 2025-2034
• 15.70%

CAGR 2025-2034- Market by Region

• Asia Pacific
• 17.6%

CAGR 2025-2034 - Market by Country

• India
• 17.9%

CAGR 2025-2034 - Market by Country

• China
• 17.3%

CAGR 2025-2034 - Market by Type

Sustainable Packaging Material

• 17.9%

CAGR 2025-2034 - Market by Application

• Packaging Industry
• 17.9%

Market Share by Country 2024

• Australia
• 1.4%

Global Sustainable Materials Market Growth

Nowadays, international organisations and different nations across the globe are investing in the promotion and adoption of sustainable materials. For instance, India is working to establish itself as a global frontrunner in the production and implementation of battery energy storage systems. On November 11, 2020, the Government of India (GOI) approved a Production-Linked Incentives (PLI) scheme valued at around USD 27 billion over five years, targeting ten critical sectors. This initiative aims to enhance domestic manufacturing, decrease imports, and create job opportunities. Importantly, the program allocates nearly USD 2.5 billion in incentives specifically to produce Advanced Chemistry Cells (ACC) batteries, with the goal of attracting both large domestic and international firms to develop a competitive ACC battery infrastructure in the country, further supporting the sustainable materials market.

Moreover, the demand for green energy technologies, along with the materials necessary for their production, transportation, and installation, is projected to rise significantly in the coming years and decades. A report from the World Bank estimated that the demand for minerals essential for solar panels such as copper, iron, lead, molybdenum, nickel, and zinc could increase by 300% by 2050. Furthermore, an increase in investment in research and development (R&D) focused on sustainable materials is expected to generate significant opportunities for stakeholders in the sustainable materials market soon.

Key Trends and Developments

The sustainable materials market growth can be attributed to heightened environmental awareness, introduction of new regulatory frameworks and initiatives, and adoption of technological advancements.

June 2024

Dow Chemical Co., located in Midland, Michigan collaborated with RKW Group, a German producer of polyolefin films, to introduce two new resin grades in Dow's Revoloop recycled plastic resin line. Both new grades of Revoloop resin received approval for use in nonfood contact packaging applications. One grade is composed entirely of 100% PCR, while the other is a formulated grade that contains up to 85% PCR sourced from household plastic waste.

October 2023

Coca-Cola India launched fully recycled PET bottles for its flagship Coca-Cola brand, available in 250 ml and 750 ml sizes across various markets in the country. These bottles were made from food-grade recycled polyethylene terephthalate (PET). The recycling process complies with the standards established by the US FDA and the European Food Safety Authority (EFSA) for food-grade recycled materials, enabling the plastic to be repurposed into new PET bottles. This initiative significantly reduced the dependence on virgin plastic for PET bottle production. The manufacturing of these recycled bottles was handled by Coca-Cola's bottling partners, Moon Beverages Ltd. and SLMG Beverages Ltd.

August 2022

Unilever's homecare brand, Domestos reintroduced its primary bleach line featuring new packaging composed of 50% post-consumer recycled plastic (PCR). The brand transitioned its 750ml bleach products in the United Kingdom to include recycled plastic, resulting in a reduction of 1,505 tonnes of virgin plastic annually. Unilever states that the newly designed Domestos bottles were crafted from high-quality recycled resin, ensuring both strength and durability. This innovation allows for the use of recycled plastic in the colored bottles while preserving the signature color and quality of the packaging.

November 2021

IKEA, a global furniture retailer, plans to eliminate plastic from its consumer packaging by 2028. This initiative aims to minimise plastic waste and pollution while encouraging the sector to create packaging solutions that prioritise renewable and recycled materials. The transition will occur in stages, beginning with all new products by 2025 and encompassing the entire product range by 2028. By prioritising environmentally friendly practices and encouraging sector-wide change, IKEA is positioning itself as a leader in the movement towards a more sustainable future, ultimately benefiting both consumers and the planet.

Regulatory Frameworks and Initiatives

Governments around the world are implementing stricter environmental regulations and sustainability objectives. Initiatives such as carbon taxes, requirements for sustainability reporting, and recycling mandates are motivating businesses to embrace sustainable materials, thus increasing the sustainable materials market revenue. These regulations not only enhance the appeal of eco-friendly alternatives but also stimulate innovation in material science. The increasing legislative pressure encourages different sectors to lessen their environmental impact and invest in green technologies, promoting a transition towards more sustainable supply chains and production methods.

Heightened Environmental Awareness

One of the notable sustainable materials market trends is the rising environmental awareness among people. There is a growing recognition of environmental challenges such as climate change, pollution, and the depletion of natural resources, prompting both consumers and businesses to prioritise sustainable materials. This increased awareness has resulted in a significant rise in demand for products that minimise environmental impact, including biodegradable materials, eco-friendly packaging, and renewable resources. Companies are now becoming more dedicated to lowering carbon emissions and conserving natural resources, which drives them to incorporate sustainability into their production processes, thereby contributing to the expansion of the market.

Rising Corporate Social Responsibility (CSR)

The concept of Corporate Social Responsibility (CSR) is playing an increasingly significant role in shaping business practices, as organisations acknowledge the importance of sustainability for long-term success. Consumers, investors, and stakeholders are urging companies to adopt ethical and sustainable practices, which encompasses the use of sustainable materials. In response, businesses are integrating eco-friendly materials into their products to enhance their environmental performance, align with CSR objectives, and bolster their reputation, thereby leading to the sustainable materials market development.

Adoption of Technological Advancements

The evolution of material science has been instrumental in propelling the growth of sustainable materials. Innovations such as biodegradable plastics, alternative fibers, and renewable composites offer businesses practical substitutes for conventional, resource-heavy materials. Furthermore, advancements in recycling technologies have enhanced the economic feasibility of material recovery and reuse. These innovations not only minimise the environmental footprint of material production but also enhance the efficiency and performance of sustainable products, opening up new opportunities in sectors like construction, packaging, and textiles.

Global Sustainable Materials Market Trends

The market is experiencing significant growth, fuelled by heightened awareness of environmental concerns and an increasing demand for eco-friendly alternatives. Notable trends include a transition towards renewable resources such as biodegradable plastics, recycled metals, and sustainable textiles, all aimed at minimising waste and reducing carbon emissions. Furthermore, advancements in materials science, including plant-based options and innovative recycling technologies, are gaining momentum in the sustainable materials market. As sustainability becomes a central focus across various sectors, the market for these materials is projected to maintain its growth trajectory. Furthermore, both governments and organisation across the word are proactively implementing regulations and initiatives aimed at encouraging the use of sustainable materials in sectors such as packaging, construction, and manufacturing.

Global Sustainable Materials Industry Segmentation

The report titled “Global Sustainable Materials Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Recycled Metals
• Biodegradable Plastic
• Eco-friendly Textiles
• Renewable Fibers
• Sustainable Packaging Material

Breakup by Application

• Automotive
• Construction
• Consumer Goods
• Packaging Industry
• Electronics

Breakup by End User

• Commercial
• Residential
• Industrial

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

CAGR 2025-2034 - Market by

• Country
• India
• 17.9%
• China
• 17.3%
• UK
• 14.9%
• USA
• 14.9%
• Japan
• 14.7%
• Germany
• 14.6%
• Italy
• 13.5%
• Canada
• France
• Australia
• Saudi Arabia
• Brazil
• Mexico

Global Sustainable Materials Market Share

Based on the application, the market is segmented into automotive, construction, consumer goods, packaging industry, and electronics. The packaging segment in the sustainable materials market report is expected to grow at a CAGR of 17.9% during the forecast period due to the increasing demand for environmentally friendly packaging and growing awareness of environmental issues and legislation. Demand for eco-friendly products like biodegradable plastics is fueled by growing public awareness of environmental issues and the harm that plastic waste does to the land and ocean. According to the Ellen MacArthur Foundation, a circular economy can reduce greenhouse gas emissions by 25% and the amount of plastic waste that enters the oceans each year by 80% by 2040.

Due to the growing sales of EVs and lightweight materials, the automotive industry is anticipated to grow significantly in the market for sustainable materials in the upcoming years. The automotive industry is expected to grow at a CAGR of 16.8% during the forecast period. Automakers are still coming up with new ways to be sustainable; bio-based polymers, recycled or repurposed metals, and renewable composites have all been employed to reduce car weight. The market for green solutions in the transportation sector is expanding, as demonstrated by the 14 million more electric vehicles sold in 2023, according to the IEA analysis. This is supporting the sustainable materials market growth.

Leading Companies in the Global Sustainable Materials Market

Market players are focusing on the adoption of sustainable manufacturing methods to gain a competitive edge in the sustainable materials market outlook. Companies emphasising on the manufacturing of sustainable materials prioritise environmentally friendly production techniques. They utilise renewable resources, strive to and aim to lessen their ecological footprint.

3M Co.

Headquartered in St. Paul, Minnesota, United States, 3M was founded in 1902. Known for its technological and manufacturing advancements, 3M provides a diverse range of products across multiple sectors, including healthcare, electronics, and consumer goods. The company is recognised for its commitment to sustainability, focusing on reducing environmental impact and improving product efficiency.

Dow Inc.

Founded in 1897 and headquartered in Michigan, United States, Dow Inc. is a leading materials science company. It specialises in manufacturing chemicals, plastics, and agricultural products, with a strong focus on sustainable development solutions. Dow is committed to promoting circular economy practices, reducing emissions, and driving sustainable innovations across various sectors.

BASF SE

BASF SE, based in Ludwigshafen, Germany, was established in 1865. As the world's largest chemical producer, it offers a wide variety of products, including chemicals, plastics, and performance materials. BASF emphasises sustainability by creating solutions that aim to reduce environmental impact and enhance resource efficiency in agriculture, energy, and industrial sectors.

Coca-Cola Company

Coca-Cola Company is headquartered in Atlanta, Georgia, United States and was founded in 1886. Renowned for its iconic beverages, Coca-Cola operates globally and is dedicated to sustainability efforts, including water conservation, renewable energy, and environmentally friendly packaging. The company continually strives to reduce its carbon footprint and enhance its social and environmental impact while promoting healthier lifestyles.

Other major players in the sustainable materials market are DuPont de Nemours Inc., Ford Motor Co., Ball Corp., Unilever Plc, Holcim AG, and Inter IKEA Holding B.V., among others.