Sustainable Packaging Global Market Report 2025

The sustainable packaging market size has grown rapidly in recent years. It will grow from $362.05 billion in 2024 to $399.86 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historic period can be attributed to rising environmental awareness, increased adoption of biodegradable materials, growing demand from the food and beverage industry, stricter government regulations on plastic usage, and the expansion of the retail and e-commerce sectors.

The sustainable packaging market size is expected to see rapid growth in the next few years. It will grow to $590.92 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to increasing demand for circular economy solutions, rising consumer preference for zero-waste packaging, growing focus on reducing carbon footprints, increasing corporate sustainability commitments, and rising investments in eco-friendly packaging technologies. Key trends in the forecast period include the development of biodegradable material sources, integration of digital printing, innovation in water-soluble films, advancement of renewable packaging formats, and incorporation of compostable polymers.

The increasing e-commerce sales are expected to drive the growth of the sustainable packaging market going forward. E-commerce sales refer to the online transaction of goods or services conducted through digital platforms, where payments and order processing are completed electronically. The growth in e-commerce sales is primarily driven by expanding internet access and increasing smartphone usage, which make online shopping more convenient and accessible to a wider population. E-commerce encourages brands to adopt sustainable packaging by increasing packaging volumes and creating opportunities to appeal to environmentally conscious consumers through eco-friendly materials and designs. For instance, in February 2025, according to the Census Bureau, total e-commerce sales in the United States for 2024 were estimated at $1.19 trillion, reflecting an 8.1% increase (±1.1) compared to 2023. Therefore, the growing e-commerce sector is creating potential opportunities for the sustainable packaging market.

Key companies in the sustainable packaging market are focusing on developing innovative solutions, such as compostable foodservice packaging, to minimize environmental impact and promote sustainable practices. Compostable foodservice packaging products are designed to break down safely into natural elements in commercial composting facilities, reducing waste and supporting eco-friendly operations. For instance, in January 2024, Sabert Corporation, a United States-based food packaging manufacturer, introduced Pulp Hinged Containers and Pulp Portion Cups to support sustainable dining for foodservice providers. Made from renewable molded fiber pulp such as bagasse, these products are PFAS-free and certified for both industrial and home composting, offering an eco-friendly alternative for on-the-go meals. Designed for durability and convenience, the containers feature easy-to-use hinged lids with secure locking to prevent leaks, and their sturdy construction withstands hot, cold, oily, and saucy foods, making them suitable for takeout, delivery, and catering. They are microwave, freezer, and oven safe up to 400°F, ensuring versatile performance for different foodservice applications. The portion cups are available in multiple sizes with stackable, leak-resistant lids ideal for sauces and dips, enhancing convenience while reducing single-use plastic waste.

In August 2025, BioPak, an Australia-based packaging company, acquired Bygreen for an undisclosed amount. This acquisition strengthens BioPak’s growth trajectory, enhances its product leadership, and expands its impact in the global movement toward sustainable, plastic-free packaging. Bygreen is an Australia-based company that specializes in sustainable packaging solutions.

Major players in the sustainable packaging market are WestRock Company, International Paper Company, Tetra Pak International S.A., Amcor Limited., Ball Corporation, Crown Holdings Inc., Stora Enso Oyj, Graphic Packaging International LLC, Mondi Group, Sonoco Products Company, Smurfit Kappa Group, Huhtamaki Oyj, AptarGroup Inc., Novolex Holdings LLC, Gerresheimer AG, Uflex Limited., Sabert Corporation, Constantia Flexibles Group GmbH, Duni AB, Nampak Limited.

North America was the largest region in the sustainable packaging market in 2024. Asia-pacific is expected to be the fastest-growing region in the forecast period. The regions covered in sustainable packaging report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The quick escalation of U.S. tariffs and the resulting strain in trade relations in spring 2025 are considerably influencing the Paper, Plastics, Rubber, Wood And Textile sector by inflating costs for imported pulp, resin, synthetic rubber, lumber, and cotton key inputs with limited domestic substitutes. Packaging manufacturers, for example, now pay more for plastic films and corrugated materials, squeezing margins in an already price-sensitive market. Textile producers face similar challenges, as tariffs on imported yarns and dyes compound pressures from rising labor costs. Some firms are shifting to recycled materials or biodegradable alternatives, while others consolidate suppliers to negotiate bulk discounts.

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

Sustainable packaging refers to the creation and utilization of materials and designs aimed at minimizing environmental impact throughout their entire lifecycle. It focuses on using renewable, recycled, or easily recyclable materials, reducing waste and excessive packaging, and ensuring safety for both humans and the environment. The primary objective of sustainable packaging is to balance product protection and convenience with long-term environmental stewardship, supporting sustainability, cost efficiency, and social responsibility across the packaging lifecycle.

The key material types of sustainable packaging include paper and paperboard, plastics, glass, metal, and other material types. Paper and paperboard refer to environmentally friendly packaging made from renewable, recyclable, or responsibly sourced paper materials that help reduce ecological impact. It covers flexible and rigid packaging, along with other packaging formats, and is used across various industries such as food and beverages, personal care and cosmetics, healthcare, and others. These packaging solutions are distributed through both online and offline channels, catering to a diverse range of end users, including retail, industrial, institutional, and other sectors.

The countries covered in the sustainable packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sustainable packaging market consists of sales of recyclable packaging, biodegradable packaging, compostable packaging, reusable packaging, and plant-based packaging. 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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