Sustainable Packaging Market Report 2026

The sustainable packaging market size has grown rapidly in recent years. It will grow from $399.86 billion in 2025 to $440.94 billion in 2026 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to increasing environmental regulations on packaging waste, expansion of recycled paper and plastic usage, corporate sustainability commitments, growth of organized retail packaging demand, availability of renewable packaging materials.

The sustainable packaging market size is expected to see rapid growth in the next few years. It will grow to $650.9 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to expansion of extended producer responsibility regulations, rising investments in bio-based materials, growing adoption of circular packaging systems, increased demand for sustainable food packaging, innovation in low-carbon packaging solutions. Major trends in the forecast period include increasing adoption of recyclable packaging materials, rising demand for compostable and biodegradable packaging, growing use of mono-material packaging designs, expansion of lightweight and minimalist packaging formats, enhanced focus on lifecycle assessment and material traceability.

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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the sustainable 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 sustainable packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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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