The global sustainable packaging market will increase at a rate of 5.9% per year through 2027, reaching $351.4 billion, up from $263.8 billion today, according to a new report from Research and Markets. Factors driving growth of the market include the increasing awareness among consumers toward environmental issues caused by packaging, stringent government regulations, demand from the food and beverage industry, consumer preference, and eco-friendly material initiatives.
Additionally, packaging and FMCG companies are getting pressure from governments, media and consumers to adopt sustainability measures.
The US, Germany, France, the UK, China, India and South Korea are the main global markets for sustainable packaging due to stringent government regulations and awareness. Germany, France and the UK have strong recycling regulations and extended producer responsibilities across the European Union. China and India are expected to grow at the highest rate; these countries have huge potential for growth of sustainable packaging in the fast-moving consumer goods (FMCG) and the food and beverage industry. Regulations regarding packaging, awareness of eco-friendly packaging materials, and a shift towards sustainability are expected to drive demand for sustainable packaging in these markets.
Paper and paperboard are the preferred choice of material and account for the largest portion of the market. A major advantage of this material is easy recycling; fiber can be reused to make new paperboards. Around 50% of the total fiber used to make paper is supplied through recycled paper, the report says.
The report suggests that challenges in the market include lack of implementation in developing countries, lack of infrastructure and weak supply chains, and various challenges of packaging designs for recycling.
According to the report, emerging trends in sustainable packaging will be the rising e-commerce industry, an increasing shift toward a circular economy, growing popularity of PCR (Post-Consumer Recycled Resin), and innovation in technology.
Top players in the market, according to the report, include Amcor, Ball Corp., Ball Metalpack, Be Green Packaging, Bemis, Berry Global Inc., DS Smith, E.I. Dupont De Nemours & Co., Huhtamaki, Mondi Group, Nampak, Sealed Air Corp., Smurfit Kappa Group, Sonoco Products, and Tetra Laval.
Amcor was recently one of the organizations involved with the World Wildlife Fund’s ReSource: Plastic program; companies involved with the program cut their use of problematic plastic, including hard-to-recycle and single-use plastics, by 57% between 2018 and 2020, according to a report by the WWF. In 2019, the sustainable packaging market was expected to reach $400 million by 2024, according to a similar report by Zion Market Research, which listed a similar list of top players – including Amcor and Tetra Laval.