Driven by demand to use recycled materials and a growing sustainability focus in the food and beverage industry, the green packaging market is estimated to grow significantly through the next decade, according to several reports.
A report by Research Drive shows the market growing at a CAGR of 7% through 2028, reaching a value of $451.7 billion. With more industries using recyclable packaging, that segment is expected to surpass $275 billion over the period.
Food and beverage packaging will see a revenue of $261.8 billion. This is in part because of the industry’s focus on reducing waste as well as using recycled packaging.
A similar report by Research and Markets, which says the green packaging market will expand by a CAGR of 6.6% through 2031, finds that recyclable packaging accounts for more than 60% of the market. That report also says that that food and beverage will account for three-quarters of the market, but that health care is one of the fastest growing industries using sustainable packaging.
Biodegradable packaging and bioplastics have helped encourage growth in health care, according to Research and Markets. Packaging that naturally breaks down has also been advanced in other industries as well, with companies such as Amazon and Del Monte advancing the materials.
Personal care products were also broken out in the Research and Markets study.
Recyclable packaging will see the most growth during the forecast period by Research Drive. Recycled packaging is being further implemented because of a variety of ways it can be used as well as helping with other sustainable goals such as reducing energy waste, the report says. Such demand has also led to a significant growth in areas such as post-consumer recycled plastic packaging.
Government regulations will also help the market to grow, according to the reports, such as a new law in the United Kingdom that places a tax on plastic packaging that doesn’t include a certain amount of recycled material. Research Drive says the cost of manufacturing and the purchasing of sustainable packaging platforms will hinder the market during through 2028.
Asia-Pacific is expected to be the fastest growing region for the green packaging market. It will bring in $112.5 billion, according to Research Drive. Research and Markets says that region combined with North America made up more than half of the market’s total share in 2020.
Some key players in the green packaging market include Amcor, PlastiPak Holdings, Tetra Pak International, DuPont and Sealed Air.