The worldwide green packaging market has a projected value of $238.39 billion through 2023, with a compound annual growth rate (CAGR) of 6.44% from 2023 to 2028, according to a recent report.
The report, done by ResearchandMarkets.com, attributes the growth to increased global concern for the environment and the adoption of green packaging by companies working to reduce their environmental impact.
Green packaging is defined in the report as packaging that reduces waste by using sustainable materials or incorporating renewable energy in manufacturing processes. Green packaging is reportedly becoming more commonly used in the e-commerce, logistics, and delivery food packaging sectors specifically.
The market’s low-cost structure combined with its compatibility with various sustainability initiatives, including government regulations, also makes green packaging attractive for businesses.
Recyclables Lead Growth, Driven by E-Commerce, Government Regulations
The market is led by recycled content packaging, with reusable and degradable packaging comprising the other two main segments of the industry. Increased use of paper products has contributed significantly to market growth because of their high recyclability rates and cost-effectiveness. Degradable packaging is also expected to see significant growth alongside recyclables. The food and beverage sector currently holds the largest market share of the green packaging industry overall, and personal care is expected to see the highest CAGR of all sectors involved.
According to the report, Europe dominates the green packaging market, largely because of the region’s strict bans on single-use plastics and circular economy initiatives. The UN Plastics Treaty, currently in developmental stages, is expected to include legally binding regulations on plastic consumption that may lead to further growth for the green packaging market.
Another key driver for market growth is the e-commerce sector’s adoption of green packaging. Since consumers often tend to measure a company’s sustainability efforts based on packaging, using sustainable materials to showcase and deliver products has become key to online retail strategy.
Bioplastics Face Obstacles to Further Growth
The report said bioplastics, a sustainable alternative to regular plastics, have faced some obstacles to growth. Some major bioplastics companies have faced stock issues, and natural disasters have disrupted relevant supply chains as bioplastics and biodegradable packaging commonly use agricultural products.
The report named Sonoco Products Company, Amcor, Mondi, WestRock Company, Sealed Air, Tetra Laval, Pactiv Evergreen, DS Smith, Uflex, Ardagh Group, Nampak, Plastipak Holdings, Elopak, and Ball Corporation as key players in the green packaging industry.