Jen Nastu
The continuously growing demand for bio-based resins as packaging material is one of the key factors impelling the growth of the
green packaging market over the next four years, according to a new report from Technavio. The market will be accelerating at a CAGR of nearly 8%, to $95 billion, by 2022, the
report states.
Renewable bio-based resins or bio-based polymers including starch, polyglycolic acid, cellulose, and the like not only cause minimal harm to the environment but are also helping businesses to minimize their reliance on fossil fuels, which is driving demand. The food industry segment, which held the largest green packaging market share and accounted for more than 55% of the market in 2017 - will account for the highest growth in the market.
Currently, the North American region leads the market with approximately 36% of the market share. The region is expected to continue to dominate the market throughout the forecast period.
In emerging countries such as China, India, South Africa, Brazil, Argentina, Thailand, and Mexico, the major factor contributing to the growth of the green packaging market is the change in the perception of retailers and consumers as they acknowledge that packaging waste accounts for a major share of the global plastics waste.
“The demand for green packaging solutions will be fueled by the growing demand for sustainable business development in emerging countries," says a senior analyst at Technavio. "During the forecast period, the economic activities in China and India are expected to grow. Major companies are taking initiatives to promote the sustainable value chain. Such initiatives have led to the focus of packaging companies towards green packaging solutions, which will drive the growth of the global green packaging market."
The green packaging market is moderately fragmented owing to the presence of several solutions providers that are leveraging advanced technologies to meet the demands of the marketplace. These include Amcor, Bemis, DS Smith, DuPont, Mondi and Sealed Air, according to Technavio.
Similarly, a newly released report from Zion Market Research predicts 7% CAGR in the global green packaging market through 2021. Like Technavio, Zion names Amcor and DuPont as key players in the market; it also names Berry Plastics, BASF, Printpack Inc., Innovia Films Ltd, Bemis Company, Tetra Laval and Ball Corporation.
