Sustainable Packaging Market - Forecast(2024 - 2030)

The Sustainable packaging market is expected to reach $625.05 Bn by 2033 with a CAGR of 8.35% during 2024-2033. Globally, the demand for sustainable packaging is increasingly carried out in the healthcare and personal care sector since sustainable packaging involves the use of recyclable materials that contribute to environmental stability and contribute to the impact of ecological footprint. Also, the perception of sustainable packaging is quickly growing in the food and beverage industry thereby driving the market. Furthermore, rising government initiatives towards sustainable packaging is further anticipated to create new opportunities for the growth of the global sustainable packaging industry in the forecast era.

 

Market Snapshot:

 

 

Due to the Covid-19 palindrome, the sustainable packaging market has been severely hit. The nationwide lockdown paused all manufacturing activities which led towards the declination in the demand and supply for sustainable packaging in the year 2020. However, the market has recovered post Covid-19 as manufacturing operations are back to normal. Looking forward towards the new normal condition the demand for sustainable packaging is estimated to rise from various applications over the forecast period (2024-2033).

 

The: “Sustainable Packaging Market Report – Forecast (2024-2033)”, by IndustryARC, covers an in-depth analysis of the following segments of the sustainable packaging market.

By Material Type: Mechanically Recycled Plastics (PET, HDPE, LDPE, PP, Others), Chemically Recycled Plastics (PHA, Biobased PE, Biobased PET, PEF, TPS, PLA, PBT, Others), Bioplastics

By Application: Food Packaging, Food Services, Beverages, Shipping and Transport, Home and Petcare, Personal Care and Cosmetics

By Geography: North America, Asia Pacific, Europe, Middle East & Africa, and South America

 

 

• Asia Pacific dominates the sustainable packaging market owing to the increasing awareness about environmental concerns among consumers and rising use of sustainable packaging in various end use industries.

• Issues pertaining to sustainability, ethics and safety, environment, quality and product costs are becoming increasingly important for modern-day consumers when purchasing products. Thus, increasing use of sustainable products to get rid of such issues will drive the market in the forecast era. 

• Halted manufacturing activities across various end-use industries have led to weakened demand for sustainable packaging. The shortage of raw materials and fluctuations in the price is also anticipated to impact the sustainable packaging market in the near future.

 

 

The Mechanically Recycled Plastic segment dominated the market with revenue of $13.29 Bn in 2023 and is expected to value at $260.84 Bn by 2033 with a CAGR of 7.6%. This surge is propelled by a burgeoning commitment to sustainable practices across industries, driving the adoption of mechanically recycled plastic materials. Despite the noteworthy growth of chemically recycled plastic at an impressive CAGR of 8.1%—expected to reach $211.16 billion by 2033—the Mechanically Recycled Plastic segment maintains dominance due to the widespread acceptance of mechanical recycling methods. Within this segment, the PET bottle subsegment emerges as a significant growth driver, poised to expand at a notable 8% CAGR. As exemplified by Coca-Cola India's initiative on 7th June 2023, where they introduced a groundbreaking bottle crafted entirely from 100% recycled PET in Andhra Pradesh, in collaboration with ALPLA. The commitment to circular economy principles and environmental sustainability, coupled with rising consumer preference for eco-friendly packaging, positions the Mechanically Recycled Plastic segment, particularly the PET bottle subsegment, as a key force in shaping the sustainable packaging market's trajectory.

 

 

Sustainable Packaging has many applications like Food Packaging, Food Services, Beverages, Shipping and Transport, Home and Petcare, Personal Care and Cosmetics applications. Food packaging applications dominated the market in 2023 with a revenue of $85.49 Billion and estimated to grow at a CAGR of 8.7% during the forecast period (2024-2033). Companies are actively involved in the creation and implementation of sustainable food packaging solutions. Include Amcor, DS Smith, Mondi, Tetra Pak, NatureWorks, BioPak, and others. Sustainable packaging has become a necessity in the food and drink industries. In order to remain competitive in the current market and to prosper in the future, packaging must become sustainable for food and beverage companies. Consumer desire and demand fuel food and beverage producers around the world in their research and development budgets. As the Gross Domestic Product continues to grow in countries such as India and China, food and beverage markets will expand and their packaging will be put under fire. Also, further motivating factor for food and drink producers is the consumer health. Therefore, with the growing demand for food and beverage the demand for sustainable packaging market is expected to grow in the forecast period. 

 

 

Asia Pacific dominated the market with highest revenue of $91.4 Bn in sustainable packaging market in 2023 and is expected to maintain its position by generating a revenue of $223.58 Bn by 2033 at a CAGR of 8.9%. The growing adoption of eco-friendly products in end-user industries. India, for instance, has taken a bold step by implementing a comprehensive ban on the manufacturing, import, stocking, distribution, sale, and use of identified single-use plastic items from July 2022. 

 

Similarly, the Chinese government has been actively addressing the issue of excessive packaging. With the publication of guidelines for food firms to comply with new regulations, China aims to curb the 'excessive packaging' phenomenon. The regulations, introduced in phases, include restrictions on the use of excessive materials in packaged food and cosmetic products in 2021 and strict bans on packaging materials for festive foods in 2022. In the private sector, Amazon India has been at the forefront of sustainability efforts since 2020. The company has demonstrated significant progress by reducing overall packaging waste, including single-use plastic, by an impressive 36% between 2020 and 2023. This proactive stance not only aligns with the changing regulatory landscape but also underscores the commitment of key players in the Asia Pacific region to address environmental concerns and contribute to sustainable packaging practices.

 

Hence increasing initiatives by the governments in Asia Pacific region for biodegradable packaging and environmentally friendly products, the market demand for sustainable packaging will rise in the forecast period.

 

 

Manufacturers are worried about the impacts of packaging on the environment and make efforts to minimize, reuse and recycle. Because of the cost-efficiency, increasing energy and resin costs will make these environmentally friendly measures especially appealing. Packing healthcare faces immense sustainability challenges. Sustainable packaging also helps avoid microbial penetration as well as strength and tear resistance, and is compliant with a broad variety of sterilization techniques. This helps in both transport and storage to avoid unnecessary harm or contamination to medical equipment or medications. Also, product packaging fulfills many important functions like maintaining product quality, product dosage and dispensing, ease of use and storage, and providing essential product use and ingredient details. For instance, in July 2022, onTop cosmetics launched its Renewal Oil Cream, the first of its four core facial cream products to feature packaging made from Eastman Cristal™ Renew copolyester with 50% certified recycled content. onTop cosmetics is the first Chinese beauty brand to use Cristal Renew, a sustainable resin powered by Eastman's molecular recycling technologies.

 

 

A new regulation was passed in California in 2022 with the intention of lowering the quantity of single-use plastic that ends up in landfills and waterways. The California SB 54, Plastic Pollution Prevention and Packaging Producer Responsibility Act, directs packaging manufacturers to increase the recycling and compostability of plastic products. The Canadian government is assisting small and medium-sized firms in developing creative concepts and technology to provide sustainable alternative packaging and drive Canada towards zero plastic waste. 

 

For instance, In 2022, the Government of Canada conducted an innovation Solution Challenge, in which Magemi Mining Inc., based in Ontario, received up to $1 million to develop a prototype of its proposed sustainable alternative to plastic packaging, a reduced graphene-oxide reinforced recycled paper. This product is long-lasting and highly recyclable, and it has the potential to replace single-use plastic in a variety of applications, such as plastic shopping bags while preserving convenience and accessibility. 

 

In 2022, the UK government imposed a levy on plastic packaging with less than 30% recycled content. This strategic tax action is intended to offer an economic incentive for enterprises to use recycled plastic materials in their packaging. This promotes greater waste plastic recycling and collection rates, reducing trash headed for landfill or incineration. The tariff is expected to boost recycled plastic use by 40% and save over 200,000 tonnes of carbon between 2022 and 2023. Thus, further increasing government initiatives towards sustainable packaging will drive the market over the forecast period.

 

 

Instability in the price of raw materials Fluctuation in raw material prices will hinder the overall sustainable packaging market size during the forecast period. The market pattern of raw materials with their present ups and downs is influenced mainly by supply and demand. Global economies, competitive and unpredictable, have wide consequences for industrial organizations. Fluctuations in the price levels of raw materials, unexpected challenges are destabilizing production chains and making it impossible for suppliers to stay in the black. With suppliers of certain raw materials being more difficult to obtain, fluctuations of product prices will not be merely a transient occurrence, and it is up to producers either to bear increased costs, discover new ways to reduce expenditures, or to push price changes on to consumers who are still hesitant to invest. Due to the COVID-19 pandemic, shortage in the supply and demand of raw materials has been seen owing to which the price of raw materials has reached to its peak. Hence, increase in raw material prices will further create hurdles for the sustainable packaging market in the projected period.

 

 

recycling and the sense of duty are the primary factors for buying. Paper, glass, cardboard and in smaller proportion plastic and wood are the chosen packaging choices. The reasons why customers are not willing to spend more for green packages are the price of commodities that contribute to the low budget of the customer and a lack of knowledge. Lack of awareness of the value of sustainable packaging is the fact that it is difficult for customers to report locates product packaging content. Also, in order to buy environmentally friendly products, the consumers need to have the knowledge or be willing to seek knowledge and information. Hence, public's view of sustainability, vocabulary differences and an inconsistent approach to sustainable packaging is due to the lack of consumer awareness, which is restraining the growth of the market.

 

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the sustainable packaging market. In 2023, the market of sustainable packaging has been consolidated by the top five players accounting for 29% of the share. Major players in the sustainable packaging market are 

• International Paper Company
• Amcor Limited
• Westrock Company
• Ball Corporation
• Crown Holdings Inc.
• DS Smith PLC
• TetraPak International SA
• Ardagh Group SA
• Tetra Laval
• Mondi PLC

 

 

• In April 2022, Ardagh Group acquired Consol, the leading producer of glass packaging on the African continent, for an equity value of ZAR10.1 billion.

• In June 2023, Borealis has agreed to acquire Rialti, one of Europe's top manufacturers of mechanically recovered polypropylene (PP) compounds for injection moulding and extrusion

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