Eco-friendly Food Packaging Market Size, Share, and Trends 2024 to 2034

Eco-friendly Food Packaging Market Size to Hit USD 505.41 Bn by 2034

The global eco-friendly food packaging market size was USD 225.10 billion in 2023, calculated at USD 242.28 billion in 2024 and is expected to reach around USD 505.41 billion by 2034, expanding at a CAGR of 7.63% from 2024 to 2034. Increasing consumer awareness of eco-friendly solutions across every industry impacted the food packaging market and shifted towards sustainable and biodegradable packaging usage and stringent government regulations for reducing GHG production, propelling the eco-friendly food packaging market.

Eco-friendly Food Packaging Market Key Takeaways

• Asia Pacific accounted for the largest share of the global eco-friendly food packaging market in 2023.
• Europe is registered to witness a notable growth in the market during the forecast period.
• By region, North America is expected to host the fastest-growing market during the forecast period.
• By material, the biodegradable segment dominated the market in 2023.
• By material, the recyclable segment is expected to witness the fastest growth in the market during the forecasted years.
• By product, the container segment held the largest share of the market in 2023.
• By product, the bags segment is expected to register the fastest growth in the market in the foreseeable period.
• By end use, the foodservices segment holds a significant share of the global market.

Market Overview

The eco-friendly food packaging market is the term that refers to the packaging products manufactured by major players and local entities to deliver food in a packaged format to keep it safe. Packaging can be easily compostable and recyclable to protect the climate. These packaging materials can be plastic, paper, sheets, containers, etc, but the production method of the material is less hazardous to nature. To achieve this, common biodegradable materials like gelatine, cellulose, and starch are preferably used for food packaging to make it sustainable.

The global eco-friendly food packaging market is estimated to witness a substantial growth rate during the forecasted years. The market's growth is due to rising concern about the impact of waste materials on the environment that are not easily degradable in the soil or water or by any established method. These non-degradable substances are harmful to Mother Earth and need to degrade or minimize their usage to save the ecosystem of Earth.

Various end-use applications in the food industry, like bakery, food and beverage industry, meat products, dairy, fruits, and vegetables, are inclining towards eco-friendly food packaging material as they provide convenience and comply with regulations for environmental protection. Technological advancement and innovative ways to manufacture eco-friendly food packaging are driving factors and will create a lucrative opportunity to expand the eco-friendly food packaging market globally.

Eco-friendly Food Packaging Market Growth Factors

• Increasing awareness about environmental protection from hazardous waste materials fuels the global eco-friendly food packaging market.
• Growing shift in consumer demand for bio-degradable materials for food packaging due to the non-toxic materials.
• Stringent government regulations for food safety and climate protection from waste materials.
• Advancements in food packaging production led to market growth on a wider scale.
• Corporate targets to achieve an eco-friendly tagline to enhance their brand reputation in the eco-friendly food packaging market.
• Global initiatives to multiply production for sustainable and green packaging materials, particularly in the eco-friendly food packaging market.
• Rising availability of bio-degradable materials owing to increased awareness of health and wellness and the negative impacts of plastic usage.

Market Scope

Market Dynamics

Driver

Innovations in packaging technology

A major driver for proliferating an eco-friendly food packaging market on a global scale is ongoing innovations in food packaging technologies and major breakthroughs in the packaging industry. Many key players are developing innovative methods for packaging, such as molded, cone-shaped, and active packaging, which eventually led to newer methods launching in the packaging market at regular intervals of time.

The main target of the eco-friendly food packaging market is to use optimum use of renewable and readily available components in nature, which in turn helps in mitigating the harmful impact after its purpose is served so that it can either be recycled into a new material or product or can be easily biodegradable in the nature. Major food industry players on a global scale, like Tetra International, Bemis Company, nestle, etc, are continuously evolving into the packaging corner of the market and investing heavily in R&D of the packaging.

• In June 2024, Froosh, the smoothie brand under Fazer, introduced three new smoothies in 750ml cardboard packages. The new packaging adopted by Froosh for its smoothie range is lightweight and easy to recycle while also significantly reducing carbon footprint.

As consumers are also aware of the threats of plastic usage and its global impact, therefore inclining towards innovative packaging products that are eco-friendly as well, these innovations become a norm in the packaging industry and gain traction of thousands of new consumers, which will further fuel the eco-friendly food packaging market growth on a global level.

A research institute in Pune, India, carrying out important research in the circular economy of plastic waste is the National Chemical Laboratory (NCL). The institute has successfully experimented with a few products, including auto parts and plant pots made using recycled, nonwoven plastic material. The mechanical recycling branch for plastic waste is working on developing various products from various types of plastics, including PET.

Restraint

Inefficient and expensive method of recycling

A setback for the eco-friendly food packaging market is expensive methods, which are likely to be inefficient for recycling methods and fall short of meeting the target of mitigating harmful impacts of waste on the climate. According to the New York Times, nearly 40,000 plastic bottles need to be recycled to counter the effect of carbon emissions on the environment. In the recycling process, water gets heated by using coal, which eventually contributes to the emission of carbon dioxide into the climate and further increases the carbon footprint on the surroundings, making the recycling method questionable by a few of the thinkers, which could possibly hinder the market's growth.

Recycling plants are the most pollution creators as they release greenhouse gases and toxic wastes into the air or water and produce an element like hexavalent chromium, which is listed as one of the potential carcinogenic elements that cause lung cancer if it is inhaled by individuals for a long period. Along with these restraints, the recycling process involves a number of laborers working relentlessly, which could be hindering market growth due to less manpower. The global recycling market is volatile as it depends upon raw material prices, government initiatives, and the price of scrap materials.

Opportunity

Technical achievements in food packaging

A major opportunity for the eco-friendly food packaging market would be technically advanced packaging methods such as active packaging, edible packaging, synthetic material packaging, and nanomaterial packaging, packaging, etc. All these are an innovative launch particularly crafted for food packaging. Earlier, conventional food packaging was made only to preserve food from environmental causes like harmful UV waves, heat, dust, and bacteria growing in humid nature.

Active packaging is mostly produced to achieve extended food shelf life under which nutritional value, including taste of food, is preserved, and it is also sensory appealing to satisfy food cravings. Active packaging further aids in restraining the microbe's proliferation and safeguarding food within a container. Similarly, edible packaging associated with nanotechnology can be a great alternative to conventional food packaging. It releases chemicals to preserve food quality and help retain the freshness of fruits, vegetables, and other foods. Edible packaging can be further enhanced by adding a thin layer of nano Sensors to the packaging, which helps with traceability and the overall function of packaging.

• In July 2023, Leading squeezable pouch snack GoGo squeeZ continues the hype around its newest innovation, which is GoGo squeeZ Active Fruit Blend with Electrolytes associated with a new campaign, the 'FUN-damentals,' and a breaking partnership with trailblazing World Champion, Logan 'Logistx' Edra, all in service of taking the junk out of sports.

Material Insights

The biodegradable segment dominated the eco-friendly food packaging market in 2023. Biodegradable packaging has several benefits, including being easily degradable in nature, which is the prime advantage of it in the context of safer surroundings. These packaging are helpful in minimizing resources like water usage, electricity, solid wastes, and carbon emissions; therefore, they possess a low production cost. Biodegradable materials provide exceptional convenience in terms of disposal as they can be destroyed by using plane water or are degradable easily in the soil, making them a preferential choice for packaging in many industries, including the food market.

The recyclable segment is expected to witness the fastest growth in the eco-friendly food packaging market during the forecasted years, owing to the rising recyclable material usage and the establishment of chemical plants across the globe for various recycling methods set for wastage. Recyclable materials are glass, plastics, paperboard, metal, wood, etc. These materials can be molded by using a standard method, and they can be converted into another reusable format. This property of recyclable material fuels the growth of this segment across the globe.

Product Insights

The container segment held the largest share of the eco-friendly food packaging market in 2023. Eco-friendly containers are often made up of recyclable or biodegradable materials such as natural fibers like cardboard, papers, bioplastics, and plant-based plastic, as these materials offer the potential to reduce greenhouse gases by not depositing in the long run in the environment. Thus fulfilling an anticipated target of environment-friendly approaches by industries.

The bags segment is expected to register the fastest growth in the eco-friendly food packaging market in the foreseeable period. The growth of this segment is due to the spaciousness provided by the bag segment, which allows it to carry goods or food products easily without damage or compromising the quality of the food product. Moreover, being eco-friendly in nature, these bags are highly in demand for instant home delivery services and outlets, further fueling the market growth significantly.

End-use Insights

The food services segment holds a significant share of the global eco-friendly food packaging market. Food services are widely adopting smart food packaging and thus opt for eco-friendly packaging methods to deliver the food to the consumer so that they can meet the regulations of food safety and environmental safety standards. By choosing eco-friendly packaging for food service, an enterprise can highlight this as a sensible gesture to gain traction with more consumers since people are becoming aware of the harmful effects of non-biodegradable materials used to cover a food parcel and their effect on food. Thus, they consciously avoid such products and go for environment-friendly products, further fueling the growth of the market globally.

Regional Insights

Asia Pacific accounted for the largest share of the global eco-friendly food packaging market in 2023. The growth of this region is attributed to the various factors in the market. Among these, rising awareness towards environmental protection is the superior and primary factor that is driving the market. Government in the region, with major countries like India, Japan, South Korea, and China implementing stringent regulations and policies for the betterment of climatic conditions and having the aim to reduce carbon footprints, further fuels the region's growth in the market. Despite the innumerable benefits of conventional food packaging, it still holds some drawbacks that can be eliminated by smart packaging; thus, consumers are always seeking a sustainable option, and this goes even to the food packaging domain.

• According to the guidelines by the Ministry of Forest and Environment, India, producers, importers, and brand owners (PIBOs) must register through the online, centralized portal developed by the CPCB. As per data shared by the Maharashtra Pollution Control Board (MPCB), over 390 plastic manufacturing companies and 230 recycling companies in Maharashtra have registered under EPR in 2022 alone.

Again, the increasing outlets for food delivery is a major cause that drives the demand for food packaging with eco-friendly solutions, particularly in urban areas and metro cities with hectic lifestyles. By recognizing this need, major key players in the market are also investing heavily in establishing sustainable ways to manufacture food packaging and innovative products that complement the increasing demand and supply chain.

Europe is registered to witness notable growth in the eco-friendly food packaging market during the forecast period. The growth of the region in the market is related to the stringent regulations set by authorities such as the European Association of Plastics Recycling and Recovery organization. This organization is popular for recovering the waste of plastic materials across the region.

North America is expected to host the fastest-growing eco-friendly food packaging market during the forecast period. This is due to the stringent government regulations for sustainable packaging to protect environmental status. The growth of this region is attributed to several factors, including stringent regulations about landfills and waste management in the United States. The EPA has compiled strict rules for recycling products, further expanding the market in North America.

Rising demand for frozen food which is packaged by using eco-friendly material is a major driver of the eco-friendly food packaging market, as presence of eco-friendly packaging manufacturers offers huge production of green packaging with ongoing innovations in it like plant-based plastics adoption.

• In August 2023, Amcor recently introduced its curb side-recyclable AmFiberTM Performance Paper packaging in North America as part of its AmFiber range. Performance paper, which has been prequalified by How2Recycle, adheres to the reliability criteria required for curb-side recycling. This enables brands to offer consumers packaging that has more sustainable end-of-life outcomes.

Eco-friendly Food Packaging Market Companies

• Be Green Packaging, Inc.
• Biopak Pvt Ltd.
• Biomass Packaging
• Eco Products, Inc.
• Daio Paper Construction
• Gascogne Papier
• Glatfelter Corp.
• Genpak LLC
• Green Pack
• Nordic Paper AB
• PacknWood
• Stora Enso Oyj.
• Sulapac Ltd
• Vegware ltd

Recent Development

• In December 2022, BASF SE and StePac Ltd. partnered to create an innovative and environmentally friendly packaging solution specifically suited for the fresh produce industry. BASF provided StePac with Ultramid® CcycledTM, a chemically recycled polyamide 6, which allowed the partner to improve contact-sensitive packaging shapes to a higher level of sustainability within the circular economy.

Segments Covered in the Report

By Material

• Biodegradable
• Recyclable
• Compostable

By Product

• Bags
• Containers
• Boxes & Cartons
• Bottles & Jars
• Others

By End-user

• Foodservice
• Food Processing
• Retail

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa