Green Packaging Market Size, Share, and Trends 2024 to 2034

Green Packaging Market Size and Manufacturers

The global green packaging market size was estimated at US$ 300 billion in 2022 and is expected to hit US$ 524.70 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 5.80% during the forecast period 2023 to 2032.

Green Packaging Market Size in Europe 2023 To 2032

The Europe green packaging market size was valued at US$ 96 billion in 2022 and is projected to expand US$ 171.11 billion by 2032, poised to grow at a CAGR of 6% between 2023 to 2032.

Europe was the leading green packaging market and it garnered a market share of around 37% in 2020. The stringent government regulations pertaining to the use of single-use plastics and increased awareness towards sustainability has fostered the demand for the green packaging across Europe. The government initiatives to promote the adoption of green packaging solutions are a major factor that has driven the growth of the Europe green packaging market.

Asia Pacific is expected to be the fastest-growing market during the forecast period. Asia Pacific is the manufacturing hub of the world. The low cost availability of plastic materials has fostered the adoption of the recycled plastic, recycled paper, and recycled glass packaging across various applications. Moreover, the surging growth of the food and beverages and the FMCG industry in the region is expected to be the most prominent driver of the green packaging market. Moreover, the government regulations regarding the plastic use is driving the adoption of the green packaging solution across Asia Pacific.

Growth Factors

The growing concerns regarding the harmful effects of the single-use plastics on the environment and growing consumer awareness pertaining to the benefits of sustainable packaging are the prominent drivers of the global green packaging market. The extensive usage of the plastic packaging across various end use industries has resulted in the accumulation of huge plastic wastes, which are considered to be one of the major factors of marine pollution across the globe. Therefore, the surging awareness regarding the ill-effects of plastic use and various government regulations pertaining to plastic ban and plastic use is expected to augment the demand for the green packaging around the globe. The surging adoption of the green packaging across different end use verticals such as food & beverages, healthcare, and personal care industries is expected to drive the growth of the green packaging market across the globe during the forecast period. The food and beverages industry is boosting the adoption of the recycled materials and degradable materials that are used for packaging. Various packaging such as single-use plastics, lids, caps, straws, and food trays are being replaced by the compostable substitutes across the food service industry that promotes sustainable packaging, hygiene, and eco-friendly agenda. All these factors are expected to have a positive impact on the growth of the green packaging market in the forthcoming years.

The various top consumer goods market leaders such as Unilever and P&G are shifting towards the sustainable packaging solutions. For instance, Hindustan Unilever has committed to completely shift towards sustainable packaging by 2025. Such initiative by the top market players is expected to drive the growth of the global green packaging market. The fast moving consumer goods industry is one of the major users of the packaging solutions for a huge variety of products. Therefore, the surging adoption of the green packaging among the FMCG industry will have a significant impact on the growth of the demand for the green packaging market. The outbreak of theCOVID-19 pandemic has significantly impacted the market. Despite the COVID-19 pandemic, the global food & beverages industry has witnessed a significant growth. Therefore, this has propelled the consumption of the green packaging in the food and beverages industry. Moreover, the increased awareness regarding the green packaging among the consumers in the developed nations, significantly influences their buying decision. Therefore, sustainability has become a major feature that drives the demand for any product among the consumers. Hence, the global green packaging market is expected to foresee a significant growth in the demand.

Report Scope of the Green Packaging Market

Packaging Type Insights

Recycled content packaging segment dominated the global green packaging market with largest revenue share of over 61% in 2020. The extensive usage of materials such as plastic, glass, metal, and paper, which can be easily recycled, has propelled the growth of this segment. These materials are recycled by the manufacturers to produce a new packaging and hence the amount of wastage is drastically reduced. It has become the most popular and widely accepted type of green packaging. Furthermore, the low cost of plastic and its high durability has made the use of recycled plastic popular across the globe. The low cost of the recycled plastic has gained rapid traction in the developing regions. Therefore, the surging adoption of the recycled plastic across various end use verticals has resulted in the dominance of this segment across the globe.

Green Packaging Market Revenue in USD billion, by Type

On the other hand, the reusable packaging is expected to be the most opportunistic segment during the forecast period. These are made from plastic materials that are intended to longer and multiple uses. For instance, the drums are popularly used for the transportation of the liquid goods. The plastic containers are gaining rapid popularity among the vegetable and fruit vendors as it offers easy packaging and transportation solutions.

Application Insights

Based on the application, the food & beverages segment dominated the market with around 59% of the market share in 2020. The increasing adoption of the green packaging solutions in the restaurants, packaged foods, and fast food chains has boosted the growth of this segment. The surging adoption of the compostable and pulp packaging in the food and beverages industry is expected to drive the growth of this segment in the forthcoming period.

The healthcare is expected to be the fastest-growing segment during the forecast period. The surging number of manufacturing facilities of various medicines and medical devices coupled with the stringent government regulations pertaining to the packaging and safety of the medical consumables is expected to drive the growth of this segment in the forthcoming years. Glass packaging and aluminum foils are among the top packaging materials used in the pharmaceutical industry.

Key Market Developments

• In April 2021, Amcor and Nestle entered into a partnership for the development of sustainable packaging solution. Amcor is helping Nestle to shift towards sustainable packaging in Australia.
• In June 2021, Amcor introduced its new eco-friendly package for chocolate packaging in South America. This packaging was made using recycled materials for the packaging of powder chocolate.
•  In April 2020, Ball Corporation introduced its five aluminum packaging units with increased focus on the sustainable packaging.

The green packaging market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

Some of the prominent players in the global green packaging market include:

• Amcor Limited
• E. I. DuPont de Nemours and Company
• Mondi Limited
• Sealed Air Corporation
• TetraPak International S.A.
• Ardagh Group Co.
• PlastiPak Holdings, Inc.
• Bemis Company, Inc.
• Uflex limited
• ELOPAK AS

Segments Covered in the Report

By Packaging Type

• Recycled Content Packaging
  • Glass
  • Paper
  • Plastic
  • Metal
  • Others
• Reusable Packaging
  • Plastic Container
  • Drums
  • Others
• Degradable Packaging

By Application

• Personal Care
• Food & Beverages
• Healthcare
• Chemical
• Shipping
• Others

By Material

• Paper
• Plastic
• Metal
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa