The Global Sustainable Packaging Market is estimated to be valued at US$ 262.7 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Sustainable packaging includes packaging materials and products that are manufactured using less resources, reusable, recyclable or compostable. It includes packaging materials made from recycled content, renewable resources and/or fully recyclable. Sustainable packaging is gaining traction globally driven by the increasing awareness among consumers regarding environmental issues and benefits of sustainable packaging. It facilitates reducing packaging waste, carbon footprint as well as optimizing supply chain processes. Key materials used in sustainable packaging include paper & paperboard, plastic, metals and glass. The food & beverage industry is the major end-user of sustainable packaging solutions.
Market key trends:
One of the key trends in the sustainable packaging market is the surge in demand for bio-based and biodegradable packaging materials. Consumers are preferring packaging made from sustainable and eco-friendly materials like paper, glass, bio-plastics etc. due to stringent environmental regulations on single-use plastics. Many companies are focusing on developing innovative bio-based packaging solutions made from agricultural waste, bacterial cellulose and polylactic acid to replace conventional packaging materials. For instance, BASF has developed ecovio, a biodegradable and compostable plastic made from renewable resources. Furthermore, the adoption of circular economy practices involving reuse, recycling and recovery is encouraging renewed emphasis on sustainable packaging design and technologies. Sustainable packaging manufacturers are innovating packaging designs that focus on increased recyclability and reusability to optimize resource utilization across the value chain.
Porter’s Analysis
Threat of new entrants: The sustainable packaging market requires high investment and R&D costs. Established brands have significant economies of scale and customer loyalty that deter new entrants.
Bargaining power of buyers: Many large brand owners and retailers have significant bargaining power over packaging suppliers due to their purchasing power and brand recognition.
Bargaining power of suppliers: A few multinational corporations dominate the sustainable packaging supply chain globally. This gives them strong influence over packaging producers.
Threat of new substitutes: Alternative environment-friendly materials for packaging like paper, glass, aluminum are emerging but plastic still remains widely used.
Competitive rivalry: The sustainable packaging market is highly competitive with focus on innovation, pricing, and partnerships. Leading brands adopt differentiation strategies to increase client stickiness.
Key Takeaways
The Global Sustainable Packaging Market is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing government regulations on single-use plastics and rising consumer awareness of eco-friendly options.
Regional analysis: North America dominates the sustainable packaging market currently due to stringent policies and high environmental consciousness. Asia Pacific is expected to showcase the fastest growth through 2030 on the back of growing industries, population, and economic development in China and India.
Key players operating in the sustainable packaging market are Amcor Limited, Westrock Company, TetraPak International S.A., Sonoco Products Company, Smurfit Kappa Group PLC, Sealed Air Corporation, Mondi PLC, Huhtamaki OYJ, BASF SE, Ardagh Group S.A, Ball Corporation, Crown Holdings, Inc., DS Smith Plc, Genpak LLC, and International Paper Company.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
