Green packaging involves usage of eco-friendly, biodegradable and recyclable materials like paper, recycled plastics, agro-based materials etc. for packing products. It helps reduce the usage of plastic packaging which causes pollution. Green packaging protects products while transportation and also preserves quality and safety of products. With rising environmental concerns, many companies are opting for green packaging solutions to appeal to environmentally conscious consumers.
The global Green Packaging Market is estimated to be valued at US$ 218337.6 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Low Carbon Footprint
The growing climate change concerns and various initiatives by governments worldwide to reduce carbon footprint is driving demand for green packaging solutions. Green packaging helps reduce greenhouse gas emissions at various stages from production to disposal and lower the carbon footprint of products and companies. This significant opportunity of achieving low carbon goals through usage of eco-friendly green packaging is driving many companies to switch to sustainable packaging formats. The green packaging manufacturers are therefore expected to leverage this opportunity of low carbon footprint to see high market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The green packaging market requires high capital investments, which poses barriers for new players. Strict environmental regulations also make market entry challenging.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many players providing green packaging solutions. However, increased customer focus on sustainability gives buyers some leverage to negotiate prices.
Bargaining power of suppliers: Presence of many raw material suppliers for compostable, recyclable, and reusable packaging limits individual supplier power. Suppliers also depend significantly on top packaging brands.
Threat of new substitutes: Alternatives like paper from recycled sources can substitute plastic to some extent. However, lack of unified global standards inhibits rapid adoption of new substitutes.
Competitive rivalry: The market sees intense competition among leading green packaging providers with varied product portfolios. Companies compete on attributes like pricing, sustainability commitments, and innovation.
SWOT Analysis
Strengths: Growing consumer demand for eco-friendly options and stringent regulations drive growth. Technologies for compostable/recyclable materials are well-established.
Weaknesses: Higher costs of green packaging compared to regular plastics pose affordability challenges. Lack of global recycling infrastructure limits the availability of recycled packaging material.
Opportunities: Shift towards circular economy models and policies promoting reuse present new areas for solution development. Rapid e-commerce growth creates avenues for sustainable delivery packaging.
Threats: Slow technology adoption across industries can deter market momentum. Potential disruption from regulations on transport packaging may affect supply chains.
Key Takeaways
Global Green Packaging Market Size is expected to witness high growth over the forecast period supported by favorable regulations and consumer sentiment worldwide.
The Asia Pacific region dominates the market currently owing to rapidly growing packaging demand in China, India, Japan, and other developing economies. Strict plastic bans and eco-conscious policies are encouraging packaging firms to invest in the region. Government initiatives to build domestic recycling infrastructure could further accelerate uptake of recyclable materials.
Key players operating in the green packaging market are Amcor PLC, Mondi PLC, Sealed Air Corporation, Tetra Pak International SA, Smurfit Kappa Group PLC, Sappi Limited, WestRock Company, Graham Packaging Company Inc. These players are investing in new product development, acquisitions, and sustainability goals to strengthen their position. Partnerships across packaging and consumer verticals have also increased to promote collaborative action.
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