The global green packaging market is playing a pivotal role in offsetting environmental concerns arising from conventional plastic packaging materials. Green packaging involves the use of biodegradable and recyclable materials like paper, glass, plant-based plastics and aluminum for manufacturing packaging products. It helps reduce dependency on fossil fuels and plastic packaging which causes serious pollution. Green packaging provides sustainable and eco-friendly alternatives without compromising on performance, strength and shelf-life of products. The rising environmental consciousness among consumers is compelling companies to switch to green packaging solutions in order to meet the demand for sustainable goods andGain the loyalty of environment-sensitive customers.
The Global green packaging market is estimated to be valued at US$ 251524.92 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.
Key players operating in the green packaging market include Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko plc, Wärtsilä Corporation, Yanmar Co. Ltd., and Doosan Corporation. These companies provide innovative green packaging solutions using bio-based materials and technologies like oxo-degradable plastic, recyclable glass, bio-based plastics, sustainable paper and others in order to cater to the increasing demand for sustainable packaging worldwide.Second segment describes:
Key players in the Green Packaging Market Size focus on developing novel eco-friendly solutions and expanding their production capacity to meet the ballooning global demand for sustainable packaging. For instance, Amcor partnered with Danone and Loop to launch multi-trip packaging for Evian bottled water in 2021. Additionally, DS Smith inaugurated a new recycled paper mill in Germany in 2022 with an annual capacity of 240,000 tons to produce 100% recycled fiber for corrugated packaging.
Increasing consumer awareness and regulations are driving significant growth in the green packaging industry. Customers are willing to pay premium prices for brands that use sustainable packaging methods. Moreover, government bans on single-use plastic products and mandates on utilizing recycled content are compelling companies across industries to invest in green packaging infrastructure. For example, the European Union’s directive to utilize 25% recycled plastic by 2025 in plastic packaging drives demand.
The global expansion of green packaging is further facilitated by favorable governmental policies and international collaboration for sustainability goals. Major packaging firms are actively expanding their green packaging facilities overseas to capitalize on the widespread transition toward sustainable materials. Additionally, partnerships between nations aim to advance eco-friendly innovations and recycling infrastructure worldwide.
Market drivers:
One of the key drivers for the green packaging market is the rising environmental concerns related to plastic waste. Most plastics are not biodegradable and their production relies heavily on depleting fossil fuel resources. Plastic packaging constitutes a significant portion of global municipal solid waste. Growing awareness about plastic pollution and its adverse impact on wildlife and ecosystems is prompting regulatory push for sustainable alternatives. Governmental bans and levies on virgin plastic usage are encouraging adoption of green packaging solutions made from renewable and recyclable materials. This will likely spur market growth over the forecast period.
Impact of Geopolitical Situation on Green Packaging Market Growth
The current geopolitical uncertainties and instability across several regions is negatively impacting the growth of the green packaging market. The ongoing Russia-Ukraine conflict has disrupted supply chains and export-import activities of packaging raw materials like paper, plastics, glass etc. between Eastern Europe and other major economies. This has hampered the production and demand for sustainable packaging products in many countries. Additionally, the strict lockdowns and restrictions imposed during the COVID-19 pandemic had stalled manufacturing operations and shrinked consumption of packaged goods globally. The resulting economic slowdown made consumers and businesses more cost-conscious, affecting their willingness to adopt greener but relatively expensive packaging alternatives. However, with recovery underway and policy support by governments worldwide for sustainability goals, the green packaging market is expected to gradually regain lost momentum in the coming years. Continuous R&D and innovations to reduce costs coupled with expanding reuse and recycling infrastructure can help boost adoption.
Fastest Growing Region for Green Packaging Market
Asia Pacific region is poised to witness the fastest growth in the green packaging market during the forecast period. This is primarily due to rising environmental awareness among consumers and strict regulations against single-use plastics by governments in the region. Countries like China, India and Japan are major industrial hubs and also have huge populations driving demand for all kinds of packaged products. With growing disposable incomes, middle-class consumers in Asia Pacific are increasingly preferring sustainable brands. At the same time, governments are implementing favorable policies and incentives to promote circular economy practices and use of recycled content in manufacturing. As per estimates, the APAC green packaging market valuation is projected to double by 2030 owing to strong demand across various end-use industries including food & beverages, personal care, pharmaceuticals etc.
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