Sustainable Packaging Market Analysis and Global Forecast 2023-2033

Sustainable Packaging Market Overview

Sustainable Packaging Market Size is expected to reach USD 517.36 Billion by 2033. The Sustainable Packaging industry size accounted for USD 295.36 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 6.87% from 2023 to 2033. The sustainable packaging market focuses on the development and use of eco-friendly packaging materials and solutions to reduce environmental impact. It includes biodegradable, recyclable, and reusable packaging options designed to minimize waste and carbon footprint. Driven by increasing consumer awareness and regulatory pressures, this market aims to address issues like plastic pollution and resource depletion. Key players include manufacturers of paper, glass, metal, and innovative bioplastics. The market is growing as businesses across various industries adopt sustainable practices to meet environmental standards and consumer demands.

Global Sustainable Packaging Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has led to supply chain disruptions leading to supply shortages or lower demand in the Sustainable Packaging market. The travel restrictions and social-distancing measures have resulted in a sharp drop in consumer and business spending and this pattern is to continue for some time. The end-user trend and preferences have changed due to the pandemic and have resulted in manufacturers, developers, and service providers to adopt various strategies to stabilize the company.

Global Sustainable Packaging Market Dynamics

The major factors that have impacted the growth of Sustainable Packaging are as follows:

Drivers:

⮚      Technological Advancements

Innovations in materials science and packaging technology are driving the market forward. The development of new biodegradable, compostable, and recyclable materials, as well as advancements in manufacturing processes, are making sustainable packaging more viable and cost-effective for a broader range of applications.

 Restraint:

• High Costs

One of the primary challenges is the higher cost associated with sustainable packaging materials and technologies. Biodegradable, compostable, and recyclable materials often require more expensive raw materials and advanced manufacturing processes. These costs can be prohibitive for small and medium-sized enterprises (SMEs) and can deter larger companies from fully committing to sustainable packaging solutions.

 Opportunity:

⮚      E-commerce Growth

The rapid expansion of e-commerce presents a unique opportunity for sustainable packaging. E-commerce companies can adopt eco-friendly packaging to reduce their environmental impact and appeal to environmentally conscious consumers. Innovations in protective yet sustainable materials are particularly important for shipping and logistics.

Sustainable Packaging Market Segment Overview

By Material

Based on the Material, the market is segmented based on Paper & Paperboard, Plastic, Metal, Glass, Other. The Paper & Paperboard segment dominates the sustainable packaging market, driven by its renewable nature, high recyclability, and strong consumer preference for biodegradable and eco-friendly packaging options.

By Process

Based on Process, the market has been divided into Recycled, Reusable, Degradable. The Recycled segment dominates the sustainable packaging market due to the increasing emphasis on recycling initiatives and consumer demand for products made from recycled materials, along with supportive regulations promoting the use of recycled content in packaging.

By Function

Based on the Function, the market has been divided into Active, Molded Pulp, Alternate Fiber. The Active segment dominates the sustainable packaging market, as it includes advanced technologies that enhance product shelf life and quality, making it particularly popular in industries such as food and beverage and healthcare where product preservation is crucial.

By End Use

Based on End Use, the market has been divided into Food & Beverage, Healthcare, Others. The Food & Beverage segment dominates the sustainable packaging market due to the high demand for eco-friendly packaging solutions driven by consumer preferences for sustainable products and stringent regulatory requirements in the food industry.

Global Sustainable Packaging Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of Asia-Pacific is anticipated to dominate the market for the usage of Sustainable Packaging, followed by those in North America and Europe.

Sustainable Packaging Asia-Pacific Market

The Asia-Pacific region holds a dominant position in the Sustainable Packaging market. The market for sustainable packaging in Asia Pacific was valued at USD 145.5 billion in 2021, and during the course of the study, it is anticipated to grow at a rate of 43.20% CAGR. This dominance is attributed to the growing number of government initiatives and regulations encouraging businesses to use eco-friendly packaging. China, the world’s largest manufacturing powerhouse, is present in the area and is changing packaging materials and processes to be more ecologically friendly.

Sustainable Packaging North America Market

The North America region is witnessing rapid growth and emerging as a significant market for the Sustainable Packaging industry. The market share of sustainable packaging in North America is the second largest due to the proactive efforts of the local governments. The market in the region is fueled by government programs and consumer demand for green packaging and eco-friendly products. To help with recycling across the country, the Canadian government, for example, has built a number of recycling infrastructures. Additionally, it has severely limited the use of polystyrene cups and containers in order to reduce the quantity of solid waste that is disposed of.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Amcor, Bemis Company, Tetra Laval International S.A., Mondi plc, and WestRock Company are some of the leading players in the global Sustainable Packaging Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Amcor
• Bemis Company
• Tetra Laval International S.A.
• Mondi plc
• WestRock Company
• BASF SE
• Sonoco Products Company
• Smurfit Kappa Group PLC
• Sealed Air Corporation
• Huhtamaki OYJ

Key Development:

April 2021, Amcor and Nestle collaborate to put sustainable packaging on store shelves. The new packaging technology, used for the entire line of Smarties Chocolate Block and Bar products, is recyclable and can be thrown away in home recycling bins, reiterating Amcor’s commitment to more ecologically responsible packaging now and in the future.

Scope of the Report

Global Sustainable Packaging Market, by Material

• Paper & Paperboard
• Plastic
• Metal
• Glass
• Other

Global Sustainable Packaging Market, by Process

• Recycled
• Reusable
• Degradable

Global Sustainable Packaging Market, by Function

• Active
• Molded Pulp
• Alternate Fiber

Global Sustainable Packaging Market, by End Use

• Food & Beverage
• Healthcare
• Others

Global Sustainable Packaging Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $517.36 Billion
CAGR	6.87% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Material, Process, Function, End Use
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Amcor, Bemis Company, Tetra Laval International S.A., Mondi plc, WestRock Company, BASF SE, Sonoco Products Company, Smurfit Kappa Group PLC, Sealed Air Corporation, Huhtamaki OYJ
Key Market Opportunities	Increased government measures to limit the amount of plastic trash dumped in landfills Increased investment in sustainable packaging will drive market
Key Market Drivers	Growing consumer awareness of sustainable packaging

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Sustainable Packaging Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Sustainable Packaging market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Sustainable Packaging market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Sustainable Packaging Market.