Global Green Packaging Market - 2023-2030

Global Green Packaging Market - 2023-2030

Global Green Packaging Market reached US$ 255.1 billion in 2022 and is expected to reach US$ 350.5 billion by 2030, growing with a CAGR of 7.2% during the forecast period 2023-2030.

With a rise in recycling and a decrease in environmental effects, the government is attempting to reduce the amount of plastic waste. Eliminate waste before they reach the environment; it involves assisting the industry in developing more sustainable technology and recycling products. The Global Green Packaging Market will experience growth during the forecast period due to rising government initiatives towards sustainable packaging.

For instance, UK Government's Smart Sustainable Plastic Packaging Initiative Industrial Strategy Challenge Fund intends to drastically reduce plastic waste by 2025, according to UK Government. The amount invested in projects to establish the UK as a pioneer in intelligent and sustainable plastic packaging has increased to US$ 80.51 million.

Market Dynamics

Expanding Demand for Sustainable Packaging

Green packaging is often used to wrap and store perishable goods since it reduces food wastage and environmental harm. Green packaging is also used in agriculture to store and transport fruits, vegetables and other products because it has a lower carbon footprint. In retail, green packaging is also used for packaging consumer goods like clothing, electronics and personal care items.

For instance, Colgate-Palmolive has prioritized sustainable packaging as of 2020. They focus on removing plastic waste from the environment and satisfying customers by offering products like recyclable toothpaste tubes and mouthwash bottles. To promote sustainability and cut waste, medical devices, pharmaceuticals, and other relevant products are packaged in green packaging in the healthcare industry.

High Costs of Products

Green packaging usually requires complex manufacturing processes. For instance, different processes like blending various materials or applying additives may be necessary to produce biodegradable or compostable packaging materials. The procedures could increase the price of production. Products made from recycled materials for packaging will be more expensive to produce than new products.

For brands, the cost will be about 1%, while for manufacturers, it will be about 10% because they must make an upfront investment. Additionally, the cost of disposing of includes approximately US$30 for recycling waste, US$50 for transporting waste to a landfill and US$65–US$75 for incineration, emitting hazardous gases into the atmosphere.

COVID-19 Impact Analysis

The COVID-19 epidemic had a favorable effect on the market since single-use packaging was brought to the attention of more consumers. Single-use packaging has grown in popularity during the outbreak due to hygienic concerns. The demand for disposable packagings, such as plastic wrapping for food delivery and personal protective equipment, has momentarily overtaken the increase of green packaging options.

The emphasis on packaging's end-of-life is crucial in packaging sustainability. Taxes on single-use plastics are being prepared and are becoming more prevalent as it increases the lifespan of packaging. The Green Deal's impact in Europe and other climate promises made in China and U.S. will be the key impacting factors. In this, successful companies in shifting to sustainable packaging are rewarded favorably.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine impacts the global market for green packaging. The competition has altered market dynamics, possibly causing businesses and consumers to reevaluate their goals and preferences. Based on the transforming geopolitical scenario and economic conditions, businesses may alter their sustainability goals, including their emphasis on green packaging initiatives.

For instance, Mondi, the parent company of Mondi Syktyvkar and a specialist in paper and packaging, has reportedly stopped operations at its paper bag plant in Lviv, Ukraine and has been relying on options in Russia. The company owns a paper mill in Syktyvkar, Komi Republic, which runs an integrated power plant and is mandated by law to provide energy to about 60,000 people by the Russian government.

Artificial Intelligence Impact Analysis

The development of artificial intelligence is anticipated to benefit the global green packaging market. AI can improve the quality control and inspection processes to create eco-friendly packaging. AI algorithms can analyze real-time data from cameras and sensors to look for imperfections, anomalies, or contamination in goods or packaging.

AI can boost sustainability while also enhancing the customer experience since machine learning algorithms can develop packaging designs that are more environmentally friendly. Forinstance, Amazon has been using its PackOpt service since 2018 to save about 60,000 tonnes of cardboard yearly. The supply chain may be monitored and products tracked using AI algorithms.

Segment Analysis

The Global Green Packaging Market is segmented based on material, type, end-user and region.

Rising Hygiene and Environmental Concerns in Healthcare Sector

The second-largest segment, healthcare, holding around 1/4th of the market share, is anticipated to grow at a significant CAGR during the forecast period. Hospitals and other healthcare facilities are increasingly choosing green packaging over traditional reusable utensils in favor of convenience. Additionally, recyclable aluminum foil is used in the packaging of prescription oral pharmaceuticals, including pills and capsules.

90 billion pieces of paper used to manufacture prescribing information labels are produced annually using more than 4.8 million trees, according to data from the U.S. Food and Drug Administration (FDA) and Sierra Club. Rising consumer hygiene concerns are another factor driving the healthcare sector's expanding need for sustainable throwaway packaging.

Geographical Analysis

Growing Awareness of Sustainability in Asia-Pacific

Owing to an increase in demand for sustainability, particularly in the region's FMCG industry, the Asia-Pacific market for green packaging is anticipated to grow at the highest rate over the projected period. With numerous government laws and programs, including Prevention and Control of Environmental Pollution by Solid Wastes, China is a significant manufacturer and consumer of green packaging.

Additionally, many shops are implementing green packaging solutions to satisfy the rising consumer demand for environmentally friendly packaging and comply with governmental regulations.

For instance, the e-commerce giant Alibaba encourages and rewards its sellers for using eco-friendly packaging materials, stimulating the market. To reduce plastic waste, Nestlé also provides reusable containers for its food & beverage items in nations like Japan and more than 80% of its plastic packaging solutions are recyclable.

Competitive Landscape

The major global players include BASF SE, WestRock Company, Amcor Limited, Sealed Air, Mondi PLC, Bemis Company Inc., The Dow Chemical Company, Ball Corporation, L’Oreal International and Tetra Pack.

Why Purchase the Report?
• To visualize the Global Green Packaging Market segmentation based on material, type, end-user and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of green packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Green Packaging Market Report Would Provide Approximately 61 Tables, 60 Figures And 204 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies