Green Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Green Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Green Packaging Market will register a CAGR of 7.28% over the forecast period. Increasing Awareness About Environmental Concerns Among Consumer Industries and Stringent Government Regulations drive the market.

• The rising food and beverage industry, embracing packaging produced from recyclable and biodegradable materials at a constant rate, has severe limits on the use of single-use plastics. Increased consumer awareness of sustainable packaging contributes to this trend.
• Also, packaging contributes to the high costs of goods and trash disposal. For example, out of every USD 10 spent on commodities, USD 1 goes toward the cost of the packaging. That’s 10% of consumer spending going toward packaging, which will eventually end up in the garbage.
• Furthermore, the issues above are putting pressure on regulators, end-user businesses, and packaging firms to find a replacement that will reduce the environmental impact of packaging and provide sustainable and environmentally friendly packaging solutions, causing the market for green packaging to expand.
• However, changing regulatory standards, fluctuating raw material costs, increasing waste volumes, and rising environmental waste regulations have expected to hinder the market growth during the forecast period. This will enable companies operating in this market segment to develop new products that are potentially disruptive and also reduces the current risks in the market.
• The COVID-19 outbreak has affected international trade and supply chains of essential and non-essential goods and services. With the spread of COVID-19 across the world, businesses have suffered significantly. The studied market has been negatively impacted due to the pandemic. Many governments have postponed the ban on single-use plastic, and the pandemic witnessed growth in the usage of plastic packaging due to significant growth in online shopping and e-commerce.

• The most common sustainable packaging technique is that companies include downsizing or lightweight packaging and increasing the use of recycled content and renewable materials. Therefore, the use of paper and cardboard in various parts of the business is expanding. It also ensures the packaging is eco-friendly and recyclable for future usage.
• Organizations in the food, beverage, consumer, and packaged goods industries need to use packaging extensively. Depending on the location, there is a global push for a shift toward green packaging, driven either by society or the government.
• The general population is becoming increasingly accustomed to paper-based flexible packaging as customers want more environmentally friendly packaging options. Consumers now generally believe that paper is better for the environment than plastic.
• Moreover, Prioritizing recycled paper also helps curb deforestation issues in conventional paper production. This recycled paper is similar to traditional paper and can be used for businesses' packaging and printing needs.
• Also, due to the increasing costs and consumption rates of wood-based paper, consumers are looking for alternatives to minimize the environmental impactment. Paper and tissues made from bamboo or sugarcane are utilized as an alternative. Both materials are suitable alternatives to paper as they are soft, durable, and biodegradable.

• The most significant market for green packaging worldwide is North America. Contrary to other parts of the world, where government laws are fundamental to developing green packaging, the main drivers of its quick acceptance are strong consumer knowledge and preferences for eco-friendly products.
• Although all firms in Canada and United States use green packaging, there are significant differences in governmental policies and consumer behavior.
• The market in United States is anticipated to expand quickly in the coming years due to an expanding consumer base that places a high value on the packaging of consumer goods, foods, and beverages. Manufacturers in the region are modifying their products to better suit changing consumer preferences and the environment.
• Governments worldwide are adjusting to other sources, such as biodegradable packaging, in response to the rising amount of packaging trash produced. Only 4% of the world's population lives in United States, making up 2% of the world's municipal solid waste (MSW). Additionally, it has been reported that each American generates more than 106.2 kg of plastic waste annually.
• Moreover, in June 2022 - Mondi expected its sustainable packaging portfolio with its "Grow&Go" line. The entire Grow&Goportfolio complies with food contact standards and is made entirely of paper.

Green Packaging Market is moderately competitive and consists of many significant players, such as, Amcor Limited Ardagh Group SA, Ball Corporation, Crown Holdings Incorporated, and DS Smith PLC. Few big competitors now control most of the market in terms of market share. These considerable market participants are concentrating on growing their consumer base internationally. Many businesses rely on strategic collaboration projects to improve their market share and profitability.

• June 2022 - Ardagh Metal Packaging revealed plans to build a new plant in La Ciotat, France, to increase its production capacity. To meet the growing demand from current and potential clients for long-term partnerships in the Middle East and Africa (MEA) and Southwestern Europe, Sud Attractivité and Bpifrance will fund the expenditure.
• April 2022 - By utilizing ExxonMobil's Extend technology, Amcor increases the use of advanced recycling materials like circular polymers, which is one way the company complies with its sustainability commitment to develop all of its packagings to be reusable or recyclable by 2025 and increase the use of recycled content.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support