Green packaging has a lower carbon footprint than synthetic packaging that is typically used, which enhances environmental and human sustainability over time. Green packaging necessitates methods for minimising the waste and pollution generated during the production process. Growing public interest in environmental conservation and sustainable living is one of the major market drivers. This is spurring demand growth coupled with stringent government regulations for ecological sustainability and the corporate trend toward employing renewable resources in production.
Market Overview
The market for green packaging was estimated to be worth USD 274.15 billion in 2020, and from that year to 2028, it is anticipated to rise at a CAGR of 6.1%. The sector is anticipated to grow as a result of severe limitations on the use of single-use plastics and growing consumer awareness of sustainable packaging. The business is expected to expand steadily because of the expanding food and beverage sector, which is using packaging made of recyclable and biodegradable materials more and more. The foodservice business is switching to goods manufactured from paper or compostable substitutes for single-use plastic straws, lids, closures, caps, cups, and food trays. Due to shifting consumer preferences, product demand in the foodservice sector will continue to increase as per convenience and sustainability.
Food packaging, medical supplies, and shipping for online retailers would all see sharp increases in demand. The need for commercial, luxurious, and some B2B transport packaging may decline at the same time. The impact on packaging opponents would depend on their exposure to diverse markets, package end uses, and substrates, as well as their portfolios.
Trends
Paper is much more frequently suggested as a replacement for plastic packaging over bioplastics (for example, paper cups and bags). However, according to the facts that are currently available, paper packaging often requires a large amount more mass to perform similar objective as its plastic version. As a result, even when accounting for carbon footprint, paper seems to have a greater overall impact on the environment. The shift in consumer preference for paper-based substitutes is a consequence of the environmental concerns surrounding the use of plastic in packaging. Governments and organisations must take the lead in transforming the sector by enacting stringent laws and regulations that preserve the environment and promote products made of recyclable paper.
Paper packaging materials may be reused and recycled much more readily than other materials like metals and plastics. This explains why paper packaging is regarded as the most economical and eco-friendly type of packaging. Additionally, as paper and cardboard recycling facilities nowadays are operating at full capacity, they will need to expand their operations in order to accept additional recyclable garbage. Currently, it doesn’t seem that even recycled paper much reduces the overall environmental impact of paper.
Driving Factors
Green packaging uses eco-friendly materials such bioplastics, recyclable paper and plastics, plant-based biomaterials, organic fabrics, and repurposed goods. These goods can easily replace conventional plastics but have a smaller impact on the environment because they are simple to use and naturally biodegradable. These substances don’t react with food, preventing contamination and other negative environmental effects. This reason is driving up market demand for eco-friendly food packaging.
As these technologies make it simple to deliver comfort food, they have been an enabling factor that has motivated customers to switch to convenience foods. The market growth of convenience foods has also been significantly supported by other forms of technology, such as transportation and communication, which is anticipated to benefit the growth of the global green packaging market during the course of the projected period. Product safety and sustainability are the primary concerns of the majority of package makers.
The inclination for convenience food products is anticipated to be driven by the rising need for environmentally friendly food packaging among consumer packaged goods industries. Green packaging has a number of advantages, including reduced reliance on fossil fuels, decreased consumption of natural resources, a rise in the use of recyclables, more energy-efficient manufacturing processes, and the use of renewable resources.
Recent developments in sustainable packaging include edible packaging for materials with an emphasis on reducing waste and carbon impact. Additionally, it appeals economically to both customers and manufacturers.
In 2018, the European Union drastically strengthened its regulations on packaging and packaging waste. By 2030, all plastic packaging must be recyclable, with a 55 percent success rate. In reality, only approximately 30% of plastic packaging is collected.
Restraining Factors
The use of biodegradable additives and compostable materials, as well as recycling concerns, are only a few of the environmental problems associated with packaging solutions. The Institute of Scrap Recycling Industries, or ISRI, published a number of clarifications and new policy statements on the use of degradable additives in packaging in 2017.
Because recycling requires a number of labour-intensive stages from gathering to recycling, recycling companies are unable to sell plastic and paper products at rates that make them profitable. So they add on extra fees to make up the gap. Some cities, including Philadelphia, have started selling their recyclables to incinerators that burn the waste to produce energy that powers the cities’ electric grids. This method is far from ideal because of the significant air pollution and carbon emissions produced.
Many eateries and public places are switching to plant fibre bowls and bins so that patrons would feel good about composting. The fluorinated substances used to make this packaging do not biodegrade.
Compostable goods have also been connected to shady origins, though. For instance, the destruction of Malaysia’s rainforest ecosystems has been linked to the production of some packaging made of palm fibre. These elements are anticipated to limit market expansion in the years to come.
Opportunities and Challenges
Opportunities:- More than 150 million metric tonnes of non-degradable waste and over 8 million metric tonnes of plastic waste, according to a recent study by the Ocean Conservancy, are present in the ocean and have the potential to harm the marine ecosystem. These reports and studies are influencing government agencies to change the rules and impose sustainable packaging requirements. The ministry is also promoting environmentally friendly packaging. Additionally, consumers are placing a higher value on goods that come in sustainable packaging. These elements are regarded as the principal growth drivers for the market for sustainable packaging during the anticipated period.
Challenges:- One of the main obstacles to the expansion of the sustainable packaging business is the lack of availability of recycled goods and the ineffectiveness of storing eco – friendly packaging for future use. The expansion of the green packaging industries is hampered by greater production costs and higher installation costs, which vary depending on the type of packaging material used.
Market Segmentation
- Based on the Type of Packaging:
- Recycled Content Packaging
- Paper
- Metal
- Plastic
- Glass
- Reusable Packaging
- Drums
- Plastic containers
- Bulk containers
- Others
- Degradable packaging
Reusable packaging came in second on the market share list behind packaging with recycled content. Gains in recycled content packaging would be facilitated by expanding collection and processing capabilities as well as increased usage of recycled content packaging by businesses seeking to differentiate their products and demonstrate environmental sustainability. The expansion of the market will be aided by initiatives by industry associations, brand owners, packaging businesses, and others to promote sustainability programmes that will raise the recycling rates of different kinds of packaging materials.
- Based on the end-user industry:
- Food
- Beverage
- Pharmaceutical
- Personal Care
- Other
On the basis of the end user industry, the market is segmented as Food, Beverages, Pharmaceutical, Personal Care, and others.
The market for green packaging worldwide is dominated by the food and beverage segment. Due to its portability, long shelf life, and simple manufacture, convenience food is primarily driving the market for food and beverage packaging. Frozen foods, snacks, finger foods, beverages, and other goods are included in convenience food categories. The meal items are typically supplied in hot, ready-to-go containers and require less time to prepare. Convenience food is becoming in demand as a result of consumers’ hectic lifestyles and the ageing population.
- Based on the Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
Throughout the forecast period, Asia Pacific is anticipated to maintain its leadership and occupy the top spot in the global market for green packaging. In 2020, the market in Asia and the Pacific was valued at USD 99.46 billion. Due to the increased population density, convenient meals and drinks are being consumed more frequently. Additionally, the regional market is projected to increase as a result of the green packaging producers in China, India, Japan, and South Korea placing a greater emphasis on environmentally friendly packaging options in response to rising consumer environmental concerns. In South-East Asia, it is simple to find the raw materials needed to make cartons, bags, boxes, and other packaging equipment. Positive market effects are also anticipated as a result of this.
Competitive Analysis
- Amcor Limited
- Ardagh Group SA
- Ball Corporation
- Crown Holdings Incorporated
- DS Smith PLC
- Elopak AS
- Emerald Packaging
- Mondi Group
- Nampak Ltd
- PlastiPak Holdings Inc.
- Sealed Air Corporation
- Sonoco Products Company
- Sgf packaging Co. Ltd
- Tetra Pak International SA
The vast and growing market has developed many key players and will continue to do so in the near future, owing to the growing awareness of the public and their concern for the preservation and conservation of the environment and the nature. Amcor Ltd., Ardagh Group SA, Ball Corporation, Crown Holdings Incorporated, DS Smith PLC, Elopak AS, Emarald Packaging, Mondi Group, Nampak Ltd., PlastiPak Holdings Inc., Sealed Air Corporation, Sonoco Products Company, Sgf Packaging Co. Ltd., Tetra Pak International SA, etc are a few names in the competitive market of the Sustainable Packaging Material Market.