Green packaging involves the use of renewable, recyclable, and biodegradable materials for manufacturing packaging products in order to reduce their environmental footprint. It helps conserve energy and resources while minimizing greenhouse gas emissions. Green packaging focuses on reducing packaging waste by developing sustainable alternatives to conventional plastics and optimizing packaging volumes to transport goods safely and efficiently.
The global Green Packaging Market is estimated to be valued at US$ 218337.6 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing focus on environmental sustainability across industries has propelled the demand for green packaging solutions. Manufacturers are focusing on developing innovative green packaging products made from recycled and bio-based materials to replace conventional plastics. Growing consumer awareness about the need to switch to sustainable packaging has encouraged brands and retailers to adopt environment-friendly packaging formats. Governments across regions have implemented stringent regulations to minimize plastic waste and carbon footprint of packaging, thereby driving adoption of green packaging in various end-use industries.
Strength: Green packaging is more sustainable and environmentally friendly in nature which helps companies to gain competitive advantage by strengthening their ESG score. It also helps in brand building as customers are attracted towards brands using eco-friendly packaging.
Weakness: High initial costs associated with establishing green packaging infrastructure as compared to traditional packaging. Lack of standardized regulations and certifications for green packaging in some regions.
Opportunity: Increasing consumer awareness and preference for sustainable products is driving the growth of green packaging market. Government support through policies and regulations promoting use of recyclable and biodegradable materials also creates new opportunities.
Threats: Availability of alternative eco-friendly substitutes like paper, bio-based plastics poses threat. Stiff competition from local players supplying low-cost conventional packaging is also a challenge.
Global Green Packaging Market Size is expected to witness high growth driven by growing environmental concerns.
Asia Pacific region currently dominates the market owing to rapid industrialization, rising disposable incomes and increasing consumer awareness in countries like China, India. Government initiatives promoting use of sustainable materials through policies and regulations are further propelling the regional market growth.
Key players operating in the green packaging market are Amcor plc, Mondi Group, Sealed Air Corporation, Tetra Pak International SA, Sonoco Products Company, Smurfit Kappa Group plc, Berry Global Inc., Ball Corporation, WestRock Company. Among these, Amcor plc, Smurfit Kappa Group plc and Tetra Pak International SA collectively account for over 30% of total market share due to their wide product portfolio and global presence.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it