July 23, 2024
Green Packaging Market

Green Packaging Market Is Expected To Be Flourished By Growing Environmental Concerns

Green packaging involves using packaging materials and processes that are environmentally friendly and sustainable. It minimizes the environmental impact of a packaged product along its entire life cycle from the extraction of raw materials to manufacturing, distribution, use, and post-consumer recycling or solid waste disposal. Some key aspects of green packaging include using recycled content, reducing weight/materials, using reusable/renewable resources, reducing hazardous substances, and designing for recyclability. Green packaging is gaining prominence amid escalating environmental concerns about plastic pollution and climate change. Products made from renewable and recycled content require less energy to produce and generate fewer greenhouse gas emissions compared to those made from virgin materials. Growing awareness about sustainability and environmental protection is prompting companies across industries to adopt green packaging solutions to appeal to environmentally conscious consumers.

The global green packaging market is estimated to be valued at US$ 218337.06 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 Dynamics:

Growing Environmental Concerns – Factors like plastic pollution of oceans, climate change impacts, excess waste generation, and limited natural resources are fueling environmental concerns worldwide. Scientists warn that at the current rate of plastic production and waste mismanagement, there will be more plastic than fish in the oceans by 2050. This mounting pressure is compelling governments to enact stringent regulations on plastic usage and waste recycling. For example, the European Union has banned certain single-use plastic items from 2021. Consumers are also choosing more environmentally friendly alternatives like paper, glass, aluminum, and bio-based plastics for packaging. All these developments are generating strong demand for sustainable green packaging solutions.

Increased Corporate Social Responsibility Initiatives – Today’s consumers, especially millennials and Gen Z, closely follow companies’ sustainability actions and expect them to act responsibly. Brands increasingly view green packaging as an important element of their corporate social responsibility strategies to boost their environmental and social credentials. Transitioning to renewable and recycled materials helps firms lower carbon footprint, appeal to eco-conscious shoppers, and enhance their reputation. Major corporations are proactively partnering with sustainability certification bodies to responsibly source, manufacture, and distribute green packaging products. This vibrant CSR activity bodes well for the green packaging market.

Segment Analysis

The global green packaging market can be segmented into plastic, paper, metal and glass. Paper dominates the market with around 40% share due to high recyclable content and increasing applications in food and beverages packaging. It is sustainable and biodegradable in nature.

PEST Analysis

Political: Stringent government regulations towards usage of conventional plastics and focus on sustainable development is positively impacting the green packaging market growth.
Economic: Increasing disposable incomes and changing consumer preferences towards eco-friendly products is fueling the demand.
Social: Rising environmental concerns and awareness about reducing plastic waste is driving the consumers towards sustainable packaging solutions.
Technological: Manufacturers are investing in innovations and development of recyclable, biodegradable materials for producing green packaging products.

Key Takeaways

The global Green Packaging Market Growth is expected to witness high growth over the forecast period due to increasing regulations and policies supporting adoption.

Regionally, North America dominated the market due to stringent norms and presence of major players. Europe is also a significant market driven by growing sustainability initiatives in countries like Germany, UK and France.

Key players operating in the green packaging market are Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko plc, Wärtsilä Corporation, Yanmar Co. Ltd. Key players are focusing on developing sustainable packaging solutions using biodegradable, recyclable materials and incorporating renewable energy in manufacturing processes.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it