April 23, 2024
Green Packaging Market

Green Packaging Market Is Expected To Be Flourished By Increasing Demand For Eco-Friendly Packaging Materials

Green packaging refers to the use of environmentally friendly materials for packaging products. It involves using recyclable, biodegradable, and non-toxic materials for packaging applications across various industries such as food and beverage, pharmaceutical, and personal care. Green packaging helps reduce the carbon footprint of packaging and promotes sustainable development. Some of the commonly used green packaging materials include recycled paper, bioplastics, biodegradable plastics, and glass. These materials provide branding opportunities for brands to highlight their eco-friendly initiatives.

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 15.% % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Increasing demand for eco-friendly packaging from conscious consumers is a key driver boosting growth of the green packaging market. Growing environmental awareness among individuals has increased the focus on products packaged using sustainable materials. Furthermore, stringent government regulations regarding the use of plastics across regions such as Europe and North America are also forcing manufacturers to adopt green packaging solutions. Additionally, the growing food delivery and logistics industries have increased the focus on sustainable solutions for transportation packaging as well.

The market is also driven by rising demand for green packaging from various industries. Food and beverage industry faces increased pressure to shift to sustainable packaging to attract environmentally conscious customers. Similarly, personal care and pharmaceutical companies are also adopting green packaging for products to highlight their sustainability credentials.

Segment Analysis

The global green packaging market can be segmented based on type into recycled content packaging, reusable packaging, and degradable packaging. The degradable packaging segment dominated the market in 2022, accounting for over 30% share. Degradable packaging breaks down completely when disposed and does not cause any environmental pollution. Materials used for degradable packaging include paper, paperboard, bioplastics, and biopolymers. Due to strict environmental regulations restricting the use of single-use plastics and thermoform packaging, the demand for degradable packaging is growing substantially.

PEST Analysis

Political: Many countries have introduced regulations banning certain single-use plastic items and enforcing minimum recycled content requirements in packaging. This is driving growth in the green packaging market. Economic: Rising environmental awareness among consumers and various companies’ commitments to sustainability are compelling packaging manufacturers to shift to green packaging solutions. However, green packaging options are often costly to produce. Social: Growing concerns regarding plastic waste, climate change, and environmental protection have increased consumer preference for brands that use sustainable packaging. Technological: Advancements in materials science have facilitated the development of bio-based and recyclable alternatives to petroleum-based plastics. Bioplastics and biopolymers are finding larger applications in green packaging.

Key Takeaways

The global green packaging market is expected to witness high growth over the forecast period.

The North American green packaging market accounted for over 35% market share in 2022 led by the US and Canada. Stringent regulations restricting single-use plastics along with organizations committing to utilize sustainable packaging have propelled demand. The European region is another major market driven by regulations like the Green Deal initiative favouring eco-friendly alternatives. The Asia Pacific region is expected to witness the fastest growth during the forecast period led by China, India, and other developing nations improving waste management infrastructure and promoting sustainable lifestyles.

Key players operating in the green packaging market are ad notam AG, Evervue, Gentex Corporation, Magna International Inc., Murakami Kaimeido, Panasonic Corporation, Perseus Mirrors, Pro Display, Samsung Electronics Co., Ltd., and Tech2O. Ad notam AG is a leader in plant-based packaging products across Europe. Gentex Corporation manufactures fully recyclable and bio-based packaging films. Magna International Inc. offers various lightweight and sustainable vehicular components.

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