Green Packaging Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Karmarkar on December 30th, 2021

The global green packaging market size is expected to reach USD 413.8 billion by 2027, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.0% from 2020 to 2027. The market for green packaging is projected to be driven by the growing consumer demand for environment-friendly alternatives to non-sustainable packaging products.

Green packaging is witnessing growth due to rising environmental concerns caused by the packaging waste that ends up in landfills, polluting the environment. The packaging types categorized under green packaging are recyclable, reusable, and degradable. They are either used in the same value chain or degraded in nature without releasing harmful toxins, thus assisting companies to reduce their negative impact on the environment.

The recyclable and recycled content packaging is predominant amongst all types of green packaging as it is used on a mass scale. Plastics, paper, glass, and metal are the top recycled materials used for this segment of green packaging. Plastic is the most widely used material as it is cost-effective and provides useful properties, such as waterproofing and durability. The paper segment is witnessing high growth owing to new packaging designs introduced by companies as part of sustainable initiatives.

The market is likely to witness high growth over the coming years in the food and beverages sector as many players in the foodservice industry are switching to paper or compostable materials from single-use plastic cups, lids, closures, and food trays. The healthcare segment largely uses glass bottles and aluminum foil for packaging medicines, which is expected to grow in the forecast period as per the growth of the pharmaceutical industry.

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The market in the U.S. is projected to exhibit high growth in the years to come on account of a growing consumer base that places high importance on the packaging of consumer goods and foods and beverages. The manufacturers in the region are adapting to changing consumer preferences and moving towards more sustainable alternatives.

Green Packaging Market Report Highlights

• In terms of revenue, the food and beverages application segment is projected to expand at the fastest CAGR over the forecast period. Shifting consumer inclination towards eco-friendly packaging is anticipated to spur the segment growth in the years to come
• By type, recycled content packaging accounted for 61.4% share of the overall revenue in 2020 owing to its widespread use and cost-efficiency. Growing establishments of recycling infrastructures, together with regulations and policies pertaining to the circular economy, are likely to encourage the usage of recycled content packaging
• The growing trend of eco-friendly practices, such as the use of reusable metal straws, is pushing manufacturers further to adopt green packaging in all industries, including consumer goods and pharmaceutical products. Most packaging industry experts suggest that non-sustainable packaging will become obsolete in the coming decades as most of the packaging will be recycled
• In January 2020, KFC announced a pledge to eliminate all non-recoverable and non-reusable plastic-based packaging by 2027. The company has adopted 100% fiber-based packaging from recycled or certified sources replacing single-use plastic cutleries
• In 2018, Procter & Gamble announced a sustainability goal called ‘Ambition 2030’. The multi-national organization has planned to make 90% of their packaging recyclable or reusable. The company had partnered with TerraCycle and SUEZ to produce recyclable shampoo bottles made from plastic collected from the beach

Many global players in the consumer goods sector, such as Unilever and Procter & Gamble, have been using post-consumer recycled plastics in their packaging solutions to further their green initiatives. Hindustan Unilever Limited, a subsidiary of Unilever, has committed to using 100% recyclable packaging by 2027 and has switched from commodity polymers to performance-based polymers.

The trend is followed by premium clothing brands, such as H&M, which is aiming for a 100% circularity in the value chain and uses organic chemicals for labeling and printing for safer recycling of the product. Such initiatives have grown considerably, resulting in a global trend of green packaging that most companies will be compelled to adopt, to stay relevant in the green packaging market.

The practice of green packaging is exercised by companies that sell Fast Moving Consumer Goods (FMCG), which have lower profit margins per unit and are inflexible to cost markups. These companies are implementing light weighing initiatives to save costs on raw materials as well as transport.

The company Evergreen Packaging has been driving Corporate Social Responsibility (CSR) activities, such as ‘Carton 2 Garden’, to create awareness and encourage the use of sustainable packaging. The companies in the market are increasingly investing in innovative packaging designs and new materials with infinite recycling ability and material strength. For instance, Amcor’s ultra-recyclable high-barrier packaging with a low carbon footprint is made to replace ALU/PET non-recyclable structures. Some prominent players in the global green packaging market include:

• Amcor
• Be Green Packaging
• DS Smith
• DuPont
• Evergreen Packaging
• Mondi
• Nampak
• Ball Corporation
• Sealed Air
• Tetra Laval

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.