Sales of sustainable packaging solutions are being driven by increasing consumer demand for eco-friendly products, raising awareness about the harmful effects of plastic packaging, and government regulations.
The industry also saw a surge in innovation and research activities aimed at developing new sustainable materials and packaging solutions in the last decade.
The market is anticipated to be primarily driven by sustainable materials and packaging solutions, the adoption of circular economy principles, and the popularity of eco-friendly packaging among e-commerce sellers.
The sustainable packaging market value is expected to be USD 285.3 billion in 2024.
The industry is expected to witness steady growth over the next ten years, rising at a compound annual growth rate (CAGR) of 5.8 per cent.
By the end of this forecast period, the demand for sustainable packaging materials and solutions is forecasted to be US$ 490.5 billion.
“Public research institutions and privately owned companies are engaging in research and development activities driven by the continued growth in demand for green packaging solutions across various industries. So, the coming decade is expected to witness a surge in the adoption of bio-plastics, paper-based packaging, and reusable packaging solutions,” said an analyst at FMI.
Key takeaways from the sustainable packaging market study report include:
- The adoption of sustainable or eco-friendly packaging solutions is likely to surge at a 4.1 per cent CAGR through 2034.
- Germany is the leading supplier of sustainable packaging materials in Europe and is likely to grow at a 4 per cent CAGR by 2034.
- A higher consumption of eco-packaging materials in the United Kingdom is likely to drive the regional industry at 5.4 per cent from 2024 to 2034.
- China dominates Asia in the production of recyclable packaging products and is poised to thrive at 7.1 per cent CAGR through 2034.
- India is emerging as a promising market with an estimated CAGR of 7.6 per cent from 2024 to 2034.
- Based on the material type, the use of paper and paperboard packaging is rising and is estimated to capture 38.2 per cent of global sales in 2024.
- Sales of sustainable bags are higher than other packaging types and are estimated to contribute to a 25.4 per cent revenue share in 2024.
The competition in the sustainable packaging industry is intense as many global and regional industries cropped up after the pandemic.
However, a few leading players with higher capital for more innovations in sustainable packaging are anticipated to hold a considerable share of the global revenue.
Recent developments by key industry players, such as Electrolux Group and Huhtamaki, highlight the industry’s ongoing commitment to innovation and sustainability.
Going forward, the sustainable packaging industry is poised for significant growth driven by increasing consumer demand for eco-friendly products, stringent regulations, and advancements in material science.
With continuous research and development efforts, the coming years are likely to witness a notable shift towards bio-plastics, paper-based packaging, and reusable solutions.