The global green packaging market size was estimated at USD 152.2 billion in 2016 and is expected to register a CAGR of 5.7% from 2016 to 2024. Growing consumer awareness and strict government regulations pertaining to protecting the environment are anticipated to propel industry growth. Edible packaging materials made from natural ingredients is anticipated to gain popularity in the coming years.
Key industry trends include downsizing or light weighting, increasing recycling and waste recovery, growing use of renewably sourced materials, rising use of recycled content, and improvements in packaging and logistical efficiency.
Favorable regulatory inclinations in Europe are anticipated to boost the bioplastics packaging market in the near future. For instance, implementation of Horizon 2020 strategy by European Commission has resulted in increasing development of new bio-based products. However, fluctuating raw material prices may hinder industry growth over the forecast period. High cost of production also threaten to limit industry participation, especially smaller and newer players.
Carbon footprint is one of the major hazards associated with manufacturing plastics through crude oil. Use of bioplastics is expected to reduce carbon footprint substantially and is being promoted by major regulatory bodies around the world. In addition, with reference to COP21, the Paris Climate Agreement aims to reach “greenhouse gas emissions neutrality” between 2050 and 2100, which will open new market avenues for the packaging sector.
On the basis of packaging type, the industry can be segmented into recycled content, reusable, degradable, and other packaging solutions. The recycled content packaging segment held around 57.5% of the global market in 2015. The segment witnessed tremendous growth over the past few years owing to increasing demand from the food and beverages sector. Growing prominence of the food service industry owing to mushrooming restaurants, diners, etc. is likely to further boost the segment over the forecast period.
The reusable type is made up of durable materials and is specifically designed for reuse and an extended life. Chemicals, pharmaceuticals, and bulk foods are often shipped in reusable and returnable containers. Key reusable types available in the market include drums, plastic boxes, containers, wooden pallets, industrial compressed gas cylinders, and reusable field bins for fruits.
Rising demand for bioplastics, owing to government regulations, is expected to favor industry growth over the forecast period. The degradable type uses materials that are decomposed by the action of natural forces such as air, light, and water or by the addition of certain chemicals. Recycled content uses materials that can be easily recycled, such as paper, plastic, metals, and glass.
Food and beverage, personal care, healthcare, and others are the four application areas within the green packaging market. In 2015, the food and beverage sector dominated the industry and held around 58.6% of the global market. Green packaging solutions are widely used in the food service industry. Rising prominence of this industry, backed by increasing number of diners, restaurants, etc., are likely to be key sources driving demand over the forecast period.
Application in the healthcare sector is likely to observe stable growth over the forecast period. These packing solutions are widely used as a carrier for heavy, delicate, uniquely shaped objects by using less material. The segment is likely to be driven by increasing investments in the industry. However, investments in the sector are widely dependent on the country’s economic strength. It has been anticipated that investment inequities in the industry are likely to persist and intensify further in the coming years.
Asia Pacific and Europe regions are likely to cater to the highest demand for the product and are estimated to emerge as the fastest growing regions owing to increasing end-use application in various sectors. In addition, UAE and U.S. are projected to cater to rising demand for the product on the heels of increasing prominence of the food service industry.
In terms of region, Asia Pacific lead the market in 2015 and is anticipated to show the same trend over the foreseeable future. The North American market accounted for over 29.0% of the global market in 2015. Growing awareness among the middle-class population and rising demand for sustainable practices are anticipated to favor regional growth.
Asia Pacific is anticipated to be the fastest growing market over the forecast period, owing to presence of a large consumer base and increasing government focus on adoption of eco-friendly solutions. Growth is relatively higher in China, India, and South Korea. Increasing demand for reusable and recyclable materials in developing economies, such as China and India, are expected to boost industry growth over the forecast period.
The European region is expected to present significant opportunities for industry expansion, owing to favorable government initiatives undertaken by the European Union in promoting use of green packaging and creating a sustainable environment. In addition, implementation of the Horizon 2020 strategy by European Commission has resulted in increasing development of new bio-based products, which is expected to have a positive impact on the bioplastics packaging market.
Packaging manufacturing companies such as Amcor, Mondi, DuPoint, Sealed Air, and Tetra Lava procure raw materials to manufacture finished products. These products are then supplied to end-use industries through various distribution channels, including vendors, wholesalers, and distributors. In certain cases, manufacturing companies have formed direct alliances and strategic partnerships with application industries. For instance, Unilever has collaborated with packaging suppliers such as ALPLA and MuCell Extrusion.
Various companies that use packaging include Avon Products; Procter & Gamble; Unilever; Oriflame Cosmetics; Revlon, Inc.; Kao Corporation; The Estee Lauder Companies, Inc.; Shiseido Corporation, Ltd.; and L’Oreal International. Integration has been observed by various companies such as Bemis Company and Mondi plc., from raw material to production, and by ITC, from production stage to end-use industries.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2015 to 2024. For the purpose of this study, Grand View Research has segmented the global green packaging market report on the basis of packaging type, application, and region:
Packaging Type Outlook (Revenue, USD Million, 2015 - 2024)
Recycled Content Packaging
Application Outlook (Revenue, USD Million, 2015 - 2024)
Food and Beverage
Regional Outlook (Revenue, USD Million, 2015 - 2024)
Rest of the World (RoW)
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Halted manufacturing activities across various end-use industries has led to weakened demand for specialty polymers. The prevailing macroenvironment due to the pandemic shall register indications of recovery depending on the course of COVID-19's prevalence and subsequent resuming of manufacturing activities. The report will account for Covid19 as a key market contributor.