GVR Report cover Green Packaging Market Size, Share & Trends Report

Green Packaging Market Size, Share & Trends Analysis Report By Packaging Type (Recycled, Reusable, Degradable), By Application (Food & Beverages, Healthcare), By Region, And Segment Forecasts, 2020 - 2028

  • Report ID: GVR-1-68038-052-1
  • Number of Pages: 139
  • Format: Electronic (PDF)

Report Overview

The global green packaging market size was valued at USD 274.15 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.1% from 2020 to 2028. Growing consumer awareness regarding sustainable packaging, together with the strict bans regarding the usage of single-use plastics, are expected to fuel the industry growth. The industry is anticipated to grow at a steady rate owing to the growing food and beverage industry that is increasingly adopting packaging made from degradable and recyclable materials. The foodservice industry is replacing single-use plastic straws, lids, closures, caps, cups, and food trays with products made from paper or compostable alternatives. The product demand in the foodservice industry will continue to grow on account of changing consumer preferences towards convenience and packaged foods.

U.S. green packaging market size, by application, 2017 - 2028 (USD Billion)

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. 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 2025 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 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. Consumer behavior directly influences packaging solutions in food and beverage applications.

Despite the COVID-19 pandemic, the food & beverage industry has witnessed significant growth and is expected to continue to grow over the forecasted period, positively impacting the green packaging industry. The food & beverage industry is consistently catering to the consumer’s convenience by offering on-the-go consumption products, which are expected to cause a rise in demand for packaging in food & beverage applications. The healthcare packaging market has faced enormous challenges regarding sustainable packaging, which increased post-COVID-19. This is due to the numerous constraints that companies face during the manufacturing process of packaging products.

Hygiene is one of the most critical issues in healthcare packaging, where the industry has not yet adopted recycled raw materials in products, such as sterile barrier packages. This reluctance results from a lack of assurance in the packaging product’s biocompatibility with the medicine or drug. Major players in the industry are reinventing packaging materials and rethinking designs by collaborating with end-user companies. The collaborative efforts work towards increasing the reusability, energy efficiency, and use of recycled and degradable materials.

Application Insights

The food and beverages application segment led the industry with more than 58.5% share of the global revenue in 2020. With the rising popularity of green packaging, many restaurants, fast food chains, packaged food companies, and casual dining venues are adopting molded pulp packaging and compostable packaging, which, in turn, is projected to drive the food and beverages segment.

Many manufacturers of personal care products are shifting towards green alternatives by reducing the overall material used for packaging. The change is partly driven by consumer consciousness regarding the sustainability of the packaging of a product. Many consumers have started criticizing personal care product manufacturers for excessive packaging done for aesthetic purposes with no real necessity. Companies have thus adopted paperboard packaging with thin plastic packaging wherever necessary.

The healthcare segment has shown promising growth despite the strict regulations related to the safety of packaging of products. For a large part, the pharmaceutical industry makes use of glass packaging as it is inert and suitable for the packaging of different drugs. Aluminum foil is another popular packaging material used by the pharmaceutical industry for the packaging of capsules and pills.

The companies in the market serving the healthcare application sector are introducing innovative molded pulp packaging products to replace reusable utensils used in hospitals for more convenience. With the increasing pressure on hospitals due to the COVID-19 pandemic, disposable eco-friendly alternatives are expected to drive the demand further.

Packaging Type Insights

Based on type, the market is categorized into recycled content, reusable, and degradable packaging. The recycled content segment held the largest share of 61.2% in 2020. The segment includes materials that can be recycled, such as paper, plastic, glass, and metal. These materials are reused by the manufacturers as raw materials to make new packaging products resulting in curbing excess pollution caused by packaging waste.

Global green packaging market share, by packaging type, 2020 (%)

The plastic-type in recycled content segment held the largest share in 2020 as it is widely used across several applications and offers vital packaging properties that materials such as paper fail to deliver. Plastics are also very cost-efficient, which has made them a preferred choice of material, especially in emerging economies where the cost of the product is an important aspect. The plastics segment is expected to witness promising growth during the forecast period owing to the increasing adoption of flexible pouches in various end-use industries.

Paper is the next major segment under recycled content packaging as it is easily available, accessible, and popular among consumers. Paper is used in flexible as well as rigid packaging solutions. Paper packaging is experiencing increased market penetration due to enhanced functionalities, such as waterproofing through laminates and coatings. Paper has been popularly used in bakery products and foodservice applications.

The reusable segment comprises drums and plastic containers that are made from durable materials intended for multiple or longer use. Drums are used for the transportation of fluids, majorly a variety of chemicals. They have a long shelf life and can be reused for other purposes, such as garbage bins. Plastic containers are gaining prominence among fruits and vegetable producers and sellers as they can be used for a long period and are convenient for storage and transport.

Regional Insights

Europe dominated the market in 2020 with a revenue share of 36.7% due to stringent regulations imposed by the European Union and other European countries concerning the use of single-use plastics. The European Directive has introduced the concept of a circular economy, wherein it has issued guidelines and goals for sustainability. European companies have started following the circular economy roadmap by embracing recyclable, recycled, and degradable materials.

Asia Pacific ranked second in terms of value in 2020, as the region is seeing a rise in government regulations and initiatives that are encouraging manufacturers to opt for green packaging. China, the biggest manufacturing hub in the world, is changing its packaging habits and materials to make them more environmentally friendly. Due to the sheer volume of the products shipped out of China, this move will have a great impact on the market growth in the region. The Australian government has set out a target to adopt 100% recyclable packaging in or before 2025, which will lead to a stark upward trend in the market value over the forecast period.

North America is at par with the Asia Pacific region in terms of market share owing to the aggressive efforts put forth by the governments in the region. The government of Canada has established numerous recycling infrastructures to aid recycling in the country. Canada imposed a major ban on the use of polystyrene containers and cups in Vancouver in 2019, intending to lower the disposal of solid waste by 2040. The government initiatives complement the consumer demand that is leaning towards green packaging and products that are eco-friendly, thus driving the demand in the region.

Key Companies & Market Share Insights

Industry players are focusing on R&D activities concerning new plant-based materials that mimic the properties of plastics currently in use. Companies are redesigning packaging to include less material, hence saving on the cost and producing less waste. Tetra Laval, Ball Corp., Nampak, and Sealed Air are some of the leading companies in the market. 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 Corp.

  • Sealed Air

  • Tetra Laval

Green Packaging Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 289.83 billion

Revenue forecast in 2028

USD 441.41 billion

Growth rate

CAGR of 6.1% from 2020 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2020 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, packaging type, region

Regional Scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; China; India; Japan; Australia; Brazil; South Africa

Key companies profiled

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

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global green packaging market report on the basis of application, packaging type, and region:

  • Application Outlook (Revenue, USD Billion, 2017 - 2028)

    • Food & Beverages

    • Personal Care

    • Healthcare

    • Others

  • Packaging Type Outlook (Revenue, USD Billion, 2017 - 2028)

    • Recycled Content Packaging

      • Paper

      • Plastic

      • Metal

      • Glass

      • Others

    • Reusable Packaging

      • Drum

      • Plastic Container

      • Others

    • Degradable Packaging

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

    • Asia Pacific 

      • China

      • India

      • Japan

      • Australia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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