The global sales of botanical packaging are estimated to be worth USD 160.5 million in 2024 and are anticipated to reach a value of USD 311.4 million by 2034. Sales are projected to rise at a CAGR of 6.9% over the forecast period between 2024 and 2034. The revenue generated by botanical packaging in 2023 was USD 150 million. The industry is anticipated to exhibit a Y-o-Y growth of 7.0% in 2024.
Bottles and containers are leading segment in the product categories of botanical packaging. This is largely due to the food and beverages, cosmetics, and personal care industries, which look forward to taking up more adoption of plant-based material in their liquid and solid packaging requirements.
The move for shifting towards sustainable alternatives rather than steered onto traditional plastic containers pushes bioplastic bottles and containers into a veritable multiverse, where there is great biodegradable ability with still good strength and sustainability.
Global Botanical Packaging Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 150 million |
| Estimated Size, 2024 | USD 160.5 million |
| Projected Size, 2034 | USD 311.4 million |
| Value-based CAGR (2024 to 2034) | 6.9% |
The sales of plant-based plastics in the market is leading in terms of material type in botanical packaging. This is because the demand for biodegradable alternatives to conventional plastics is highly heightened, especially in items packaging food, drinks, and cosmetics.
Plant based packaging which is derived from cornstarch and sugarcane is providing less impact on environmental conditions. This is why they are more appealing to the consumers as they replace the petroleum based plastic and meet the environmental regulations.
Europe is anticipated to account for a maximum share of the global botanical packaging market owing to the implementation of stringent government regulations on the usage of plastic packaging. This, growing awareness regarding the harmful effects of using plastic and the importance of sustainable and biodegradable products will augment the sales of botanical packaging in the region.
Hence, to capitalize on this existing trend, botanical packaging manufacturers are inclining towards biodegradable products, improving the growth in the Europe market over the coming years. Growing environmental concerns such as pollution, high generation of waste from industries, and the non-biodegradability of plastic products will favor the growth in the market.
Increasing production capacities of botanical packaging in emerging countries such as China and India is a major factor facilitating the growth in the Asia Pacific. Besides this, concerns related to environmental sustainability among consumers and manufacturers are pushing for the adoption of botanical packaging in India, China, and Japan.
Subsequently, rapid urbanization and demand for single-serving and on-the-go style food and beverage products will boost the sales of botanical packaging in the region.
The botanical packaging industry is set to experience promising growth during the forecast period. It is projected to create an incremental opportunity of USD 161.4 million and is predicted to rise 1.9 times the current market value through 2034.
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The above table presents the expected CAGR for the global botanical packaging market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 7.1%, followed by a slightly low growth rate of 6.8% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 7.1% (2023 to 2033) |
| H2 | 6.8% (2023 to 2033) |
| H1 | 6.5% (2024 to 2034) |
| H2 | 6.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 6.5% in the first half and remain relatively moderate at 6.9% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 40 BPS.
Rising Consumer Demand for Sustainability Boost Market
Consumers are increasingly concerned about their contribution to the environment and are in turn demanding a large percentage of green products and eco-friendly packaging. The issue driving such demand is plastic pollution and the growing poor effects it has on ecosystems.
As a result, consumers are seeking alternative to the traditional plastic. However, consumer concern over environmental change and carbon footprint relating to producing packaging has fueled the demand for plant based packaging solutions. Such green preferences are compelling companies to use bio degradable and compostable packaging materials for alignment with consumer’s values and therefore brand loyalty.
Innovation in Plant Fiber and Agricultural Byproducts Flourishing Market
Some of the new developments in packaging rely on the plant fibres like hemp, and agriculture, by products, including sugarcane bagasse, in the greenery materials. These natural sources are plentiful and renewable, there ideal for to green packaging solutions.
Other examples include fibres of hemp that are durable, tough, and biodegradable while sugarcane bagasse is the leftover form sugar production, which finds itself getting molded into food and beverage packaging. These products minimize the reliance on plastics, reduce waste quality, and lower carbon footprint, thereby offering special sustainability advantages to the brands focused on this aspect.
Limited Material Availability Restricts the Market
Botanical packaging is largely hindered by the scarcity of raw material since hemp and bagasse are plant based materials, thus not widely available globally or seasonally. Agriculture bio-derived products depend on the availability if crops, which is very volatile regarding specific regions and time of the year.
This calls for inconsistent supply. The geographical factor also lowers the sourcing hence proves to be a challenge when mass production is considered. Hence, supply chain reliability is affected thus slowing its adoption on a larger scale.
Principal Consultant
The global botanical packaging industry recorded a CAGR of 4.1% during the historical period between 2019 and 2023. The growth of botanical packaging industry was positive as it reached a value of USD 150 million in 2023 from USD 127.7 million in 2019.
Over the past few years, organic packaging such as the botanical packaging market is gaining momentum owing to its important role in reducing carbon footprint as compared to plastic packaging. Rising environmental concerns among the manufacturers due to the recyclability of the material are increasing the adoption of botanical packaging.
Further, the need for reducing the utilization of plastic packaging is anticipated to boost the botanical packaging market.
Additionally, the easy availability of raw materials, such as corn starch, sugarcane, and other agricultural waste, across the globe is expected to increase the application of botanical packaging. Rising applications in the food & beverage, healthcare, cosmetic, and other industries will create lucrative growth opportunities for the market. Stringent government regulations regarding the use of plastic will also boost its adoption across diverse industries.
Growing demand for eco-friendly packaging among consumers to reduce carbon footprints is expected to surge the sales of botanical packaging. With rising concerns regarding high waste generation, the demand for botanical packaging is expected to increase over the forecast period.
This, demand for longer shelf life in personal care products such as perfumes, essential oils, and others is increasing. This is expected to provide impetus to the botanical packaging market demand. Hence, manufacturers are developing environment-friendly products to attract consumers, thereby, fueling the demand for botanical packaging across the globe.
Furthermore, stringent government regulations related to plant-based products are fueling the adoption of botanical packaging.
Tier 1 companies include market leaders that correspond to a market revenue above USD 7 million capturing significant market share between 10% and 15% of the global market. These market leading firms are characterized by high production capacity and a wide product portfolio.
These players are characterized by substantial manufacturing experience concerning a range of products for different applications and geographic penetration, backed by a strong consumer base. These companies manufacturing the products have products on offer with a wide range and with state-of-the-art technological innovations, coupled with adherence to regulatory imperatives that offer nothing but the best quality.
Tier 1 prominent companies include Amcor plc, Mondi, Tetra Pak, and Smurfit Kappa Group.
The companies in Tier 2 include mid-size players with revenues of USD 2 million to USD 7 million, present in specific regions, and highly influencing the regional market. Such players are characterized by a limited international presence and well-maintained market knowledge. In the case of such market players, the technology is good, and the regulatory compliance is ensured, though advanced technology with wide global reach may not be there.
While other prominent companies in tier 2 include Novolex Holdings LLC, Berry Global, Inc., Sealed Air Corporation, Sonoco Products Company, WestRock Company, Stora Enso Oyj, Huhtamäki Oyj, Cascades Inc. and others.
The rest are very small companies operating at the local presence and serving niche markets having revenue below USD 2 million. These companies are notably oriented to the fulfillment of local market demands and are consequently classified within the tier 3 share segment.
They are players on a very small scale, and have very limited geographical reach. Within this context, Tier 3 can be described as an unorganized market, a generic term applied to that part of the industry which has less structure and formalization compared to the organized competitors.
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The section below covers the industry analysis of the botanical packaging market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia & Pacific, East Asia, Western Europe, Eastern Europe, and others, is provided.
In North America, Canada is anticipated to register a moderate growth at 5.4% through 2034. In South Asia Pacific, India is an emerging country in botanical packaging projected to witness a growth rate of 6.5% by 2034 end.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.9% |
| Germany | 2.6% |
| UK | 2.7% |
| Brazil | 4.5% |
| India | 6.5% |
| China | 5.3% |
| Japan | 3.7% |
| GCC Countries | 4.1% |
| Canada | 5.4% |
India is anticipated to expand at 6.5% growth rate in the forecast period. According to India Brand Equity Foundation (IBEF), India paper packaging is one of the emerging markets due to rapid growth in country coupled with industrialization. India paper and packaging sector is anticipated to reach USD 204.81 billion by end of 2025.
The Indian packaging sector used paper as a major source and further inducts the anticipation of continuous rise in demand for paper for ready to eat food and FMCG products. Paper packaging in India is growing and having positive impact on the botanical market.
Paper packaging has become highly popular particularly after Indian consumers began demanding sustainable and environmentally friendly alternatives that are recyclable and bio degradable. This further drives acceptance of botanical packaging in India not only by consumers but by other companies that want to address the greening needs.
Germany dominates the European botanical packaging industry with an estimated CAGR of 2.65 during the assessment period. The sales of botanical packaging across Germany is expected to rise due to rising demand for eco-friendly and recyclable packaging, implementation of stringent regulations, and presence of leading packaging companies.
The Federal Government of Germany stated that the country aims to reduce its emissions of greenhouse gases by at least 65% by 2030 compared to 1990 levels, reported by Clean Energy Wire. The German Federal Government has set up yearly reduction targets to achieve greenhouse gas emission neutrality by 2045.
Such regulations will force the companies to go green with their packaging by adopting plant based or biodegradable alternatives. The regulatory framework creates an attractive market environment and increase demand for sustainable packaging solutions putting Germany at the forefront of botanical packaging.
The section contains information about the leading segments in the industry.
| Product Type | Bags & Pouches |
|---|---|
| Value Share (2034) | 33% |
Bags and pouches have caught up attention as far as growth in botanical packaging is considered. More and more consumers are interested in convenient, resalable, and lightweight packaging options. These become very popular features, especially in botanical industry, with frequent need in flexibility and protection.
The growth is also influenced by the ecommerce spur and a global consumer’s desire for solutions that is not only environmentally friendly but also functional. The target segment is anticipated to gain 1/3rd of market share during the assessment period.
| End Use | Food & Beverage |
|---|---|
| Value Share (2034) | 42% |
Among end users, food and beverage sector will be the largest application. This is based on increasing consumers demand for natural, organic, and plant based food and drinks, for which they will require sustainable and eco-friendly solutions for their packaging. Botanical packaging very much relates to the sustainability and a lesser environmental footprint of the sector.
As consumers are now most concerned about healthy and eco- sensitive purchasing decisions, its impacting the food and beverage industry. Food and beverage industry is leading the botanical packaging industry with more than 42% of market share during the assessment period.
The key players in the botanical packaging market are focusing on sustainability innovations and producing biodegradable, compostable, and recyclable packaging materials. The core role is played by investment into research for bettering biopolymer technologies and increasing shelf life for plant based products.
Collaborations with botanical product manufacturer accompanied by increased efforts towards the building reduced carbon foot print through more environment friendly production processes seem to be at the heart of these core strategies. These developments show increasing consumer demand for greener packaging solutions across industries.
Recent Industry Developments in Botanical Packaging Market
In terms of material, the industry is divided into bioplastics, paper & paperboard and other bio based materials.
In terms of capacity, the industry is segregated as bottles and containers, boxes and cartons, bags and pouches, films and wraps, trays and cups, and labels and tags.
The industry is classified by application as food & beverage, personal care and cosmetics, pharmaceutical and healthcare, and other industrial.
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global botanical packaging industry is projected to witness CAGR of 6.9% between 2024 and 2034.
The global botanical packaging industry stood at USD 150 million in 2023.
The global botanical packaging industry is anticipated to reach USD 311.4 million by 2034 end.
South Asia and Pacific is set to record the highest CAGR of 6.1% in the assessment period.
The key players operating in the global botanical packaging industry include Amcor plc, Mondi, Tetra Pak, and Smurfit Kappa Group.
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