Sustainable Packaging Market

Sustainable Packaging Market Outlook for 2024 to 2034

The sustainable packaging market size is projected to achieve a value of USD 285.3 billion in 2024. The demand for sustainable packaging solutions is likely to increase at a robust CAGR of 5.8% over the forecast period. Looking ahead, the market is anticipated to sustain this growth trajectory and surpass USD 490.5 billion by 2034, representing a significant opportunity for businesses in the packaging industry.

Report Attribute	Details
Sustainable Packaging Market Size (2024)	USD 285.3 billion
Anticipated Market Value (2034)	USD 490.5 billion
Projected Growth Rate (2024 to 2034)	5.8% CAGR

Sustainable Packaging Market Trends & Analysis

Growing Popularity of Compostable Packaging in the Sustainable Packaging Industry

As consumers become more aware of environmental issues, the demand for sustainable packaging solutions is on the rise. From eco-friendly and biodegradable packaging to compostable and recyclable options, companies are looking for ways to reduce their carbon footprints and meet the growing demand for sustainable products.

This trend is expected to continue over the forecast period, with sustainable packaging projected to be a major driver for growth in the packaging industry.

Consumer Demand for Plastic-Free Packaging: A Game Changer for Sales

Innovations in sustainable packaging materials are creating new opportunities for manufacturers to reduce their environmental impact and meet consumer demand for eco-friendly products.

From renewable and plant-based materials to plastic-free packaging, companies are exploring a range of options to reduce waste and improve sustainability. As more companies embrace these innovations, we can expect to see continued growth and investment in the sustainable packaging market.

Innovative Sustainable Materials: Key to Tackling Challenges in the Sustainable Packaging Industry

While demand for sustainable packaging solutions is growing, manufacturers face several challenges in meeting this demand. One of the biggest challenges is finding cost-effective and scalable solutions for producing sustainable packaging materials.

Another challenge is meeting regulatory requirements and ensuring that sustainable packaging materials meet the same quality standards as traditional packaging materials. To overcome these challenges, manufacturers need to invest in new technologies and processes that can improve efficiency and reduce costs while maintaining high-quality standards.

Historical Analysis of the Sustainable Packaging Market Vs Demand Outlook

The sustainable packaging market was valued at USD 229.6 billion in 2019. From 2019 to 2023, the industry witnessed a substantial growth of 4.9%. The net worth of the market reached USD 268.6 billion in 2023.

During this period, the market was primarily driven by the growing popularity of biodegradable and compostable packaging solutions. The COVID-19 pandemic further accelerated the demand for green packaging solutions, as consumers became more conscious of their impact on the environment and the health risks associated with single-use plastics.

Attributes	Details
Sustainable Packaging Market Value (2019)	USD 229.6 billion
Historical Market Revenue (2023)	USD 268.6 billion
HCAGR (2019 to 2023)	4%

Application of Porter's Five Forces Model for Market Growth

Threat of New Entry

• The high cost of establishing infrastructure and obtaining necessary certifications serve as a barrier to entry into the sustainable packaging market.
• The increasing demand for eco-friendly packaging has led to the emergence of several niche markets, making it difficult for new entrants to capture a significant share.
• The presence of established players with economies of scale and established distribution channels makes it challenging for new entrants to gain a foothold in the market.

Supplier Power

• The demand for sustainable packaging has led to an increased demand for raw materials, thereby fueling supplier power.
• The limited availability of sustainable raw materials and the high cost of sourcing them gives suppliers an advantage in negotiations.
• Collaborations between packaging companies and suppliers can help reduce supplier power and ensure the availability of sustainable raw materials.

Threat of Substitution

• With the growing concern for environmental sustainability, consumers are becoming more conscious of their choices and are willing to switch to sustainable packaging alternatives.
• The availability of alternative packaging materials and solutions, such as bioplastics, increases the threat of substitution for traditional packaging.
• Innovations in sustainable packaging, such as edible packaging, provide a unique solution and reduce the threat of substitution.

Buyer Power

• The increasing demand for sustainable packaging gives buyers an advantage in negotiations, as companies strive to meet consumer demand.
• The availability of information and transparency in the supply chain empowers buyers to make informed decisions and demand sustainable packaging.
• The growing consumer interest in circular economy principles provides an opportunity for companies to collaborate with buyers and promote sustainable packaging solutions.

Competitive Rivalry

• Fierce competition is driving innovation and creativity in the sustainable packaging industry.
• Established companies and startups are in a race to gain market share and meet the growing demand for eco-friendly products.
• Differentiation through unique branding and marketing strategies is becoming essential in a highly competitive market.

Country-wise Insights

The table below lists the CAGRs for some prominent countries that are expected to witness higher adoption of sustainable packaging solutions and compostable packaging.

Countries	CAGR (2024 to 2034)
United States	4.1%
Germany	4%
United Kingdom	5.4%
India	7.6%
China	7.1%

North America is dominated by the United States Due to High Awareness and Favourable Regulations

The sustainable packaging market in North America is expected to hold almost one-fourth of the global market share in 2024. The United States is dominating the market and is projected to continue its dominance over the forecast period, thriving at 4.1% CAGR through 2034.

• Higher awareness among the United States citizens about sustainable packaging and the rising demand for eco-friendly products.
• The favorable regulations by the United States government play a significant role in driving the growth of the sustainable packaging industry.
• The United States has many food and beverage companies with a greater focus on sustainable practices.

Germany Leading the Sustainable Packaging Industry in Western Europe

The sustainable packaging market in Western Europe is expected to hold a share of around 16.4% in 2024. Germany is leading the industry and is expected to rise at a CAGR of 4% from 2024 to 2034.

• The German government has implemented various policies and initiatives to promote sustainable practices in the country.
• Greater adoption of sustainable packaging solutions by consumer product manufacturing industries and businesses in Germany.
• Higher use of compostable trays and clamshells by hotels and restaurants in Germany has led to a surge in demand for sustainable packaging solutions.

The United Kingdom Emerging as a Lucrative with Strong Emphasis on Sustainable Practices

The sustainable packaging market in the United Kingdom is expected to witness growth at a CAGR of 5.4% over the forecast period.

• Higher demand for sustainable packaging in the robust healthcare sector is strengthening the market in the United Kingdom.
• Increasing adoption of sustainable packaging by consumer product industries such as food and beverage, cosmetics, and healthcare.
• The rising trend of online food delivery has led to an increase in the consumption of packaged food.

China Drives the Industry in East Asia with Increased Emphasis on Eco-Friendly Products

The East Asia sustainable packaging market is expected to hold a share of 18.5% in 2024. China is the dominant country in the region and it is likely to progress at a CAGR of 7.1% from 2024 to 2034.

• China is the world's largest producer and exporter of end-use consumer products.
• Increasing awareness among small-scale craft-based industries about environmental issues associated with plastic has led to their shift towards sustainable packaging solutions.
• The food and beverage industry is expected to be the largest end-user owing to the growing demand for packaged food and beverages.

India Emerging as a Lucrative Market in South Asia & Pacific

The South Asia & Pacific sustainable packaging market is expected to hold a share of 12.6% in 2024. India is emerging as a dominating country in the region and is anticipated to witness a lucrative CAGR of 7.6% through 2034.

• Increasing disposable incomes and the changing lifestyles of consumers have led to higher sales of sustainable packaging films and wraps.
• An increase in the adoption of renewable packaging materials and innovative packaging formats such as paper-based bottles and edible packaging.
• The Indian government has introduced stringent policies from time to time to encourage the use of sustainable packaging materials.

Category-wise Insights

Rising Popularity of Paper-based Sustainable Packaging Drives Market Growth

Among the different material types, paper and paperboard have emerged as the dominant segment, with a 38.2% market share in 2024.

Attributes	Details
Top Material Type	Paper and Paperboard
Market Segment Share in 2024	38.2%

• Paper and paperboard material's biodegradability, recyclability, and renewability make it a popular choice for packaging applications across various industries.
• Governments are promoting the use of paper and paperboard packaging through various initiatives and campaigns, further driving the growth of this segment.
• E-commerce merchandise distributors and retailers are expected to play a significant role in the expansion of sustainable paper and paperboard packaging solutions.

Bags are revolutionizing the Sustainable Packaging Industry

With a market share of 25.4% in 2024, bags & sacks are expected to dominate the sustainable packaging industry. However, trays & clamshells, cartons & boxes, and pouches & sachets are also expected to witness remarkable growth during this period.

Attributes	Details
Top Packaging Type	Bags
Market Segment Share in 2024	25.4%

• The use of sustainable packaging formats such as biodegradable bags, compostable trays, and paperboard cartons is expected to increase.
• The increasing demand for sustainable packaging bags in the food and beverage industry is driving this segment.
• Direct sales of sustainable bags by manufacturers are gaining popularity as they seek to reduce costs associated with intermediaries.

Competitive Landscape for Sustainable Packaging Market

The battle for supremacy in the sustainable packaging market is fierce between startup and established companies, each vying to capture a larger market share and fulfill consumers' desire for environmentally friendly products.

Most companies have been active in driving innovation and progress in this field, with startups leading the charge in developing unique, sustainable packaging products using renewable and plant-based materials.

Innovation is key for start-ups trying to gain a foothold in the eco-friendly packaging industry. For instance, Notpla, a United Kingdom-based start-up, has developed packaging made from seaweed that is edible and biodegradable. This innovative approach challenges established companies to keep up with new and unique sustainable packaging products.

Collaboration between start-ups and established companies is becoming more common as both sides recognize the need for shared knowledge and resources to tackle the challenges of sustainable packaging. For instance, Loop Industries, a recycling start-up, has partnered with PepsiCo to develop sustainable packaging solutions using recycled materials.

Consumer education and awareness play a crucial role in driving demand for sustainable packaging. Both start-ups and established companies are investing in education campaigns to raise awareness of the environmental impact of packaging waste and the benefits of eco-friendly alternatives.

For example, Procter & Gamble collaborated with Loop, Terracycle, and SUEZ to launch the Loop Store, an e-commerce platform for reusable packaging.

Continuous improvement and sustainability are key priorities for companies in the sustainable packaging market. Start-ups and established companies alike are investing in research and development to introduce new materials and improve existing ones to reduce their environmental impact.

For instance, Nestle recently announced plans to invest USD 2.1 billion to develop sustainable packaging solutions, which demonstrates its commitment to remaining competitive in the market.

Recent Developments in the Sustainable Packaging Market

• A partnership between WestRock Company and Recipe Unlimited was announced in April 2022 to create a line of recyclable paperboard packages to keep 31 million plastic containers out of Canada's landfills annually. In October 2021, the bundle first appeared in Swiss Chalet restaurants; it is now offered everywhere.
• The collaboration on an advanced recycling program was made public by Sealed Air in April 2022. Its goal is to recycle flexible plastics from the food supply chain and turn them into new, certified circular food-grade packaging.
• In July 2022, the converter Fiorini International and the manufacturer of luxury pasta products Antico Pastificio Umbro in Italy joined up to create a new paper packaging solution. The new packaging, which is 100% recyclable and can be used for all pasta products, has the potential to cut the annual usage of plastic by up to 20 tons.
• In April 2022, DS Smith unveiled a corrugated cardboard package for the shipping of medical gadgets over the Internet. Instead of adhesive packaging with a single-use plastic insert, the corrugated cardboard box uses a single-material solution.

Key Players Profiled in the Sustainable Packaging Market Report

• Amcor Plc
• Stora Enso Oyj.
• Berry Global Inc.
• Huhtamaki Oyj.
• WestRock LLC
• DS Smith Plc
• The Mondi Group plc
• International Paper Company
• Detmold Group
• Sealed Air Corporation
• Dart Container Corporation
• Duni AB
• Vegware Ltd.
• Pactiv LLC
• RKW Group
• Novolex Holdings, Inc.

Sustainable Packaging Market Report Scope

Attribute	Details
Estimated Market Size (2024)	USD 285.3 billion
Projected Market Size (2034)	USD 490.5 billion
Anticipated Growth Rate (2024 to 2034)	5.8%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	USD million or billion for Value and Units for Volume
Key Regions Covered	North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania
Key Countries Covered	United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa
Key Segments Covered	By Material Type, By Packaging Type, By Distribution Channel, By End Use Verticals, and By Region
Key Companies Profiled	Amcor Plc; Stora Enso Oyj.; Berry Global Inc.; Huhtamaki Oyj.; WestRock LLC; DS Smith Plc; The Mondi Group plc; International Paper Company; Detmold Group; Sealed Air Corporation; Dart Container Corporation; Duni AB; Vegware Ltd.; Pactiv LLC; RKW Group; Novolex Holdings, Inc.
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type
  • 5.1. Paper & Paperboard
    • 5.1.1. Coated Unbleached
    • 5.1.2. Bleached Paperboard
    • 5.1.3. Molded Fiber Pulp
    • 5.1.4. Kraft Paper
    • 5.1.5. Corrugated Board/Boxboard
  • 5.2. Plastic
    • 5.2.1. Poly Lactic Acid (PLA)
    • 5.2.2. Polybutylene Succinate (PBS)
    • 5.2.3. Polyhydroxyalkanoates (PHAs)
    • 5.2.4. Starch based Plastics
    • 5.2.5. Others (PVA, PVOH, PBAT, etc.)
  • 5.3. Metal
    • 5.3.1. Steel
    • 5.3.2. Aluminium
  • 5.4. Glass
  • 5.5. Fabric
  • 5.6. Wood
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging Type
  • 6.1. Bags & Sacks
  • 6.2. Trays & Clamshells
  • 6.3. Cartons & Boxes
  • 6.4. Cans
  • 6.5. Bottles & Jars
  • 6.6. Films & Wraps
  • 6.7. Pouches & Sachets
  • 6.8. Drums
  • 6.9. IBC
  • 6.10. Vials & Ampoules
  • 6.11. Tapes & Labels
  • 6.12. Others
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
  • 7.1. Manufacturer (Direct Sales)
  • 7.2. Distributors
  • 7.3. Retailers
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
  • 8.1. Food
    • 8.1.1. Bakery & Confectionery
    • 8.1.2. Dairy
    • 8.1.3. Fresh Produce
    • 8.1.4. Snack Food
    • 8.1.5. Other Processed Food
  • 8.2. Beverages
    • 8.2.1. Non-alcoholic
    • 8.2.2. Alcoholic
  • 8.3. Cosmetics & Personal Care
  • 8.4. Chemical
  • 8.5. Healthcare
  • 8.6. Agriculture
  • 8.7. Other Industrial
• 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Western Europe
  • 9.4. Eastern Europe
  • 9.5. South Asia and Pacific
  • 9.6. East Asia
  • 9.7. Middle East and Africa
• 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 17. Key Countries Market Analysis
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. Amcor Plc
  • 19.2. Stora Enso Oyj.
  • 19.3. Berry Global Inc.
  • 19.4. Huhtamaki Oyj.
  • 19.5. WestRock LLC
  • 19.6. DS Smith Plc
  • 19.7. The Mondi Group plc
  • 19.8. International Paper Company
  • 19.9. Detmold Group
  • 19.10. Sealed Air Corporation
  • 19.11. Dart Container Corporation
• 20. Assumptions & Acronyms Used
• 21. Research Methodology