Sustainable Plastic Packaging Market

Sustainable Plastic Packaging Market Outlook for 2024 to 2034

The Sustainable Plastic Packaging Market is evaluated to be valued at USD 106.4 billion in 2024. During the period from 2024 to 2034, the market is expected to progress at a moderate pace, registering a CAGR of 5.9%. By 2034, the sustainable plastic packaging industry is forecasted to surpass a valuation of USD 189.0 billion.

Sustainable Plastic Packaging Market Overview

• Growing environmental considerations in the packaging sector are motivating the increased use of sustainable plastic packaging.
• Regulatory authorities are keeping a close eye on the materials used in packaging, thus driving suppliers toward the use of sustainable plastic packaging.
• While other sustainable alternatives to plastic abound in the packaging sector, the material has earned the trust of packaging companies. Thus, they are looking at sustainable options within the plastic itself.
• As end-user industries such as food & beverage and cosmetics become more eco-conscious, the demand for sustainable plastic packaging in these industries is surging.
• Eco-friendly consumers are becoming more knowledgeable about the packaging practices of goods and are increasingly using sustainable plastic packaging.

Attributes	Details
Estimated Sustainable Plastic Packaging Market Value in 2024	USD 106.4 billion
Forecasted Market Value by 2034	USD 189.0 billion
Projected Value-based CAGR of the Market from 2024 to 2034	5.9%

Sustainable Plastic Packaging Market Trends

• The increasing popularity of plant-based substances in the manufacturing industry is leading to a rise in the demand for plant-based sustainable plastic.
• Consumer interest in recyclable materials is driving more packaging units to adopt recyclable plastic.
• Governments are imposing stricter restrictions on the use of non-biodegradable materials in packaging, leading to an increase in the use of biodegradable plastic for packaging purposes.
• The use of recyclable and biodegradable plastic is also gaining momentum as both manufacturers and consumers are making more efforts to control waste. Thus, sustainable plastic packaging is contributing to the waste management process.
• Petroleum-based plastic packaging is attracting consumers due to its aesthetic value, providing more incentive for the use of sustainable plastic in packaging.

Sustainable Plastic Packaging Market Restraints

There is still a lack of awareness about the use of eco-friendly plastic. End-users struggle to find the right sources for obtaining the material, and doubts have been raised about the true sustainability of green plastic.

Additionally, a significant number of consumers are unaware of how to recycle recyclable plastic, which is hindering the growth of the market.

Furthermore, amid doubts about the effectiveness of green plastic, a considerable number of vendors are abandoning plastic altogether in favor of other sustainable options such as paper and metal.

Category-wise Outlook

Rigid packaging is the preferred choice of industrialists for traditional plastic packaging, and sustainable plastic packaging is following suit. Consumer awareness about sustainability is positioning sustainable plastic as the primary packaging material for products.

Rigid Sustainable Plastic Packaging Soars as Resilience Meets Responsibility

Attributes	Details
Top Type	Rigid
Forecasted CAGR (2024 to 2034)	5.6%

Rigid sustainable plastic packaging is expected to advance at a CAGR of 5.6% over the forecast period. Some of the factors influencing the progress of rigid sustainable packaging are:

• While flexible plastic packaging is experiencing an increase in demand, the toughness desired by suppliers ensures the dominance of rigid plastic packaging. In sustainable plastic packaging as well, the rigid formulation of the plastic is preferred.
• The use of sustainable plastic in the food & beverage industry is bolstering the demand for rigid packaging. As the food industry requires packaging material that ensures the food inside remains unspoiled, rigid sustainable plastic is being increasingly adopted into the sector.

Primary Sustainable Plastic Packaging Booms on Consumer Preference

Attributes	Details
Top Packaging	Primary Packaging
Forecasted CAGR (2024 to 2034)	5.5%

Primary packaging is expected to progress at a CAGR of 5.5% through the forecast period. Some of the reasons for the advancement of primary sustainable plastic packaging are:

• Consumers are one of the key drivers for the inclination towards sustainability. By delivering products wrapped in sustainable plastic, suppliers ensure consumers have direct proof of the eco-friendly manufacturing process.
• As primary packaging becomes more compact, sustainable plastic packaging is also becoming more user-friendly.

Country-Wise Analysis

The booming industrial sector in the Asia Pacific is helping sustainable plastic packaging make its mark in the region. Increased government measures regarding environmental harm are also supporting the product's cause in the region.

Increased consumer awareness is leading to the market's expansion in North America and Europe. Investment in research for developing and implementing sustainable plastic in packaging further is also benefiting the market's cause in these regions.

Countries	Forecasted CAGR (2024 to 2034)
United States	6.1%
United Kingdom	6.2%
China	6.6%
Japan	6.9%
South Korea	7.4%

Government Encouragement for Plastic Recycling is Helping the Market’s Progress in South Korea

The CAGR of the sustainable plastic packaging market in South Korea for the forecast period is anticipated to be 7.4%. Some of the factors influencing the healthy growth are:

• The government in South Korea has high aspirations for plastic recycling. By 2030, the goal in South Korea is to achieve a plastic recycling rate as high as 70%. Consequently, recyclable plastic packaging is in high demand in the country.
• Heavy restrictions on the use of conventional plastic for manufacturing disposable cups are being imposed in South Korea. As a result, manufacturers are turning to sustainable plastic.

Water Pollution Levels in Japan Drive the Adoption of Sustainable Plastic Packaging

The sustainable plastic packaging market is expected to register a CAGR of 6.9% in Japan over the forecast period. Some of the factors leading to the growth of the market in Japan are:

• There is growing concern in Japan over microplastics polluting the waters surrounding the nation, with the rate claimed to be 27 times higher than the world average. Thus, as a means to preserve the seas, sustainable plastic packaging is gaining prominence in the country.
• Convenience stores in Japan are gradually becoming more environmentally friendly, and vendors are assisting them by supplying products with sustainable plastic packaging to stock on their shelves.

Food & Beverage Industry is Leading the Charge for Sustainable Plastic Packaging in China

The sustainable plastic packaging market is expected to record a CAGR of 6.6% in China. Some of the factors responsible for the growth of the market are:

• The food & beverage industry is embracing sustainable plastic packaging in China. For example, in 2023, Mars China introduced a Snickers bar with packaging made from mono-polypropylene (PP), a recyclable plastic.
• Various stakeholders like the Green Recycled Plastic Supply Chain Joint Working Group (GRPG), PepsiCo, Dow, and others have collaborated on the Flexible Plastics Reborn project in China, encouraging more use of sustainable plastic packaging.

High Investment is Driving the Speed of Sustainable Plastic Packaging Adoption in the United Kingdom

The sustainable plastic packaging market is expected to progress at a CAGR of 6.2% in the United Kingdom. Some factors influencing this progress are:

• Both public and private funds are being invested to increase sustainable packaging in the United Kingdom. For example, in November 2023, Nestle announced an investment of around USD 8.80 million in Impact Recycling to build a new plant in Durham.
• Innovation in recyclable plastic is considered crucial in the United Kingdom, and thus, sustainable plastic packaging is constantly evolving in the country.

Sustainable Packaging is Extremely Desired in Personal Care Products in the United States

The sustainable plastic packaging market is expected to register a CAGR of 6.1% in the United States. Some factors influencing the growth of the market in the country are:

• Personal care products in the United States are increasingly being wrapped in sustainable plastic packaging as consumers become more eco-conscious, especially due to the influence of social media.
• Compostable plastic packaging has emerged as a significant trend in the country.

Competitive Landscape in the Sustainable Plastic Packaging Market

The market is highly fragmented, with opportunities available for all sorts of competitors. Startups and small-scale players are utilizing differentiation strategies to stand out from the competition.

Innovation is a prime area of focus for industry players. To accelerate the research and production of new types of sustainable plastic, investment is being sought from companies adjacent to the packaging industry, such as food & beverage and consumer products.

Recent Developments in the Sustainable Plastic Packaging Market

• In February 2024, the United Kingdom-based supermarket chain Asda announced that its Just Essentials beef mince range would be packaged in recyclable plastic from then on.
• In February 2024, SEE launched a compostable tray made from bio-based materials.
• In January 2024, XAMPLA secured USD 7 million from various investors to increase the production of its Morro packaging products, which are biodegradable and compostable.
• In December 2023, the Thai outfit I.P. One partnered with ENVICCO for the recycling of household waste into the VIXOL POWER black bottle.

Key Companies in the Sustainable Plastic Packaging Market

• Bemis Company Inc.
• Amcor Limited
• Mondi
• WestRock Company
• Tetra Laval International SA.

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 Type
  • 5.1. Rigid
  • 5.2. Flexible
  • 5.3. Industrial
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging
  • 6.1. Primary Packaging
  • 6.2. Secondary Packaging
  • 6.3. Tertiary Packaging
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Process
  • 7.1. Recyclable
  • 7.2. Reusable
  • 7.3. Biodegradable
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-Use
  • 8.1. Food & Beverage
  • 8.2. Personal Care
  • 8.3. Healthcare
  • 8.4. Others
• 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. Bemis Company Inc
  • 19.2. Amcor Limited
  • 19.3. Mondi
  • 19.4. WestRock Company
  • 19.5. Tetra Laval International SA
  • 19.6. Sonoco Products Company
  • 19.7. BASF SE
  • 19.8. Sealed Air
  • 19.9. Smurfit Kappa
  • 19.10. Gerresheimer AG
• 20. Assumptions & Acronyms Used
• 21. Research Methodology