Global Sustainable Packaging Market Outlook to 2030

Global Sustainable Packaging Market Overview

• In 2023, the Global Sustainable Packaging Market was valued at USD 280 Bn and is forecasted to reach a market size of USD 390 Bn by 2029 driven by growth of e-commerce, rising environmental awareness, consumer demand for eco-friendly products, and corporate sustainability goals.

• The market is highly fragmented. Some of the major players in the market include West Rock, International Paper Company, Amcor, Tetra Pak International, Smurfit Kappa Group, and Crown Holdings.
• In 2021, West Rock partnered with Recipe Unlimited to implement a suite of recyclable paperboard packaging, intended to divert 31 million plastic containers from landfills across Canada each year.

Global Sustainable Packaging Current Market Analysis

• Europe as dominant region: Europe is a dominant force in the global sustainable packaging market, driven by progressive environmental regulations and consumer demand. In 2021, EU citizens reduced their consumption of lightweight plastic carrier bags to an average of 77 per person, a decrease of 11 bags from 2020. The EUs 8th Environment Action Programme, effective from May 2022, aims for a sustainable future by 2050. Coupled with the Green Deal, these initiatives foster innovation in recyclable and biodegradable packaging, positioning Europe as a global leader in sustainability.
• APAC as emerging region: The Asia-Pacific region is rapidly becoming a major force in the global sustainable packaging market, driven by growing environmental awareness and stringent regulations. Countries like China, India, and Japan are at the forefront, with Japans Containers and Packaging Recycling Act promoting high recycling rates and the "3R" principlereduce, reuse, recycle. In Singapore, of its 1.4 Bn population, around 400 Mn people are middle-income earners in 2024., spurring demand for innovations in biodegradable plastics, recycled paper, and plant-based alternatives.
• Germany as dominant country: Germany is a pioneer in implementing circular economy practices, which focus on recycling, reusing, and reducing waste. Bavaria has the largest number of recycling facilities in Germany, at 1,504 in 2021. In comparison, there were 285 recycling centers in Lower Saxony, and 617 in Baden-Wuerttemberg. The country's well-developed recycling infrastructure of over 15,000 waste management facilities and systems support the efficient recovery and reuse of packaging materials.

Global Sustainable Packaging Market Segmentation

The Global Sustainable Packaging Market can be segmented based on several factors:

By Product Type: Global sustainable packaging market is segmented on the basis of product type into metal, glass, paper-based containers, compostable plastics & others. In 2023, Metal dominated the sustainable packaging market. Metals like aluminum and steel are highly recyclable, making them a preferred material for sustainable packaging. They can be recycled multiple times without losing their properties, which supports a circular economy.

By Application: Global Sustainable packaging market is segmented by application on the basis of application into recyclable packaging, degradable packaging and reusable packaging. In 2023, Recyclable packaging dominated the sustainable packaging market. Regulations such as bans on single-use plastics and mandates for recyclable content in packaging compel businesses to adopt recyclable packaging solutions.

By Revenue Stream: Global sustainable packaging market is segmented by revenue stream into product sales, product design & packaging consultation. In 2023, Product Sales dominated the sustainable packaging market. As environmental awareness grows, consumers are more willing to pay a premium for products that use eco-friendly packaging materials, leading to higher sales and revenue for companies offering such products.

Global Sustainable Packaging Market Competitive Landscape

• International Paper: In 2024, International Paper, a global leader in sustainable packaging solutions, recently announced an agreement to acquire DS Smith Plc. The combination will create a differentiated corrugated packaging company with approximately 90% of revenue from sustainable fiber-based packaging
• Amcor: In 2023, Amcor has signed a Memorandum of Understanding (MOU) with SK Geo Centric, a South Korean petrochemical company, to enhance the supply of recycled materials for packaging. This collaboration aims to provide advanced recycled content for food and healthcare packaging in the Asia Pacific region starting in 2025.
• Tetra Pak: In 2022, Tetra Pak has collaborated with Coca-Cola to launch Minute Maid in its new Tetra Stelo Aseptic packaging in India. This is the first time the Tetra Stelo Aseptic package is being used for a Coca-Cola product worldwide and the first launch of this package in the Asia Pacific region by Tetra Pak.

Global Sustainable Packaging Industry Analysis

Global Sustainable Packaging Market Growth Drivers:

• Technology in Sustainable Packaging: Technological innovations in sustainable packaging are significantly impacting the industry. Innovations such as smart packaging technology, which can enhance product safety and shelf life, and packaging reduction methods, which minimize material usage, are becoming increasingly prevalent.
• Government Regulations: European Union has set a target to recycle at least 55% of all plastic packaging by 2030, as stated in the EU's Circular Economy Action Plan and the Packaging and Packaging Waste Directive. These regulations are compelling companies to transition to more eco-friendly packaging solutions, such as biodegradable materials and recycled content.
• Climatic Concerns: Environmental concerns have indeed led to directives from governments to reduce the use of conventional plastics. For instance, Beijing has implemented measures to reduce the use of conventional plastics, focusing on promoting sustainable alternatives such as bioplastics which are derived from renewable resources like corn starch, sugarcane, or cellulose, making them biodegradable and compostable.

Global Sustainable Packaging Market Challenges:

• Geopolitical Challenges: The sustainable packaging market faces various geopolitical challenges that can affect market stability and growth. These challenges include trade tensions, changes in government policies, and international regulations. Political instability in certain regions can also pose risks to the supply and distribution networks, impacting the availability of sustainable packaging materials and products.
• Market Competition: The sustainable packaging industry is highly competitive, with numerous key players vying for market share. Major companies such as Amcor Limited, Sonoco Products Company, Gerresheimer AG, Plastipak Holdings, Inc., and Mondi plc are leading the market. This poses challenges for other players in terms of pricing & continuous investment on R&D among other things.

Global Sustainable Packaging Market Future Outlook

Global sustainable packaging market is expected to reach a market size of USD 390 Bn by 2029 showing substantial growth driven by advanced recycling technologies, expansion of biodegradable packaging solutions & increasing use of recycled content.

Future Market Trends

• Advanced Recycling Technologies By 2029, the sustainable packaging market is expected to be significantly influenced by advancements in recycling technologies. The adoption of chemical recycling methods, which break down plastics into their original monomers, will increase, enabling the recycling of complex and contaminated plastic waste. This technology is projected to process an additional 10 million metric tons of plastic waste annually by 2029.
• Expansion of Biodegradable Packaging Solutions The market will see a surge in biodegradable packaging solutions, particularly in sectors like food service and retail. By 2029, biodegradable materials are anticipated to account for 15% of the total packaging market, driven by consumer demand and stricter environmental regulations. This growth will be supported by innovations in materials science, improving the performance and cost-effectiveness of biodegradable packaging.