Sustainable Packaging Solutions Market Size, Share, Analysis, Trends, Growth Report, 2032

Sustainable Packaging Solutions Industry Prospective:

The global sustainable packaging solutions market size was worth around USD 271.96 billion in 2023 and is predicted to grow to around USD 571.44 billion by 2032 with a compound annual growth rate (CAGR) of roughly 8.60% between 2024 and 2032.

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Sustainable Packaging Solutions Market: Overview

Sustainable packaging solutions are environmentally friendly ways of protecting a good from damage. The industry represents solutions that can allow the current packaging industry to reduce negative environmental impact. Solutions made using materials such as cardboard, paper, Polyethylene Terephthalate (PE), or High-Density Polyethylene (HDPE) plastic are categorized as sustainable packaging solutions. These materials can be reprocessed into new items and hence deliver higher use of primary raw materials.

The global packaging industry is one of the highest environmental polluters. The industry is under pressure to introduce more eco-friendly solutions that offer packaging efficiency without exploiting the environment. The industry also deals with the use of compostable materials that are cellulose or starch-based since these items are biodegradable and do not affect the ecosystem. During the projection period, the demand for sustainable packaging solutions is expected to rise, driven by surging consumer awareness and preferences. Additionally, the e-commerce industry will act as a crucial market revenue influencer over the forecast period. However, replacing traditionally used plastic-based packaging will be challenging for the industry players.

Key Insights:

• As per the analysis shared by our research analyst, the global sustainable packaging solutions market is estimated to grow annually at a CAGR of around 8.60% over the forecast period (2024-2032)
• In terms of revenue, the global sustainable packaging solutions market size was valued at around USD 271.96 billion in 2023 and is projected to reach USD 571.44 billion by 2032.
• The sustainable packaging solutions market is projected to grow at a significant rate due to rising consumer awareness about the impact of poor packaging solutions
• Based on the process, the recyclable segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the material, the plastic segment is anticipated to command the largest market share
• Based on region, Europe is projected to dominate the global market during the forecast period

Sustainable Packaging Solutions Market: Growth Drivers

Rising consumer awareness about the impact of poor packaging solutions will drive market demand rate

The global sustainable packaging solutions market is expected to be driven by the surging consumer awareness around the world. Modern buyers are increasingly becoming aware of the harmful effects of plastic-based packaging solutions. At present times, plastic-based packaging solutions are extremely popular among businesses and goods providers. Plastic offers several functional advantages, and it is available in abundant quantities. However, according to the Waste and Resource Action Program, over one-third of plastic packaging ends up in the natural environment. The production, application, and disposal of plastic leads to 1.8 billion tonnes of carbon emissions per year. The surging investments from environmental welfare organizations in improving consumer awareness and the impact of poorly designed packaging are causing more buyers to shift toward products and companies that promote sustainability. The 2022 Sustainable Packaging Consumer Report submitted by Shorr Packaging Corporation, a leading provider of packaging solutions, indicated that nearly 76% of 1,113 U.S. consumers surveyed actively sought sustainable products in 2022. Such market trends are being reported across the globe.

Rising pressure on the e-commerce industry will prompt greater market expansion during the projection period

The global e-commerce industry is anticipated to emerge as one of the leading consumers of sustainable packaging solutions during the forecast period. The e-commerce industry has a high demand for packaging solutions driven by the growing sale of every day and exclusive consumer or industrial products, thus driving sales in the global sustainable packaging solutions market. The global e-commerce sector is not only expanding its consumer reach but also focusing on developing a more robust infrastructure to meet the needs of industries and large companies. For instance, in April 2022, Amazon, one of the world’s most dominant e-commerce portals, introduced the USD 1 billion Amazon Industrial Innovation Fund to improve employee and customer experience.

Sustainable Packaging Solutions Market: Restraints

Higher cost of environmentally conscious packaging solutions and technical limitations will limit the industry's growth rate

The global industry for sustainable packaging solutions is expected to be restricted due to the high cost of developing and using eco-friendly solutions compared to conventionally available packaging materials. Market research suggests that the higher cost of sustainable solutions is due to the specialized materials used for producing ecologically harmonious materials. Additionally, the production process is extensive and necessitates higher investments in research & development. The lack of a skilled workforce for producing sustainable packaging materials further complicates the production process.

Sustainable Packaging Solutions Market: Opportunities

Increased investments in research and innovation of novel solutions will generate more growth opportunities

The global sustainable packaging solutions market is expected to generate more growth opportunities during the forecast period due to a surge in research and innovation-related investments. For instance, in October 2023, FlexSea, an emerging producer of sustainable packaging products, announced the completion of a seed round with an investment of £3 million in grants and equity. The company produced plastics made of seaweed and is expected to use the investment to further its cause. In the first quarter of 2022, the world registered around USD 500 million in investments for bioplastic manufacturing. Eco-packaging has found several investors in the food industry. The global food consumers are increasingly opting for food products with chemical-free packaging. In March 2024, Bambrew, a growing cleantech company, announced the receipt of USD 7 million in investments by Blume Ventures. The company will use the funds to expand its presence in the primary packaging sector, food & beverages, consumer goods, and other items, along with investments toward research & development.

Sustainable Packaging Solutions Market: Challenges

Complete Replacement of conventionally available packaging solutions will be challenging for market players

The global sustainable packaging solutions market players will find challenges in 100% replacement of environmentally disruptive packaging solutions. The production rate of sustainable packaging alternatives is limited in comparison to the manufacturing rate of unsustainable packaging materials. Achieving the performance level of plastic and metal-based packaging with limited resources will be challenging due to rising economic uncertainty and evolving production technologies.

Sustainable Packaging Solutions Market: Segmentation

The global sustainable packaging solutions market is segmented based on process, type, material, packaging format, and region.

Based on the process, the global market divisions are reusable, recyclable, and biodegradable. In 2023, the highest growth was witnessed in the recyclable segment. It dominated more than 63.05% of the total segmental share. The growing focus worldwide on recycling materials and solutions for extended use is driving the segmental demand. The surge in investments in biodegradable plastics will fuel the market expansion rate during the projection period.

Based on type, the global sustainable packaging solutions industry is divided into flexible and rigid.

Based on the material, the global market divisions are paper & paperboard, plastics, metal, glass, and others. In 2023, the highest growth was registered in the plastic segment. It held control over 43.01% of the total revenue, driven by several advantages of using plastic-based packaging. The development of biodegradable plastic fueled by higher adoption in the e-commerce sector will aid further growth in the segment.

Based on the packaging format, the global market divisions are tertiary packaging, secondary packaging, and primary packaging.

Sustainable Packaging Solutions Market: Report Scope

Sustainable Packaging Solutions Market: Regional Analysis

Europe is expected to deliver the highest revenue during the forecast period

The global sustainable packaging solutions market is expected to be led by Europe during the projection period. The region is excessively working toward reducing the environmental impact of business operations. The highly comprehensive environmentally-inclining policies in Europe against the use of materials that damage the ecosystem are working in favor of the market.

For instance, in June 2019, the European Union announced new rules and regulations to fight the problems caused by plastic marine litter. The region has set a 25% target for recycled content in plastic bottles by 2025. The percentage will increase to 30% by the end of the decade. The surge in regional demand for sustainably packaged food products is a key regional market growth contributor.

The use of certain single-use plastic is expected to be banned from January 2030. In June 2024, Mondelez and Saica Group announced a partnership to launch a paper-based product for multipack products for biscuits, confectionery, and chocolate-based products. In March 2024, watttron, a Germany-based startup, announced that it has secured €12 million Series B, which will help the company drive its sustainable packaging movement.

Sustainable Packaging Solutions Market: Competitive Analysis

The global sustainable packaging solutions market is led by players like:

• Sealed Air Corporation
• Huhtamaki
• Ball Corporation
• International Paper
• Crown Holdings
• Smurfit Kappa
• UPM Raflatac
• Amcor
• DS Smith
• Tetra Pak
• AptarGroup
• Mondi Group
• Stora Enso
• Eco-Products Inc.
• WestRock.

The global sustainable packaging solutions market is segmented as follows:

 By Process

•  Reusable
•  Recyclable
•  Biodegradable

 By Type

•  Flexible
•  Rigid

 By Material

•  Paper & Paperboard
•  Plastics
•  Metal
•  Glass
•  Others

By Packaging Format

• Tertiary Packaging
• Secondary Packaging
• Primary Packaging

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa