April 24, 2024
Green Packaging Market

Green Packaging Market is Estimated to Witness High Growth Owing to Rising Environmental Concerns

The green packaging market is majorly driven by the growing environmental concerns among consumers as well as regulatory push for sustainable packaging solutions. Green packaging refers to the use of packaging materials and processes that have a minimal negative impact on the environment and help conserve energy and natural resources. It mainly includes recycled content packaging, reusable packaging and decomposable packaging. The recycled content packaging comprises discarded items like paper, paperboard, plastics, glass and metals that are collected, processed and re-manufactured into new packaging products. Green packaging helps reduce the carbon footprint, decrease deforestation and prevent polluting marine life as it is manufactured using less resources and decomposes easily.

The Global green packaging market is estimated to be valued at US$ 251524.92 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the green packaging are Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko plc, Wärtsilä Corporation, Yanmar Co. Ltd., Doosan Corporation. The major green packaging types used are recycled content packaging, reusable packaging and decomposable packaging. Rising environmental awareness among consumers as well as regulations promoting sustainable solutions is driving the growth of green packaging market globally. Various packaging companies are adopting green packaging solutions to meet the increasing demand and gain a competitive edge in the market. The North America region dominates the global green packaging market followed by Europe on account of strong government regulations regarding sustainable packaging in these regions. The Asia Pacific region is expected to exhibit fastest growth over the forecast period due to rapid industrialization and growing focus on environmental protection.

Market drivers

Stringent government regulations promoting the use of sustainable packaging across industries along with bans on single use plastic are a major factor augmenting the adoption of green packaging solutions. Additionally, the increasing concerns about global warming and plastic pollution of oceans are also driving many brand owners to switch to green packaging formats. Rise in environmental consciousness among consumers especially the millennial population is further propelling the Green Packaging Market Size. Various industries like food and beverages, cosmetics, pharmaceuticals are increasingly focusing on green packaging to meet the rising consumer demand for sustainable products.

PEST Analysis
Political: Stringent government policies and regulations regarding the use of environment friendly and sustainable materials are driving the demand for green packaging. Government initiatives to promote the use of biodegradable and recyclable materials are favoring market growth.
Economic: The high production cost of green packaging materials compared to conventional plastics is a key challenge. However, growing consumer preference for sustainable products is prompting brands to shift toward green options despite higher costs.
Social: Rising awareness about environmental protection and the need to reduce plastic waste is influencing consumer purchases. Customers are willing to pay premium prices for brands that use eco-friendly packaging solutions.
Technological: Advanced recycling technologies allow previously non-recyclable materials to be reused. Innovations in green chemistry are expanding the types of bioplastics available. New production methods lower the costs of sustainable packaging alternatives.

The geographical region where the green packaging market is concentrated in terms of value is North America. Stringent regulations regarding plastic packaging and waste management in countries like the US and Canada are driving demand. Companies in the food and beverage industry actively participate in initiatives to reduce plastic usage.

The Asia Pacific region is forecasted to be the fastest growing market for green packaging during the period. Rapid industrialization and population growth have led to soaring plastic waste levels in countries such as China and India. Government efforts to address environmental issues through sustainable solutions are boosting market expansion. Rising health consciousness among middle-class consumers also prompt brands to switch to eco-conscious options.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it