Global Green Packaging Market Report and Forecast 2025-2034

Green Packaging Market Growth

Green packaging, or sustainable packaging, is the use of renewable products in manufacturing processes for the packaging of goods. This uses biodegradable and plant-based plastics together with recycled moulded packaging and polyethylene bags to make a range of items. Unlike traditional plastic packaging methods, green packaging has a lower carbon footprint, which helps to improve human and ecological safety in the long term. The green packaging approach also involves ways of minimising the amount of waste and pollution produced during the manufacturing process.

Factors that have influenced green packaging market development include the rise in awareness among consumers for luxury goods toward green packaging techniques that use bioplastics as raw material across various sectors, such as FMCG, personal body care, and pharmaceuticals. For instance, companies like L'Oréal and Unilever have made significant strides in adopting bioplastics for their packaging. Additionally, stringent government regulations and policies, particularly in Europe, are driving the market growth. For example, the European Union's Single-Use Plastics Directive aims to reduce single-use plastics by 80% by 2025. The rising focus of major brands and companies to achieve net zero goals and the growing demand for eco-friendly packaging options are also significant factors contributing to the growth of the market.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

Green Packaging Market Trends

The shift towards sustainable packaging is motivated by governmental pressure to shift to environmentally friendly materials and negative consumer views about traditional packaging. In 2018, L'Oréal, a French-based personal care company, partnered with Quantis, a Swiss environmental sustainability consulting firm, to set up an initiative called the Sustainable Packaging Initiative for Cosmetics (SPICE). The initiative aimed to minimise the environmental footprint of cosmetics by creating a sustainable packaging strategy, encouraging developments based on eco-design standards, and meeting customer preferences by providing transparency on the environmental performance of goods.

In addition, the Sustainable Packaging Coalition, a US-based membership-based partnership, launched the Target Database & SPC Engage in 2020 to help top retailers and brand owners enhance sustainability in corporate and in packaging domain. Such developments have impacted the green packaging market outlook positively. Furthermore, specific companies have begun to incorporate green packaging as part of their Extended Producers Responsibility (EPR). Healthcare and food and beverage firms, for example, choose environmentally sustainable packaging items like paper, glass, metal, and plastic, which can be quickly recycled.

Green Packaging Industry Segmentation

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Green Packaging Market Share

Recycled and reusable packaging segments equally lead in the market as they help minimise environmental impact

The recycled content packaging segment is expected to hold the largest share in the market. This segment includes paper, metal, plastic, and glass. Paper is widely used in recycled content packaging due to its recyclability and biodegradability. Companies are adopting sustainable packaging strategies by reducing packaging weight and using more recycled and renewable materials.

The reusable packaging segment in green packaging market report is expected grow at a significant rate during the forecast period. This segment includes drums, plastic containers, intermediate bulk containers, and other reusable packaging means. Drums are the most versatile and flexible green packaging solutions, enabling large-scale end-user sectors like chemicals, food and beverages, and construction to operate with a low carbon footprint or waste production.

The food and beverage segment is driving the market’s expansion and the healthcare segment is expected to witness the fastest growth

The food and beverages segment holds the largest green packaging market share due to increasing demand for eco-friendly packaging in manufacturing of dairy products, food items, and beverages. In June 2024, PepsiCo partnered with GreenDot Group to eliminate virgin fossil-based plastic in its snack bags across Europe by 2030, transitioning to 100% recycled or renewable materials.

The healthcare segment is expected to witness the fastest growth due to the increasing demand for biodegradable and recyclable packaging in pharmaceuticals and medical devices. Companies like Johnson & Johnson and Pfizer have adopted eco-friendly packaging solutions for their pharmaceutical products. Moreover, e-commerce, chemicals, and home care industries are also using green packaging solutions. Companies like FedEx and UPS have adopted eco-friendly packaging solutions for their shipping operations.

Leading Companies in the Green Packaging Market

Other key players in the global green packaging market include Plastipak Holdings, Inc., among others.

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Green Packaging Market Analysis by Region

North America to witness rapid adoption of eco-friendly packaging in lieu of rising packaging waste

North American region is witnessing significant growth in adoption of green packaging due to increasing consumer awareness of environmental issues and supportive government laws. For instance, the United States produces up to 80 million metric tons of packaging waste annually , with food and beverage goods accounting for around half of this waste. This creates a mandate for a transition towards green packaging. Companies like Nestle and Unilever have recently promised to reduce the environmental impact of their packaging. In addition, McDonald's plans to adopt 100% sustainable packaging by 2025.

Asia Pacific is expected to dominate the green packaging market in the future due to the increasing consumption of convenience food and beverage products in this region and rise of e-commerce. The region’s growth is further driven by increasing government initiatives and regulations. In 2019, China implemented a ban on single-use plastics, which has led to a significant shift towards reusable and biodegradable packaging materials. Many countries in the region are also investing in recycling infrastructure to support the growth of eco-friendly packaging. For instance, Japan has set a goal to recycle 60% of its waste by 2030.

Green Packaging Market Report Snapshots

Green Packaging Market Size

Green Packaging Market Growth

Green Packaging Market Trends

Green Packaging Market Share

Green Packaging Market Analysis

Green Packaging Companies

Green Packaging Market Regional Analysis