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Green Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Green Packaging Market is segmented by Type of Packaging (Recycled Content Packaging, Reusable Packaging, Degradable Packaging), End User Industry (Food, Beverage, Pharmaceutical, Personal Care), and Geography.

Market Snapshot

Green Packaging Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.7 %
Green Packaging Market Major Players

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Market Overview

The Green Packaging Market is expected to register a CAGR of 5.7% over the forecast period from 2021 to 2026. As the COVID-19 outbreak became a pandemic, coverage began shifting away from sustainability and towards the virus and its impact on the world. The pandemic has also seen a rise in plastic waste. According to Forbes, a lot of personal protective equipment (PPE) used by the public is being discarded carelessly. The pushback against single-use plastic bans has heightened demand for bottled water, plastic bags, and disposable wipes, and sanitizers.

  • Concerns about environmental impacts caused by these plastic bottles continue to increase across the food and beverage industry, leading to several companies using recycled plastic (rPET) in their bottle design, thus, boosting the market growth. Increasing awareness about environmental concerns among consumers and industries is primarily increasing the growth of the green packaging market.
  • Increasing public awareness about environmental concerns has resulted in higher demand for sustainable packaging and processing operations. Sustainability initiatives have advanced considerably, leading manufacturers to reduce the source material by downgrading, creating thinner and lighter packaging, and reducing waste. Issues about sustainability, environment, ethics, safety, quality, and product costs are becoming increasingly crucial for modern-day consumers when purchasing products. A number of these issues are also enforced by legislative packaging regulations, which is expected to have a positive impact on the green packaging market, globally.
  • In January 2020, Nestlé planned to spend as much as 2 billion Swiss francs (USD 2.1 billion) on shifting its packaging from virgin plastics to food-grade recycled plastics and increasing the development of more sustainable solutions. The food giant said it will buy up to 2 million metric tons of food-grade recycled plastics and devote more than USD 1.6 billion to pay a premium for these materials between 2020 and 2025. The company also will launch a sustainable packaging venture fund with 250 million Swiss francs (USD 260 million) to invest in start-up companies focusing on these areas.
  • In October 2019, Coca-Cola Western Europe and Coca-Cola European Partners (CCEP) stepped up their ambitions for a World Without Waste by accelerating their joint action plan to collect, recycle, and reuse their packaging. The two partners are raising the bar of This is Forward, their sustainability action plan for Western Europe, which pledged that by 2025 Coca-Cola would collect a can or bottle for everyone that it sells; ensure that all of its packagings are 100% recyclable and ensure that at least 50% of the content of its plastic bottles comes from recycled material. They announced further goals designed to accelerate their delivery of a sustainable packaging roadmap for Western Europe, ensuring that all of their packagings are collected, recycled, and reused.
  • The beginning of 2020 saw packaging news dominated by stories related to helping the environment and becoming as sustainable as possible. Many companies were switching to eco-friendly alternatives and coming up with innovative technology to help the environment in the packaging industry. Edible or biodegradable packaging was widely discussed as alternatives. 

Scope of the Report

Green packaging, also known as sustainable packaging makes use of materials and manufacturing methods for the packaging of goods that has a significantly low impact on both energy consumption and the environment. Following the government regulations, most of the manufacturers use sustainable packaging to eliminate the contaminants and chemicals that destroy the water, soil, and atmosphere of the planet.

Type of Packaging
Recycled Content Packaging
Paper
Metal
Plastic
Glass
Reusable Packaging
Drums
Plastic Containers
Intermediate Bulk Containers
Other Reusable Packing
Degradable Packaging
End User Industry
Food
Beverage
Pharmaceutical
Personal Care
Other End User Industry
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Rest of Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

Personal Care is Expected to Witness Significant Growth

  • According to a study by the Ellen MacArthur Foundation, around 8 million tons of plastic waste ends up in oceans every year, globally. The report also predicts plastic debris to outweigh fish by 2050, unless drastic actions are taken. Much of the floating waste is expected to collect in several large ocean vortices far from land. It is estimated that 95% of the plastic packaging material is lost to the economy after a short single-use cycle, at the cost of USD 80-120 billion. A sizeable share of the plastic that ends in oceans takes an even higher toll on value and health. Natural personal care and beauty label SoulTree has also made a significant start in terms of sustainable packaging. The company has launched biodegradable packaging, which can be decomposed naturally with the help of moisture and microorganisms.
  • In the personal care industry, there is also a shift towards sustainable packaging materials. Ocean plastic is becoming established with several brands recuperating ocean from the sea and beaches to use in product packaging. This is leading to consumers and governments, in many countries, taking action toward recycling environmental wastes. Countries like India (some of the states) have banned the use of plastic packaging for various purposes. Similarly, the majority of the supermarkets in Britain pledged to remove unnecessary single-use plastics by 2025, under the UK Plastics Pact. This has resulted in an increased focus on green and sustainable packaging, thereby driving the market growth.
  • WWP, one of the leading providers of cosmetic packaging components, plastic tubes, and full-service turnkey solutions for the beauty and personal care industries, has introduced additional green initiatives to provide more eco-friendly packaging. The company’s green initiative is aimed squarely at materials was active from January 2020, all tubes manufactured at the company’s Suzhou facility will be done utilizing sugarcane bio-resin, an all-natural renewable resource. By converting sugarcane into ethylene, the company creates a product with the same chemical makeup of fossil fuel-based polyethylene. The result, says WWP, is a package that is not only highly functional but also 100% recyclable and far less harmful to the environment. 
  • In November 2019, Henkel extended its collaboration with the social enterprise Plastic Bank for another five years. Henkel will engage in supporting ongoing projects in Haiti, the Philippines, and Indonesia and significantly contribute to the development of infrastructure of more than 400 Plastic Bank collection points in Egypt. Alone in 2020, Henkel will integrate more than 600 tons of recycled material called Social Plastic in its product packaging. More innovation has come from The Body Shop, which launched the world’s first ‘fairly traded’ recycled plastics in 2019. he ethical cosmetics firm has partnered with Plastics For Change to give a fair price to waste pickers in Bengaluru (India) to collect plastic. Two hundred fifty tonnes of Fair Trade recycled plastic will be collected in 3 million haircare bottles in 2020. The company even proposed a plan to combine the materials across its recycled plastics product portfolio within three years.
Green Packaging Market Share

United States to Execute a Significant Market Share

  • North America is one of the largest markets for green packaging, globally. Unlike many regions in the world, where government regulations play a crucial part in the growth of green packaging, high awareness and consumer preferences for eco-friendly solutions are the prime reasons for rapid adoption.
  • Although the green packaging is prevalent among all manufacturers in Canada and the United States, governing policies and consumer behavior differ considerably.
  • According to the Environmental Protection Agency, the country generates almost 80 million metric ton of packaging waste every year. About half of that packaging waste in the country comes from food and beverage products. The agency mentioned that large food corporations, like Nestle and Unilever, generate majority of the plastic waste.
  • With the increasing packaging waste generated, governments across the world are adapting to alternative sources, such as biodegradable packaging. The United States has only 4% of the world’s population and generates 2% of global Municipality Solid Waste (MSW). It has also been stated that the United States produces more than 106.2 kg of plastic waste per person per year.
  • Following such waste generation reports, in November 2019, the United States drafted two regulations, aiming at better managing of packaging material waste, reducing marine pollution, introducing return deposit scheme, extending producer responsibility, and banning plastic bags.
Green Packaging Market Growth By Region

Competitive Landscape

With opportunities benefiting existing players and enabling their entry, the green packaging market is experiencing intensive competition. Barriers to entry of new players are relatively low, coupled with packaging companies witnessing an increase in sales, the competitive rivalry in the market is increasing considerably. The Green packing market studied comprises market incumbents, such as Amcor Limited, DS Smith PLC, Ball Corporation, and TetraPak International SA. Several regional firms and new entrants are also trying to gain significant market share. Due to this, market incumbents have been identified to adopt a powerful competitive strategy characterized by acquisitions, merger and acquisition activity, and a strong emphasis on R&D. The firm concentration ratio is also expected to increase considerably over the forecast period.

  • May 2020 - DS Smith launched its Circular Design Principles, which reveals new research that shows there is a desperate need for consistent design to cut through the confusion in the recycling of packaging. The process has been developed in partnership with the Ellen MacArthur Foundation and has been created to support companies' design reusability and recyclability into their packaging. This comes as a new study uncovers that European adults admit to throwing 41% of their recyclable material into general waste.

Recent Developments

  • December 2020 - Amcor Ltd in partnership with 35 leading companies in the consumer goods industry, announced measures to significantly reduce plastic waste. Amcor and its partners in this coalition – which have a collective turnover of 1 trillion euros - will be enforcing two new design rules to deliver packaging that is easier and more cost-effective to recycle.
  • April 2020 - Ball Corporation announced the five aluminum packaging plants with the most significant operational and social sustainability improvements, including progress across the areas with the most significant sustainability impact across operations and the promotion of aluminum packaging sustainability credentials and engagement in their local communities.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Supply Chain Analysis

    3. 4.3 Industry Attractiveness – Porter’s Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Suppliers

      3. 4.3.3 Bargaining Power Of Consumers

      4. 4.3.4 Threat Of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

      1. 4.4.1 Emergence of Substitutes such as Bioplastics

      2. 4.4.2 Increasing Awareness About Environmental Concerns Among Consumer Industries

    5. 4.5 Market Challenges

      1. 4.5.1 High Costs Involved with Recycling

    6. 4.6 Impact of COVID-19 on the Green Packaging industry

    7. 4.7 Outlook of Bamboo Packaging Industry

      1. 4.7.1 Current Market Scenario and Growth Influencers

      2. 4.7.2 Analysis of Companies Supplying the Bamboo  Packaged Products

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type of Packaging

      1. 5.1.1 Recycled Content Packaging

        1. 5.1.1.1 Paper

        2. 5.1.1.2 Metal

        3. 5.1.1.3 Plastic

        4. 5.1.1.4 Glass

      2. 5.1.2 Reusable Packaging

        1. 5.1.2.1 Drums

        2. 5.1.2.2 Plastic Containers

        3. 5.1.2.3 Intermediate Bulk Containers

        4. 5.1.2.4 Other Reusable Packing

      3. 5.1.3 Degradable Packaging

    2. 5.2 End User Industry

      1. 5.2.1 Food

      2. 5.2.2 Beverage

      3. 5.2.3 Pharmaceutical

      4. 5.2.4 Personal Care

      5. 5.2.5 Other End User Industry

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Amcor Limited

      2. 6.1.2 Ardagh Group SA

      3. 6.1.3 Ball Corporation

      4. 6.1.4 Crown Holdings Incorporated

      5. 6.1.5 DS Smith PLC

      6. 6.1.6 Elopak AS

      7. 6.1.7 Emerald Packaging

      8. 6.1.8 Mondi Group

      9. 6.1.9 Nampak Ltd

      10. 6.1.10 PlastiPak Holdings Inc.

      11. 6.1.11 Sealed Air Corporation

      12. 6.1.12 Sonoco Products Company

      13. 6.1.13 Sgf packaging Co. Ltd

      14. 6.1.14 Tetra Pak International SA

      15. 6.1.15 Uflex Limited

      16. 6.1.16 WestRock Company

  7. 7. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Green Packaging Market market is studied from 2018 - 2026.

The Green Packaging Market is growing at a CAGR of 5.7% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

TetraPak International SA, Ball Corporation, DS Smith PLC, Amcor Limited, Ardagh Group SA are the major companies operating in Green Packaging Market.

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