Market Trends of Green Packaging Industry
Paper Industry is Expected to Witness Significant Growth
- The most common sustainable packaging technique is for companies to downsize or lightweight packaging and increase the use of recycled content and renewable materials. Therefore, the use of paper and cardboard in various parts of the business is expanding. This technique also ensures that the packaging is eco-friendly and recyclable for future usage.
- Organizations in the food, beverage, consumer, and packaged goods industries must use packaging extensively. Depending on the location, society or the government drives a global push toward green packaging.
- The general population is increasingly accustomed to paper-based flexible packaging, as customers want more environmentally friendly options. According to Suzano S/A, paper consumption globally 2022 was 415 million metric tons, reaching 427 million in 2024. The rise in paper consumption would drive the demand for green packaging globally.
- Moreover, prioritizing recycled paper also helps curb deforestation issues in conventional paper production. This recycled paper is similar to traditional paper and can be used for businesses' packaging and printing needs. Advancements in recycling technology have straeamlined the production of high-quality recycled paper, making it both easier and more cost-effective. As a result, supply has surged to meet the rising demand.
- Also, due to the increasing costs and consumption rates of wood-based paper, consumers are looking for alternatives to minimize the environmental impact. Paper and tissues made from bamboo or sugarcane are utilized as an alternative. Both materials are suitable alternatives to paper as they are soft, durable, and biodegradable.
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United States to Hold a Significant Market Share
- North America is the most significant market for green packaging worldwide. Unlike other parts of the world, where government laws are fundamental to developing green packaging, the main drivers of its quick acceptance are strong consumer knowledge and preferences for eco-friendly products.
- The market in the United States is anticipated to expand quickly in the coming years due to an expanding consumer base that places a high value on the packaging of consumer goods, foods, and beverages. Manufacturers in the region are modifying their products to suit better changing consumer preferences and the environment.
- Uber Eats has committed to phasing out plastic waste in its deliveries and adopting sustainable packaging by 2030. Teaming up with DeliverZero, Uber Eats has rolled out trials for reusable packaging on the West Coast of the United States. This initiative empowers customers to choose reusable containers from over 130 participating LA and San Francisco restaurants. By March 29, 2024, 20 LA restaurants partnered with DeliverZero through Uber Eats. DeliverZero's efforts are estimated to have curbed approximately 1,810 kg of greenhouse gas emissions and conserved nearly 6,000 gallons of water. Uber Eats is actively championing reusable packaging in the United States and countries like France, Switzerland, Germany, and the United Kingdom.
- Governments worldwide are adjusting to other sources, such as biodegradable packaging, in response to the rising amount of packaging trash produced. Only 4% of the world's population lives in the United States, making up 2% of the world's municipal solid waste (MSW). Additionally, it has been reported that each American generates more than 106.2 kg of plastic waste annually.
- Advances in packaging technology have led to the development of new sustainable and functional materials. Biodegradable materials, recycled content, and compostable options are becoming more accessible and cost-effective.
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