Sustainable Packaging Market By Packaging Type (Recyclable Packaging, Biodegradable Packaging, Compostable Packaging, Edible Packaging, Reusable Packaging, Rigid Packaging, Other), By Material Type (Paper & Paperboard, Plastics, Metal, Glass, Other), By Application (Food & Beverages, Healthcare & Pharmaceuticals, Personal Care & Cosmetics, Consumer Goods, Industrial, Other), By End-user (Retail, E-commerce, Manufacturing), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Sustainable Packaging Market accounted for USD 304.8 Billion in 2024 and is expected to reach USD 685.7 Billion by 2035, growing at a CAGR of around 7.65% between 2025 and 2035. The Sustainable Packaging Market focuses on using packaging solutions that are environmentally sensitive in terms of biodegradability, recyclability, compostability, or ability to be reused.

Several factors, such as increasing consumer consciousness, especially in developed countries, increasing regulatory standards, and management’s commitment towards ensuring sustainable business practices and environmental protection, are fueling market growth. Such materials are paper and paperboard, bio-plastics, recycled plastics, glass, and metal. The most prominent industries that have embraced sustainable packaging include the food and beverages industry, the health sector, the cosmetic industry, and the online business sector. The North American and European markets dominate the market, while Asia-Pacific is growing rapidly due to industrialization and concern for the environment. The current advancements in plant-based and edible packaging industries are defining the future somehow. It has been projected that this market will expand greatly due to new concepts of a circular economy and sustainability in product supply chains.

Report Scope:

Market Dynamics

Rising consumer awareness demands for eco-friendly packaging due to environmental concerns.

An increasing interest in the environment increases people’s concern with the use of environment-friendly products, which directly boosts the demand for the use of eco-friendly packaging. Currently, consumers’ awareness of the impact of such pollutants as plastics, carbon increase, and waste disposal has made them demand more eco-friendly products. Due to the advancement in technology, people have become more aware through social media and other environmental campaigns of the effects of conventional packaging. Today’s consumers are increasingly demanding, so many organizations have no option but to shift to using environmentally friendly packaging. This has presented an increased demand in the food, beverage, and e-commerce industries, whereby packaging is among the key areas of concern.

This means that by adopting sustainable packaging strategies, companies stand to be at a vantage point over their rivals while at the same time increasing product acceptance by consumers. This is further being supported by governments globally that have proceeded to ban single-use plastics to encourage recycling. Bio-paper, bioplastics, and plant-based packaging are some of the sustainable products that are used in the current day. Supermarkets are encouraging companies to adopt such measures as using the least amount of packaging and adopting reusable containers. A significant number of consumers would also like to get their products packaged in such a friendly environment package because of the environmental factors that are associated with such types of packages. The practice of responsible consumption is still developing and challenging the packaging segment for various enterprises. This has been felt to have created great potential for the market over the years to come.

Advancements in bioplastics innovations in bio-based materials are improving packaging sustainability.

New developments in bioplastics are steadily changing the packaging sector as these turn out to be better substitutes for regular plastics. Some developments in biopolymers like PLA, PHA, and other biodegradable polymers based on starch are directing healthy energy from fossil resources and augmenting the biodegradability of the material. These materials disintegrate over time and, therefore, are environmentally friendly and do not contribute to the problem of plastics littering the environment. Various industries are focusing on research to increase the toughness or flexibility and, most importantly, the cost-beneficial properties of bioplastic. Bio-based packaging is used in the food and beverage and personal care industries to ensure that it meets the objectives of sustainability.

Currently, governments have poured their support behind bioplastics through incentives in addition to having banned the use of single-use plastics. Innovations and processes are helping to render bioplastics more viable and sustainable in large-scale production. Consumers are now shifting their interest towards environmentally friendly packaging, hence forcing brands to adopt friendly packaging. The increasing awareness about the circular economy is also enhancing the population’s preference for compostable and recyclable bioplastics. This trend is set to accelerate; different challenges will, therefore, continue to push the packaging industry to embrace sustainable development.

Inadequate recycling systems hinder the efficiency of sustainable packaging solutions.

The lack of a working recycling system is one formidable ailment that affects the efficiency of sustainable packaging. This has led to the general enhancement of waste, with several regions not possessing the right facilities for the collection, sorting, and processing of recyclable materials. Food contamination also affects efficiency because it means that unrecyclable items from the other bins contaminate recyclable items as well. A lack of funding for the development of the same hinders the enhancement of proper waste disposal. People do not know how to dispose of them appropriately; thus, recyclable products are dumped into waste baskets and finally end up in the landfill.

The third and very significant problem they face is the lack of facilities for biodegradable and compostable packaging. One of the reasons why the recycling process is not in harmony all over the world is because there are no clear-set guidelines on the recycling regulations. A challenge that then arises is the procurement of quality recycled products since there are many constraints in collection and processing. Currently, governments have not yet complied, and the business sector has not coordinated adequately on the use of recycling as a set sustainable solution. This is because the five issues mentioned above are critical in optimizing the possibility of sustainable packaging programs.

Growing demand for compostable packaging and increasing preference for biodegradable alternatives in various industries.

The changing preference towards biodegradable packaging due to the increasing use of compostable packaging is putting immense pressure on different sectors. Customers and companies are paying attention to environmentally conscious and sustainable packaging as they try to curb the use of plastic. The food and drinks industry is among the key end users, whereby various brands adopt compostable containers and cups as well as cutlery. Retail and e-commerce industries are now using biodegradable mailing and packaging items and materials as well. Banning single-use plastics by the government also extends this shift; it is a good observation as it promotes sustainable packaging.

With newly developed materials like PLA, PHA, and plant-based fibers, compostable packaging becomes even more efficient and affordable. The majority of companies are putting their efforts and money into increasing durability as well as rates of decomposition. Consumers’ awareness of sustainable packaging leads to increased organizations and, therefore, drives market growth. Making compostable solutions is fashionable, and today’s large businesses are putting into their sustainability actions strategic initiatives. This development is expected to bring a long-lasting positive change in the packaging industry in terms of environmental impacts.

Development of consumable packaging reducing environmental waste impact.

The improvement of consumable packaging is changing the whole industry by making it environmentally friendly. Some of the food packaging can be eaten, and they include seaweed, starch, and gelatin, among others, in contrast to plastic packing. It cuts down on packaging waste since the consumer can consume it or properly compost it. Currently, the most notable trends have been recorded in the food and beverage sector due to edible packaging, such as wrapping papers, cups, and spoons. Restaurants and brands are searching for more options in terms of biodegradable coatings that would help improve food preservation while applying eco-friendly practices.

Recent discoveries in the field of material science are making consumable packaging more durable and appealing to consumers. This has led to higher appreciation among consumers who prefer goods that are designed to consume zero waste, thereby increasing the market size. Guteur and other organizations have backed edible packaging projects to fight the use of plastics. Small firms and big firms are researching to invest in the process of scaling up the firm. It is, therefore, key in charting the new course on how the world can move towards packaging that is friendly to the environment and does not take up a lot of our space.

Industry Experts Opinion

"We are committed to advancing circular solutions through molecular recycling technologies to reduce plastic waste and enable a more sustainable packaging industry"

• Mark Costa, CEO of Eastman

Segment Analysis

Based on the Packaging Type, the Sustainable Packaging Market is classified into rigid sustainable packaging, flexible, sustainable packaging, compostable sustainable packaging, and reusable packaging that is reusable. Rigid packing, which includes bottles, cartons, and boxes, is commonly used in packing consumable products like food products, beverages, cosmetics, and so on because of its tough and favorable feature of recycling. Within flexible packaging, packaging forms like pouches, wraps, and films are progressively being adopted because they are less in weight and material. Biodegradable packaging, such as PLA and other products derived from polymers, is becoming more popular in slashing waste. Returnable containers, as well as the use of containers that can be refilled, are a great support to circular economy measures such as the use of returnable shipping boxes. As we know, online retail, food delivery services, and retail stores, in particular, are opting for such solutions. Market sophistication and regulatory policy are other factors assisting in market growth through technology developments.

Based on the Application, the Sustainable Packaging Market is classified as the food and beverages industry, which uses biodegradable bottles, eco-friendly spoons, and other recyclable cartons. The healthcare and pharmaceutical industries are adopting sustainable blister packs and bio-based vials to comply with current legislation. Meanwhile, the personal care and cosmetics sectors are utilizing reusable, plant-based, and eco-friendly containers to cater to customers who prioritize environmental conservation. Mailers and paper-based wraps are replacing traditional plastic containers that were earlier used for e-commerce and retail stores. Consumer goods industries are increasingly adopting sustainable packaging in the electronics, home care, and apparel segments. The market has remained open and growing as more corporate organizations search for environmentally friendly solutions in line with the international agenda.

Regional Analysis

North America and Europe are expected to be the most promising regions in terms of sustainable packaging because of the strict legislation and knowledgeable customers. It is driven by corporate sustainability initiatives, such as in American companies, with the government placing regulatory measures to limit the use of plastics. Europe, particularly Germany, France, and the UK, leads in biodegradable and recyclable packaging innovations.

Asia-Pacific remains a vital developing region due to increasing industrialization and green packaging initiatives supported by government bodies of China, India, and Japan. Thus, demand and tangible regulatory support of the environmentally friendly consumer market in Latin America provide a favorable environment for its steady growth. This, especially in the Middle East & Africa, is gradually assuming a respectable outlook since there has been increased investment in bio-based materials. They are as follows: First, there are regulatory burdens that push companies to build markets for their products internationally. Second, there are technological forces that are making it easy for people to expand their markets globally. Third, there are social factors, for instance, increased environmental concerns, meaning that people are trying to avoid the use of products that are considered as being bad for the environment.

The Asia Pacific is currently projected to be the largest and fastest-growing sustainable packaging material market due to rising industrialization, the increasing awareness of consumers, and environmental legislation on plastics. The stringencies of new recycling laws towards single-use plastics are prevalent across all the world’s countries; this, coupled with environmental consciousness by customers, is making countries like China, India, and Japan shift towards biodegradable and recyclable packaging materials. Current trends in the Asia-Pacific nations’ e-commerce and food delivery services markets are driving the need for sustainable packaging solutions. Biopolymers and circular economy are gaining more attention from businesses to achieve sustainable goals. Higher disposable income and increased urban population in the country are also contributing to the market growth. Laws and regulations that support green innovations in packing are also advancing since governments offer incentives. For this reason, the Asia-Pacific region will be the center of growth in the future global market for sustainable packaging.

Competitive Landscape

The environment in the Sustainable Packaging Market enhancement is quite spirited, with market players embracing innovation, mergers, and the adoption of sustainability measures. Many industries, like Amcor, Tetra Pak, Mondi Group, Sealed Air, and Smurfit Kappa, among others, are focusing on biodegradable, recyclable, and compostable packaging materials. Start-ups and mid-sized companies are entering the market with new biodegradable materials and zero-waste packaging. This paper aims to establish that through analysis, the crafting of sustainable packaging relationships between manufacturing packaging companies and consumer goods companies is well on its way to fulfilling this goal.

Several organizations are now devoting more resources to enhancing the utilization of materials and their cost. These laws also make their plastic usage to be controlled, which creates pressure for companies to switch to more environmentally friendly products. Being the primary consumer-facing industries, the food & beverages, e-commerce, and parenteral & healthcare industries are to be considered as the primary markets for sustainable packaging. Pricing strategies among the competition, coupled with the economies of scale, are creating the competition's leadership. Currently, the two regions that have appreciated the essence of green-packaging solutions are the Asia-Pacific and Europe. The demand for ESG goals and circular economy projects will remain on the rise in the market as firms continue to direct efforts towards them.

Sustainable Packaging Market, Company Shares Analysis, 2024

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Recent Developments:

• In July 2024, Black Swan Graphene Inc. announced a significant advancement in sustainable packaging with the introduction of its latest product, the Graphene Enhanced Masterbatch (GEM) S27M. This new offer, the fifth in the GraphCore-01 product line, is set to transform the industry by delivering superior mechanical properties and reinforcing sustainability initiatives.
• In July 2024, the 2M Group of Companies expanded its portfolio by launching a new business division, 'Sustainable Packaging Technologies.' This strategic initiative underscores the company's commitment to advancing biomaterial technologies and meeting the rising market demand for eco-friendly packaging solutions.
• In July 2024, SIG, a prominent provider of food and beverage packaging solutions, launched an innovative recycle-ready bag-in-box packaging for water in Australia. This new packaging utilizes a mono-polymer composition, eliminating the need for aluminum in the bag's structure.

Report Coverage:

By Packaging Type

• Recyclable Packaging
• Biodegradable Packaging
• Compostable Packaging
• Edible Packaging
• Reusable Packaging
• Rigid Packaging
• Other

By Material Type

• Paper & Paperboard
• Plastics
• Metal
• Glass
• Other

By Application

• Food & Beverages
• Healthcare & Pharmaceuticals
• Personal Care & Cosmetics
• Consumer Goods
• Industrial
• Other

By End-Use

• Retail
• E-commerce
• Manufacturing

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Amcor plc
• Stora Enso Oyj
• Berry Global Group Inc.
• Huhtamaki Oyj.
• WestRock LLC
• DS Smith Plc
• Mondi plc
• International Paper Company
• Detmold Group
• Sealed Air Corporation
• Dart Container Corporation
• Duni AB
• Vegware Ltd.
• Pactiv LLC
• RKW Group
• Novolex Holdings, Inc.

Frequently Asked Questions (FAQs)