Sustainable Plastic Packaging Market Growth & Trends [2031]

Report Description

Sustainable Plastic Packaging Market Outlook 2031

The global sustainable plastic packaging market size was USD 93.8 Billion in 2022 and is likely to reach USD 144.9 Billion by 2031, expanding at a CAGR of 5.6% during 2023–2031. The market growth is attributed to the rising use of eco-friendly plastic packaging to reduce negative impact on the environment.

The demand for sustainable solutions is growing rapidly, as consumers are increasingly considering eco-friendly options that boost the demand for sustainable plastic packaging market. Sustainable plastics or bioplastics are made from natural substances. Environmental concerns are one of the major factors for the adoption of sustainable packaging.

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Sustainable packaging reduces greenhouse gas emissions, thus major key players are shifting to eco-friendly packaging. Additionally, several government policies regarding the reduction of greenhouse gas emissions fueled the demand for sustainable plastic packaging across the globe. 

COVID-19

The market report finds that the COVID-19 pandemic significantly impacted the market. Several industries, including the plastic packaging industry, were impacted by the pandemic. The lockdown across the globe resulted in a shortage of raw materials, supply chain disruptions, and other severe issues that hampered the packaging industry. However, the demand for pharmaceutical and food products increased during the pandemic, which considerably fueled the market. The demand for packaging materials increased during the pandemic, including shelf-ready food packaging for filling grocery stores.

The Impact of Artificial Intelligence on the Sustainable Plastic Packaging Market

Artificial intelligence (AI) has a significant impact on the market, as the key players have started adopting automated solutions for waste reduction. The advanced AI algorithms identify and sort recyclable materials significantly. It automates the workflow with innovative approaches, and furthermore, recognizes packaging material, including glass, plastic, and others. Moreover, AI-driven solutions identify waste food and reject them accordingly. For instance,

• In March 2022, two leading recycling market players, Evergreen and AMP, increased their recycling capacity by nearly 200% using AI automation.

Sustainable Plastic Packaging Market Dynamics

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Major Drivers

Growing use of eco-friendly packaging to reduce environmental pollution is expected to drive the market during the forecast period. Eco-friendly packaging solutions are made completely from recycled materials instead of plastics and chemicals, leading to less environmental pollution and driving the market.

• In November 2023, TIPA, a global key company in compostable packaging solutions for food and fashion, launched its home compostable laminate for dry food and goods packaging in the US. It is highly suited for packaged granola, fruit, and protein gummies.

Sustainable packaging reduces the amount of carbon footprints, which is expected to drive the market during the forecast period. It lowers the amount of wasted materials helping to lower the amount of carbon footprints. Several government initiatives to control the use of plastic are expected to drive the demand for sustainable plastic packaging during the forecast period.

• In April 2023, the US Environmental Protection Agency (EPA) released the draft National Strategy to Prevent Plastic Pollution for public comment, a significant step forward in the Biden-Harris Administration to lower pollution and build an improved economy for all. The strategy includes progressive actions to eliminate plastic release and other waste from land-based sources into the environment by 2040.

Existing Restraints

High cost of shifting from regular to sustainable packaging is expected to hamper the market in the coming years. Initial investment when adopting sustainable packaging is expected to become a restraining factor for businesses, leading to hampering the market. Moreover, sourcing sustainable packaging raw materials is another factor hampering the market.

Emerging Opportunities

Increasing consumer demand for eco-friendly packaging is expected to create opportunities for the market in the coming years. Users are increasingly adopting eco-friendly packaging, as it reduces air pollution and waste. Eco-friendly packaging reduces the use of energy and its harmful effects with its manufacturing technique.

• According to a report from Trivium Packaging, in April 2023, the demand for sustainable packaging continues to increase with the increasing number of eco-friendly consumers. 71% of users preferred to use environmentally friendly products to maintain sustainability.

Scope of the Sustainable Plastic Packaging Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Packaging Type Segment Analysis

Based on packaging type, the sustainable plastic packaging market is trifurcated into flexible, rigid, and industrial. The rigid segment is expected to expand at a significant growth rate during the projection period. Consumers and industries are considering rigid packaging materials in place of traditional packaging, as these prevent deformation, thereby, boosting the segment. Moreover, new launches and development from the market players further boost the segment in the coming years. For instance,

• In December 2023, Novolex, a key company in rigid packaging choice, innovation, and sustainability, introduced food packaging containers that are both recyclable and made with a minimum of 10% post-consumer recycled (PCR) content.

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Format Segment Analysis

On the basis of format, the global market is segregated into primary packaging, secondary packaging, and tertiary packaging. The primary packaging segment is projected to register a considerable CAGR during the forecast period. Primary packaging is the first stage of packaging, as it comes into contact with the product itself. It helps to protect the inside content against contamination. Moreover, sustainable primary packaging is recyclable, which fuels the segment during the forecast period.

Tertiary packaging segment is expected to expand at a significant growth rate during the forecast period. Tertiary packaging is used for packing during shipment; it’s the format that is used by retailers to be viewed as sustainable packaging brands to the users.

• According to a report by Stanford Social Innovation Review, 90% of CEO states that sustainability is important for a company to succeed.

Process Segment Analysis

Based on process, the sustainable plastic packaging market is segmented into biodegradable, recyclable, and reusable. The biodegradable segment is expected to register a robust growth rate during the forecast period.  Biodegradable packaging is a form of packaging that uses composed materials including algae, bacteria, and other materials.

Biobased papers and polymers are some biodegradable packaging materials. Biodegradable packaging is allergen-free and comes with less production cost. Shifting to biodegradable packaging helps companies save operational costs, thereby boosting the segment.

End-user Segment Analysis

Based on end-user, The market is fragmented into personal care, food & beverage, healthcare, and others. The food & beverage segment is expected to dominate the market in the coming years. Eco-friendly packaging helps to reduce carbon footprint, reduces transportation costs, and is easy to store & pick. The growing consumer preference for the adoption of sustainable food packaging is boosting the segment. Several government rules & regulations regarding sustainable packaging and their impact further boost the segment during the forecast period.  

• In July 2022, the government of India banned single-use plastics, as it takes a lot of time to decompose, negatively impacting the environment. The Government banned the use, manufacture, and sale of single-use plastics from July 2022 in India.

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Regional Analysis

In terms of region, the global sustainable plastic packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to hold a large market share during the projection period. Asia Pacific produced nearly 52% of plastics in 2021, with China being the largest manufacturer of plastic across the region. Several companies in the region are focusing on the adoption of recycling and compostable packaging solutions. For instance,

• In June 2022, Watsons, an Asia Pacific-based health and beauty retailer, collaborated with international cosmetics brands, including Garnier, L’Oreal, and Maybelline to initiate recycling programs in Hong Kong, Indonesia, and Taiwan. The collaboration aims to reduce the mismanagement of plastic waste in the region.

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