Sustainable Plastic Packaging Market Size (2025 – 2030)

The Sustainable Plastic Packaging Market was valued at USD 100.43 million in 2024. Over the forecast period of 2025-2030, it is projected to reach USD 140.73 million by 2030, growing at a CAGR of 6.98%.

Key Market Insights:

• Sustainable packaging refers to the creation and use of packaging that prioritizes environmental sustainability. It involves utilizing life cycle assessments and inventories to guide packaging choices while minimizing its negative impact on the environment.

• In recent years, there has been a noticeable rise in the emphasis on sustainability, particularly among consumers.

• The growth of the Circular Economy concept has significantly contributed to the increased focus on sustainable packaging.

• Public concerns regarding packaging waste, especially single-use packaging, have led governments worldwide to take action. They are enacting regulations aimed at reducing environmental waste and improving waste management practices.

Sustainable Plastic Packaging Market Drivers:

Government initiatives aimed at promoting sustainable packaging are fueling market expansion.

Governments across the globe are implementing strict regulations and initiatives to address packaging waste and promote the use of biodegradable alternatives. The European Union has led the way with comprehensive regulations aimed at increasing recycling rates and the use of recycled materials, along with laws designed to reduce single-use plastics. In China, the State Post Bureau (SPB) and other departments have established national standards to ensure the use of hazard-free, recyclable packaging materials in the express delivery sector. This has led to the creation of a robust sustainable packaging standard system, covering everything from design and material selection to recycling and disposal, highlighting the government's dedication to environmental protection.

Numerous countries have enacted progressive bans on single-use plastics, with regions such as Jilin and Hainan in China imposing broader restrictions on non-biodegradable food service items. In the United States, significant policy shifts have occurred, with states like Maine taking the lead by introducing laws that hold companies accountable for packaging waste through Extended Producer Responsibility (EPR) programs. These regulatory measures have pushed manufacturers to innovate, fostering the development of more compostable packaging solutions, particularly in industries like e-commerce and retail, where packaging waste has traditionally been a major concern.

Sustainable Plastic Packaging Market Restraints and Challenges:

Capacity limitations in manufacturing plants are hindering market growth.

A global shortage of production capacity is affecting businesses due to the increasing demand for sustainable alternatives to traditional plastic disposables. In the UK, approximately 50% of all packaging is required to be easily recyclable. As a result, brands and manufacturers are incentivized to increase their use of recycled materials, especially following the UK's blocked proposal to impose taxes on virgin plastic materials. To address this, brands must take proactive steps to develop recycling infrastructure and technologies that enable effective collection and recovery, ultimately closing the recycling loop. As such, businesses are required to collaborate with logistics companies to manage waste collection and delivery, build and enhance recovery and recycling infrastructure, improve the quality of recycled materials, and incorporate waste into the production of new products.

Sustainable Plastic Packaging Market Opportunities:

The reduction of packaging presents significant opportunities in the market.

In response to rising raw material costs, businesses are opting to reduce the packaging size of everyday items such as breakfast cereals, crackers, and soft drinks, rather than increasing prices. This shift may lead to consumers being unaware that they are receiving smaller quantities for the same price. Companies ranging from General Mills to retail giants like Costco and Walmart have recently downsized product packaging, particularly in the face of an expected 5.4% inflation rate in 2021. As urban populations grow and consumer price sensitivity increases, many individuals now prefer smaller, more portable packaging that offers cost-effectiveness. This approach addresses concerns about product shelf life while providing convenience for on-the-go consumers.

SUSTAINABLE PLASTIC PACKAGING MARKET REPORT COVERAGE:

Sustainable Plastic Packaging Market Segmentation: By Process

• Degradable Packaging

• Reusable Packaging

• Recycled Packaging

The recycled packaging segment is the leading contributor to the market and is expected to experience significant growth throughout the forecast period. Businesses commonly adopt sustainable packaging strategies such as reducing packaging size or weight and incorporating more recycled and renewable materials. This shift is resulting in an increased use of paper and cardboard across various industries. Additionally, businesses are ensuring that their packaging remains recyclable and environmentally friendly for future use.

Packaging plays a vital role in industries like food, beverage, and consumer packaged goods. Depending on the region, either societal trends or government regulations are driving the global movement toward more sustainable packaging.

The use of degradable packaging is rising across multiple sectors due to its low environmental impact and growing demand. Industry advancements, such as active and intelligent packaging solutions, are enabling a wider range of products to reach consumers. Biodegradable packaging is typically made from renewable raw materials, such as cellulose and starch. Degradable plastics, when exposed to microbial enzymatic action, break down into inorganic compounds like CO2, methane, and water. As a result of rapid innovations in this field, the market is expected to experience further growth during the forecast period.

Sustainable Plastic Packaging Market Segmentation: By End-User

• Pharmaceutical and Healthcare

• Food and Beverage

• Cosmetics and Personal Care

• Other

The food and beverage segment is the largest contributor to the market and is expected to continue growing during the forecast period. Over the past two decades, plastic has become one of the most widely used materials in the food industry due to its cost-effectiveness and sustainability benefits, as many companies are now using recycled plastics to meet environmental standards. These recycled plastics help manufacturers produce packaging at a lower cost while ensuring the materials are sustainable. Additionally, the packaging is fully recyclable and will be used across various product lines, including Original Barbecue, Brown Sauce, Real Mayonnaise, Tomato Ketchup, and Reduced Sugar Tomato Ketchup. As regulations surrounding sustainable packaging continue to expand, biodegradable packaging is expected to experience significant growth.

The demand for sustainable packaging solutions is also rising in the personal care and cosmetics sector, driven by both government regulations and consumer preferences for environmentally friendly packaging. Companies like Colgate have introduced recyclable tubes, while Cosmogen has developed glue-free makeup brushes. Additionally, Quadpack is set to launch its Nordic Collection jars, which are made from compostable wood and biopolymer materials, marking a significant step toward sustainability in the cosmetics packaging industry.

Sustainable Plastic Packaging Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Asia-Pacific is the largest revenue contributor to the market and is expected to continue growing throughout the forecast period. Leading Chinese e-commerce platforms and rapid delivery services have been actively working to reduce packaging material usage. For example, SF Express has implemented recyclable cartons that can be reused approximately ten times on average. The company has introduced over 100,000 such boxes in first-tier and select second-tier domestic cities, replacing paper boxes and plastic bags while reducing the use of foam blocks and tape. These initiatives align with China’s growing emphasis on sustainable development within the logistics sector.

North America is also anticipated to experience growth during the forecast period. Increased consumer awareness and supportive government regulations are expected to drive the demand for sustainable, biodegradable packaging in the United States. The Environmental Protection Agency (EPA) reports that the U.S. generates up to 80 million metric tons of packaging waste annually, with the food and beverage industry accounting for roughly half of that total. Major food companies, such as Nestlé and Unilever, are responsible for a significant portion of plastic waste. In response to public concern and pressure, many of these companies have committed to reducing the environmental impact of their packaging.

COVID-19 Pandemic: Impact Analysis

The market report indicates that the COVID-19 pandemic had a significant impact on the packaging industry. Various sectors, including the plastic packaging industry, were affected by the pandemic. Global lockdowns led to shortages of raw materials, disruptions in supply chains, and other challenges that hindered the packaging industry's operations. Despite these setbacks, the demand for pharmaceutical and food products surged during the pandemic, driving market growth. Additionally, the need for packaging materials, particularly for shelf-ready food packaging to fill grocery stores, increased as consumers stocked up on essential goods. This demand boost helped support the market during this challenging period.

Latest Trends/ Developments:

July 2024: Black Swan Graphene Inc. made a notable breakthrough in sustainable packaging with the introduction of its Graphene Enhanced Masterbatch (GEM) S27M. This latest addition to the GraphCore-01 product line promises to revolutionize the industry by offering enhanced mechanical properties while supporting sustainability efforts.

July 2024: The 2M Group of Companies expanded its business offerings with the launch of a new division, 'Sustainable Packaging Technologies.' This strategic move highlights the company's dedication to advancing biomaterial technologies and addressing the growing demand for environmentally friendly packaging solutions.

July 2024: SIG, a leading provider of food and beverage packaging solutions, introduced an innovative, recycle-ready bag-in-box packaging for water in Australia. This new solution features a mono-polymer composition, eliminating the need for aluminum, making it more sustainable and easier to recycle.

Key Players:

These are top 10 players in the Sustainable Plastic Packaging Market :-

1. Amcor Limited

2. Tetra Pak International SA

3. Westrock Company

4. Smurfit Kappa Group PLC

5. Sonoco Products Company

6. Mondi PLC

7. Sealed Air Corporation

8. Ardagh Group SA

9. Huhtamaki OYJ

10. Ball Corporation