Sustainable Plastic Packaging Market Key Insights:

The Sustainable Plastic Packaging Market size was valued at USD 91.25 billion in 2023 and is expected to Reach USD 138.95 billion by 2031 and grow at a CAGR of 5.4% over the forecast period of 2024-2031.

Sustainable packaging is a method of packaging a variety of materials using biodegradable films materials that are environmentally safe and can be recycled or reused. The increased use of biodegradable materials in packaging protects the environment and reduces pollution as they can be recycled and used in other types of packaging materials.

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A major factor driving the market growth is the growing consumer preference for recyclable and environmentally friendly materials. Other factors include the increasing miniaturization of packaging, advances in new technology and innovation, the prevalence of non-biodegradable materials, increasing public awareness of environmental health issues such as soil pollution, and increasing public awareness of the harmful effects of plastic. including elevation. There is a growing consumer demand to use more Green Packaging

Governments around the world are enacting regulations to tackle plastic waste and promote sustainable packaging practices. These regulations include bans or restrictions on single-use plastics, extended producer responsibility (EPR) policies, mandatory requirements for recycled content, and labeling standards. The regulatory environment is shaping the market by setting guidelines and promoting the adoption of sustainable plastic packaging. 

The sustainable plastic packaging market presents significant growth opportunities for companies focused on sustainability, innovation and collaboration. The market is expected to continue to grow as the demand for eco-friendly packaging solutions increases, driving the move towards a more sustainable circular economy. 

MARKET DYNAMICS

KEY DRIVERS:

• Increasing demand for sustainable packaging solutions

Growing awareness of the negative impact of plastic pollution on ecosystems and human health has led to a shift in consumer preference toward sustainable packaging solutions. Governments, organizations and individuals are actively looking for alternatives to traditional plastic packaging, increasing demand for sustainable options.

• Environmentally friendly and Sustainable Plastic Packaging has often been beneficial for costs and resource conservation.

RESTRAIN:

• The challenges for businesses can be the lack of clarity and consistency between regulatory regulations within a given region.

Various regulations on labeling, certification and definition of sustainable packaging can cause confusion and hinder the adoption of standardized practices. By harmonizing regulations and providing clearer guidelines, we can support market growth and facilitate the adoption of sustainable packaging solutions.

OPPORTUNITY:

• Innovation and Research & Development in the Sustainable Plastics Packaging Sector

Companies can invest in developing new materials, technologies and manufacturing processes that improve the performance, functionality and sustainability of their packaging solutions. Advances in areas such as bio-based plastics, compostable materials, and recycling technologies may open the door to new market segments and applications.

• Investment in recycling infrastructure and waste management systems can generate demand for sustainable plastic packaging.

CHALLENGES:

• Lack of existing infrastructure and recycling facilities for sustainable packaging materials.

IMPACT OF RUSSIA-UKRAINE WAR

Russia Ukraine ware had a negative impact on the global market. The European region was majorly affected due to the conflict. This was mainly due to the rise in prices of oil and energy. The oil prices went up to $112/barrel. The raw material required for the production of the plastic is petroleum. But the hike in prices reduced overall production, which affected the sustainability goals of major businesses. Due to this, businesses shifted to the traditional packaging method to reduce costs. Sustainable packaging is costly as compared to traditional packaging methods.

Energy products accounted for about 65% of total EU imports from Russia. 30% of EU oil imports and 40% of total gas imports came from Russia. In Estonia, Poland, Slovakia and Finland, more than 70% of their oil imports came from Russia.

IMPACT OF ONGOING RECESSION

Due to the recession in US and Europe, there was volatility in raw material prices which affected the business but did not affect the business as compared to the previous year. Production decreased by 2.1% by the end of 2022, which businesses will overcome in few months.

Due to the recession, there was less demand for the personal care industry due to which there might be a downfall of 7 % in the personal care industry sales, which will affect sustainable plastic packaging.

KEY MARKET SEGMENTATION

By Packaging Type

• Rigid

• Flexible

• Industrial

By Packaging Format

• Primary

• Secondary

• Tertiary

By Process

• Recyclable

• Reusable

• Biodegradable

Based on Process, demand for recyclable materials such as paper, hence the recycling sector accounts for the largest share of the total market revenue.

By Application

• Food & Beverages

• Automobile & Electronics

• Pharmaceuticals

• Agriculture

• Others

Baes on the end-user segment or application the food & beverage sector dominated the market. This is due to the need of sustainable plastic packaging need for reducing food wastage and increasing the shelf life of the product. Products developed from recycled and degradable materials are in huge demand globally, which is also driving the market.

REGIONAL ANALYSIS

Asia Pacific region will dominate the sustainable plastic packaging market over the forecast period. According to the World Bank, the Aisa Pacific region is the fastest-growing region in terms of increasing populations as well as economic growth. In this region countries such as India and China are going to show high demand for the sustainable plastic packaging market due to growing development activities and rising economy. The continuously growing customer base for the food & beverage sector will give growth to the market in this region.

Also, growing consumer awareness about sustainability, and lower labor costs will drive the market in this region.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America   

Key Players

The Major Players are Amcor plc, Tetra Laval International SA, Sonoco Products Company, Sealed Air, Ball Corporation, Smurfit Kappa, Berry Global Inc, DuPont, Evergreen Packaging LLC, WestRock Company and other players.

Sealed Air-Company Financial Analysis

RECENT DEVELOPMENTS

• The Fost Plus group has signed an agreement with Morssinkhof Plastics Belgium to build a new recycling plant that will convert PET, PE and HDPE packaging waste into raw materials for further plastic packing production expected to recycle approximately 40 000 tonnes per year.

• LyondellBasell and Shakti Plastic Industries Sign Memorandum of Understanding (MoU) to Promote Machinery Recycling in India.

• A sustainable packaging substitute using hemp based biomaterial has been developed by researchers at Western University.