Coherent Market Insights (Seattle, WA) issued a new report noting that the global green packaging market, valued at U.S. $135.15 billion in 2016, is expected to register a compound annual growth rate (CAGR) of 6.7% over the forecast period (2017-2025) to reach U.S. $238.27 by 2025. The report covers packaging material (paper and paperboard, plastic, metal, glass and others), Process Type (recycled content packaging, reusable packaging and degradable packaging), and by end-use industry (food and beverage, healthcare, personal care and cosmetics, and others).
Major factors propelling the growth of this market include increasing awareness among consumers regarding the benefits of green packaging and government regulations that encourage people to adopt eco-friendly alternatives. However, the amount of solid waste generated is a key factor hindering the growth of the green packaging market. In 2012, according to the World Bank, the solid waste generated annually was around 1.3 billion tons at the global level, and it is anticipated to increase up to 2.2 billion tons by the end of 2025.
By material, paper and paperboard dominated the global green packaging market in 2016, said Coherent Market Insights, and is expected to lead the market throughout the forecast period. This is primarily due to the rising demand for econ-friendly and biodegradable packaging material since paper is 100% recyclable, compostable, and biodegradable.
On the basis of process type, recycled content packaging is projected to have a significant share in the green packaging market. This segment has gained popularity owing to its benefits associated with reduced energy consumption and reduced carbon footprint. During the period from 2007 to 2015, the Coca-Cola company has managed to reduce its carbon dioxide (CO2) emission by 86,939 tons by adopting recycled packaging materials such as corrugated, newsprint, paperboard, steel, glass and others.
Among the various end users, food and beverage led the market in 2016 and is expected to maintain its lead throughout the forecast period. Rapid adoption of green packaging products among the manufacturers operating in the food and beverage industry is one of the key factors driving the growth of the green packaging market.
North America dominates the green growth map
Key takeaways from the Coherent Market Insights report include the finding that North America dominated the global green packaging market in 2016 and is projected to retain its position throughout the forecast period. The region is projected to witness a CAGR of 5.0%, in terms of revenue, during the forecast period. Demand for re-usable packaging has surged in the U.S., thus making this country a prominent contributor to the growth of the green packaging market in North America.
Further, in 2017, Amcor Ltd., which is one of the leading players operating in the field of green packaging, acquired Alusa, one of the largest flexible packaging manufacturers in Latin America. This acquisition would allow Amcor to address a broader base of consumers in both Latin America and North America.
The Asia Pacific is projected to be the fastest growing market, witnessing the highest CAGR of 8.9% during the forecast period followed by Latin America. Rising awareness about environmental concerns among the consumers has altered their preference, which, in turn has resulted in a shift in focus among the manufacturers toward green packaging. Moreover, significant presence of multiple players operating in the food and beverage industry is another key factor propelling the growth of the green packaging market in Asia Pacific, said Coherent’s report.
Major players operating in the market of green packaging include Amcor Ltd., Bemis Company Inc., Sealed Air Corp, Tetra Laval International SA, Mondi Plc., Sonoco Products Company, Cargill Inc., Graham Packaging Company Inc., and Huhtamaki OYJ, among others.