Green Packaging Market Size, COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3876
Green Packaging Market size is set to expand considerably over 2021-2027, owing to growing ecological concerns worldwide. These concerns have led to a rise in awareness regarding the importance of sustainability in packaging, thus amplifying green packaging product demand over the years ahead. Also known as sustainable packaging, green packaging involves the use of various materials and production methods designed to mitigate harmful impacts of packaging on the environment. These, products, which include various recyclable and biodegradable materials, are rapidly gaining preference over conventional packaging materials like Styrofoam or plastic.
One of the key trends bolstering the green packaging industry outlook is the emergence of myriad sustainability initiatives, undertaken by prominent organizations worldwide. Sustainability has become a major focus over the years, with organizations, mainly from the retail and FMCG sectors, making ambitious commitments to minimize single-use packaging waste.
Recycled content is poised to emerge as a prominent segment for the green packaging market by 2027, given the burgeoning global focus on mitigating the impact of packaging waste. Manufacturers are ramping up efforts to recycle materials like plastic, metal, paper and glass, which can then be used to manufacture new packaging products, thereby preventing wastage. In November 2020, Mars, Incorporated, in collaboration with SABIC and Huhtamaki, announced its intention to use recycled polypropylene plastic for the primary packaging of its popular pet food brands.
North America is expected to emerge as a crucial revenue pocket for the green packaging market over the forecast spell. This is attributed mainly to high consumer awareness and propensity towards sustainable and eco-friendly packaging solutions in the region. Based on a report by IBM and the National Retail Federation, almost 70% of customers in Canada and the United States consider sustainability or eco-friendliness of a brand to be of high importance.
TetraPak International (Tetra Laval), DuPont, Amcor Ltd., and Mondi Ltd are some of the major entities strengthening the global green packaging market outlook. These players are employing several strategic maneuvers, including collaborations, products launches, and investments, among others. In January 2021, Mondi launched three high-performance sustainable packaging products, designed for Orkla’s new plant-based Tex Mex range, Frankful, comprising of tortilla chips, taco spices and soft tortilla wraps. These solutions include Mondi’s metal-free high-barrier laminate, BarrierPack Recyclable mono-material and FSCTM certified paper-based laminate.
In April 2021, Amcor inked a partnership with Nestlé to bring new sustainable packaging materials to shelves, using its worldwide R&D resources. This move resulted in Nestlé’s Smarties becoming the first confectionary brand in Australia to make the shift to sustainably sourced thermoformable paper-based recyclable packaging.
COVID-19-Induced Shifts in Consumer Behavior May Influence Green Packaging Industry Trends
The pandemic caused by the outbreak of the novel coronavirus has led to a massive shift in the purchase behavior of consumers worldwide. Several inherently physical activities, such as eating from restaurants and shopping started to move to online channels, as a result of the worldwide social distancing protocols put into effect to curb virus transmission. According to UNCTAD, the e-commerce share of all retail sales rose significantly from 16% to 19% in 2020. This, in turn, led to some disruption in sustainability efforts, as single-use plastic packaging made a comeback.
However, even with the slight slowdown in sustainability initiatives due to the COVID-19 pandemic, the green packaging market will continue to witness steady growth, as brands and companies reassess their customer needs, environmental and sustainability goals. Proliferating demand for sustainable packaging options from the food and drink industry, particularly, is a major driver to industry growth. For instance, despite delays caused by the COVID-19 outbreak, Piccolo introduced its new fully recyclable range of baby food pouches in April 2021.
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