Sustainable Packaging Equipment Market

Sustainable Packaging Equipment Market Size

The global sustainable packaging equipment market was estimated at USD 157.6 billion in 2024 and is projected to grow at a CAGR of 7.3% between 2025 and 2034. Stringent environmental regulations and the need for eco-friendly packaging in business will be beneficial for the market.

Governments in many countries are enacting strict laws to reduce plastic waste,  increase recycling, and limit environmental damage. For instance, the European Union (EU) wants all plastic packaging to be recyclable or reusable by 2030 (European Commission, 2018). The Save Our Seas 2.0 Act, which was signed into law in 2020, was focused on plastic pollution and waste management systems in the U.S.

In China, a ban on single-use plastics in major cities has also been announced to fully adopt it across the country by 2025 (China National Development and Reform Commission, 2023). These authorities are encouraging companies to adapt packaging technology, which complies with these regulations. And so, the demand is increasing for machinery that addresses sustainable materials, including biodegradable plastics, recycled content, compostable packaging, etc. Manufacturers are reacting with new machines that bring enhanced energy efficiency and reduced material waste while also adhering to regulations.

Environmental regulations that promote recycling and reuse are also driving businesses toward machines that facilitate a circular economy. This package of regulatory drives the market growth, and innovation is creating demand for hardware to enable sustainable packaging as firms strive to remain competitive while reducing climate-warming impacts.

Sustainable Packaging Equipment Market Trends

• Businesses are employing reusable plastic containers that can be utilized more than 100 times, which reduces waste and cuts down on greenhouse gas emissions. In fact, according to the Environmental Protection Agency (EPA), in 2021, 28.2 percent of all municipal solid waste generated in the United States consisted of containers and packaging, making a strong case for sustainable solutions.
  
• It also encompasses the rise of new smart and autonomous packaging technologies. This smart packaging stretches to monitor food freshness and reduce waste, no batteries required. Another growing trend is the use of biodegradable and compostable materials such as polylactic acid (PLA), which are derived from renewable resources. Such materials serve as sustainable alternatives to traditional plastics. Bioplastics (or corn) such as PLA are gaining in adoption because, according to the U.S. Department of Agriculture (USDA), they have a smaller environmental footprint than their petrochemical counterparts.
  
• Packaging machinery is evolving in response to these sustainable materials as well as to improve efficiency. They now also design equipment that works with recyclable films and is equipped with smart technologies that allow predictive maintenance. There is also a huge difference being made in terms of regulatory frameworks. One such initiative is the EU Packaging and Packaging Waste Regulation (PPWR), which is aimed at reducing the volume of packaging entering the market and accelerating systems initiatives that promote a circular business model. In the US, states like California have passed laws requiring that 50% of packaging be recyclable or compostable by 2030.
  

Trump Administration Tariffs

• The sustainable packaging equipment market is significantly affected by the adverse impact of the Trump Administration tariffs due to increased costs and adjustments to sourcing strategies. Tariffs imposed on key raw materials, including steel and aluminum, and on imported machinery, particularly from China and the E.U., increased the production costs for sustainable packaging equipment.
  
• Cost pressures were frequently transferred to the end-user, increasing the cost for manufacturers to invest in eco-friendly tools like biodegradable film sealers, recyclable material fillers, and paper-based packaging systems. And supply chains were upended as the companies that rely on worldwide imports faced delays and compliance challenges, further stalling the rollout of sustainable packaging initiatives. In response, many manufacturers tried to source from suppliers outside the tariff zones, creating new logistical and financial hurdles.
  
• All the uncertainty surrounding trade policy gave some firms an incentive to put off capital investments in green technologies,  too. The flip side of this local enterprise was that the tariffs sparked a trend towards reshoring and homegrown innovation, as manufacturers based in the United States were incentivized to create cleaner and cheaper sustainable equipment solutions.
  

Sustainable Packaging Equipment Market Analysis

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Based on equipment type, the market is segmented into filling machines, sealing machines, labeling machines, wrapping machines, form-fill-seal machines, and others. In 2024, the filling machine segment generated a revenue of USD 44.2 billion and is expected to grow at a CAGR of around 7.9% during the forecast period.

• The growth of the sustainable packaging equipment market is fueled by filling machines that function in harmony with the environment-friendly materials, and automation also helps in less waste generation. These machines are used by industries like food & beverage, pharmaceuticals, personal care, and household products for accurate, clean, and efficient filling.
  
• With the growing concern for the environment, there has been a significant increase in the demand for flexible filling machines as more and more products are packaged in eco-friendly materials, such as recyclable pouches, paper-based containers, and compostable sachets. Now, manufacturers can meet their sustainability targets in tandem with performance thanks to modern filling machines being tailored to adapt to biodegradable films and lightweight packaging. Sustainable solutions at every step from production to disposal are crucial, as packaging waste (bottles, boxes, wrappers, etc.) represented more than 28% of total municipal solid waste in 2021 (U.S. EPA).
  
• These machines are also critical to automation, allowing companies to cut back on material waste, conserve energy, and accelerate production speed. When used with sustainable barrier materials, they protect product quality, enhancing shelf life. Thanks to their ability to tackle processes both upstream and downstream, they are a general-purpose and critical for nearly every packaged goods industry, which will only help them to maintain leadership in the sustainable packaging equipment marketplace.

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Based on the distribution channel, the sustainable packaging equipment market is direct and indirect. In 2024, the indirect segment accounted for over 55.1% and is expected to grow at a rate of 7.6% till 2034.

• As demand for eco-friendly packaging solutions grows worldwide, especially among small and mid-sized manufacturers,  many companies turn to third-party distributors, integrators, and agents to serve these fragmented customer bases. Because of that, indirect channels provide you with local knowledge and superior customer service/installation service, which is invaluable when putting advanced/specialized equipment into the market like compostable film sealers, paper-based pouch machines, recyclable material-compatible sealers, etc.
  
• This is especially effective in emerging markets like Southeast Asia, Latin America, and Eastern Europe, where manufacturers lack direct representation. Moreover, the indirect model gives equipment manufacturers the flexibility to scale faster and has a lower risk profile for navigating regional regulations, certifications, and language. Basically, the indirect distribution model is driving growth that enriches reach, enhances customer engagement, and also facilitates efficient market expansion in the sustainable packaging equipment landscape.
  

Based on the packaging material, the sustainable packaging equipment market is segmented by plastic, paper and cardboard, glass, metal, and others (bioplastics, plant-based materials). The plastic segment is expected to hold a major share of 34.7% in 2024.

• Plastic tends to be less expensive to produce, mold and transport than other substances like glass, metal, or paper. Being lightweight, it also reduces shipping charges and carbon footprints, hence it is very appealing for domains like FMCG, Pharma, e-commerce, etc. Plastic also has a high barrier property, which makes it resistant to moisture, air, and contaminants, thus preserving food quality and extending the shelf life. The fact that it can be molded into thousands of different shapes applies to multiple packaging formats, from rigid bottles to flexible pouches. Plastic also works very well with high-speed, automated packaging lines, allowing manufacturers to stay productive and efficient.
  
• In particular, the plastics industry is changing, through the development of recyclable, bio-based, and compostable alternatives — such as PET, PLA, and PHA — so that men and women can achieve their environmental goals without having to eliminate their use of plastic. In addition, market players in emerging markets like APAC or LATAM still view plastic as the most pragmatic choice, considering cost-efficiency and function, compared to alternatives that face infrastructural challenges in many environments.

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In 2024, the U.S dominated the market, accounting for around 87.3% of the NA market share and generating around USD 39.1 billion in revenue in the same year. 

• The North American region led the way in the sustainable packaging equipment market on the back of stringent regulations, consumer demand, and mature industrial systems. Packaging waste in 2021 accounted for 82.2 million tons in the United States, according to the Environmental Protection Agency (EPA), and they are currently trying to eliminate this through laws at the local and federal levels concerning single-use plastics. Canada has also adopted some rules (like the prohibition on specific single-use plastics under the Canadian Environmental Protection Act). FMCG companies and larger retailers are being forced to comply with public and shareholder pressure to reduce packaging waste. Early adoption of automation and AI technologies in North America has also contributed to efficiencies in sustainable packaging. Government incentives and research grants only serve to motivate innovations in this field even more.
  

The sustainable packaging equipment market in Germany is expected to experience significant and promising growth from 2025 to 2034.

• In Europe, rigid sustainability laws and eco-friendly consumers drive the market. This is particularly important as the EU recycled packaging waste at a rate of 64.4% in 2021, according to Eurostat data, and is now bound to opt for sustainable materials and ways of packaging and machinery in the coming years with both the European Green Deal and the Packaging and Packaging Waste Regulation (PPWR). This makes sustainability a legal obligation of businesses in the form of Extended Producer Responsibility (EPR) schemes and recycling targets. The European demand for transparent, biodegradable,  and recyclable packaging. Countries such as Germany, which in 2021 had a 70.5% recycling rate for packaging waste, and the Netherlands have been leaders in ensuring eco-friendly designs are integrated into packaging systems.
  

The sustainable packaging equipment market in China is expected to experience significant and promising growth from 2025 to 2034.

• The Asia-Pacific (APAC) region leads in demand for packaging equipment (like food processing and meat packaging processes), especially in the growing middle class and rapid urbanization sectors. In China, the National Development and Reform Commission (NDRC) announced that, as part of the 13th Five-Year Plan, the country would work to reduce single-use plastic to 30 percent of 2020 levels by 2025. Under its Plastic Waste Management Rules, 2022,  India has prohibited specific single-use plastics. As per the Ministry of Environment, Forest and Climate Change of India, about 3.5 million tons of plastic waste is being generated in India per annum, which is being reduced. International brands in APAC need local suppliers that can deliver towards their global sustainability goals. Sustainable packaging is also seen by local manufacturers as a means to compete in domestic and export markets.
  

Sustainable Packaging Equipment Market Companies

Major players operating in the sustainable packaging equipment industry are:

• Amcor
• Buhler
• Fuji Machinery
• GEA
• IMA
• KHS
• Krones
• Mondi
• Rockwell Automation
• Sappi
• Sealed Air
• Smurfit Kappa
• Syntegon
• Tetra Pak
• Wipak
  

Amcor, Mondi, Sappi, Sealed Air, Smurfit Kappa, Tetra Pak, and Wipak—specializing in the production of environmentally-friendly packaging. From recyclable plastics and compostable films to paper-based alternatives and carton systems made from renewable resources, SMI covers all bases for relevant sectors, including food, beverage, healthcare, and personal care. Tetra Pak is known for its aseptic carton solutions (from paperboard), and Amcor and Sealed Air are developing recyclable and lightweight flexible packaging technologies.

On the equipment side, Bühler, Fuji Machinery, GEA, IMA, KHS, Krones, and Syntegon are among those innovating with machines made for biodegradable, recyclable, and lightweight materials. Such methods are designed to be effective, conserve energy,  and produce minimal waste. Companies such as IMA and Syntegon show form-fill-seal (FFS) machines developed to suit sustainable substrates, while KHS and Krones aim to develop filling and bottling lines modularly, utilizing less water and materials in the process, yet remaining energy-efficient.

Sustainable Packaging Equipment Industry News

• In November 2024, Atlantic Packaging Introduces the Canopy TM Wrap System. New "system for bundling curbside recyclable fiber wraps" provides a sustainable alternative to conventional packaging. This full curbside recyclable packaging solution takes the place of traditional shrink film (and is in production on nVenia equipment, using papers sourced from Smurfit Westrock). With the proven fiber wrap material and high- through-application process, CanopyTM Wrap provides a solution to customers in the responsibly sustainable end of the market without having to sacrifice performance and efficiency.
  
• In November 2023, Huhtamaki launched sustainable flexible packaging innovation, A revolutionary technology that simultaneously delivers the best in-class protection, full recyclability, and affordability. Huhtamaki’s latest solutions offer mono-material flexible packaging in three alternative material technologies: PAPER, PE (polyethylene), and PP (polypropylene) Retort, designed for the most challenging applications. The new solutions are one of their kind, ensuring a mono-material share of up to 95% for PE, and at least 90% for PAPER and PP, without any compromise in protection barriers, recyclability, and affordability.
  

Sustainable packaging equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (Units) from 2021 to 2034, for the following segments:

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Market, By Equipment Type

• Filling machines
• Sealing machines
• Labelling machines
• Wrapping machines
• Form-fill-seal machines
• Others

Market, By Packaging Materials

• Plastic
• Paper and cardboard
• Glass
• Metal
• Others (bioplastics, plant-based materials)

Market, By Application

• Boxes & cartons
• Bags & pouches
• Bottles & cans
• Films & wraps
• Trays
• Mailers
• Others

Market, By End Use

• Food & beverage
• Healthcare & pharmaceuticals
• Personal care & cosmetics
• Retail & e-commerce
• Industrial packaging

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • South Africa
  • Saudi Arabia