In 2023, the Green Packaging Market was valued at USD 305.6 billion, with a projected CAGR of 6.7% until 2032, when it is forecast to reach USD 546.4 billion. This spike is being driven by a widespread realization among the packaging industry of the critical need to reduce plastic dependency and prioritize sustainability.
Green packaging involves the use of biodegradable and recycled materials in packaging operations, with the goal of reducing the amount of waste that ends up in landfills. According to the UN Environment Programme, 85% of plastics manufactured are used for packaging, including disposable versions.
Medical, food, and beverage industries are increasingly turning to green packaging because of its capacity to protect product integrity by insulating it from external contamination and spillage. In sharp contrast, the widespread use of single-use plastics for packaging adds significantly to increased emissions.
As a result, increased awareness among governments and consumers about the negative environmental implications has fueled a need for cleaner packaging options. This has accelerated the adoption of green packaging solutions, signaling a significant move toward more sustainable practices.
Segmentation Overview:
The global green packaging market has been segmented into packaging type, end-user, and region. Based on packaging type, the green packaging market segmentation includes packaging with recycled content, reusable packaging, and degradable packaging.
Green Packaging Market Report Highlights:
- The global green packaging market growth is anticipated at a CAGR of 6.7% by 2032.
- Governments across the globe have formulated regulations regarding reusing and recycling, and the use of biodegradable material for packaging to meet their net zero carbon goals.
- Increasing government campaigns to educate consumers about the benefits of eco-friendly products and packaging material and the harmful effects of toxic materials used in these products are expected to favor industry growth over the forecast period.
- Based on end-user, food & beverages hold a significant share of the green packaging market. It is estimated that more than 50% of food & beverage companies use green packaging solutions, with paper bags holding a major share in packing food items. Paper bags are preferred for carrying fresh fruits and vegetables and storing food items as the paper material helps maintain the texture and freshness of food without altering its properties.
- Europe holds a significant share of the green packaging market, with countries like Germany and Wales holding a substantial share in this region. According to Earth.org, around 40% of the packaging waste generated in Europe is paper and cardboard, followed by plastic and glass, and ends up in landfills. To reduce this wastage, the European Parliament has agreed to reduce, reuse, and recycle the waste to promote sustainable packaging.