Green Packaging Market Performance, Trends and Strategic Recommendations

Green Packaging Market Research, Consumer Behavior, Demand and Forecast

The green packaging market is expected to rise from USD 336.85 billion in 2024 to USD 564.58 billion by 2034, growing at a CAGR of 5.3%. The key players operating in the market are focused on adopting inorganic growth strategies like acquisition and merger to develop advance technology for manufacturing green packaging which is estimated to drive the global green packaging market over the forecast period.

Major Key Insights of the Green Packaging Market

• Europe dominated the green packaging market in 2024.
• Asia Pacific is expected to grow at a significant rate in the market during the forecast period.
• By packaging type, the recycled content packaging segment dominated the market with the largest share in 2024.
• By application, the food & beverages segment registered its dominance over the global green packaging market in 2024.
• By material, the plastic segment dominated the green packaging market in 2024.

Green Packaging Market: Eco-Friendly Packaging

Green packaging, also known as sustainable packaging or eco-friendly packaging, refers to packaging materials and practices that minimize environmental impact. The green packaging Reduces excess materials and using lightweight packaging to cut down on waste. Green packaging, also known as sustainable packaging or eco-friendly packaging, refers to the use of materials and production methods that have a minimal environmental impact. As concerns about pollution, climate change, and resource depletion grow, businesses and consumers are shifting toward packaging solutions that are sustainable, recyclable, and biodegradable. The green packaging is derived from renewable sources like cornstarch, sugarcane, or algae. Examples include PLA (polylactic acid) and PHA (polyhydroxyalkanoates).

Market Trends

• European Union Initiatives: The European Union's Packaging and Packaging Waste Regulation (PPWR), effective from 2025, mandates a shift from single-use to reusable and recyclable packaging, setting reuse targets of 40% by 2030 and 70% by 2040 for transport packaging.
• Extended Producer Responsibility (EPR): In the UK, the EPR policy requires businesses to cover recycling costs, impacting sectors like hospitality by increasing operational expenses.
• AI and Automation: Companies are integrating artificial intelligence and automation to enhance packaging efficiency and sustainability. For instance, Ranpak utilizes AI to optimize packaging processes, reducing plastic usage and improving operational efficiency.
• Material Advancements: The industry is exploring alternatives to traditional plastics, such as starch-based materials, to reduce environmental impact.
• Demand for Transparency: Consumers are increasingly seeking clarity regarding the sustainability of packaging materials, prompting brands to adopt eco-friendlier solutions.
• Minimalist and Functional Designs: There's a shift towards minimalist packaging that reduces material usage while maintaining functionality, aligning with consumer desires for sustainable and efficient packaging.

How Can AI Improve the Green Packaging Industry?

Al is essential to the creation of effective and environmentally friendly packaging solutions. It helps with waste reduction, packaging process simplification, and the identification of the best packaging materials and designs. Businesses can create environmentally friendly substitutes and get rid of needless packaging materials by utilizing Al-driven technologies. Al also assists in locating and getting rid of items that aren't recyclable or biodegradable, opening the door for more environmentally friendly packaging techniques.

Al can help businesses reduce waste and maximize efficiency in their supply chain processes. Large volumes of supply chain data can be analysed using Al-powered analytics, which can pinpoint areas for efficiency gains and packaging waste reduction. Ordering and packing are two examples of procedures that can be automated to save waste and expedite operations. Al's real-time monitoring system guarantees on-time delivery and high-quality products, which further cuts down on waste.

International Shipment Details for Packaging Materials

Key Data for Global Trade and Logistics Analysis

Driver

Growth in Food Delivery and E-commerce

The rise of online shopping and meal delivery services has increased the demand for sustainable packaging to reduce waste. Brands are adopting compostable mailers, paper-based alternatives, and reusable packaging to meet consumer expectations.

• In January 2025, according to the data published by the National E-commerce Associations, as of the first three quarters of 2024, retail eCommerce sales in the U.S. were US$879.54 billion. In the third quarter of 2024, U.S. commerce sales totalled US$300.05 billion, up 2.8% from the previous quarter and 7.2% from the same quarter the year before. Rakesh Ranjan, the CEO of Zomato's meal delivery division, has predicted that the company's food delivery division will expand at a rate of 30% per year over the next five years. As it prepares for an IN 8.500 Cr OIP in December, 2024, the foodtech giant, which presently owns a 58% market share in the food delivery segment, had a gross order value of US$ 3.75 Bn in the previous fiscal year.

Restraint

Lack of Proper Recycling Infrastructure & Consumer Awareness and Misconceptions

The key players operating in the green packaging market are facing issue due to high initial investments, lack of proper recycling infrastructure and less consumer awareness about sustainable packaging. Many countries and regions lack advanced recycling facilities to properly process biodegradable and compostable packaging. Inefficient waste segregation systems reduce the effectiveness of recyclable materials. Many consumers do not fully understand how to dispose of eco-friendly packaging, leading to improper waste management. Greenwashing (misleading sustainability claims) can reduce trust in eco-friendly packaging and slow adoption.

Some sustainable packaging options are less durable than plastic, making them unsuitable for certain products (e.g., moisture-sensitive goods). Shorter shelf life of biodegradable packaging can be a concern for food and pharmaceutical industries. Traditional packaging industries (plastics, petroleum-based materials) lobby against stricter environmental regulations to protect their market. Some businesses resist change due to concerns about cost, supply chain complexity, and regulatory uncertainty.

Market Opportunity

Shifting Trends in Sustainability

Consumers are increasingly aware of the environmental impact of packaging materials, with a growing preference for eco-friendly, biodegradable, and recyclable options. This shift in consumer behavior is influencing businesses to adopt green packaging solutions to align with consumer values and enhance brand image. Companies that invest in sustainable packaging are likely to gain competitive advantages by meeting the demand for environmentally conscious products.

Segmental Insights

Recycled Content Packaging Segment Led the Market in 2024

The recycled content packaging segment held a dominant presence in the green packaging market in 2024. Many countries have strict recycling laws and targets for reducing plastic waste. Extended Producer Responsibility (EPR) programs require brands to use a certain percentage of recycled content in packaging. The European Union’s Circular Economy Plan and similar regulations in the US, Canada, and India encourage recycled materials in packaging. Global brands like Coca-Cola, Unilever, and Nestlé have pledged to use more recycled materials in packaging. Many companies aim for 100% recyclable or reusable packaging by 2030 to meet ESG (Environmental, Social, and Governance) goals.

Retailers and e-commerce platforms (like Amazon) are demanding sustainable packaging from suppliers. Improved sorting and processing make it easier to produce high-quality recycled materials. Chemical recycling allows plastics to be broken down and reused at near-virgin quality. New technologies ensure that recycled content packaging is durable, safe, and visually appealing. Recycled content packaging is dominant because of strong regulations, corporate sustainability goals, cost benefits, consumer demand, and advancements in recycling technology.

High Demand for Food & Beverages to Support Dominance

The food & beverage segment led the global green packaging market. Green packaging is gaining popularity in the food and beverage industry due to several key factors, including environmental benefits, regulatory requirements, and consumer preferences. Green packaging materials like plant-based bioplastics, recycled paper, and bamboo are free from harmful chemicals (e.g., BPA, phthalates). Plastic bans in Europe, Canada, and parts of the U.S. push brands toward sustainable alternatives. Strict food packaging laws (e.g., FDA, EU regulations) encourage safe, recyclable, and biodegradable materials. Although initial costs may be high, reusable and recyclable packaging reduces waste management expenses. Many companies use returnable packaging systems to lower costs and waste.

Plastic Segment Led the Market in 2024

The plastic segment registered its dominance over the global green packaging market in 2024. Plastic is cheaper to produce than other sustainable materials like glass, metal, or paper alternatives. It requires less energy for manufacturing and transportation due to its lightweight nature. Large-scale production infrastructure for plastics is already established, making it easy for companies to adopt recycled plastic instead of switching to new materials. Many countries have set minimum recycled content requirements in plastic packaging. Plastic waste management laws (Extended Producer Responsibility – EPR) encourage brands to adopt post-consumer recycled (PCR) plastics. The rise in e-commerce and online food delivery has increased demand for lightweight, protective packaging. Brands are using recyclable mailers, plastic-free bubble wrap, and compostable polybags to reduce waste.

Europe’s Stringent Regulation to Projected Dominance

Europe region held the largest share of the green packaging market in 2024. Bans on single-use plastics and policies like the European Green Deal push companies to adopt eco-friendly packaging. Companies set ESG (Environmental, Social, Governance) goals, prioritizing green packaging. Covering the full package life-cycle, the new rule aims to further harmonize national recycling, reuse, and manufacturing policies. With the rules in place, the EU anticipates a major reduction in water consumption, greenhouse gas emissions, and the harm that packaging and packaging waste cause to the environment and the health of its people.

Germany Green Packaging Market Trends

In a notable industry move, Mondi, a leading packaging company, acquired the western European assets of Germany-based Schumacher Packaging for €634 million. This acquisition includes advanced box production plants in Germany and aims to enhance Mondi's operations in e-commerce and consumer goods packaging. A number of laws have been put in place by the German government to lessen the waste from plastic and encourage environmentally friendly packaging options. The Packaging Act (VerpackG) and other initiatives mandate that producers assume accountability for the packaging materials' lifespan. This law requires involvement in recycling programs and promotes recyclable goods.

Asia’s Well Equipped Industries to Support Rapid Growth

Asia Pacific region is anticipated to grow at the fastest rate in the green packaging market during the forecast period. The Asia Pacific region is leading the way in the green packaging market due to its strict packaging laws and fastest-growing customer base. Through the introduction of creative designs and the use of innovative materials, businesses throughout the packaging value chain are searching for more sustainable solutions to keep up with consumer demands and governmental laws. Recycled and biodegradable materials are being used in green packaging by major firms, who are also following the trend. Many countries in the region, such as China, India, and Japan, have implemented strict regulations on plastic usage and waste management. - Ban on single-use plastics and incentives for sustainable packaging solutions are boosting demand.

China Green Packaging Market Trends

By prohibiting the use of single-use plastics and enticing businesses to switch to environmentally friendly alternatives, policies like the 2020 "Plastic Waste Ban" have had a big impact on the packaging sector. The government's pledge to become carbon neutral by 2060, which is in line with international environmental objectives, lends even more support to this change. The sector is growing as a result of these regulatory frameworks, which not only force manufacturers to innovate but also foster a climate that is conducive to green packaging solutions.

North America Largest Consumer Base Promoting Steady Growth

North America is seen to grow at a notable rate in the foreseeable future. The U.S. and Canada have strong regulatory frameworks promoting sustainable packaging. Bans on single-use plastics and extended producer responsibility (EPR) laws in North America require companies to adopt eco-friendly packaging. Major companies like Amazon, Coca-Cola, and Unilever are setting sustainability goals and reducing plastic waste. Many industries in North America region are adopting circular economy models to reduce waste and improve recyclability

U.S. Green Packaging Market Trends

The U.S. green packaging market is showing notable growth due to the laws implemented by government and sustainability initiatives by the industries. Federal and state governments are implementing bans on single-use plastics and promoting Extended Producer Responsibility (EPR) programs in U.S. region. States like California, New York, and Washington have strict packaging waste reduction policies. Development of bioplastics, molded fiber, and edible packaging alternatives. Advancements in compostable materials and improved recycling technologies make sustainable packaging more viable. The U.S. Plastics Pact aims for 100% reusable, recyclable, or compostable packaging by 2025.

Green Packaging Market Top Players

• Amcor
• Be Green Packaging
• DS Smith
• DuPont
• Evergreen Packaging
• Mondi
• Nampak
• Ball Corporation
• Sealed Air
• Tetra Laval
• Uflex Limited
• ELOPAK AS

Latest Announcements by Green Packaging Industry Leaders

• In September 2024, Pakka's India Business Head, Jagdeep Hira, stated, the company have been working toward company’s vision to make the earth cleaner for more than 40 years. Expanding company’s product line was a logical step when company ventured into compostable flexible packaging in collaboration with a brand. The food business has a tremendous demand for flexible packaging. The company are making sure to provide a range of biodegradable packaging options to both consumers and companies with Pakka’s new products. In addition to providing flexible packaging, this will help cut down on packaging waste.

New Advancements in Green Packaging Industry

• In September 2024, Manufacturer Pakka has introduced a new line of flexible compostable packaqinq solutions. With the goal of helping to create a cleaner world and meet the growing need for flexible packaging in the food and beverage industry with compostable solutions, the ground-breaking product line was created.
• In February 2024, Compostable packaging from TIA provides a substitute for virgin plastic packaging that is as transparent, clear, long-lasting, and barrier-effective. They are certified to biodegrade in residential or commercial compost bins, leaving minimal environmental impact and providing customers with the utmost convenience. In addition to resealable bags, mesh packaging, coffee pods, and zipper bags, TIPA has just introduced rice straw trays that are completely recyclable and biodegradable.
• In February 2025, A new Compostable Packaging Research and Design Center has been established at Clemson FRESH to expedite the creation of environmentally friendly, cutting-edge packaging. The structure was constructed using $690,000 from Clemson University and the South Carolina Department of Commerce. CLEMS FRES In order to satisfy the expanding demands of the industry, the Center seeks to draw in industry investment, increase Clemson FRESH's competitiveness for federal funds, and develop talent in sustainable package design. This investment is in line with industry projections that the market for biodegradable packaging will expand by 17% annually.
• In February 2025, the industry leader in kitting solutions, cutting-edge green packaging, medical packaging, and shipping supplies, DaklaPack US, is thrilled to announce the introduction of its new website. To highlight its wide choice of environmentally friendly packaging options, the new website has been professionally developed. A more immersive and user-friendly experience is provided by the new website thanks to enhanced accessibility and the addition of simple service categories.

Green Packaging Market Segments

By Packaging Type

• Recycled Content Packaging
  • Glass
  • Paper
  • Plastic
  • Metal
  • Others
• Reusable Packaging
  • Plastic Container
  • Drums
  • Others
• Degradable Packaging

By Application

• Food & Beverages
• Personal Care
• Healthcare
• Chemical
• Shipping
• Others

By Material

• Paper
• Plastic
• Metal
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait