Sustainable Secondary Packaging Market Size & Share | 2034

Sustainable Secondary Packaging Market Size and Rising Demand

The sustainable secondary packaging market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034, powering sustainable infrastructure globally.

The sustainable secondary packaging sector is poised for substantial growth with a promising CAGR in the upcoming years. Packaging that is sustainable is composed of recyclable and reusable materials. Secondary packaging refers to the outer layer of packaging that surrounds a product's primary package. It serves to both facilitate transportation and shield the goods from tampering and damage as it passes through the supply chain. Sustainable secondary packaging materials use sustainable processes and recycled materials to minimize their impact on the environment. Also, waste is eliminated and few resources as well as energy are utilized in the production of sustainable packaging materials.

The increasing environmental awareness among consumers and companies along with the growing implementation of the stringent regulations by governments worldwide to reduce the plastic waste is expected to augment the growth of the bag-in-box packaging market during the forecast period. Furthermore, the shift towards the corporate social responsibility coupled with the development of the advance materials is also anticipated to augment the growth of the market. Additionally, the growing e-commerce sector as well as the increasing adoption of the circular economy practices and the push for waste reduction is also projected to contribute to the growth of the market in the years to come.

Key Trends and Findings

• Customers are becoming more conscious of their purchasing decisions due to growing environmental concerns. More than 40 percent of the buyers claim that product packaging influences their choice to purchase. To encourage organizations to use eco-friendly materials, shoppers are even ready to pay a little bit extra. According to a recent survey, 57% of customers are willing to spend more for a product if it implies the packaging is sustainable. A good trend has been observed, with 37% of Gen Z consumers actively seeking out and reading green packaging remarks.
• The use of folding cartons is one of the most major developments in the sustainable packaging sector. Due to their versatility and flexibility to be constructed from recyclable paperboard, these boxes allow businesses to customize them to the needs of their products. Additionally, folding cartons are perfect for high-end printing methods such as foil stamping, laminating, embossing, UV coatings and other decorations. Another benefit of folding containers is their reduced weight. Transporting lighter goods on the road minimizes the impact of air pollutants and emissions on the environment.
• Packaging that is sustainable is a commitment. While placing a product in a recyclable box is a good place to start, there is more to be done. Today, organizations seek to collaborate with suppliers who share their commitment to sustainability such as commercial printers who design and produce the packaging. Offering cardboard or recyclable paper is insufficient. Every aspect of a printer's operations, like the facility's energy use and the recycling of inks, should also be sustainable.
• Some organizations are even ready to assist customers in recycling products once they are used, in addition to using environmentally friendly packaging. For instance, Crayola's ColorCycle initiative promotes schools and customers to recycle their used markers by sending them to the firm. They will even cover the cost of shipping.
• North America held considerable market share in 2023. This is due to the stringent environmental regulations, a strong focus on sustainability by major corporations coupled with the widespread consumer awareness.
• Asia-Pacific is expected to grow at the fastest CAGR due to the increasing industrialization, urbanization as well as rising awareness about environmental issues.

Market Drivers

Increasing Consumer Preference for Sustainable Choices

The increasing consumer preference for the sustainable choices is anticipated to augment the growth of the sustainable secondary packaging market during the forecast period. There is no denying that sustainability is a dynamic and complicated concept that is increasingly incorporated in the people's daily lives rather than merely a passing trend. Clarity and ethics are important, with packaging taking center stage as the consumers become more conscious of sustainability than ever before. The percentage of the consumers who adopt circularity has increased tremendously as one in two say they repair or reuse the items rather than replacing them. A favorable trend has been seen, with thirty-seven percent of the Gen Z consumers actively seeking out and reading green statements on packaging.

According to the Trivium Packaging's report, the growing number of environmentally conscious consumers is contributing to the increased need for the products packaged sustainably. 82% of the people surveyed stated they would be prepared to pay more for sustainable packaging that is an increase of 4 percentage points compared to 2022 and 8 percentage points from 2021. This indicates that consumers still prioritize the environment in spite of the worsening economic conditions. Younger consumers (18–24 years old) are even more receptive, with 90% of them saying they are less likely to purchase goods with environmentally hazardous packaging.

The Generation Z or the digital natives are the new purchasing superpower, with nearly 10 million online buyers and more than half of them are impacted by sustainable packaging. Customers are undoubtedly setting the path towards a sustainable future. Companies are realizing that providing responsible packaging options is more than just a regulatory compliance requirement; it is also an effective method to engage with the environmentally conscious customers. As consumers are turning towards recyclable packaging options, they are likely to shape the sustainable secondary packaging market within the estimated timeframe.

Market Restraints

Costs of Sustainable Packaging

The high cost of sustainable packaging is projected to impede the growth of the sustainable secondary packaging market during the estimated timeframe. Sustainable packaging is more expensive than conventional packaging, which is reasonable. This is owing to the materials utilized and where they come from, as well as because of weak established manufacturing techniques, supply chains, and economies of scale. Even though research indicates that over half of the consumers are ready to pay more for sustainable products that can be recycled or reused, this is still cause for concern, specifically for FMCG (fast-Moving Consumer Goods) companies with narrow profit margins. In this situation, increase in costs becomes a major barrier.

Furthermore, a considerable portion of packaging organizations sustainability initiatives focuses on lightweighting their products to reduce their total waste and adverse environmental impacts for their brand customers. Although this is helpful, the research study makes the case that packaging innovation requires much more, but the economics must be strong. Gaining scale will require sustainable technologies that have a cost trade-off that is either neutral or reasonably priced.

In addition, many application breakthroughs appear to be challenging to scale up beyond the smaller projects that are now in place; this is partially because they frequently involve expensive materials and are at an early stage of the research process.

Additionally, waste disposal procedures vary not only among nations but even among towns within a same nation. Since different infrastructure and procedures are utilized to handle packaging waste, this leads to inconsistencies. However, infrastructure is arguably the most important component for achieving correctly. But the circular economy cannot be established without the help of infrastructure for collection, processing, and conversion. These factors are expected to slow down the market growth by restricting accessibility, increasing costs and limiting the feasibility of the large-scale adoption within the estimated timeframe.

Market Opportunities

Restrictive Government Measures

The stringent government regulations and bans on the single-use plastics is expected to create immense growth opportunity for the sustainable secondary packaging market in the near future. Across the globe, policymakers are implementing measures to combat the adverse environmental impacts of the plastic waste, encouraging companies to adopt the eco-friendly alternatives. These regulations consist of bans on the non-biodegradable plastics, higher taxation on traditional packaging materials as well as mandates for recycling and waste management. For instance:

• In September 2024, the Australian government announced a consultation process to change packaging laws in order to reduce waste, strengthen recycling, and promote a packaging circular economy. Large-scale recycling must be incorporated into packaging design, and materials and additives that hinder recyclability would be prohibited. Packaging that does not exceed a minimum recyclability standard would also be gradually banned. With a focus on consumer education, transparent and uniform recyclability labeling will be needed.
• In March 2024, representatives of the European Parliament and the Council presidency developed a temporary political agreement on a proposal for a packaging and packaging waste law. The objective is to balance the internal packaging market, promote the circular economy, as well as address the rise in packaging waste produced in the EU. The concept takes into account packaging's entire life cycle. By mandating that all packaging be recyclable and that the amount of compounds of concern be kept to a minimum, it creates standards to guarantee packaging that is both sustainable and safe. In order to improve consumer knowledge, it also establishes standards for labeling uniformity.

These regulatory changes are compelling the companies to innovate and integrate recyclable materials into their packaging designs. Stringent regulatory policies not only drive the market growth but also foster an environment for innovation, enabling the development of the scalable sustainable secondary packaging options.

Artificial Intelligence (AI) Impact on the Market

It is more important for the brands now to be able to adapt to the quickly shifting market dynamics as well as consumer preferences in today's fast-paced, digital environment. However, relying exclusively on the human ingenuity and manual procedures might make it difficult for the companies to navigate these market changes. Recent advancements in the artificial intelligence (AI) have the potential to accelerate consumer sustainability and branding needs while improving human creativity and intellect.

Through the analysis of enormous volumes of data from numerous sources such as online reviews, social media, sales data, and consumer surveys, artificial intelligence (AI) presents potential to obtain deeper insights into customer behavior, preferences, and trends. AI can promote the evaluation of different materials, such as bioplastics or PCR, which may be consistent with the consumer preferences and brand owners' sustainability objectives.

One of the pioneers in the sustainable packaging worldwide, Berry, is presently investing on the current artificial intelligence capabilities to help its clients compete in a field that is changing quickly. Berry's in-house design studio, Blue Clover Studios, can make creative packaging designs that are attractive to the customers and satisfy the specific sustainability as well as branding needs of brand owners by using artificial intelligence (AI) methods into packaging development and creation processes.

Similarly, Amazon has also been capable of making sustainable packaging decisions instantly with implementation of AI. Manually selecting the proper packing for each Amazon order would be impractical.  This is due to the vast as well as diverse product catalog, which is constantly changing. Companies can gain improved operational efficiency, cost savings and sustainability by incorporating AI technologies, hence promoting innovation in the sustainable secondary packaging market.

Key Segment Analysis

Material Segment Analysis Preview

The paper and cardboard segment held substantial market share in the year 2023. In the pursuit of the sustainable packaging options, paper and cardboard are important materials. These materials, which come from the renewable resources, provide a sustainable substitute for virgin resources, reducing impact on the environment while yet satisfying the requirements of contemporary packaging. Recognizing the advantages of the recycled paper and cardboard in minimizing waste and saving energy, industries all over the world are implementing these materials into their packaging strategy.

Furthermore, paper and cardboard are widely adopted due to their high recyclability, biodegradability as well as ability to meet consumer and regulatory demands for eco-friendly options. The European Union has the highest percentage of paper recycling in the world, at 71.4% (2021 data), with paper-based packaging recycling reaching 82%. Additionally, paper and cardboard are the most cost-effective options as compared to the alternatives like glass and bioplastics and that has also made them an attractive choice for the organizations.

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Application Segment Analysis Preview

The food & beverage segment held the largest market share in the year 2023. This is owing to the growing global population, higher consumption of the packaged and ready-to-eat foods across the globe. Furthermore, the rising demand for the organic, fresh and sustainably sourced food and beverage products is also likely to contribute to the growth of the segment within the estimated timeframe. Additionally, the growing food delivery sector coupled with the innovations in the food processing and packaging technologies is further expected to support the segmental growth of the market in the near future.

Regional Insights

Europe held largest market share in 2023. This is owing to the stringent environmental regulations such as such as the Single-Use Plastics Directive and the Circular Economy Action Plan along with the high consumer awareness across the region. Additionally, the presence of the most advanced recycling systems along with the support for circular economy practices is also expected to contribute to the regional growth of the market. Furthermore, the growing e-commerce market as well as strong food & beverage industry is also expected to contribute to the regional growth of the market.

Asia Pacific is likely to grow at the fastest CAGR during the forecast period. This is due to the rapid expansion of online shopping platforms in the economies such as India and China. Also, the growth in the food delivery and packaged food industries are likely to contribute to the regional growth of the market. As per the USDA Foreign Agricultural Service, in 2023, China's food service sector recovered further and surpassed pre-pandemic levels. The restaurant and hospitality sector generated $750 billion in revenue, a 20.4 percent increase over 2022. In 2023, the food delivery market doubled in size from three years prior, reaching $209.8 billion (RMB 1.5 trillion).

Also, as per the Indian Brand Equity Foundation, it is anticipated that the food and beverage packaging market in India would rise significantly, from US$ 33.7 billion in 2023 to US$ 46.3 billion by 2028. Furthermore, the policies aimed at reducing plastic waste, such as India’s single-use plastic ban and China's plastic reduction guidelines is also expected to contribute to the regional growth of the market.

Recent Developments by Key Market Players

• In December 2024, the new GrasiKraft paper void fill made from grass fibers was announced by Ranpak Holdings Corp., the first organization in the globe to provide grass paper as a part of its regular product portfolio for void fill. This new product complements Ranpak's innovative suite of products, which incorporates paper converters that are suitable for any application needed in a box and automated packaging solutions.
• In April 2024, FoodChain ID introduced Sustainable Packaging Services, a line of goods and professionally facilitated services designed to assist food and cosmetics companies and their supply chains in satisfying consumer demands for environmentally friendly packaging. Sustainable Packaging Services integrates both new and pre-existing digital services to help manufacturers keep an eye on and react to evolving global sustainable packaging regulations.

Sustainable Secondary Packaging Market Players

Some of the key players in sustainable secondary packaging market are Amcor PLC, WestRock Company, Smurfit Kappa Group PLC, Mondi Group, International Paper Company, Stora Enso Oyj, Berry Global Inc., Packaging Corporation of America, Ball Corporation, and Sealed Air Corporation, among others.

Sustainable Secondary Packaging Market Segments

By Material

• Paper and Cardboard
• Plastics
• Glass
• Others

By Application

• Food & Beverage
• Personal Care
• Healthcare
• Electronics
• Others

By Region

• North America
  • U.S.
  • Canada
• Mexico
  • Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-East Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East & Africa