by The global Sustainable Packaging Market is estimated to be valued at US$ 227.32 Billion In 2021 and is expected to exhibit a CAGR of 7.5% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Sustainable packaging refers to the use of materials and processes that have a reduced environmental impact compared to traditional packaging. This type of packaging is designed to minimize waste, promote recycling, and reduce carbon emissions. The need for sustainable packaging has increased due to growing environmental concerns and regulations related to packaging waste. Sustainable packaging offers advantages such as lower carbon footprint, improved brand image, and reduced operational costs for companies.
Market Key Trends:
One key trend observed in the sustainable packaging market is the increasing use of bio-based materials. With the aim of reducing reliance on fossil fuels and minimizing carbon emissions, companies are shifting towards using renewable and bio-based materials for packaging. Bio-based materials are derived from renewable resources such as corn, sugarcane, and wood pulp. These materials offer comparable performance to traditional packaging materials and have a lower environmental impact. The use of bio-based materials in sustainable packaging is expected to witness significant growth in the coming years as more companies adopt eco-friendly practices to meet sustainability goals and consumer demand for greener packaging solutions.
Porter’s Analysis
Threat of new entrants: The Sustainable Packaging Market is characterized by high barriers to entry due to the presence of established key players and the need for significant capital investment. This reduces the threat of new entrants into the market.
Bargaining power of buyers: As sustainable packaging becomes a more prominent trend, the demand for environmentally-friendly packaging materials is increasing. This gives buyers more leverage in negotiating prices and choosing suppliers, potentially reducing the bargaining power of individual suppliers.
Bargaining power of suppliers: The sustainable packaging market relies on various raw materials such as bio-based polymers, recycled materials, and eco-friendly coatings. The availability and cost of these materials can influence the bargaining power of suppliers. However, as the demand for sustainable packaging grows, suppliers may benefit from increased demand for their products, giving them more leverage.
Threat of new substitutes: As sustainability becomes a priority for consumers and companies, there is a growing demand for alternatives to traditional packaging materials. This may include options like reusable containers, biodegradable materials, or digital solutions. These substitutes pose a potential threat to the sustainable packaging market.
Competitive rivalry: The sustainable packaging market is highly competitive, with key players constantly innovating and developing new products to gain a competitive edge. This intense rivalry results in regular product launches, collaborations, and mergers and acquisitions among key players.
Key Takeaways
The global sustainable packaging market is expected to witness high growth, exhibiting a CAGR of 7.5% over the forecast period. This growth is driven by the increasing awareness and adoption of sustainable practices by companies across various industries. The need to reduce carbon footprints, decrease waste generation, and address environmental concerns is propelling the demand for sustainable packaging solutions.
Regionally, North America is expected to be the fastest-growing and dominating region in the sustainable packaging market. This can be attributed to strict regulations regarding packaging waste, rising consumer awareness, and the presence of major players in the region. Additionally, Europe is also expected to witness significant growth due to similar factors.
Key players operating in the sustainable packaging market include Amcor Limited, Westrock Company, TetraPak International S.A., Sonoco Products Company, Smurfit Kappa Group PLC, Sealed Air Corporation, Mondi PLC, Huhtamaki OYJ, BASF SE, Ardagh Group S.A, Ball Corporation, Crown Holdings, Inc., DS Smith Plc, Genpak LLC, and International Paper Company. These companies are focusing on product innovation, collaborations, and strategic partnerships to gain a competitive advantage and expand their market presence.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
