Sustainable Plastic Packaging Market By Packaging Type (Rigid, Flexible, Industrial) By Packaging Format (Primary packaging, Secondary packaging, Tertiary packaging) By Process (Recyclable, Reusable, Biodegradable) By End-Use Sector (Food & beverage, Personal care, Healthcare, Other end-use sectors (electronics and homecare) - Growth, Future Prospects, And Competitive Analysis, 2016 -2028

About this report

The Global Sustainable Plastic Packaging Market report explores the critical analysis of the sustainable plastic packaging industry using key parameters. The report consists of investment strategies, the need for investments in the sustainable plastic packaging industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the global technical regulations for the sustainable plastic packaging industry and how economic and non-economic barriers are helping the market grow. Moreover, the report analyses the global, regional, and country-level historic and forecasted market size. The report also provides a comprehensive analysis of key investment propositions, demand and supply gap, competitors positioning, STAR analysis, SRC analysis, and Tornado analysis. Key technological developments and other analyses include Porter's five forces analysis, PESTEL analysis, value chain analysis, etc.

Key Highlights of the report

How are the major segments performing in the Sustainable Plastic Packaging Market?

• The flexible segment led the market in terms of packaging type in 2021 and is expected to continue throughout the projection period owing to robust demands from several end-use sectors. Customers prefer flexible packaging for lighter and more convenient goods, whereas rigid packaging is ideal for bulky and heavy goods. Flexible packaging uses fewer materials and consumes less energy during production than rigid containers. It also emits fewer greenhouse gas emissions, which is better for the environment.
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• In 2021, the primary packaging segment in packaging format led the market. The rising demand for flexible packaging in primary packaging is expected to drive market growth. The primary function of primary packaging is to protect the product from damage and contamination. 
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• The recyclable process segment held the largest share of the market's overall revenue in 2021, owing to rising demand for recyclable materials such as paper. Industry participants are launching novel plastic packaging options that are fully recyclable and biodegradable. Manufacturers reuse raw materials to create new packaging products. Adoption of such processes increases market revenue.
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• The healthcare industry held the largest market share in the end-use sector in 2021, owing to the growing demand for hygiene products and increasing health awareness among consumers. Despite strict regulations regarding product packaging safety, the healthcare sector has shown promising growth. Glass packaging is widely used in the pharmaceutical industry as it is inert and suitable for various drug packaging.
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Which region dominated the Sustainable Plastic Packaging Market?

The Asia Pacific dominated the sustainable plastic packaging market in 2021 and is expected to continue its dominance over the forecast period. Due to increased development activities and rapid economic expansion, countries such as India and China are expected to grow in sustainable plastic packaging. These countries' growing populations provide a large customer base for FMCG and consumer durables. China, the world's largest manufacturing hub, is changing its packaging habits and materials to be more environmentally friendly. This move will significantly impact the region's market growth owing to the sheer volume of products shipped out of China. The growing public awareness of the importance of environmentally friendly, renewable packaging, the expanding food and beverage industry, and low manufacturing and labor costs drive the regional sustainable plastic packaging market.

What is the competitive environment of the Sustainable Plastic Packaging Market?

Major sustainable plastic packaging players focus on using biodegradable plastic to package their products owing to benefits such as reduced carbon emissions, eco-friendly disposable solutions, and more. For instance, Paptic Ltd, a packaging company based in Finland, introduced a new sustainable packaging material grade for carrier bags and e-commerce mailers in April 2021. Paptic has created a new 100gsm packaging material grade that is renewable, recyclable and has a distinct touch and feel. It is a special grade intended for carrier bags and e-commerce mailers. Similarly, Sealed Air Corporation launched a new version of their bubble wrap brand packaging with at least 90% recycled content in January 2020. This version of bubble wrap brand packaging is made with recycled content sourced from post-industrial materials that would otherwise end up in landfills.

Executive Summary

What are all technical developments being developed in the Sustainable Plastic Packaging Market?

Manufacturers are investing in cutting-edge technologies to meet the ever-increasing demand for low-cost, high-efficiency biodegradable packaging materials. Next-generation technological advancements are also helping manufacturers offer packaging solutions tailored to particular industries. Manufacturers are investing in extrusion coating and resin reclamation technology to increase manufacturing processes' speed and flexibility and provide the appropriate packaging solutions. For instance, Nestle partnered with Greenback recycling technologies in March 2021, introducing chemical recycling plants into the industry and promoting the recycling loop for food-grade plastics. Similarly, Tetra Pak is one of the most well-known and significant packaging companies and stakeholders involved in various sustainable-based packaging systems that use material inversion and conversion technology. Paperboard is the primary material used in all packages. It only uses enough to keep the package stable without adding extra weight. Paperboard is a wood-based renewable material.

Which are the key investments by the players in the Sustainable Plastic Packaging Market?

Companies are investing in the development of better products. They are also concerned with maintaining competitive pricing. These market players attempt to increase their market share through investment strategies such as acquisitions, partnerships, and mergers. Industry participants are also concentrating on R&D activities involving new plant-based materials that mimic the properties of currently used plastics. Market players are increasingly investing in innovative packaging designs and new materials with infinite recycling capacity and material strength. For instance, Amcor's ultra-recyclable high-barrier packaging with a low carbon footprint is designed to replace non-recyclable ALU/PET structures. Likewise, Mondi invested USD 285 million in corrugated packaging in March 2022 to accelerate the company's sustainable growth plans. Also, Smurfit Kappa announced a USD 33 million investment in its Fortaleza, Brazil, plant in January 2022 to expand capacity to meet the increasing demand for innovative and sustainable packaging.

Some of the major players in the market are Sonoco Products Company, Amcor Plc, Sealed Air Corporation, Huhtamaki Oyj, Berry Global Group Inc, Smurfit Kappa, Mondi Plc, Uflex Ltd, and Constantia Flexibles.

What are the Major Driving Factors for the Sustainable Plastic Packaging Market?

The rising shift in consumer preference toward recyclable and eco-friendly materials is a major factor driving market growth, as is increasing packaging downsizing, breakthroughs in new technologies and innovations, an increase in non-biodegradable materials, an increase in public awareness about environmental health issues such as soil pollution, an increase in consumer awareness about the negative impact of plastics, and an increase in consumer demand for the use of green packaging for food. Moreover, increasing modernization and technological advancements in the packaging industry and rising e-commerce growth will create new opportunities for the sustainable plastic packaging market during the forecast period.

What are the Major Risks for the Sustainable Plastic Packaging Market?

The major factors restraining the market growth are rising poor infrastructure facilities for recycling, rising lack of awareness about the importance of sustainability in some emerging economies, and rising packaging shifting toward non-plastic solutions while rising fluctuations in raw material prices will further challenge the growth of the sustainable plastic packaging market. Recyclability issues associated with flexible packaging are expected to be a major impediment to market growth. The multi-layers of flexible post-consumer use are difficult to recycle.

Which is the key End-Use Sector in the Sustainable Plastic Packaging Market?

The healthcare industry segment led the global market in the end-use sector in 2021 and is expected to continue throughout the projection period. The healthcare sector's adoption of eco-friendly packaging is increasing market expansion. The increasing number of manufacturing facilities for various medicines and medical devices, combined with stringent government regulations on medical consumable packaging and safety, is expected to drive the growth of this segment over the forecast period. Glass packaging and aluminum foils are two of the most popular pharmaceutical packaging materials. Companies in the healthcare application market are introducing innovative molded pulp packaging products to replace reusable utensils in hospitals for greater convenience. With hospitals under increasing strai due to the COVID-19 pandemic, disposable eco-friendly alternatives are expected to drive additional demand.'

How is the Sustainable Plastic Packaging Market performing in regions?

The Asia Pacific dominated the global market for sustainable plastic packaging in 2021, owing to an increase in government regulations and initiatives encouraging manufacturers to use sustainable packaging. The Asia Pacific region is the world's manufacturing powerhouse. The low cost of plastic materials has facilitated using recycled plastic, recycled paper, and recycled glass packaging in various applications. In addition, the region's booming food, beverage, and FMCG industries are anticipated to be the main drivers of the green packaging market. The adoption of sustainable plastic packaging solutions is also influenced by regional government regulations on the use of plastic. The Australian government has set a target of adopting 100% recyclable packaging by 2025, resulting in a sharp increase in market value over the projected period.

Besides, Europe is projected to expand the most over the forecast period. Government regulations on single-use plastics and increased awareness of sustainability have fueled the demand for sustainable plastic packaging across Europe. Government initiatives to encourage green packaging solutions are a major factor driving the expansion of the European sustainable plastic packaging market. The European Directive introduced the concept of a circular economy, along with sustainability guidelines and goals. European companies have begun to follow the circular economy roadmap by embracing recyclable, recycled, and biodegradable materials.

What is the regulatory landscape for the Sustainable Plastic Packaging Market?

Stringent environmental safety regulations and increased government initiatives to promote recyclable, sustainable, and biodegradable packaging materials are driving market growth. Government legislation worldwide is one of the primary drivers of the sustainable packaging strategy, putting significant pressure on manufacturers to up their game. As consumers, government entities support the idea of reducing, reusing, and recycling. Government regulations are anticipated to have a greater impact on consumer packaging than on other industries, such as bulk or industrial packaging, to maximize the effect. Consumer packaging reaches the most people and thus has the greatest impact on sustainability. As a result, food and beverage packaging will most likely face the most regulatory scrutiny. Governments have directly assisted consumers in mitigating the environmental-degrading effects of packaging and enacting legislation primarily for businesses. Local governments, for example, provide waste and recycling services to residents and may also participate in waste-education programs.

What is the Market Size of the Sustainable Plastic Packaging Market regarding value?

The global sustainable plastic packaging market is anticipated to grow at a substantial CAGR of 7.5% in the upcoming years. The global sustainable plastic packaging industry was estimated to be worth USD 85.4 billion in 2021 and was expected to be worth USD 131.79 billion by 2028.

What are the major players planning for the future of the Sustainable Plastic Packaging Market?

The growing adoption of innovative sustainable packaging techniques will shape future trends. The key players in the biodegradable packaging industry are expanding their capacities and resources to meet the increasing demand for sustainable packaging, including biodegradable packaging, by establishing new plants and facilities. In addition, key players are pursuing collaboration and joint venture strategies to expand their resources and presence. For instance, Karat Packaging Inc announced a joint venture agreement with Happiness Moon Co. Ltd. (Happiness Moon) in April 2022 to build a new factory in Taiwan to manufacture compostable food service products from bagasse. Similarly, Amcor and Nestle announced a collaboration to develop sustainable packaging solutions in April 2021. Amcor is assisting Nestle in making the transition to sustainable packaging in Australia.

Segmentation of Global Sustainable Plastic Packaging Market

Global Sustainable Plastic Packaging Market – By Packaging Type

• Rigid
• Flexible
• Industrial
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 Global Sustainable Plastic Packaging Market – By Packaging Format

• Primary packaging
• Secondary packaging
• Tertiary packaging
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Global Sustainable Plastic Packaging Market – By Process

• Recyclable
• Reusable
• Biodegradable
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Global Sustainable Plastic Packaging Market – By End-Use Sector

• Food & beverage
• Personal care
• Healthcare
• Other end-use sectors (electronics and homecare)
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Global Sustainable Plastic Packaging Market – By Region

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