Sustainable, compostable, recyclable, reclaimable, biodegradable …New, environmentally responsible packaging formats are all the rage! Government regulatory measures are propelling rapid-fire growth.
Customer demand is accelerating, due in large part to looming health and safety concerns. Research and development initiatives are driving innovations in materials, approaches, and mindsets.
Package printers are monitoring everything that’s happening while moving out to capitalize on the phenomenon and comply with local, regional and international dictums. At the same time, market analysts are saying tremendous growth patterns are likely, while pointing to sustainable packaging’s global market value as more than doubling in the coming decade.
In recent days, five separate forecasts, issued by four respected research firms—Acumen Research, Statista, Stratis Research and Introspective Market Research—identify common trends, agree on their pending impact and project near matches in long-range outcomes.
Specifically:
- Acumen Research and Consulting is reporting that the global sustainable packaging market will realize a 7.7 percent compound annual growth rate through 2032. At that time sales volume will approximate $528 billion, some $274 billon greater than its $254 billion estimated worth in 2022
- Statista places the global sustainable packaging market value at approximately $271.9 billion for 2023 and says it is expected to exceed $393 billion by 2028, with the sustainable plastic packaging market alone expected to reach $143.7 billion by 2030
- Stratis Market Research agrees with Acumen’s projection of 7.7 percent CAGR and extends its forecast through 2031, as compared to 2032. It assigns a value of $476.3 billion at the time and relies on a 2022 baseline of $244.3 billion
- In a second, independent study, Stratis concludes the global compostable plastic market, valued at $1.5 billion in 2022, is projected to reach $5.5 billion by 2031, growing at a CAGR of 15.5 percent
- Finally, Introspective Market Research holds CAGR of 6.5 percent for the next seven years will see the sustainable packaging market valuation leap from $306.7 billion at the start of 2023 to $507.6 billion in 2030
Common Stance
Analysts at Acumen maintain, “As environmental concerns gain traction throughout the world, individuals and companies alike are looking for alternatives to single-use plastics and non-recyclable materials. Biodegradable packaging, which degrades naturally into harmless components, is an environmentally responsible solution that matches with these sustainability goals.”
“Furthermore, tough legislation and government activities aiming at decreasing plastic waste and encouraging sustainable practices are driving the usage of biodegradable packaging even further,” according to the Acumen team.
The firm’s researchers note, “North America has demonstrated a strong commitment to sustainability, with the US and Canada both taking initiatives to decrease plastic waste and encourage environmentally friendly practices. Sustainable packaging materials and practices are in high demand, and customers increasingly prefer items with ecologically responsible packaging.”
In similar vein, they say, “For many years, Europe has been a leader in sustainable packaging practices. The European Union has enacted strict rules, such as the Single-usage Plastics Directive, to reduce the usage of single-use plastics. As a result, the use of biodegradable, recyclable, and compostable packaging materials has increased.”
Statista, in essence echoes the observation. “Sustainable packaging solutions encompass a wide array of methods and materials, all aimed at reducing environmental impact and promoting a more environmentally sustainable future. Some examples include biodegradable packaging, made from plant-based materials; compostable packaging, that can be converted into nutrient-rich soil; recycled packaging, made from post-consumer waste; reusable packaging systems; and minimalist packaging designs, that reduce waste and carbon footprint.”
Similarly, Introspective Market Research offers, “To begin, customers are developing a greater awareness of the environment and are placing an increased demand for items that are manufactured in a manner that is environmentally responsible. …Second, regulations and policies are being enacted to lessen the amount of non-biodegradable and non-recyclable materials that are used in the production of packaging.”
Among observations it voices, “The European Union has set a target of making all plastic packaging recyclable or reusable by 2030. In the United States, several states and cities have banned single-use plastic bags, and there are calls for similar measures at the federal level.
Stratis Research market watchers proclaim, “Packaging made from compostable plastic is an eco-friendly alternative to plastic. The plastic packaging materials PHA, PLA, PBS, PBAT, and starch blends can all be composted. These compostable polymers mimic the advantageous qualities of conventional plastic, such as barrier properties, durability, shelf stability, etc.”
Further observations note, “PHA, one of the main ingredients for compostable plastic types, has yet to be widely commercialized because of high price issues. Several producers are currently implementing various strategies to lower the cost of PHA and maintain steady demand. Only 15 to 20 manufacturers operate in this market. Most take care of the initial raw material processing. Due to the high demand for compostable plastic, these businesses’ production capacities are changing quickly.”
Just the Stats
Acumen lists out developments as follows:
- North American sustainable packaging market share approximates 38 percent at forecast inception ~$96.5 billion
- Asia-Pacific sustainable packaging market growth is projected to attain 8.2 percent CAGR from 2023 to 2032
- By product, the recycled sub-segment grabs 75 percent share
- Paper and paperboard revenue streams approximate $101.4 billion
- The corrugated box segment is projected to be a leading market share holder
- Recycled product dominates the market and is expected to maintain the leading position
- Food and beverages have consistently been the highest revenue-generating segment and are expected to continue their strong performance
Stratis, in part, mirrors Acumen findings. Namely:
- The global sustainable packaging market is bifurcated into reusable packaging, degradable packaging, and recycled packaging. The recycled packaging segment is the highest contributor to the market and is estimated to grow at a CAGR of 7 percent
- By material, the market includes glass, plastic, metal, and paper. The paper segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.3 percent
- Food and beverage is the largest segment of the market and CAGR is estimated at 7 percent
Stratis Research concludes that, “Utilizing compostable plastic reduces carbon footprint by 42 percent. …Due to its high biodegradability, lack of toxicity, environmental friendliness, and ability to directly replace conventional plastic, compostable plastic has emerged as one of the market’s key growth drivers.”
It explains, “As consumer environmental concerns grow, businesses use sustainable and environmentally friendly alternatives to develop and strengthen their brand image. …The sector is anticipated to use a forward integration strategy to create its value chain because it has a robust infrastructure and capital base.”
- Europe is the highest contributor to the global compostable plastic market and is anticipated to grow at a CAGR of 14.8 percent during the forecast period
- North America is expected to grow at the fastest CAGR of 15.7 percent, due to the addition of new manufacturing facilities
“Supportive government regulations and policies for the production and consumption of sustainable products, as well as the rise in consumer environmental consciousness, influence manufacturers of synthetic plastics to favor the production of compostable plastic materials,” Stratis reports.
“Informed consumers with significant purchasing power, high levels of environmental awareness, and a legal and regulatory environment are predicted to support the growth of the North American compostable plastic market. Increasing demand for compostable plastic cups in restaurants and confectioneries will drive the market demand.”
Statista remarks, “A considerable challenge facing the global packaging industry is the growing pressure on the plastic packaging industry to improve its environmental performance. Although many plastics are technically recyclable, only a small amount gets recycled globally due to various barriers, and as a result, there has been increased consumer criticism of the excessive use of plastic packaging.”
Elaborating on that finding, it states, “As such, these challenges may serve to impact the packaging industry as a whole and open new possibilities for packaging industry agents who can innovate and collaborate with their customers to offer new sustainable packaging solutions.”
Introspective Market Research contends, “Recycled content packaging dominates the market,” then adds, “Increased collecting and processing capability, combined with increased usage of recycled content packaging by businesses seeking to demonstrate environmental friendliness and differentiate their products, will boost gains in recycled content packaging. Initiatives by industry bodies, brand owners, packaging businesses, and others to promote sustainability programs aimed at increasing recycling rates of various types of packaging materials will benefit the segment’s growth.”