USD 382.0 Billion
Report ID:
SQMIG15H2110 |
Region:
Global |
Published Date: May, 2025
Pages:
192
|Tables:
116
|Figures:
70
Global Sustainable Packaging Market size was valued at USD 382.0 Billion in 2023 and is poised to grow from USD 409.12 Billion in 2024 to USD 708.22 Billion by 2032, growing at a CAGR of 7.1% in the forecast period (2025-2032).
The circular economy is driving a fundamental shift in the sustainable packaging market due to mounting environmental concerns and international regulatory pressures. Major industry players are rethinking their packaging solutions using state-of-the-art material science and design techniques in an effort to combat the growing environmental crisis. According to data from the Ocean Conservancy, an estimated 150 million metric tonnes of plastic are already believed to be present in the world's waters, and an additional 8 million metric tonnes enter the oceans annually. This troubling situation has sparked unprecedented collaboration among material scientists, manufacturers, and brands to develop more eco-friendly packaging options.
As the sustainable packaging market witnesses a significant change in material preferences, paper-based packaging is emerging as a popular sustainable alternative. Recycled paper is a more desirable option for manufacturers and brands because it uses 50% less water and 74% less air pollution during production than virgin paper, according to recent studies. This trend is further supported by research showing that 62% of European consumers consider cardboard and paper packaging to be more environmentally friendly packaging options. The industry's focus on paper-based solutions to ensure sustainability and functionality coexist has sparked innovations in barrier coatings and structural design.
With consumer consciousness rising to unprecedented levels on trends around sustainable packaging, the sustainable packaging market outlook has indeed reversed direction. In fact, a report by Boston Consulting Group states that 79% of consumers would change their choice of products based on completely new factors such as social responsibility, inclusion, or environmental impacts. 57% of the consumers within the ages of 18-24, and 53% of consumers have shifted their patronage to lesser-known brands owing to those brands offering sustainable packaging options. These further point out that a tremendous alteration is happening within the behavioral pattern of the consumer, which instantly dictates production choices.
AI is transforming innovation into sustainable packaging through intelligent design, smarter material use, and better supply chain efficiency. AI data analytics and machine learning enables companies to reduce their carbon footprint by using less material, reducing waste, and forecasting demand smarter than before. For example, in November 2024, Amcor, the world’s leading packaging company, reported they were able to reduce material usage by 15% with the same strength and functionality using an AI-based platform to design biodegradable packaging. AI is also essential to the packaging quality process to help detect defects earlier and help packaging claims meet sustainable packaging requirements. Innovations like these represent reduced costs for packaging companies along with assisting businesses to keep current with growing requirements from environmental regulators and the increasing demand for eco-friendly packaging solutions.
Market snapshot - 2025-2032
Global Market Size
USD 382.0 Billion
Largest Segment
Recyclable
Fastest Growth
Biodegradable
Growth Rate
7.1% CAGR
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The global sustainable packaging market is segmented into material, packaging format, type, process, and region. By material, the market is classified into plastics, paper & paperboard, glass, and metal. Depending on the type, it is bifurcated into rigid and flexible. According to packaging format, the market is divided into primary, secondary, and tertiary. As per the process, it is categorized into recyclable, reusable, and biodegradable. Regionally, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
As per the 2024 global sustainable packaging market analysis, the recyclable segment will account for about 73% of the market. The ascent of this market position is fueled by increasing uptake in various sectors including food and beverage, personal care, and e-commerce. Large companies like Coca-Cola, PepsiCo, and Unilever have also made significant commitments to enhance the number of recycled materials incorporated in their products. The segment is expanding because of improved recycling infrastructure, advances in recycling technology, and strict governmental policies towards the utilization of recycled materials. Paper-based recycled packaging has expanded factionally because of its better recyclability and preference towards eco-friendly products. The use of circular packaging principles is also adding to the growth in this segment.
Between 2025 and 2032, the sustainable packaging market is anticipated to expand at a rate of roughly 12%, with the biodegradable category showing the fastest rate of growth. The primary forces behind this remarkable growth are rising consumer awareness of environmental issues and the growing demand for biodegradable packaging options. This segment is witnessing notable progress in material development, including new biodegradable polymers and plant-based alternatives. Major retailers and brands are increasingly incorporating biodegradable packaging options into their sustainability plans, especially in the food service and personal care sectors.
Based on the 2024 global sustainable packaging market forecast, the paper & paperboard category is expected to hold a 46% market share, maintaining its dominance in the market. This significant market position is primarily driven by consumers' growing preference for recyclable and eco-friendly materials, particularly in the food service and e-commerce sectors. Paper packaging products, including corrugated boxes, paper bags, pouches, and cartons, are highly sought after due to their exceptional recyclability and biodegradable properties. Major retailers and brands are actively shifting away from plastic and toward paper-based packaging solutions as companies like Tetra Pak and Smurfit Kappa introduce innovative paper-based alternatives for a variety of applications.
The plastics category is anticipated to have the highest sustainable packaging market share. The primary forces behind this growth are developments in recyclable and biodegradable plastics, including improvements in PLA (polylactic acid) and other bio-based materials. Companies are investing more in research and development to create eco-friendly plastic packaging options while maintaining the usefulness and versatility of traditional plastics.
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As per the 2024 sustainable packaging market regional forecast, North America remains a major player in the market, accounting for about 26% of the global market share. The primary drivers of the region's leadership are stringent environmental regulations and rising consumer awareness of sustainable packaging market trends. The US and Canada demonstrate a strong commitment to sustainable packaging initiatives, especially in sectors like e-commerce, pharmaceuticals, and food and beverage. The market in the region is defined by large R&D expenditures for innovative packaging solutions, such as recyclable packaging technologies and biodegradable materials.
U.S. Sustainable Packaging Market
The US sustainable packaging market is growing quickly due to strong consumer demand for eco-friendly products and legislation aimed at reducing plastic waste. Large companies like Coca-Cola increased their investments in bioplastics and recyclable materials in 2024 after pledging to use 50% recycled content in packaging by 2030.
Canada Sustainable Packaging Market
Canada's sustainable packaging market is growing due to government programs like the Canadian Plastic Waste Reduction Strategy and rising consumer awareness. Stricter government regulations on single-use plastics caused businesses to switch to recyclable and compostable packaging in 2024. By switching to recyclable packaging, big retailers like Loblaw Companies are propelling market expansion at a projected 7% CAGR through 2025.
The most dynamic sustainable packaging market is Asia-Pacific, which is expected to grow at a rate of about 8% between 2025 and 2032. The market in the region is defined by rapid industrialization, growing environmental consciousness, and the growing adoption of sustainable practices across a range of industries. China, Japan, and India are leading the way in the transition to sustainable packaging solutions because of a confluence of changing consumer preferences and regulatory pressures. The region's large manufacturing base and growing middle class create significant opportunities for innovations in sustainable packaging.
South Korea Sustainable Packaging Market
South Korea is leading the sustainable packaging market due to stringent government regulations and business pledges. Recycling and packaging waste reduction are mandated by the "Extended Producer Responsibility" program. Companies such as LG Household & Health Care introduced eco-friendly packaging made of recycled plastic in 2024. With an emphasis on cutting-edge biodegradable materials, the South Korean market for sustainable packaging is expected to expand dramatically by 2025.
Japan Sustainable Packaging Market
The government's Plastic Resource Circulation Strategy, which intends to recycle all plastic packaging by 2030, and consumer demand for less waste are driving Japan's sustainable packaging market. In 2024, convenience stores such as 7-Eleven began introducing reusable container programs. The market is expected to grow at a compound annual growth rate (CAGR) of 6–7% through 2025 due to technological advancements in biodegradable plastics and paper-based packaging.
The market's robust growth rate of roughly 5% till 2024 demonstrates Europe's strong commitment to sustainable packaging solutions. Strict regulations controlling recycling and packaging waste, along with forward-thinking environmental policies, are driving the local market. With an emphasis on reducing the use of single-use plastics, European countries are setting the standard for incorporating the principles of the circular economy into packaging design and production. The market benefits from advanced recycling infrastructure and strong collaboration amongst industry players, including manufacturers, retailers, and recycling facilities. The demand for eco-friendly packaging options has increased due to Europe's exceptionally high levels of consumer and environmental consciousness.
UK Sustainable Packaging Market
Strong government laws that encourage the use of recycled materials, like the Plastic Packaging Tax, which went into effect in 2024, are beneficial to the UK's sustainable packaging market. Tesco and other retail behemoths committed to using only recyclable or reusable packaging by 2025. The circular economy and consumer demand for eco-friendly products are predicted to propel the market's growth at a compound annual growth rate (CAGR) of about 7-8% between 2024 and 2025.
France Sustainable Packaging Market
France's position as a leader in sustainability is further cemented by stringent regulations that prohibit single-use plastics and mandate eco-design for packaging. Carrefour launched 100% biodegradable fresh produce packaging across the country in 2024. The French government encourages innovation by providing funding for biodegradable material research. The market is expected to expand gradually through 2025 at a CAGR of roughly 6% due to consumer pressure and regulations.
Germany Sustainable Packaging Market
Germany is the leader in Europe for the use of sustainable packaging due to the Packaging Act (VerpackG) and the country's environmentally conscious consumers. Businesses such as BASF advocated for the commercialization of bio-based polymers in 2024. Due to Germany's circular economy strategy and industry advancements in green technology, the reusable and recyclable packaging solutions is expected to grow at a steady 7% CAGR through 2025.
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Raising Environmental Awareness and Regulatory Pressure
Rising Demand for Eco-Friendly Consumer Goods and E-Commerce
Higher Manufacturing Costs Compared to Traditional Packaging
Supply Chain and Infrastructure Challenges
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Amcor, Sealed Air, and Mondi lead the charge in the global sustainable packaging market through a commitment to innovation, successful partnerships, and acquisition. To develop innovative packaging solutions and biodegradable materials, they invest significant resources into research and development. These companies can compete better by expanding their geographic reach and connecting with multiple end-use sectors to address diverse market demands and regulations.
Top Player’s Company Profiles
Recent Developments in Sustainable Packaging Market
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, with the rising consumer interest in eco-friendly products, along with stricter regulations and a growing awareness of environmental issues, the sustainable packaging market outlook is set to change rapidly. Innovations in biodegradable materials and simple designs are creating exciting opportunities, even as supply chain challenges and increasing production costs persist. Major companies are expanding their product lines and reaching new markets through partnerships and strategic investments in research and development. As sustainability becomes essential for businesses, promoting a circular economy and minimizing environmental impact globally, the market is expected to keep evolving.
Report Metric | Details |
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Market size value in 2023 | USD 382.0 Billion |
Market size value in 2032 | USD 708.22 Billion |
Growth Rate | 7.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Sustainable Packaging Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Sustainable Packaging Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Sustainable Packaging Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Sustainable Packaging Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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Global Sustainable Packaging Market size was valued at USD 382.0 Billion in 2023 and is poised to grow from USD 409.12 Billion in 2024 to USD 708.22 Billion by 2032, growing at a CAGR of 7.1% in the forecast period (2025-2032).
Amcor plc, Sealed Air Corporation, Mondi Group, Berry Global, Inc., Huhtamaki Oyj, Sonoco Products Company, Bemis Company, Inc. (part of Amcor), Winpak Ltd., Smurfit Kappa Group, DS Smith Plc, Crown Holdings, Inc., Tetra Laval International S.A., Uflex Limited
With stricter government regulations and a growing global concern for the environment, manufacturers are increasingly turning to sustainable packaging solutions. Policies focused on reducing carbon emissions and plastic waste are prompting investments in materials that are recyclable, biodegradable, and compostable. As consumers show a clear preference for eco-friendly products, businesses are motivated to innovate and align their packaging strategies with sustainability goals, which in turn fuels the global sustainable packaging market growth.
The rapid developments in biodegradable polymers, plant-based plastics, and compostable films are already making a difference in sustainable packaging. Companies have been increasing their R&D to improve strength, shelf life and pricing, and because of these developments, environmentally friendly packaging can now fulfill a range of industrial functions from food to cosmetics by providing effective, scalable alternatives to fossil-fuel/chemical-based plastics to help reduce their impact on the planet.
As per the 2024 sustainable packaging market regional forecast, North America remains a major player in the market, accounting for about 26% of the global market share. The primary drivers of the region's leadership are stringent environmental regulations and rising consumer awareness of sustainable packaging market trends. The US and Canada demonstrate a strong commitment to sustainable packaging initiatives, especially in sectors like e-commerce, pharmaceuticals, and food and beverage.
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