(Credit: Pixabay)The global green packaging market size had a revenue holding of $229.46 billion in 2021. It is expected to reach $409.2 billion by 2030, growing at a CAGR of 7.5% from 2022–2030, according to Straits Research.
Green packaging uses materials and manufacturing processes that have a lower effect on energy consumption and the environment for the packaging of goods. Biodegradable and recyclable materials frequently replace plastic and styrofoam in environmentally friendly packaging. In addition, green manufacturing processes limit their electricity production and emissions of greenhouse gases. According to government standards, most manufacturers use sustainable packaging to eliminate the toxins and chemicals that degrade the planet's water, soil, and atmosphere. Packaging materials contribute significantly to the global waste issue.
Since the Single-Use Plastics Directive and the new EU Commission's European Green Deal release, the fundamental components of the European legal framework for plastics are currently being revised. This creates new opportunities for the green packaging industry, which may be crucial to achieving the European Union's goal of a low-carbon and resource-efficient circular economy, the directive says. In the United States, plastic bag restrictions have been implemented at the state level. Eight states have already enacted legislation prohibiting single-use plastic bags, and California, Hawaii, and Oregon did so in 2020.
The need for sustainable products from consumers and businesses is another factor driving the growth in the use of green packaging solutions. In addition to the bioplastics industry's ongoing discoveries of new materials with superior qualities and functions, this is due to a growing awareness of environmental impacts and the need to reduce reliance on fossil fuels. In addition, many brands are adopting sustainable packaging by employing green packaging alternatives.
Asia-Pacific is expected to command the market, expanding at a CAGR of 9% over the forecast period. The Asia-Pacific market is primarily driven by China. Due to growing business interest, China's economy is the largest in Asia-Pacific. China's economy is among the world's fastest-growing, and due to rising per capita income, living standards, and population, almost every end-user industry has experienced expansion. Chinese plastic producers create a sizeable portion of the world's plastic, with 4.89 million metric tons produced in 2019 and 6.12 million in 2020, according to research published by the National Bureau of Statistics of China.
North America is expected to account for $100 billion by 2030, growing at a CAGR of 6%. The United States and Canada are the most significant contributors to the market. Over the forecast period, increasing consumer awareness of environmental issues and supportive government regulations are anticipated to fuel demand for green packaging in the United States. According to the Environmental Protection Agency, the United States generates up to 80 million metric tons of packaging waste annually. Food and beverage products account for roughly half of the United States packaging waste, and the agency noted that major food companies such as Nestle and Unilever produce the majority of plastic waste.
