Sustainable Packaging Overview
Sustainability, as the term denotes is associated with administration and overseeing of several issues connected to the environment. A host of issues may form part of sustainability, some of them which are commonly plaguing the environment such as greenhouse gas emissions, waste management etc. have taken up the attention of governments’ across the globe, as it could spell disaster for the future generations to come. Sustainability, though vital for progress cannot afford to oversee the social, cultural and economic impact on the environment in its efforts to protect and preserve the natural environment.
Sustainable Packaging products contribute to a safe and healthy lifestyle for all individuals throughout its life cycle as they are harmless and aid in saving the resources considerably. Reduce, reuse and recycle are the words one is commonly reminded of, when it comes to green packaging and sustainable packaging which aims at improving the utility value for each product. There are various suggestions and recommendations put forth to all stakeholders primarily comprising of manufacturers and consumers to work collectively rather than in isolation, towards adopting sustainable solutions such as recyclable packaging to make every individual aware of their duties and take the charge towards safeguarding the environment.
Market Size and Forecast
The global sustainable packaging market that had witnessed a phenomenal rise in growth of its revenues during the past decade garnered market size to the tune of USD 24, 6012. 25 Million in 2018. On the back of multi-faceted usage of sustainable packaging across various industries such as cosmetics, electronics, pharmaceuticals, and auto parts, the global sustainable packaging market is projected to muster revenues of around USD 41, 2700 million by 2027, while registering a CAGR of 6.23% over the forecast period (2020-2027). Some of the major factors contributing to the growth of the market can be attributed to rising awareness among consumers and increasing number of stringent government regulations imposed globally.
With a steady rise in the global wealth occurring across almost every region, there has been a rapid rise in both production and waste and this trend is expected to continue further in the next decade. According to a report published by the World Bank, the waste generated across the world is predicted to touch 3.4 billion tonnes by 2050 on the back of rapidly growing population and urbanization around the globe.
The rising concern for environment and growing awareness towards using biodegradable material has taken the centre stage around the globe and is expected to reap significant dividends for the global sustainable packaging market over the forecast period. Amidst growing concerns globally to reduce the level of CO2 emissions that already reached an unprecedented 37 billion metric tonnes in 2017, there has been a paradigm shift in the approach of consumers towards the use of bio-degradable packaging that is expected to fuel the growth of the market in sustainable packaging.
Region-wise Growth Highlights – 2020-2027
The global sustainable packaging market is segmented region wise into five major regions comprising of North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
North America is projected to occupy a leading market share of 29.87% by 2027. Rising disposable incomes of the people is cited as one of the major causes of growth of the market over the forecast period, particularly in the U.S. region. The companies in U.S. are taking a full lifecycle approach for sustainable packaging i.e. sourcing for sustainable materials, decreased carbon emission and increased recyclability. Additionally, growing investment by the companies in Canada pertaining to spreading awareness among consumers for using sustainable packaged food products is expected to support the market growth in North America region.
This growth is closely followed by the market in Europe where Germany with leading market share of 19.85% in 2018 is significantly contributing towards the growth of the market in this region. The growth in Germany can be attributed to the handling of resources in an efficient and responsible manner that has long played an important role in the German packaging industry both in ecological as well as in economic terms.
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The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Material Type
The global sustainable packaging market is segmented on the lines of material type into paper and paper board, plastics, metal, glass and others. Out of these, paper and paperboard segment (24.77% share in 2018) is estimated to occupy the largest market share in sustainable packaging across the globe. This can be attributed to rising use of paper and paperboards for creating container boards, paper bags and shipping sacks among various industries such as foods and beverages, cement manufacturing, medicine and glassware industries, and others.
By Process
The global sustainable packaging market is segmented on the basis of process into recycled, reusable and degradable. The recycled segment tops the chart globally in terms of market size, whereas reusable segment is having better advantage over other available substitutes, owing to its major advantage of repetitive usage after making minor refurbishment of the same material, thereby aiding the market players on account of reduction in cost of packaging which brings down the overall cost per unit.
By Type of Packaging
The market is segmented on the basis of type of packaging into flexible and rigid packaging. Flexible packaging, being the leading segment in the market is anticipated to hold more than half of the total market share in the packaging type segment in 2027. Some of the factors driving the demand for flexible packaging is rapid lifestyle changes adopted by the consumers followed by busy work schedule and growing concern for health and safety of the consumers that is further propelling the demand for flexible packaging in food and beverage industry.
By Layers
On the basis of layers, the global sustainable packaging market is segmented into primary, secondary and tertiary segments. The rising need for secure handling of the products to the customers has gained the attention of the market players and has driven them to focus on stronger primary packaging that is in direct contact with the product in order to protect the product from any external damages, contamination and spoiling, which in turn is expected to boost the growth of the market.
By Application
The global sustainable packaging market is divided by application into food and beverage, healthcare, personal care, industrial and others, out of which, the food and beverage segment is anticipated to hold highest market shares owing to rising consumption of food across the world.
Growth Drivers
The growth of consumer goods industry is fuelling the demand for branded and unbranded products, which in turn is boosting the demand of sustainable packaging. Additionally, rising usage in the F&B applications coupled with high usage across the consumer durables industry is fuelling the demand for the sustainable packaging across the globe.
Rising per capita income, increased demand of variety of packaging sizes in consumer goods along with convenience and flexibility provided by the sustainable packaging manufacturers is supporting the growth of the market.
Restraints
Frequent fluctuations in the prices of raw-materials in different countries may act as a barrier to the growth of the market during the forecast period.
Competitive Landscape
DOW Chemical Company, BASF SE, DS Smith, International Paper Company, Amcor Limited, Transcontinental Inc., Sappi Limited, Tetra Pak International S.A., Silgan Holdings Inc., Mondi PLC, Sealed Air Corporation, Huhtamaki OYJ, Smurfit Kappa Group PLC, Sonoco, Bemis Company, Orora and other prominent players are some of the leading players in the global sustainable packaging market.
Silgan Containers backs The Recycling Partnership – a community-based recycling program, to further increase an already impressive recycling participation. Since the inception of this program, there has been a 22% average increase in overall recycling volume in 40 partner communities. Silgan Holdings Inc. is an American based company which manufactures and sells consumer good packaging materials.
With new innovations, strategic acquisitions and agreements entered into by companies in order to expand and diversify their product portfolios, some of the market players are able to gain a sizeable market share in this increasingly complex and competitive market.
