19. Jan 2017
The global green packaging market size is expected to reach $207,543 million by 2022 from $132,556 million in 2015, registering growth at a CAGR of 5.41% from 2016 to 2022, writes Aliied Market Research in their most recent report on the market for sustainable packaging.
The report distinguishes the following categories of green packaging: recycled content packaging (plastic, paper, glass, metal, and others), reusable packaging (plastic containers, drums, others reusable packaging), and degradable packaging.
The green packaging market is emergent, and is anticipated to show significant growth in the next six years, fueled by the advent of bioplastic, environmental concerns on sustainable development and the enforcement of stringent legislation and policies by regulatory authorities. As consumer awareness grows, market demand for sustainable packaging has also risen. The study found that The European region is expected to continue to lead the market, followed by North America during the forecast period. German green packaging market is to grow at a CAGR of 5.10%; the Middle East region, 3.15%. In 2015, the North American and Asia-Pacific regions jointly accounted for more than half of the total volume of green packaging used.
Oil-based plastics are currently used in the overwhelming majority of packaging applications. At the end of life, however, these materials can pose problems: multi-layered structures and contamination make recycling or reuse difficult. Biodegradable plastics made from renewable resources can overcome these disadvantages to some degree. These can reduce greenhouse gas emissions, due to the reduced reliance on fossil fuels in production and biodegradable nature of the products. Compostable organic food and garden waste releases methane gas that is used as renewable energy and the compost by-product can be used to enhance quality of soil, which will positively impact on the green packaging market trend.
Bioplastics have flourished in healthcare and pharmaceutical applications, and are accepted as an alternative for polymer oil-based products. According to Eswara Prasad, Team Lead, Chemicals & Materials at Allied Market Research, "Bioplastic is a new ecological alternative to oil-based polymers with promising growth in pharmaceutical sectors."
The recycled content packaging segment is expected to grow at a CAGR of 4.92%. In the current situation, however, the amount of solid waste generated is not at par with the recycling capacity: According to World Bank, in 2012, the annual solid waste generated across the globe was about 1.3 billion tons, and is expected to increase to 2.2 billion tons by 2025. The recycling industry is now a global business with international markets and extensive supply and transportation networks. Yet efficient systems for the recycling of MSW are still largely lacking, and the high production and set up cost has acted as a preventive to businesses. In addition, lack of government initiatives, especially in the developing countries, through subsidies for recycling and lack of space for storing recycled material also act as restraint to the green packaging market.
A group of multinationals, including the Dow Chemical Company, Henkel AG & KGaA, and Mitsubishi Corporation have launched an initiative to promote sustainable development by forming a community called "Together for Sustainability", which provides opportunity to the market. This initiative supports the United Nations Global Compact and Responsible Care to achieve sustainable development.
Leading players in the green packaging market have adopted various strategies gathered from press releases, annual reports, and primary calls made to industry experts to achieve additional market share. Key strategies adopted by these players include product launches, joint ventures, acquisitions, partnership, expansion, collaboration, and investments.
Major players in green packaging market are Amcor Limited, E. I. DuPont de Nemours and Company, Mondi Limited, Sealed Air Corporation, TetraPak International S.A., Ardagh Group Co., PlastiPak Holdings, Inc., Bemis Company, Inc., Uflex limited, and ELOPAK AS.
Other key players (not profiled in the report) in the green packaging market value chain include BASF SE, Catalyst Paper, Clorox Company, Berry Plastics, TetraLaval, Printpack Inc, Ball Corporation, Innova Films Ltd, and Phoenix Technologies.