Green packaging involves using environmentally friendly and biodegradable materials for packing products. Such packaging includes materials like paper, sugarcane, leaves, wood etc. which have lower carbon footprint and are sustainable. Green packaging helps reduce the adverse environmental impact of plastic packaging waste. It provides brands the opportunity to promote their green and sustainable credentials. The growing restrictions on use of plastics and laws promoting sustainability and circular economy are driving increased demand for green alternatives.

The Global Green Packaging Market is estimated to be valued at US$ 251524.92 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Green Packaging are Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko plc, Wärtsilä Corporation, Yanmar Co. Ltd., Doosan Corporation.

The growing environmental concerns and strict norms around plastic waste have increased the demand for green and sustainable alternatives in packaging. Various governments have imposed bans or limitations on single use plastic to reduce plastic pollution. This increasing regulatory pressure is expected to drive higher adoption of green packaging solutions.

The major brands and retailers have also started focusing on green credentials and sustainability in their packaging. This has pushed green packaging to gain global footprint. With growing international trade, green packaging allows brands to tap international markets and appeal to global consumers who are increasingly environment conscious.

Market key trends

One of the key trends in Green Packaging Market Size is the use of bio-based and biodegradable materials. Many new startups are developing innovative plant-based materials like leaves, wood, paper etc. that have properties suitable for packaging and are environment friendly. These bio-based packaging solutions ensure lower carbon footprint and help address sustainability goals. Their biodegradable nature also helps reduce plastic pollution issues.

Porter’s Analysis

Threat of new entrants: Medium. Green packaging market is growing rapidly but high initial investments and technical expertise required act as barriers for new entrants.

Bargaining power of buyers: High. Buyers have significant bargaining power due to availability of alternatives and price sensitivity.

Bargaining power of suppliers: Medium. Suppliers have moderate power due to availability of substitute raw materials.

Threat of new substitutes: Low. No significant threat of substitutes currently exists due to eco-friendly benefits of green packaging.

Competitive rivalry: High. Intense competition exists among existing players to gain market share through product innovation, pricing and customer relationships.

Geographical Regions

North America accounts for the largest value share currently due to stringent government regulations and growing consumer awareness. European region is also one of the major markets driven by initiatives like circular economy action plan promoting sustainability.

Asia Pacific region is projected to witness the fastest growth during the forecast period due to rapid industrialization, growing e-commerce sectors and favorable government policies supporting green packaging adoption in countries like China, India.

Geographical Regions

Europe accounts for the largest share currently, led by countries like Germany, UK, France having widespread recycling infrastructure and policies incentivizing use of renewable and recyclable materials in packaging. Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising industries, population, income levels and supporting government initiatives in emerging economies like China and India driving higher packaging needs.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it