The Zero Waste Packaging Market is estimated to be valued at US$ 1.57 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The zero waste packaging market comprises of packaging products or materials that can be reused, reduced, or recycled completely without leaving behind any waste. This includes compostable packaging, reusable packaging, and recyclable packaging made from materials such as paper, glass, aluminum, and bio-plastics. Zero waste packaging helps eliminate the use of single-use plastics and reduce carbon footprint. Moreover, it supports the circular economy model by recovering resources from products after usage.
Market key trends:
One of the major trends driving growth of the zero waste packaging market is increasing adoption of artificial intelligence technology. Packaging manufacturers are integrating AI and machine learning capabilities to design intelligent and smart packaging. For example, AI-powered packaging can detect expiry dates, product freshness, and provide consumers with relevant product information through RFID and barcode scanning on smartphones. This helps reduce food waste and manage inventory more efficiently. AI also allows customization of packaging according to customer needs and demands.
Porter’s Analysis
Threat of new entrants: The zero waste packaging market requires high initial capital investments for establishing production facilities and recycling infrastructure which limits threat of new entrants.
Bargaining power of buyers: Buyers in the zero waste packaging market have moderate bargaining power since they have options to switch between well established players but growing awareness about sustainability is increasing their demand for zero waste products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and reliance of players on technically complex machinery and materials.
Threat of new substitutes: Threat from new substitutes is low as packaged goods require well established infrastructure for collection and recycling.
Competitive rivalry: High as players compete on innovation, pricing and sustainability offerings.
SWOT Analysis
Strengths: Growing consumer awareness about sustainability and circular economy supports demand. Advanced recycling technologies lower production costs.
Weaknesses: High capital requirements for setting up recycling infrastructure. Packaging alternatives are yet to match functional properties of single use plastics.
Opportunities: Supportive regulations and policies by governments worldwide to ban single use plastics present an opportunity. Potential for tie-ups with FMCG companies and retailers.
Threats: Collection logistics challenges in many regions hamper effective recycling. Customers may resist price increases for recycled products.
Key Takeaways
The global zero waste packaging market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing awareness about sustainability issues like plastic pollution and carbon footprint of packaging waste. The market size for zero waste packaging is estimated to reach US$ 3.12 Bn by 2030.
Regionally, North America dominates the global zero waste packaging market currently. Strict regulations regarding plastic waste management and growing consumer preference for sustainable products in the US and Canada are fueling demand. Europe is another major market for zero waste packaging driven by EU directives to ban single use plastics by 2021.
Key players operating in the zero waste packaging market are Loop Industries Inc., Pulp Works Inc., Avani Eco, Loliware, Lifepack, Aarohana Ecosocial Development, and Package Free, GO Box, World Centric, and Biome. Major players are focusing on diverse materials like ocean plastics, plant-based plastics and mushrooms for packaging to gain an advantage. Partnerships with retailers are another strategic focus.
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