Green Packaging Market is Estimated To Witness High Growth Owing To Increased Environmental Concerns

The Green Packaging market is estimated to be valued at US$ 208,000 Mn in 2022 and is expected to exhibit a CAGR of 4.97% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Green packaging refers to packaging products and systems that have a relatively low environmental impact during the entire life cycle (production, use, and disposal) as compared to non-green/conventional packaging products and systems. Green packaging materials not only minimize the use of raw materials and optimize packaging volumes but also focus on recyclable or reusable packaging products and solutions. They also enhance product shelf life by providing protective, customized, and high-performance characteristics from production through consumption.

Market key trends:
One of the major trends in the green packaging market is increased environmental concerns. There is a growing awareness among consumers about reducing carbon footprint and adopting sustainable choices. Consumers are increasingly demanding eco-friendly packaging products due to concerns about deforestation, air, water and plastic pollution caused by conventional packaging. Manufacturers are actively responding to this trend by focusing on recyclable, reusable, and biodegradable materials for packaging. They are using green labeling to highlight their sustainable credentials and appeal to environmentally conscious customers. Favorable government policies and regulations towards reducing plastic waste and promoting circular economy are also anticipated to drive increased adoption of green packaging solutions in the coming years.

Porter's Analysis
Threat of new entrants: The green packaging market has moderate threat from new entrants due to significant capital required for manufacturing plants and equipment. However, lack of major intellectual property barriers allows new companies with sufficient funding to enter the market.

Bargaining power of buyers: Buyers in the green packaging market have moderate bargaining power due to availability of alternatives and price sensitivity of brand owners. However, brand owners demand sustainable packaging solutions boosting suppliers' power.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative raw material suppliers and differentiated brands. Rise in raw material prices can impact supplier's profit margins.

Threat of new substitutes: Threat from substitutes is low as green packaging are not substitutable and meet regulatory compliance and branding needs. However, technology advances may bring new eco-friendly substitutes.

Competitive rivalry: The market has high competitive rivalry due to large number of regional and global players offering differentiated products.

SWOT Analysis
Strength: Growing consumer preference for sustainable packaging and stringent regulations regarding single-use plastics boost demand. Green packaging supplies help companies achieve sustainability targets.

Weakness: High production costs compared to conventional packaging and limited design flexibility. Supply chain challenges for procuring certified renewable/recycled content.

Opportunity: Potential in emerging markets due to growing environmental concerns. Product innovation for circular packaging systems presents new opportunities.

Threats: Economic slowdowns restricting brand owners' marketing spends impacting demand. Stricter sustainability regulations raise compliance bar threatening small non-compliant firms.

Key Takeaways
The global Green Packaging Market Share is expected to witness high growth, exhibiting CAGR of 4.97% over the forecast period, due to increasing consumer demand for sustainable packaging and stringent regulations restricting single-use plastics across countries. The green packaging market size for 2022 was US$ 2,08,000 Mn.

Regional analysis shows that Europe dominates the global green packaging market currently due to stringent regulatory push and presence of leading brands committed to sustainability. The Asia Pacific region is expected to grow at the fastest pace during the forecast period, supported by rising environmental awareness and increasing discretionary spending in the region.

Key players operating in the green packaging market are Amcor Limited, Bemis Company Inc., Sealed Air Corporation, Tetra Laval International SA, Mondi Plc., Sonoco Products Company, Cargill Incorporation, Graham Packaging Company Incorporation, and Huhtamaki OYJ, among others. These players are involved in new product development and capacity expansions to strengthen their market presence.

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