Green Packaging Market To Reach US$203.1 Billion By 2021

Tuesday, June 28th, 2016 | 921 Views

According to a new market report that looked at the trends of the green packaging market from 2015 to 2021, the market for green packaging is expected to grow at a CAGR of 6.2 percent between 2015 and 2021. The report from Transparency Market Research pins the overall value of the global green packaging at US$132.4 billion in 2014. It is expected to reach US$203.1 billion by end 2021.

Green packaging or sustainable packaging uses biodegradable materials to offer improved sustainability. The packaging involves life-cycle assessment (LCA) and ensures increased life-cycle inventory (LCI).

According to the report, the green packaging market is being driven by increasing environmental concern. Considerable efforts are being made to reduce toxic waste emissions. Green package results in very less toxic emission and causes less pollution in form of landfills. This is boosted by governments’ initiatives to clean the environment, which have led to strict regulations formulated by government bodies globally. Manufacturers are therefore under pressure to adhere to green packaging as part of these regulations.

Rising health awareness among consumers was also cited as another reason for the rise. As consumers become more health conscious, there is a paradigm shift towards healthy and biodegradable packaging. The interest among consumers in green packaging has also given a competitive edge for industry players.

However, the study also noted that there was a reduction in profit margin in this market segment due to increase in production costs. This has inhabited the growth of the global green packaging market. A lack of consumer awareness regarding green packaging has also limited the industrial switch to green packaging. Nevertheless, the market is expected to significantly gain from the rising government initiatives. The food and beverage packaging held the largest market share in the green packaging segment. In 2015, it accounted for a share of 59.7 percent.

The US is the largest market for green packaging due to the extensive use of eco-friendly packaged products. The Asia Pacific region, particularly in India and China, offers the fastest growing market for green packaging in part due to the large and growing population.