The global market for sustainable packaging is set to double in size over the course of the next decade, to be worth $533.9 billion (€490.1 billion) by 2033, new data from Future Market Insights (FMI) has found.
For the current year, the market is expected to be valued at $266.4 billion (€245 billion).
According to Future Market Insights, as consumers become more aware of environmental issues, demand for sustainable packaging solutions is on the rise.
This includes eco-friendly and biodegradable packaging, as well as compostable and recyclable solutions, with demand for plastic-free packaging set to accelerate over the coming years in particular, it added.
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Cost-Effective Solutions
'While demand for sustainable packaging solutions is growing, manufacturers face several challenges in meeting this demand,' FMI said. 'One of the biggest challenges is finding cost-effective and scalable solutions for producing sustainable packaging materials.
'Another challenge is meeting regulatory requirements and ensuring that sustainable packaging materials meet the same quality standards as traditional packaging materials.'
A Growing Market
Between 2018 and 2020, the sustainable packaging industry grew at a CAGR of 5.8%, driven by the growing popularity of biodegradable and compostable packaging solutions, FMI said.
Between 2020 and 2022, during the COVID-19 pandemic, demand accelerated, according to FMI, with the market growing at a CAGR of 6.2%.
'The COVID-19 pandemic further accelerated the demand for sustainable packaging, as consumers became more conscious of their impact on the environment and the health risks associated with single-use plastics,' it noted.
Since last year, the market has continued to gain pace, growing at a CAGR of 6.5% between 2022 and 2023.
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