Green packaging is a sustainable packaging solution that reduces environmental impact. Eco-friendly packaging reduces the negative impact on the environment by utilizing biodegradable and recyclable materials. Further, it has an extremely lower carbon footprint and reduces the impact on the environment. As per a report published by Fortune Business Insights™, the global green packaging market is expected to hit USD 385.34 billion by 2028.
The closure of offline shopping, stores, and diners opened opportunities for e-commerce. E-commerce proved to be an extremely convenient, effective, and attractive shopping channel for consumers. As a result, the demand for eco-friendly packaging increased rapidly. Manufacturers adopt automation to continue their activities and avoid infection spread. Further, manufacturers adopted flexible hours, reduced capacities, and social distancing practices to continue their activities. In addition, robust demand for food packaging increased the demand for eco-friendly options.
Highlighting Some Factors Elevating the Demand for Green Packaging
- Paper is considered an effective alternative to plastic packaging due to its biodegradable properties.
- It is extremely cost-effective and is cheaper compared to other materials.
- Governments are undertaking initiatives to develop effective plastic alternatives.
- Its increasing applications in food packaging will stoke sales.
- Robust investments in packaging and their eco-friendly nature.
- The rising popularity of eco-friendly products will further enhance green packaging demand.
- Materials, such as refurbished products, organic fabric, plant-based biomaterial, recyclable plastics & paper, and bioplastics, are sustainable.
- Cardboard, paper, and recyclable products are easily replaceable, recyclable, and eliminate pollution.
- Strong demand for convenient and eco-friendly products. Technological innovations in packaging shall boost the material demand.
- Reduced reaction with food and beverages.
Major Hurdles in Adoption of Green Packaging
- Concerns regarding the adoption of sustainable packaging solutions
- Issues associated with the testing of green packaging.
- Labor-intensive nature of goods may increase production costs.
Strategies Deployed by Major Players to Foster Eco-friendly Packaging Adoption
- Companies adopt novel product launches to enhance their demand. For example, Amcor announced an eco-friendly chocolate pack in South America in June 2021. It was manufactured using recyclable plastic material and reduced carbon footprint by nearly 53% compared to previous packaging systems.
- Players focus on implementing technologically advanced packaging systems to improve efficiency, reduce material loss, and enhance their activities.
- Major entities invest heavily in research and development to produce easily disposable, user-friendly, and effective green packaging solutions.
- A strong focus on adopting eco-friendly materials may enhance the packaging’s strength and provide better shelf-life similar to pollutant materials.
Major Players Operating in this Industry
- Amcor Limited (Zürich, Switzerland)
- Ardagh Group SA (Dublin, Ireland)
- Ball Corporation (Broomfield, Colorado, U.S.)
- Braskem SA (São Paulo, State of São Paulo, Brazil)
- Caraustar Industries Incorporated (Austell, GA, U.S.)
- Cargill Incorporated (Wayzata, Minnesota, U.S.)
- Cascades Incorporated (Kingsey Falls, Canada)
Recyclable and Eco-Friendly Packaging Norms Will Enhance the Industry’s Size
With the trend of eco-friendly material adoption, the demand for green packaging may increase exponentially. As pollution and contamination levels rise, the material’s popularity slowly rises. Manufacturers are focusing on incorporating eco-friendly and recyclable materials to reduce carbon footprint. Consumers love buying products that have attractive packaging and use eco-friendly materials.
With the constantly evolving competitive landscape, manufacturers focus on developing technologically advanced packaging methods to enhance the product demand. Furthermore, substantial government investments in developing eco-friendly alternatives to non-recyclable plastics will boost the adoption of green packaging.
The future for this industry is highly promising and shall generate strong financial returns for manufacturers who strategically plan their ventures.
