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Sustainable Packaging Market Overview

Global market for sustainable packaging grew at a CAGR of 5-6% during 2015-19, led by a rising awareness among consumers and government legislations around the world.

Currently Asia Pacific is dominating the market with China and India taking the lead. It is followed by North America which dominated the segment in early 2010s.

Rising environmental awareness, government regulations on non – degradable plastics, increasing health and hygiene concerns, high per capita income, rising demand for recycled packaged products, urbanization and lifestyle changes are driving the growth of green packaging.

It is expected that the biggest growth in sustainable packaging industry would be in the Asia Pacific market, largely driven by India & China. This is due to the increase in health awareness among the middle class population which has the maximum share in the total population of these nations and also due to the faster growth that these economies are experiencing presently, relative to developed markets.

Trends that have promoted the growth of Green packaging in the Asia Pacific region:

  • Downsizing / light weighting of packaging (Reduce)
  • Increased recycling and waste recovery (Recycle)
  • Increased use of recycled content (Recycle)
  • Increased use of renewably sourced materials (Renewable)
  • Improvements in packaging and logistical efficiency (Reduce and Reuse)

Asia Pacific Sustainable Packaging Market Outlook

Going forward, the global sustainable packaging market size is expected to reach around US$ 220 Bn by 2025 at a CAGR of around 6-7% in terms of revenue during the forecasting period 2020 to 2024. This is lower owing to COVID-19 related slowdown, and is lower than the pre-COVID forecast growth of 7-8%.

India’s packaging industry is forecast to reach ~$75 billion in 2020, at a CAGR of 16-18% during 2015-20, with flexible packaging growing at ~25% and rigid packaging at ~15%. Going forward, the growth is likely to slow down a bit owing to COVID-19 related slowdown in 2020-21.

Sustainability is a fast gaining importance among Indian companies, as consumers increasingly look for products that are ‘green’ owing to growing awareness around health and environmental issues pertaining to plastics

According to earlier forecasts, sustainability was expected to be one of the defining trends in 2020; however, the COVID-19 pandemic has forced many countries to enforce long lockdowns which are still in place. This is likely to slow down the shift to sustainable packaging materials

Due to Covid-19 there have been many debates over the packaging of products and its ability to transmit the disease through it. Because of this concern, supermarkets have seen an increase in the use of single-use materials to wrap products, like cling film for fruit and vegetables.

We believe that many companies will continue to pursue plastic reduction strategies and invest more in sustainable packaging solutions, once normalcy is restored.

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Market Growth Drivers and Trends

Key factors driving the Asia Pacific Sustainable Packaging market are:

  • Increasing working population
  • Growing middle class population and income levels
  • Changing lifestyles and urbanization levels
  • Growing awareness about sustainability or green initiatives among FMCG companies (major end-users)

Potential Challenges

Key factors likely to restrain or slow down growth in the Asia Pacific Sustainable Packaging market :

  • Availability of raw material along with volatility in prices is a major challenge
  • Consumer goods sector facing low margins due to dependency on import prices
  • Lack of domestic technology in the lesser developed markets

Asia Pacific Sustainable Packaging Market Research Scope

The base year of the study is 2019, with forecast done up to 2024. The report provides a detailed assessment of the global and Asia Pacific sustainable packaging market, including insights on the market dynamics, key drivers, challenges, regulations impacting the market, technology assessment and value chain analysis.

We have also estimated the current market size for sustainable packaging products globally, in Asia Pacific and in India and China, 5-year outlook of the market, factors driving growth along with regional insights and trends

The study also presents a thorough analysis of the competitive landscape, considering the market shares of the leading companies in India and China. These provide the key market participants with the necessary business intelligence and help them understand the future of the sustainable packaging markets in India and China

Author – Prasanth R Krishnan
Associate Director Operation
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