Increasing environmental consciousness among consumers, along with more stringent regulations, are driving the sustainable packaging market, and will continue to do so at least through 2024, according to a new study from Zion Market Research. By using sustainable packaging, harmful environmental effects are decreased, while the shelf life of the product increases, the study points out.
Sustainable packaging is used widely across all industry verticals, but they are majorly used in industries such as CPGs (like P&G), wholesale, food & beverage (like McCormick & Company), retail trade, and healthcare (like Johnson & Johnson).
Because the use of non-biodegradable plastics causes various harmful effects on the environment – including soil pollution and loss of soil fertility – stringent regulations are being implemented by government. On the other hand, low availability and higher prices are holding back the growth of the sustainable packaging market, the report says.
The region with the fastest growing sustainable packaging market is Asia Pacific. Factors leading to market growth in the area are the large consumer base and the increasing per capita expenditure. Asia Pacific is followed by Europe and North America. The growth in the sustainable packaging market in the North American region is owing to the stringent government regulations and increasing consumer preferences.
Sustainable Packaging Important to Brits
Consumer preference is a driving factor of the growth of sustainable packaging in Europe, as well. A recent YouGov study indicated that British consumers are willing to pay more for products that are packaged in recyclable or recycled materials. YouGov research released by Veolia shows that 51% of respondents would choose a drink in a recyclable bottle rather than their normal drink purchase, if the new drink was comparable in terms of price, quality and flavor.
Additionally, 30% say they consider recyclable packaging important when choosing a drink to buy, a higher percentage than those who said brand was important (26%) or the aesthetics of the bottle were important (9%).