The green packaging market, valued at $224.9 billion in 2018, is expected to register a CAGR of 5.7% between 2019 and 2024, according to a new report from Market Insights. Driving the market are factors such as increasing awareness about environmental concerns among both consumers and industries, packaging regulations, and more advanced sustainability initiatives among companies.
Additionally, the packaging industry is making notable progress in environmentally friendly innovations which are increasingly able to reduce source material through thinner and lighter packaging, the report says.
The food industry is expected to hold the major share owing to the increasing use of recyclable packaging and minimal waste generation practices in the industry. Plastic bottles, aluminum cans, and reusable containers are the most preferred sustainable packaging solutions in the industry. Although most of the food packaging in the current market scenario is packed in plastics, only a small portion of it is recyclable or reusable.
North America is currently the largest market for green packaging, globally. Unlike many regions in the world, where government regulations play a crucial part in the growth of green packaging, high awareness and consumer preferences for eco-friendly solutions are the prime reasons for rapid adoption in the US. However, Asia-Pacific is estimated to be the major region along with the highest growth owing to immense demand for packaging from almost all end users dedicated to vast retail market and consumer preferences.