Sustainable Packaging Global Market Report 2022: Sector to Reach $190.6 Billion by 2031 at a 7.4% CAGR

The global sustainable packaging market size was valued at $93.6 billion in 2021 and is projected to reach $190.6 billion by 2031, with a CAGR of 7.4% from 2022 to 2031.These materials, once sorted correctly for recycling, can be shredded, pulped, or melted down and remolded as raw material for new packaging or other uses. Other eco-friendly materials, such as industrially compostable Polylactic Acid (PLA) and cellulose-based materials, are used for sustainable packaging because they have similar characteristics to plastic but will biodegrade in compost. These compostable materials can be molded into food service containers, cutlery, or flexible packaging.Growing consumer awareness of environmentally friendly packaging, stringent restrictions on the use of single-use plastics, and growing environmental concerns brought on by packaging waste dumped in landfills are some of the key factors driving the growth of the market. Other factors driving market expansion include growing R&D capacities, increasing demand for flexible packaging materials and solutions, and growing technical advancements in packaging equipment and technology. Moreover, the market is expanding in the food and beverage sector, with more packaging made of recyclable and biodegradable materials. In the food service industry, single-use plastic food trays, cups, lids, closures, and straws are being replaced by products made of paper or biodegradable substitutes. However, fluctuations in the pricing of raw materials hamper the growth of the market.The rise in raw material prices is due to the outbreak of the COVID-19 pandemic, which caused disruptions in the supply chain and a shortage of the material required for the manufacturing of sustainable packaging products. The market is witnessing growth in different sectors, including food and beverage, the pharmaceutical industry, healthcare, the automobile industry, agriculture, and personal care.The sustainable packaging market is segmented on the basis of material type, packaging type, end-use industry, and region. On the basis of material type, the market is divided into paper and paperboard, plastics, aluminum, and others. On the basis of packaging type, the market is classified into rigid packaging and flexible packaging. On the basis of end-use industry, the market is categorized into food and beverage, personal care, healthcare, and pharmaceuticals, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.