Sustainable Packaging will hit $400 million by market capital in 2024.
Zion Market Research who have authored the report has identified several key players who will drive the growth.
Sustainable Packaging will hit $400 million by market capital in 2024.
Zion Market Research who have authored the report has identified several key players who will drive the growth. This includes the likes of Amcor Flexibles Packaging, Mondi Packaging Films, BASF SE, and Sonoco Packaging.
Amcor Flexibles Packaging announced last month that it will pledge to commit to long-term sustainable packaging and being a more environmentally friendly company across the board.
Future packaging developments and innovations will focus on recyclable or usable as a focus point, rather than a secondary consideration.
Amcor has also said they want to solve some of the recycling challenges around the ‘scale and reach’ of their current packaging lines.
Amcor is joining up with 10 other major flexible packaging manufacturers to make the same 2025 commitment. This is all in cooperation with the Ellen Macarthur Foundation (EMF).
During 2018 Mondi Packaging Films assisted global adhesive giant Henkel in helping them find more technological solutions to transform their plastic waste.
Here they have successfully converted huge volumes of scrap into aesthetically attractive and functional laminated packaging foil.
Over 30% of the PE layer in this material is manufactured from industrial waste that would otherwise be discarded.
This trend from packaging manufacturers to commit to sustainability is most needed. Over 45% of all the plastic demand globally goes into packaging production. Manufacturers must play a central role in creating viable alternatives.
Global Efforts Towards Sustainable Packaging Policies
In March 2022, all 193 UN Member States came together to forge a legal agreement. This historic accord commits nations worldwide to take resolute action by 2024. One of the commitments is to lessen plastic pollution that plagued our environment for far too long.
Packaging waste management is one of the most regulated and closely monitored concerns on the global stage. Currently, a comprehensive array of 91 measures is in place. Countries worldwide are implementing a range of strategies to address this pressing issue.
Targets by Country
With this goal, the European Commission has set a rigorous target. This is to slash packaging waste by 15% per capita in every member state by the year 2040. This ambitious goal seeks to bring about a substantial reduction in packaging waste. It is measured against the baseline established in 2018.
In Asia, Thailand has taken a significant stride towards a greener future. It enacted a nationwide ban on single-use plastic bags within major retail establishments. This initiative showcases the growing awareness and commitment among Asian nations to combat plastic pollution at its source.
Amid these global efforts, McKinsey conducted a survey revealing that 24 out of 30 countries enacted rules. These rules aimed at reducing or restricting the use of non-sustainable shipping materials. This underscores the international consensus on the necessity of transitioning to eco-friendly packaging methods.
Furthermore, 22 countries have introduced comprehensive regulations covering industrial waste collection, sorting, and the concept of Extended Producer Responsibility (E.P.R.). These E.P.R. regulations incentivize companies to focus on the use of recyclable shipping materials.
EPR in the US
In the United States, numerous states encourage businesses to adopt sustainable packaging practices. They offer tax incentives to companies that opt for appropriately sized corrugated packaging.
Also, the Plastic Pollution Prevention and Packaging Producer Responsibility Act has been introduced with a twofold objective. It aims to reduce the production of single-use plastic packaging. Also, it seeks to shift the financial burden of recycling onto plastic producers.
As of 2023, six U.S. states have actively implemented EPR or similar packaging laws. This action demonstrates the nation's commitment to promoting responsible packaging practices. These states include California, Colorado, Maine, Oregon, New Jersey, and Washington. Each plays a crucial role in advancing the cause of sustainable packaging.
Sustainable Packaging Market Size and Consumer Sentiments
In 2023, the Global Sustainable Packaging Market reached a significant valuation of USD 271.86 billion. This stat marks a pivotal milestone in the ongoing drive towards environmentally conscious packaging solutions. It reflects the growing emphasis on sustainable practices within the packaging industry.
Projections for the Future
As we look to the horizon, the trajectory of sustainable packaging is increasing remarkably. By 2028, it is expected to surge to an astounding USD 393.39 billion.
Consumer Preferences: The Driving Force
Consumers wield considerable influence in steering the sustainable packaging movement. 43% consider the environmental impact of packaging to be an important factor when purchasing products. This figure means the public is becoming environmentally conscious.
Moreover, precisely 54% actively seek out recycling and sustainability information on packaging. This indicates a widespread desire for transparency and responsible practices within the industry.
Financial Impact of Sustainable Packaging and Sales
The impact of sustainable packaging on sales is undeniable. An impressive 50% of consumers are willing to pay a premium for products with sustainable packaging. This willingness enhances the appeal of sustainable packaging and contributes to the bottom line of businesses.
