The global market for sustainable packaging is set to double in size over the course of the next decade, to be worth $533.9 billion (€490.1 billion) by 2033, new data from Future Market Insights (FMI) has found.
For the current year, the market is expected to be valued at $266.4 billion (€245 billion).
According to Future Market Insights, as consumers become more aware of environmental issues, demand for sustainable packaging solutions is on the rise.
This includes eco-friendly and biodegradable packaging, as well as compostable and recyclable solutions, with demand for plastic-free packaging set to accelerate over the coming years in particular, it added.
'While demand for sustainable packaging solutions is growing, manufacturers face several challenges in meeting this demand,' FMI said. 'One of the biggest challenges is finding cost-effective and scalable solutions for producing sustainable packaging materials.
'Another challenge is meeting regulatory requirements and ensuring that sustainable packaging materials meet the same quality standards as traditional packaging materials.'
A Growing Market
Between 2018 and 2020, the sustainable packaging industry grew at a CAGR of 5.8%, driven by the growing popularity of biodegradable and compostable packaging solutions, FMI said.
Between 2020 and 2022, during the COVID-19 pandemic, demand accelerated, according to FMI, with the market growing at a CAGR of 6.2%.
'The COVID-19 pandemic further accelerated the demand for sustainable packaging, as consumers became more conscious of their impact on the environment and the health risks associated with single-use plastics,' it noted.
Since last year, the market has continued to gain pace, growing at a CAGR of 6.5% between 2022 and 2023.