Green Packaging Market: By Packaging Type (Recycled Content Packaging, Reusable Packaging, Degradable Packaging), By End User (Food, Beverages, Healthcare, Personal Care & Cosmetics, Others) and Geography

Green Packaging Market Dynamics

Green packaging incorporates environmentally friendly materials such as bioplastics, recyclable paper and plastics, plant-based biomaterials, organic fabrics, and recycled goods. The products are easy to use and naturally biodegradable, these products can easily replace traditional plastics while having a lower environmental impact. These compounds do not react with food, hence avoiding contamination and other harmful environmental consequences. Increased demand for environmentally friendly food packaging due to technologies make it easy to serve comfort meals, they have encouraged customers to convert to convenience foods. In 2018, the European Union significantly tightened its laws on packaging and waste. By 2030, all plastic packaging must be recyclable, with a success rate of 55%. In fact, only about 30% of plastic packaging is collected. Product packaging plays important functions in maintaining product quality, dosing and dispensing, simplicity of use and storage, and providing critical information about product use and constituents. To reduce the environmental impact of packaging, L'Oreal announced the development of the first paper-based cosmetic tube in October 2019. As a result, all these factors have contributed to the Green Packaging market's growth worldwide in recent years.

Furthermore, Expensive production and set-up costs hindered enterprises from adopting green packaging. In addition, a lack of government initiatives, particularly in developing countries, in the form of recycling subsidies, as well as a shortage of storage capacity for recovered material, impede market expansion. The food and beverage industry has swiftly embraced green packaging. This is linked to increased customer awareness and manufacturers' preference for longer product shelf life. Furthermore, major market drivers include a reduction in landfill sites, an improvement in the efficiency of reverse logistics operations for recycled products, and eco-friendly regulations from the government and the United Nations.