Published on : Jun 02, 2016
The global green packaging market is gaining significant impetus from the rising demand for biodegradable and healthy packaging. Green packaging, also known as sustainable packaging uses biodegradable packaging materials to ensure improved sustainability. It contributes in reducing environmental pollution and carbon footprint.
According to a report published by Transparency Market Research, the global green packaging market stood at US$132.4 bn in 2014. Rising at a CAGR of 6.20% between 2015 and 2021, the market is expected to reach US$203.1 bn by the end of 2021.
Rising Health Awareness in Consumers Boosts Global Green Packaging Market
The rising health awareness among consumers is driving the global green packaging market. With consumers around the world becoming more health conscious, the demand for healthy and biodegradable packaging is expected to increase. This is further expected to fuel demand from the global green packaging market due to the health benefits it offers. Furthermore, the market is also expected to gain impetus from the increasing environmental consumers. The shortage of natural resources has also bolstered the global green packaging market, since this packaging is easily recyclable.
Diminishing Profit Margin May Adversely Impact Market’s Growth
However, the diminishing profit margin due to the rising production cost is negatively impacting the global green packaging market. Furthermore, the market is also hampered by the lack of awareness among consumers. Nevertheless, with the adoption of various government initiatives aimed at keeping the environment healthy and pollution free, the demand for green packaging is expected to increase in the forecast period.
Based on packaging type, the global green packaging market can be segmented into reusable packaging, recycled content packaging, and degradable packaging. In terms of application the market can be classified into food and beverages, healthcare packaging, personal care products and others. Of these, the food and beverages segment led the market in 2014, with a share of 59.7%.
US Dominates Global Green Packaging Market
Regionally, the global green packaging market can be segmented into Asia Pacific, Europe, North America, and Rest of the World. The US has emerged as the largest market for green packaging in 2014. In Asia Pacific the market witnesses lucrative opportunities in developing nations such as India and China.