Global Sustainable Packaging Market Size, Forecast and Trend Highlights Over 2025-2037
Sustainable Packaging Market size was over USD 351.32 billion in 2024 and is predicted to cross USD 816.28 billion by the end of 2037, witnessing more than 6.70% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of sustainable packaging is assessed at USD 374.86 billion.
The market is gaining traction due to rising plastic waste across the globe. The plastic discarded in the bins ends up in landfills, eventually clutters around drains, enters rivers, and ends up reaching the sea. According to the United Nations Environment Program, out of the 7 billion tons of plastic waste produced worldwide so far, only 10% has reached recycling destinations. Due to this, market players are emphasizing on adoption of sustainable packaging methods, further propelling the market growth.
Additionally, global organizations are putting tremendous efforts into making people aware of the various consequences of using plastic on the environment. For instance, the theme of World Environment Day on 5th June 2023 was #BEATPLASTICPOLLUTION. The campaign was focusing on solutions to plastic pollution and fostering the momentum to refuse, reduce, recycle, and rethink plastic usage.
Sustainable Packaging Sector: Growth Drivers and Challenges
Growth Drivers
- Surge in adoption of sustainable packaging in e-commerce: Business owners in e-commerce are willing to decrease the usage of virgin plastic and adopt eco-friendly packaging practices. According to the International Trade Administration, global B2C ecommerce revenue is anticipated to garner USD 5.5 trillion by 2027. Online businesses have widely adopted the e-commerce sustainability concept by focusing on environmental needs. Some of the practices are using compostable packaging and mailers, and offering carbon-neutral shipping by offsetting emissions.
- Rising research and development in finding eco-friendly packaging solutions: Various grants are given from governmental bodies, international organizations, and private foundations. For instance, UK Research and Innovation funded a budget of USD 60 million to drive the development of sustainable packaging in the retail supply chain. Similarly, in December 2024, the USDA FAS (U.S. Department of Agriculture Foreign Agricultural Service) awarded USD 5 million to Clemson University to establish a sustainable packaging innovation lab. These funding initiatives are driving innovation and commercialization in sustainable packaging.
- Application of stringent norms from the government: According to the World Economic Forum, 170 countries have pledged to “remarkably reduce” the usage of plastics by 2030. The adoption of these strict norms is compelling market players to adopt eco-friendly packaging methods. Moreover, the companies that have adopted biodegradable materials are enhancing their brand reputation, expanding their consumer base, and acknowledging the environmental issues.
Challenges
- Exorbitant price of raw material: Even with all the benefits, eco-friendly packaging is more expensive in comparison with traditional packaging. The upfront cost for a company to switch to sustainable packaging can be daunting.
- Less durable: The biodegradable packaging is not durable for heavier items, as it is less strong, making the product susceptible to damage. These packages are not able to hold as much weight as plastic and can’t be stacked as easily without breaking.
Sustainable Packaging Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.70% |
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Base Year Market Size (2024) |
USD 351.32 billion |
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Forecast Year Market Size (2037) |
USD 816.28 billion |
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Regional Scope |
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Sustainable Packaging Segmentation
Type (Paper and Paper Board, Plastics, Metal, Glass)
Based on material, the paper and paperboard segment in sustainable packaging market is projected to garner significant revenue during the forecasted period due to rising demand for renewable and biodegradable packaging solutions. According to the Bureau of International Recycling, every year around 420 million tons of paper and cardboard are produced globally. Also, the American Forest & Paper Association stated that the recycling rate in 2023, for paper was 65%-69% and cardboard was 71%-76%. The paper and paperboard also contribute to sustainable practices and have operational benefits. The studies conducted by the Institute for Energy and Environment Research affirmed that the paper packaging has a lower impact on the environment in comparison with other materials.
Application (Food and Beverages, Healthcare, Personal Care, Industrial, Consumer Goods)
The food and beverages segment in sustainable packaging market is anticipated to garner the largest share on the back of evolving consumer preferences. According to data published by the United Nations, currently, 36% of all plastic generated is utilized in packaging. This includes single-use plastic products, especially for food and beverage containers. Sustainability in food packaging has now become a subject of vital importance to all the market players. As the collective awareness is rising and companies are adopting more sustainable practices. Various market players are widely adopting folding cartons as they have excellent printability and customization for branding. Food and beverage cartons having water or plant-based coatings serve as eco-friendly alternatives.
Our in-depth analysis of the global sustainable packaging market includes the following segments:
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Type |
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Process |
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Type of packaging |
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Layers |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Sustainable Packaging Industry - Regional Scope
North America Market Analysis
The North America region is dominating the sustainable packaging market share due to rising government regulations and changing consumer preferences. In the region, the United Nations Environment Programme is working to achieve the UN Sustainable Development Goal 14 by eradicating marine debris in the Mississippi River. Additionally, in the U.S., 12 states (California, Colorado, Connecticut, Delaware, Hawaii, Maine, New Jersey, Vermont, Oregon, and Washington) have banned single-use plastic bags. There is a surge in research and development for finding adequate and cost-efficient solutions for packaging. For instance, in September 2024, the U.S. Economic Development Administration invested USD 500,000 to boost environmentally sustainable packaging in the country.
In Canada, people are becoming more conscious about the consequences of plastic packaging on the environment. According to data published by Agriculture and Agri-Food Canada in January 2024, over 50% of the population is concerned about the impact of plastic food packaging on the environment.
Asia Pacific Market Analysis
The Asia Pacific is the 2nd most dominating region and is projected to garner significant growth during the projected period. The market is thriving in the region on the back of rising efforts from the private and government bodies to eradicate the use of plastic in packaging. For instance, in India, market players are investing in researching innovative sustainable packaging technologies. Some of the alternative packaging solutions are bamboo, bioplastics, sugarcane bagasse, etc. According to India Renewable Energy Consulting, the sustainable packaging in India is expected to reach USD 11.1 billion by the end of 2025. The country is offering lucrative opportunities for international investors to establish manufacturing facilities and supply chain networks.
Companies Dominating the Sustainable Packaging Landscape
- Dow Chemical Company
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Amcor Plc
- Ardagh Group S.A.
- Ball Corporation
- DS Smith
- Sealed Air Corporation
- Sonoco Products Company
- Tetra Pak International S.A
- WestRock Company
- Berry Global
- Huhtamaki Oyj
The competitive landscape of the market is rapidly evolving as established key players and new entrants are investing in research and development. Key players in the market are focused on developing new technologies and products that cater to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
Recent Developments
- In April 2025, Sonoco completes the sale of its thermoformed and flexible packaging business to Toppan Holdings, Inc. The company is moving forward with a focused portfolio and an improved financial position.
- In March 2025, Dow and X-energy submitted a construction permit application to the U.S. Nuclear Regulatory Commission for a proposed advanced nuclear project in Texas. The U.S. Department of Energy Advanced Reactor Demonstration Program supports the project.
- Report ID: 1782
- Published Date: May 02, 2025
- Report Format: PDF, PPT
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