In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Zero waste packaging refers to a system of sustainable packaging methods, where all materials are utilized, reused or recycled, so that there are no waste products ultimately left. In brief, it is the idea of conserving natural resources, by using responsible production methods which includes both consumption and recovery of those products. These steps are taken in order to diminish the threats caused to human health or the environment due to burning of conventional packaging materials.
Manufacturers from around the globe are working towards achieving zero waste, from creating packaging materials that serve their purpose as well as lead to zero waste. FMCG brands have tied up with enterprises who use zero waste packaging methods to deliver goods to the consumers through minimalized packaging material, and collect the left over trash back for recycling and reuse. This process further helps the enterprises to generate revenue while contributing to the ecological concerns pertaining to waste management across the globe.
In a report published by the World Bank, the world is expected to generate 3.40 billion tons of waste annually by 2050 from that of 2.01 billion tons in 2018.
The zero waste packaging market is observing vibrant growth on account of growing demand for sustainable packaging methods across the globe. Generation of large amount of wastes is leading to rising environmental concerns and stringent government regulations imposed globally. Furthermore, revenue generated from recycled wastes derived from the single-use products, are some of the notable factors that are expected to boost the growth of the zero waste packaging market.
The market is anticipated to record robust CAGR throughout the forecast period, i.e. 2019-2027. The zero waste packaging market is segmented by end-user into food and beverages, healthcare, personal care, industrial and others, out of which, the food and beverages segment is anticipated to have largest market share on account of growing demand for consumables, owing to rising population count and disposable income. Furthermore, various advertising packaging concepts to attract consumers is anticipated to fuel the growth of this segment.
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Consumption of branded and non-branded products have increased multifold with the growth of consumer goods industry, which in turn is boosting the need for sustainable packaging methods. Improvisation in production processes, reduction of size and thickness of the physical packaging produced, elimination of unnecessary packaging, etc., are some of the steps taken by enterprises in order to reduce the utilization of raw materials.
Waste produced through packaging materials is a problem worldwide. Most of the waste is buried in landfill or dumped in the oceans which further disturbs aquatic life and create vast islands of trash. This has led to the development of stringent environmental policies, such as the Singapore Packaging Agreement (SPA), headed by National Environment Agency (NEA), Government of Singapore in order to reduce packaging waste. Such rising concerns caters to the need of zero waste stores, which functionally induces customers to bring their own packaging instruments, such as bags and jars among others and carry their goods from the shops. All of these factors are anticipated to support the growth of the zero waste packaging market throughout the forecast period.
Sustainability comes at a price, and often, it is not convenient or easily attainable. Frequent fluctuations in the prices of raw-materials, used for zero waste packaging methods, in different countries, increases the cost of production of the derived goods, which is anticipated to act as a barrier to the growth of the zero waste packaging market during the forecast period.
Our in-depth analysis of the zero waste packaging market includes the following segments:
On the basis of regional analysis, the zero waste packaging market is segmented into major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to have largest market share on the back of rising disposable income of the people, particularly in the U.S. Additionally, growing investment by the companies in Canada, on the back of spreading awareness amongst consumers for use of zero waste packaged food products is expected to support the growth of the market in the region.
The zero waste packaging market is further classified on the basis of region as follows: