The Sustainable Packaging Market is estimated to be valued at US$ 262.7 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The sustainable packaging market is gaining traction owing to rising demand for lightweight and recyclable packaging products from end use industries such as food and beverages, pharmaceuticals, personal care and household care.

Market Overview:
Sustainable packaging refers to the development and use of packaging which results in improved sustainability. It involves use of packaging materials and processes that are eco-friendly and minimize negative impact on the environment. Sustainable packaging uses renewable and recycled content to reduce usage of raw materials and energy in manufacturing, while extending the functionality and effectiveness of packaging. It promotes use of packaging materials that are renewable, recyclable, biodegradable and non-toxic.

Market key trends:
The key trend spurring growth of sustainable packaging market is growing awareness about environmental impacts of plastic waste. Rising concerns over plastic pollution and its detrimental effects on oceans and wildlife are prompting manufacturers to shift towards alternatives to plastic packaging. This has resulted in increased demand for sustainable packaging made from recycled or bio-based materials. According to estimates, 150-200 million tons of plastic waste is present in the world's oceans. Growing sustainability regulations to curb plastic waste are encouraging manufacturers to adopt packaging made from renewable and recycled content. Emergence of advanced recycling technologies to process difficult-to-recycle multi-material flexible pouches and multilayered products is also expanding the scope of recycling and boosting the sustainable packaging market.

Porter's Analysis
Threat of new entrants: The sustainable packaging market requires high initial capital investment which poses as a barrier for new players. Further, established players have economies of scale and brand recognition which make market entry challenging for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power given the variety of packaging material and format options available. However, shifting preference for sustainable options increases buyers influence.

Bargaining power of suppliers: Major suppliers including resin, paper & paperboard manufacturers have strong influence over pricing and availability of raw materials. Suppliers can choose to supply competitors impacting overall supply equilibrium.

Threat of new substitutes: Alternatives like returnable transport items pose substitutes threats. However, packaging has distinct functionality advantage over alternatives limiting impact.

Competitive rivalry: Intense competition exists between packaging majors with focus on brands, costs and innovation resulting in pricing pressures.

SWOT Analysis
Strength: Sustainable packaging addresses environmental concerns and regulatory compliance. It enhances brand image and reputation.
Weakness: Higher costs of sustainable materials and technologies. Infrastructure not developed globally for recycling yet.
Opportunity: Strong government support and consumer demand driving market potential. New technologies enable more sustainable solutions.
Threats: Changing sustainability standards across regions. Economic slowdowns impacting packaging demand.

Key Takeaways
The Global Sustainable Packaging Market is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing consumer awareness towards eco-friendly packaging solutions and stringent government regulations regarding usage of conventional plastics.

Regional analysis: Asia Pacific dominates the global sustainable packaging market and is expected to retain its position throughout the forecast period owing to rapid industrialization and growing population in countries like China and India demanding wide range of packaged products. Stringent government regulations are also pushing sustainable adoption.

Key players operating in the sustainable packaging market are Amcor Limited, Westrock Company, TetraPak International S.A., Sonoco Products Company, Smurfit Kappa Group PLC, Sealed Air Corporation, Mondi PLC, Huhtamaki OYJ, BASF SE, Ardagh Group S.A, Ball Corporation, Crown Holdings, Inc., DS Smith Plc, Genpak LLC, and International Paper Company. These players are focusing on innovations to provide materials with improved functionality and recyclability. Partnerships across value chain are also seen to boost sustainable offerings.

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