Sustainable packaging refers to packaging products and systems that are designed, produced, used and reused in ways that minimize environmental impacts, reduce waste and conserve natural resources through practices that are technologically feasible and economically viable. Sustainable packaging serves multiple purposes such as containment, preservation, safety and compliance along with minimizing environmental impact.

The global Sustainable Packaging Market is estimated to be valued at US$ 302.64 Bn  in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity: Reduced Environmental Impact

One of the key opportunities expected to drive the growth of the sustainable packaging market is reduced environmental impact. Sustainable packaging utilizes renewable resources more efficiently and generates less amount of waste during its use as well as disposal as compared to conventional packaging. Sustainable packaging is designed and produced using environment friendly materials and processes that help reduce carbon footprint, conserve water resources, prevent deforestation and curb pollution. Shifting towards sustainable packaging helps companies fulfill rising sustainability commitments as well as gain a competitive advantage by appealing environment conscious customers. Growing emphasis on environment protection along with rising sustainability regulations globally are compelling companies across industries to adopt sustainable packaging solutions, thus presenting lucrative growth opportunities for players in this market.

Porter's Analysis
Threat of new entrants: The sustainable packaging market has moderate entry barriers due to high capital requirement and stringent government regulations. However, the growing market attracts new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternative raw material sources.

Threat of new substitutes: Substitutes like conventional plastic packaging pose low threat due to stringent regulations favoring sustainable options.

Competitive rivalry: The market has high competitive rivalry due to presence of numerous global and regional players.

SWOT Analysis
Strengths: Growing eco-consciousness, stringent regulations on plastics, and availability of bio-based and recycled materials are major strengths.

Weaknesses: High costs of sustainable materials and technologies, and lack of infrastructure are key weaknesses.

Opportunities: Shift towards circular economy principles, advancements in materials R&D, and expansion in emerging nations present opportunities.

Threats: Challenges in collection and recycling infrastructure and fluctuating costs of raw materials are major threats.

Key Takeaways
Global Sustainable Packaging Market Size  is expected to witness high growth due to stringent regulations against plastics and rising demand for eco-friendly options.

The North America region currently dominates the market owing to stringent plastic bans and presence of major players.

Key players operating in the sustainable packaging market are Amcor plc, Sonoco Products Company, Sealed Air Corporation, Tetra Pak International S.A., Crown Holdings Inc., Huhtamaki Oyj, WestRock Company, DS Smith Plc, Reynolds Group Holdings Ltd., and Mondi Plc.

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