1 Global Eco-Friendly Packaging Market Size and Definition
The global eco-friendly packaging market is poised for significant growth in the coming years. By 2025, the total eco-friendly packaging market value is projected to reach $257,968 million. This substantial increase is driven by a Compound Annual Growth Rate (CAGR) of 11.18% from 2025 to 2030. Eco-friendly packaging refers to materials and solutions that minimize environmental impact throughout their lifecycle, from production to disposal. These materials are designed to be recyclable, biodegradable, or made from sustainable sources, reducing waste and carbon footprints. The market’s expansion is fueled by increasing consumer awareness of environmental issues and regulatory pressures to adopt greener practices.
Figure Global Eco-Friendly Packaging Market Revenue and CAGR 2025-2030
2 Drivers and Limitations of Eco-Friendly Packaging Market Growth
The growth of the eco-friendly packaging market is propelled by several key drivers. Firstly, growing consumer demand for sustainable products is a major factor. As environmental awareness increases, consumers are more likely to choose products packaged in eco-friendly materials. Secondly, regulatory support plays a crucial role. Governments worldwide are implementing stricter regulations to reduce plastic waste and promote recycling, pushing companies to adopt greener packaging solutions. For example, China’s ban on certain plastic imports and the European Union’s “Europe 2020” strategy have significantly impacted the industry. Additionally, technological advancements in packaging materials have made eco-friendly options more viable and cost-effective.
However, the market also faces several challenges. One of the primary obstacles is the higher cost of eco-friendly materials compared to traditional packaging. This can be a barrier for smaller companies and industries with tight profit margins. Another challenge is the lack of recycling infrastructure in many regions, which limits the effectiveness of eco-friendly packaging. In developing countries, recycling rates are often low due to outdated waste management systems. Finally, the COVID-19 pandemic has disrupted supply chains and increased the demand for single-use plastics in medical and protective equipment, temporarily hindering the growth of eco-friendly packaging.
3 Eco-Friendly Packaging Market Technological Innovations and Mergers & Acquisitions Analysis
Technological advancements are a key driver of the eco-friendly packaging market. Companies are continuously developing new materials and processes to enhance sustainability. For example, BASF’s ecovio® is a fully compostable polymer that can replace traditional plastics in food packaging. Similarly, Tetra Laval’s Recart® offers a sustainable alternative to canned food packaging, reducing weight and improving recyclability. These innovations not only reduce environmental impact but also provide new business opportunities for companies.
In addition to technological progress, the industry has seen significant consolidation through mergers and acquisitions. Major players like Amcor Limited and WestRock have expanded their market share through strategic acquisitions. For instance, Amcor’s acquisition of Bemis Company in 2019 significantly enhanced its global presence and product portfolio. Similarly, WestRock’s acquisition of KapStone Paper and Packaging Corporation in 2018 strengthened its position in the U.S. market. These consolidations allow companies to leverage economies of scale, improve efficiency, and invest more in research and development.
4 Global Eco-Friendly Packaging Market Analysis by Type
The global eco-friendly packaging market is projected to witness significant growth by 2025, driven by the increasing demand for sustainable packaging solutions across various industries. The market is segmented into four primary types: Paper & Paperboard, Plastic, Metal, and Glass. Each type plays a distinct role in the packaging industry, offering unique benefits in terms of sustainability and functionality.
Paper & Paperboard: Expected to consume 75094 K Tons by 2025, paper and paperboard packaging will remain a dominant force in the eco-friendly packaging market. This type accounts for the largest share, projected to be 45.43% of the total market in 2025. Its popularity is due to its recyclability, biodegradability, and the aesthetic appeal it offers to consumers.
Plastic: Plastic is projected to see a significant growth, reaching 4964,645 K Tons by 2025. It will hold the second-largest market share at 30.03%. Despite concerns about plastic pollution, advancements in biodegradable plastics and recycling technologies are making this material more sustainable and appealing to both consumers and businesses.
Metal: Metal packaging is expected to reach 20,371 K Tons by 2025, capturing a market share of 12.32%. Metal is valued for its durability, recyclability, and the premium feel it adds to products. Innovations in metal packaging, such as thinner gauges and multi-material combinations, are making it more sustainable and cost-effective.
Glass: Glass packaging, though smaller in volume compared to other types, is projected to reach 20,185 K Tons by 2025. It will hold a market share of 12.21%. Glass is preferred for its non-reactive properties, especially in food and beverage packaging, and its infinite recyclability.
Table Global Eco-Friendly Packaging Consumption and Market Share by Type in 2025
|
Type |
Consumption (K Tons) |
Market Share (%) |
|---|---|---|
|
Paper & Paperboard |
75094 |
45.43 |
|
Plastic |
49645 |
30.03 |
|
Metal |
20371 |
12.32 |
|
Glass |
20185 |
12.21 |
5 Global Eco-Friendly Packaging Market Analysis by Application
The global eco-friendly packaging market is anticipated to experience substantial growth across various applications by 2025. Eco-friendly packaging, driven by the need to reduce environmental impact, is gaining traction in diverse sectors including Food & Beverage, Healthcare, and others.
Food & Beverage: This segment is projected to be the largest consumer of eco-friendly packaging by 2025, with a consumption of 115,138 K Tons. It will maintain a dominant market share of 69.66%, reflecting the continuous demand for sustainable packaging solutions in the food and beverage industry. The growth is attributed to the increasing consumer preference for eco-friendly products and the push from regulatory bodies for sustainable practices.
Healthcare: The healthcare sector is expected to see significant growth, reaching 17,697 K Tons by 2025. This application will hold a market share of 10.71%, driven by the need for safe, sterile, and sustainable packaging solutions in pharmaceuticals and medical devices. The rising demand for healthcare products globally is further amplifying this growth.
Table Global Eco-Friendly Packaging Consumption and Market Share by Application in 2025
|
Application |
Consumption (K Tons) 2025F |
Market Share (%) 2025F |
|---|---|---|
|
Food & Beverage |
115,138 |
69.66 |
|
Healthcare |
17,697 |
10.71 |
6 Global Eco-Friendly Packaging Market Analysis by Region
The global eco-friendly packaging market is a dynamic sector that is rapidly evolving due to increasing environmental concerns and regulatory pressures. By 2025, the market is expected to reach substantial values across different regions, reflecting the growing demand for sustainable packaging solutions.
Europe: Expected to reach $85,824 million
Asia Pacific: Projected to reach $83,289 million
Americas: Forecasted to reach $77,777 million
Europe emerges as the largest regional market by value, with a projected $85,824 million in 2025. This region is also expected to maintain a significant market share, accounting for approximately 33.27% of the total global eco-friendly packaging market. The prominence of Europe in this sector can be attributed to stringent environmental regulations and a high level of consumer awareness regarding sustainability.
The Asia Pacific region follows closely, with a projected market value of $83,289 million and a market share of about 32.29%. This region’s growth is driven by the increasing industrialization and urbanization in countries like China and India, coupled with rising consumer demand for sustainable products.
Figure Global Eco-Friendly Packaging Revenue by Region in 2025
7 Analysis of the Top 3 Companies in Eco-Friendly Packaging Market
7.1 WestRock
Company Introduction and Business Overview:
WestRock is a leading provider of corrugated packaging solutions, established in 2015. The company operates over 320 plants distributed across North America, Europe, and Asia, serving a worldwide market. WestRock specializes in offering a range of packaging solutions including merchandising displays, paperboard, folding cartons, kraft papers, protective packaging, and pulp. Their business model is centered around providing integrated packaging solutions that enhance the customer experience while minimizing environmental impact.
Products Offered:
WestRock’s product portfolio includes a variety of corrugated containers designed to meet the diverse needs of different industries. They offer custom-designed packaging that can range from simple one-color boxes to dynamic displays that enhance shelf appeal. Their packaging solutions are developed to lower total costs through the supply chain and to minimize environmental impact by using sustainable materials and designs. WestRock also provides packaging consulting services, where they evaluate customer’s packaging lines and recommend technology-based solutions for efficiencies. Their focus on innovation and sustainability includes the use of renewable and recyclable resources, contributing to the company’s commitment to environmental responsibility.
7.2 Amcor Limited
Company Introduction and Business Overview:
Amcor Limited, established in 1860, is a global packaging company with a presence in the Americas, Europe, and Asia, operating 74 plants. The company serves a worldwide market, offering a broad spectrum of flexible and rigid packaging solutions. Amcor’s products are tailored for the food, beverage, pharmaceutical, and medical sectors, where packaging integrity and sustainability are paramount.
Products Offered:
Amcor’s product range includes innovative packaging solutions like the 750ml PET Stock Wine Bottle, which is designed to be sleek and slender, enhancing brand and shelf appeal. This bottle is available in flint/clear and dead leaf green and is characterized by its lightweight, portable, and shatter-resistant features. The Plasmax barrier allows no impact on the taste and quality of wine, making it ideal for shipping directly to consumers or for on-the-go usage. Additionally, the bottle is made from recyclable materials, aligning with Amcor’s commitment to sustainability. The company’s focus on recyclable materials and its pledge to eliminate unnecessary disposable plastics by 2025 reflect its dedication to environmental stewardship and innovation.
7.3 Tetra Laval
Company Introduction and Business Overview:
Tetra Laval, founded in 1951, operates globally with 20 plants in Europe. The company develops, manufactures, and markets systems and equipment for processing, packaging, and distribution of liquid food. Tetra Laval’s three industry groups—Tetra Pak, Sidel, and DeLaval—are all dedicated to enhancing the efficiency of food sales, packaging, and distribution.
Products Offered:
One of Tetra Laval’s innovative products is the Tetra Recart®, a sustainable carton packaging designed for canned foods. This packaging offers an environmentally friendly alternative to traditional cans and glass jars, taking up 30% less space on shelves. Tetra Recart packages are lightweight, with approximately 60% less weight than a can, which helps in reducing transportation costs and carbon emissions. The packaging also features high-quality printing on all sides, providing opportunities for a billboard effect and enhancing brand visibility. Tetra Laval’s commitment to sustainability is evident in their product design, which supports the renewal of brand images and extends market presence.