Global Eco-Friendly Food Packaging Market - 2022-2029
The global eco-friendly food packaging market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.
Green packaging, or sustainable packaging, utilizes materials and manufacturing techniques to reduce energy consumption and the negative environmental effects of packaging. Green packaging solutions usually use biodegradable and recyclable materials rather than plastic and Styrofoam. Green manufacturing, on the other hand, takes measures to reduce energy usage and greenhouse gas emissions. Biodegradable and recyclable materials can be used in a variety of ways in eco-friendly packaging, for instance,
Bioplastics, often known as plant-based plastics, are a type of plastic made from plants or paper and plastics that have been recycled or even recycled bulk bags, for example, are post-consumer items.
The growing environmental concern is a major driver that boosts the eco-friendly food packaging market. However, finding an economical, eco-friendly packaging material that preserves the product’s shelf life restricts the market’s growth.
Growing environmental awareness
Almost the majority of the food that is consumed comes packaged. The safety of the food supply is largely dependent on food packaging. Unfortunately, most plastic food packaging is discarded rather than repurposed, recycled, or composted. Most packaging is abandoned after use and is either buried in a landfill or becomes litter transported into the environment by wind and water currents.
Landfill packaging, particularly that made of plastics, does not disintegrate and remains with us indefinitely, causing harm to our earth and innocent species. The process of making these packaging materials also harms the environment by releasing poisonous gases into the atmosphere. The air will become increasingly harmful if these processes are not managed. These packaging wastes are sometimes thrown carelessly, polluting the environment and some of them do not disintegrate at all.
With the rising threat of packaging to our globe and growing environmental awareness, the demand for eco-friendly food packaging products is growing exponentially. Many manufacturers are already in the market to tap into the respective factor and introduce eco-friendly products that protect nature and bring profit. For instance, Ecoware developed a unique solution that is 100 percent eco-friendly and does not hurt the environment. Ecoware produces biodegradable food packaging and tableware that are meticulously maintained to ensure consumers' safety, wholesomeness and quality.
Further, several brands are switching towards eco-friendly products for food packaging. For instance, on September 07, 2020, Nestlé has launched several new projects, including a US$30 million investment in U.S. to enhance food-grade recycled plastics, a refillable pet food system in Chile and the first-ever recyclable paper packaging for Maggi bouillon cubes in France. Nestlé already recycles or reuses 87% of its entire packaging by weight and 66% of its total plastic packaging. As a result, the growing environmental awareness could be considered a major market driver.
Absence of an economical, eco-friendly packaging material that preserves the product’s shelf life
Sustainability has just emerged as a new business trend. Companies tend to become more ecologically friendly, lessening their impact on the environment as global green consciousness rises and consumers buy eco-friendly products. In most situations, the areas for reductions in influence are decreasing greenhouse gas emissions during the manufacturing and shipping of finished goods and using renewable resources during the manufacturing stage. Most manufacturers, however, are still concerned about eco-friendly packaging because their primary goal is to reduce costs and increase profits, which is not always attainable when it comes to updating packaging design and switching to eco-friendliness.
Naturally, sustainable packaging is more expensive than traditional packaging due to the materials utilized and sourced (both virgin and used resources) and the less-established supply chains, production methods, and economies of scale. However, the most pressing concern is who will bear the brunt of this additional expense. Though more than half of consumers are prepared to pay more for sustainable items that can be reused or recycled, it is problematic for fast-moving consumer goods (FMCG) firms that operate on tight margins. In this circumstance, total price rises constitute a significant stumbling block.
Similarly, Sustainability entails more than just the packaging of a product. Packaging is simply one aspect of a product's overall environmental impact. Packaging typically makes up less than 10% of a product's overall carbon impact. The manufacture of the raw materials that go into a product accounts for the majority of a product's carbon footprint. As a result, an infrastructure in place for the packaging and product is necessary to handle the entire lifecycle till it is no longer useful.
Further, when it comes to packaging, sustainable materials must perform and non-sustainable alternatives, including issues such as food waste and product damage and achieving customer expectations. Food waste contributes significantly to greenhouse gas emissions, so the product shelf life should be preserved. As a result, the absence of economical, eco-friendly packaging material that preserves the product's shelf life restricts the market's growth.
COVID-19 Impact Analysis
Because of three major aspects, the COVID-19 pandemic had a tremendous impact on the global eco-friendly food packaging sector:
The availability of raw materials and final product sales have been hampered by the COVID-19 pandemic's lockdowns and government controls.
Second, the production of eco-friendly food packaging necessitates a number of manufacturing and purification processes, which have been greatly hampered by the pandemic's lockdowns and government controls.
The overall drop in end-user activities lowered demand for eco-friendly food packaging, causing demand-supply dynamics to shift.
Nonetheless, the market for eco-friendly food packaging is likely to recover due to the growing global food & beverages market.
The global eco-friendly food packaging market is classified based on material, type, technique, application and region.
The paper straw dominate the product segment
The global eco-friendly food packaging market is segmented into paper & paperboard, plastic, metal, glass and others based on products.
Because of its increasing use in the foodservice and retail industries and the transportation of bulk food and beverage products, the paper & paperboard segment is expected to dominate the market. Because of its degradability and recyclable nature, paper and paperboards are the most popular packaging in the food and beverage industry. Due to the rise in environmental dangers, ready-to-eat, on-the-go, frozen & fresh foods are now provided and delivered in paperboard packaging. For shipment, rigid boxes are preferred. Fresh items, on the other hand, are served on rigid and molded paper and paperboards.
Asia-Pacific dominates the eco-friendly food packaging market
Asia-Pacific is expected to dominate the region's segment and develop the fastest, owing to the rising demand for convenience foods due to consumers' busy lifestyles. As a result of urbanization, hectic lifestyles and high disposable money, there is an increase in the consumption of on-the-go and ready-to-eat morning meals. As a result of strict laws and regulations imposed by governments and governing bodies, as well as a movement in consumer preferences toward recyclable and eco-friendly packaging materials, the eco-friendly food packaging business has been booming. Apart from these considerations, the global market is also being driven by package reduction and breakthroughs in new technologies.
The global eco-friendly food packaging market is active and dynamic in terms of the number and strength of global and local producers. Due to the large number of manufacturers such as Amcor, Mondi Group, Ball Corporation, Tetra Pak, Crown Holdings Inc, BASF SE, Westrock, Smurfit Kappa and Elopak, the market is classified as fragmented. To achieve competitive advantages and recognition in their particular markets, significant market stakeholders use market techniques such as mergers, acquisitions, product launches, contributions and collaborations.
For instance, on February 6, 2020, BASF SE and Fabbri Group, a packaging company, have teamed up to develop a new cling film for fresh food packaging. Fabbri Group developed the stretch film Nature Fresh as part of the collaboration, which uses BASF's ecovio, a certified biodegradable and biobased bioplastic. The novel packaging enhances the shelf life of fresh foods by providing excellent transparency and optimal mechanical qualities for mechanized packaging.
Overview: BASF SE is a chemical company that produces chemicals for various industries. With over 700,000 investors, it is one of the world's largest publicly traded companies. Transportation, chemicals, construction, electronics & electric, energy & resources, furniture & wood, home care and cleaning, agriculture and other industries are among the company's 13 product categories. BASF SE has 6 global locations as well as 241 additional industrial sites in over 90 countries. In 2020, the BASF SE generated around US$ 68,625 million.
ecovio: BASF SE Ecovio is a high-quality, flexible bioplastic. The main benefit of the product is that it is certified compostable and contains bio-based materials and allows for a higher proportion of recycled paper fibers in foodservice packaging. Ecovio is a coating for paper and paperboard that has been created. The product can be coextrusion-applied to both paper and board packaging elements, allowing for the production of 100% wax- and fluorocarbon-free food service items like wrappers and clamshells that can be composted.
On September 29, 2021, BASF SE and WPO Polymers partnered up to offer the biopolymer ecovio for certified compostable bags in Spain and Portugal.
On January 26, 2021, BASF SE introduced JONCRYL HPB 4K, a product series that enables the creation of heat-sealable liquid polymer barriers with resistance qualities comparable to extruded polyethylene barriers, enhancing recyclability. The series has received FDA approval for direct food contact and can be used in food packaging like takeaway boxes and cups.
Why Purchase the Report?
To visualize the global eco-friendly food packaging market segmentation based on material, type, technique, application and region, as well as understand key commercial assets and players.
Identify commercial opportunities in the global eco-friendly food packaging market by analyzing trends and co-development.
Excel data sheet with numerous data points of eco-friendly food packaging market-level with four segments.
PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
Product mapping available as excel consisting of key products of all the major market players
The global eco-friendly food packaging market report would provide approximately 66 tables, 68 figures and almost 231 pages.
Target Audience 2023
Industry Investors/Investment Bankers
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