Sustainable Packaging Market worth $527.4 billion by 2034 - Exclusive Report by The Research Insights

CHICAGO, May 13, 2025 /PRNewswire/ --  The global Sustainable Packaging Market is projected to be valued at USD 297.3 billion in 2024 and reach USD 527.4 billion by 2034, growing at a CAGR of 5.9% according to a new report by The Research Insights. The market for sustainable packaging is driven by continuing increase in demand for environmentally friendly packaging solutions. Online shopping's future will extend beyond convenience as each package works towards building a sustainable world. The market experiences major change through adopting eco-friendly packaging solutions to minimize their environmental impact.

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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the sustainable packaging market growth of 5.9% comprises a range of materials, packaging format, sales channel, printing technology, end use and geography which are expected to register strength during the coming years.

Market Overview and Growth Trajectory:

Sustainable Packaging Market Growth: According to an exhaustive report by The Research Insights, the Sustainable Packaging Market is experiencing significant growth, driven by investments in paper-based packaging solutions together with molded fiber packaging and biodegradable mailers to achieve their sustainability targets and ensure shipping durability standards. The upfront expenses for sustainable packaging solutions exceed those of traditional options but technological progress and expanded production capabilities are decreasing these costs over time. Major retailers and manufacturers are integrating eco-friendly solutions into their supply chains because consumers show readiness to pay more for sustainable packaging options.

E-commerce Development Drives Expansion: The fast expansion of e-commerce & logistics has changed product packaging and delivery methods which presents new opportunities in sustainable packaging market growth. The daily shipment of millions of packages creates excessive packaging waste which poses a significant threat to the environment. The growing consumer awareness regarding carbon footprints forces brands to review their packaging approaches. Companies are moving toward sustainable secondary packaging solutions which serve to protect products during shipping instead of direct product packaging. Brands have begun to use recyclable corrugated boxes along with compostable mailers and paper-based void fillers to replace conventional plastic wraps and bubble cushioning. Multiple businesses are testing the use of mailers that can be returned and packages that withstand repeated use to greatly reduce waste production. This method achieves both lower material uses and alignment with the expanding circular economy movement. E-commerce leaders including Amazon and Shopify support sellers who adopt eco-friendly packaging and this support drives the sustainable packaging market size.

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Adoption of Circular Economy: The sustainable packaging market moves away from the traditional 'take, make, dispose' method towards circular economy practices which ensure packaging materials can either be reused or recycled instead of being discarded in landfills. The transition towards sustainable packaging stems from increasing environmental worries combined with regulatory demands and shifting consumer demands. Circular packaging depends on closed-loop recycling systems that enable continual collection and processing of paper, aluminum, and specific plastics before their reintroduction into manufacturing supply chains. Consumers have the option to return their packaging for refills instead of disposing of it after one-time usage. The model accomplishes waste reduction and simultaneously boosts customer loyalty by motivating repeat purchases. The sustainable packaging market moves into a new phase because of circular economy adoption which creates systems where packaging waste is reduced through resource conservation and continuous responsible cycling.

Paper & Paperboard Dominates the Sustainable Packaging Market: The sustainable packaging market share shows a strong preference for paper and paperboard options because these materials can be biodegraded easily and recycled while being sourced from renewable supplies. Paper-based packaging options are becoming favored by industries such as food, retail, and e-commerce because businesses and consumers are searching for environmentally friendly substitutes to plastic. The combination of water-resistant coatings with molded fiber packaging and recycled-content paperboard delivers superior durability while maintaining sustainable properties. The global market is expanding its use of paper and paperboard packaging due to rising regulatory demands and consumer preference for sustainable packaging options. As per the survey conducted by Paper Manufacturers Association of South Africa (Pamsa) in 16 countries, the majority of customers choose paper packaging for their online purchases because they value its eco-friendly qualities and recycling simplicity. Consumers demonstrate an active commitment toward paper packaging solutions beyond their online shopping habits because they have changed their purchasing habits accordingly.

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Geographical Insights: The North America region leads the sustainable packaging market account for a share of 28% strict environmental laws and business sustainability goals along with rising consumer preference for green products. Environmental consciousness growth along with regulatory changes and expanding needs from food and beverage sectors as well as e-commerce business areas fuel fast-paced expansion of the sustainable packaging market size in Asia Pacific. China, Japan, and India have started applying more rigorous plastic restrictions while advocating for circular economy models. European leadership in sustainable packaging stems from the EU's Green Deal combined with the Circular Economy Action Plan and its ambitious sustainability goals.

Sustainable Packaging Market Segmentation and Geographical Insights:

• Based on material, the market is divided into plastic, paper & paperboard, metal, glass, fabric, wood and others. The paper & paperboard segment held the largest share of the sustainable packaging market in 2024.
• Based on packaging format, the market is divided into boxes & cartons, trays & clamshell, bags & sacks, cans, pouches & sachets, films & wraps, bottles & jars, tapes & labels, vials & ampoules and other packaging formats. The boxes & cartons segment held the largest share of the sustainable packaging market in 2024.
• Based on sales channel, the market is divided into manufacturers (direct sales), distributors, brick & mortar stores and e-retail. The manufacturers segment accounted for a larger share of the sustainable packaging market in 2024.
• Based on printing technology, the market is divided into lithography, rotogravure, flexography, digital printing and screen printing. The lithography segment accounted for a larger share of the sustainable packaging market in 2024.
• Based on end-use, the market is divided into Food, Beverages, Pharmaceuticals, Personal Care & Cosmetics, Home Care, Chemicals, Automotive, Electrical & Electronics, Logistic & Transport and Other Industrial. The food segment accounted for a larger share of the sustainable packaging market in 2024.
• The sustainable packaging market is segmented into five major regions: North America, Europe, Asia Pacific, Central & South America and Middle East & Africa.

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Key Players and Competitive Landscape:

The Sustainable Packaging Market is characterized by the presence of several major players, including:

• Amcor Plc
• Sealed Air Corporation
• Huhtamaki Oyj
• Sonoco Product Company
• International Paper
• Mondi Group
• Smurfit WestRock
• Ball Corporation
• Crown Holdings
• Tetra Pak
• Constantia Flexibles
• Greiner Packaging
• Gerresheimer AG
• Vegware
• Pactiv LLC

These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.

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Sustainable Packaging Market Recent Developments and Innovations:

• In January 2025, International Paper acquired DS Smith Plc which was a sustainable packaging manufacturer. The merger will create substantial shareholder value while positioning the new entity as a worldwide leader in sustainable packaging solutions. The acquisition aims to expand market presence across North America and Europe.
• In November 2024, Mondi Group started a new extrusion line at Steti, Czech Republic as an initiative for providing sustainable packaging solution. The new production building with state-of-the-art coating and slitting machinery forms part of an extensive investment that encompasses the extrusion line. Through this investment we extend FunctionalBarrier Paper production together with other premium coated papers which provide paper solutions featuring tailored barrier properties. These applications serve both food and non-food contact packaging needs and industrial requirements including solid board case linings and corrugated case barrier liners.
• In October 2024, Huhtamaki Oyj expanded its fiber lid manufacturing facility at Lurgan, Northern Ireland. The investment will strengthen Huhtamaki's worldwide production capabilities in SMF products while supporting its current SMF production facilities in Germany, Holland, and the USA and the capacity developed with Asian strategic partners.

Conclusion:

The sustainable packaging market is evolving rapidly as environmental concerns, regulatory mandates, and shifting consumer expectations drive the demand for eco-friendly solutions. Businesses across sectors are transitioning to recyclable, biodegradable, and reusable packaging formats to align with global sustainability goals and improve brand image. While challenges related to cost, performance, and recycling infrastructure persist, ongoing innovations in materials science and circular economy models are bridging the gap between functionality and sustainability. The expansion of e-commerce, growing awareness of climate impact, and the push for extended producer responsibility are further accelerating this shift. As technology advances and market awareness grows, sustainable packaging is poised to become the new norm—offering not just environmental benefits, but long-term economic and competitive advantages for forward-thinking companies.

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The report from The Research Insights, therefore, provides several stakeholders—including raw material suppliers, agri-business owners, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

With projected growth to US$ 527.4 billion by 2034, the Sustainable Packaging Market represents a significant opportunity for raw material suppliers, packaging convertors, end-users, investors, industry stakeholders, and others. By staying abreast of market trends, embracing innovation, and focusing on quality and performance, companies can position themselves for success in this dynamic and evolving market landscape.

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