According to a new market report published by Transparency Market Research ‘Green Packaging Market (Recycled, Reusable & Degradable) – Global Scenario, Trends, Industry Analysis, Size, Share and Forecast, 2011 – 2018’, the global green packaging market was worth USD 108,750.0 million in 2011 and is expected to reach USD 177,733.0 million in 2018, growing at a CAGR of 7.6% from 2013 to 2018.
In the overall global market, Europe accounted for the highest share worth USD 41,325.0 million in 2011 followed by North America, which accounted for USD 32,625.0 million in 2011. However, the highest growth in the forecasted period is expected to be witnessed in the Asia Pacific region, especially India and China, due to large population base, economic growth and rising awareness about green products.
Key factors encouraging the move towards green packaging include growing awareness about carbon emissions, energy consumption and waste reduction targets implemented by different nations, rapidly growing economies, a dearth of natural resources, and consumers’ preference for eco-friendly products.
Worldwide, the waste generated because of production and transportation of packaging materials has impacted the environment considerably over the past few years. The condition is grim in the UK, where 5.91 million tonnes of packaging waste is estimated to be generated each year, representing approximately 20.1% of all waste. Manufacturers are thus continuously trying to use environmentally friendly packaging materials, which further support the growth of green packaging market.
Europe will lead primarily in the green packaging market due to high regulatory barriers and less land for landfills. Developed countries like North America and Japan will have slow growth rate, while emerging countries like India, China and Indonesia will experience the fastest growth during the forecasted period. Reusable and degradable packaging is expected to witness high growth rate in the Asia Pacific region from 2013 to 2018.
Among the different packaging product types, recycled packaging accounts for the highest market share, growing at a CAGR of 6.9% from 2013 to 2018. North America is expected to witness slow growth in recycled packaging but high growth in reusable packaging due to high energy consumption and higher cost incurred in the production processes of recycled packaging.