Green packaging involves the usage of recyclable, biodegradable and renewable content in packaging solutions. The increasing awareness about environmental protection and depletion of natural resources is fueling the demand for sustainable packaging alternatives. Green packaging helps reduce carbon footprint and plastic wastes. The growing inclination towards eco-friendly products among consumers across the globe is driving the green packaging market.
The global Green Packaging Market is estimated to be valued at US$ 218337.06 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing emphasis on sustainability presents a major market opportunity for green packaging. Manufacturers are under increasing pressure from regulators as well as customers to reduce plastic wastes and adopt renewable materials. The transition to a circular economy promotes innovations in reusable, recyclable and compostable packaging formats. Green packaging helps companies enhance their environmental credentials and appeal to the sustainable lifestyle of modern consumers. The opportunity around sustainable branding and marketing through eco-friendly solutions is driving investments and new product developments in the green packaging industry.
Porter’s Analysis
Threat of new entrants: The green packaging market requires high capital investments for setting up manufacturing units and research & development facilities. Stringent regulations also act as a barrier for new players. Bargaining power of buyers: Buyers have moderate bargaining power in this market due to the availability of various vendor options. However, compliance with sustainability goals is an important consideration for buyers. Bargaining power of suppliers: Suppliers of raw materials like paper, plastic resins, and glass have low to moderate bargaining power due to the availability of substitutes. Threat of new substitutes: Technological innovations for developing sustainable alternatives with equivalent functionalities can pose a threat. However, regulations and consumer preference for eco-friendly options offer protection. Competitive rivalry: The market has the presence of many global and regional players leading to high competitive rivalry based on pricing, innovation, and product differentiation.
SWOT Analysis
Strengths: Growing environmental concerns and stringent regulations drive demand. Materials are renewable and recyclable. Weaknesses: High production costs compared to conventional packaging. Supply chain challenges for sourcing certified/recycled materials. Opportunities: Developing economies pushing for sustainability present new markets. Innovation in materials and production processes to address barriers. Threats: Economic slowdowns can negatively impact industries using green packaging. Alternative sustainable solutions emerging.
Key Takeaways
The global Green Packaging Market Growth is expected to witness high growth over the forecast period due to stringent regulations and growing environmental awareness.
Regionally, Europe dominated the market in historical years led by countries like Germany and UK with high recycling rates and sustainability targets. Asia Pacific is expected to grow at the fastest pace supported by rising industrialization and stringent measures in countries like India and China.
Key players operating in the green packaging market are Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko plc, Wärtsilä Corporation, Yanmar Co. Ltd., and Doosan Corporation. They are focused on developing sustainable and recyclable materials along with innovative production processes to stay competitive.
For more insights, read- https://www.newsanalyticspro.com/green-packaging-market-trends-size-and-share-analysis/
