PUBLISHER: The Business Research Company | PRODUCT CODE: 1932485
PUBLISHER: The Business Research Company | PRODUCT CODE: 1932485
Environmentally friendly packaging refers to packaging solutions designed to be safe for both people and the planet. It prioritizes features such as recyclability, the use of recycled or eco-friendly materials, and reduced energy consumption and natural resource usage during production. This type of packaging aims to contribute to environmental conservation and sustainability.
The main categories of environmentally friendly packaging include recycled content packaging, reusable packaging, and degradable packaging. Recycled content packaging involves the use of materials that have been previously used, contributing to environmental protection. This type of packaging encompasses a variety of products, such as bags, pouches, sachets, boxes, containers, films, trays, tubes, bottles, jars, and cans. The materials utilized in manufacturing environmentally friendly packaging solutions include paper and paperboard, plastic, metal, glass, and starch-based materials. Various techniques, such as active, moulded, and alternate fibre packaging, are employed in the production process. Additionally, environmentally friendly packaging may involve multiple layers, categorized as primary, secondary, and tertiary packaging.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the environmentally friendly packaging market by increasing costs of imported biopolymers, specialty papers, molded fiber materials, and advanced packaging machinery. Packaging manufacturers in Europe and North America are most affected due to reliance on imported sustainable raw materials and processing equipment, while Asia-Pacific exporters face margin pressure. These tariffs are increasing production costs and influencing pricing strategies for eco-friendly packaging products. At the same time, tariffs are encouraging local sourcing of recycled materials, regional material innovation, and increased investment in domestic sustainable packaging production capacity.
The environmentally friendly packaging market research report is one of a series of new reports from The Business Research Company that provides environmentally friendly packaging market statistics, including environmentally friendly packaging industry global market size, regional shares, competitors with an environmentally friendly packaging market share, detailed environmentally friendly packaging market segments, market trends and opportunities, and any further data you may need to thrive in the environmentally friendly packaging industry. This environmentally friendly packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The environmentally friendly packaging market size has grown strongly in recent years. It will grow from $256.64 billion in 2025 to $276.57 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to implementation of environmental regulations, rising consumer awareness of sustainability, growth in packaged food and beverage demand, availability of recycled materials, expansion of eco-friendly manufacturing practices.
The environmentally friendly packaging market size is expected to see strong growth in the next few years. It will grow to $375.84 billion in 2030 at a compound annual growth rate (CAGR) of 8.0%. The growth in the forecast period can be attributed to increasing corporate sustainability commitments, rising adoption of biodegradable materials, expansion of green supply chains, growing investments in packaging innovation, increasing focus on waste reduction. Major trends in the forecast period include increasing adoption of recyclable and compostable materials, rising demand for lightweight packaging solutions, growing integration of smart packaging technologies, expansion of alternate fiber packaging, enhanced focus on circular economy models.
The growth of the e-commerce industry is expected to drive the environmentally friendly packaging market in the coming years. E-commerce involves the exchange of goods and services or the transfer of money or data over electronic networks, primarily the Internet. The industry encourages the adoption of sustainable packaging by pressuring manufacturers and suppliers to use eco-friendly materials and practices, meeting consumer demand for environmentally conscious shipping while reducing environmental impact. For example, in November 2023, the International Trade Administration, a US-based department of commerce, reported that e-commerce revenues in the UK are projected to grow at an annual average rate of 12.6% by 2025. Therefore, the expansion of the e-commerce industry is propelling the environmentally friendly packaging market.
Leading companies in the environmentally friendly packaging market are strategically focusing on the introduction of cost-effective packaging solutions to enhance their competitive positioning. Cost-effective packaging involves the utilization of materials, design, and production methods that optimize the equilibrium between product protection, transportation efficiency, and affordability. For example, in January 2023, Cascades, a Canadian packaging company, unveiled a novel eco-friendly packaging solution for fresh fruits and vegetables. This closed basket, constructed from recycled and recyclable corrugated cardboard, offers an environmentally conscious alternative to challenging-to-recycle food packaging. By incorporating recycled materials, Cascades aids its customers in reducing their environmental footprint and meeting the growing consumer demand for eco-friendly packaging. The design of this new packaging adheres to recognized eco-design principles and aligns with a circular economy approach.
In August 2025, BioPak, an Australia-based sustainable packaging solutions provider, acquired Bygreen for an undisclosed sum. Through this acquisition, BioPak aims to expand its portfolio of eco-friendly packaging solutions, strengthen its position in the sustainable packaging market, and accelerate innovation in compostable and recyclable packaging. Bygreen, based in Australia, specializes in environmentally friendly foodservice and retail packaging products.
Major companies operating in the environmentally friendly packaging market are Amcor plc, Tetra Laval International SA, Mondi Group, ELOPAK Group, Ardagh Group S.A., Ball Corporation, Crown Holdings Inc., DS Smith plc, Emerald Packaging Inc., Nampak Limited, Sealed Air Corporation, Smurfit Kappa Group plc, Sonoco Products Company, WestRock Company, Uflex Limited, Huhtamaki Oyj, Constantia Flexibles Group GmbH, Innovia Films Limited, Winpak Ltd., Biopak Pty Ltd., Vegware Ltd., Eco-Products Inc., Stora Enso Oyj, Evergreen Packaging LLC, International Paper Company
Western Europe was the largest region in the environmentally friendly packing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the environmentally friendly packing market during the forecast period. The regions covered in the environmentally friendly packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the environmentally friendly packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The environmentally friendly packaging market consists of sales of compostable packaging, corrugated packaging, glassine packaging, and cellulose packaging among others. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Environmentally Friendly Packaging Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses environmentally friendly packaging market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for environmentally friendly packaging ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The environmentally friendly packaging market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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