According to a report published by Allied Market Research, the global green packaging industry generated $164.17 billion in 2020 and is anticipated to generate $337.54 billion by 2031, with a CAGR of 6.6%.
The rise in awareness among consumers about green packaging and the surge in environmental concerns leading to sustainable packaging developments are the factors that drive the growth of the global green packaging market.
However, high production and set-up costs and lack of government initiatives especially in developing countries through subsidies for recycling hinder the market growth according to the report. However, stringent government regulations on non-degradable plastics along with an increase in demand for recycled packaging products present new opportunities in the coming years.
Based on packaging type, the recycled content packaging segment accounted for the largest share of CAGR in 2020, contributing to more than half of the global green packaging market and is projected to maintain its lead position during the forecast period, owing to sustainable development. The degradable packaging segment is expected to portray the largest CAGR of 10.4% from 2021 to 2030.
The report is titled, "Green Packaging Market by Application (Food & Beverage, Personal Care, Healthcare and Others) and Packaging Type (Recycled Content Packaging Reusable Packaging and Degradable Packaging) and Material (Paper, Plastic, Metal and Others): Global Opportunity Analysis and Industry Forecast, 2022–2031".