The outlook for the green packaging market to 2020
A new study, Global Green Packaging Market 2016-2020, from Infiniti Research Ltd., predicts the global green packaging market will grow rapidly at a CAGR of more than 7% during the forecast period. The demand for eco-friendly and sustainable packaging materials by consumers is on the rise, according to the study, and hence vendors are largely focusing on developing materials that can be recycled and have the traditional capabilities of resistance to friction, moisture, and heat.
The global green packaging market is well diversified across Europe, the Asia-Pacific region, North America, and the rest of the world, with Europe leading the market with more than 31% in 2015. The leading countries in this region are Germany, the U.K., and Italy. The increased demand for recycled packaging and recycled plastic products is the primary reason leading to the growth of the green packaging market in Europe.
According to the report, one of the major drivers of the market is the demand for bioplastic packaging. Bioplastic packaging products are considered more sustainable than conventional plastic packaging products because they consume less energy and natural resources, generate lower CO2 emissions, and are lightweight in nature.
In 2015, the recyclable packaging segment accounted for a significant share of over 76% in the global green packaging market. Recycling packaging material is gaining popularity among consumers because of the benefits they provide such as reduced carbon footprint and energy conservation.
With a remarkable share of more than 54% in 2015, the food packaging market led the global green packaging market. The majority of the vendors in the market tend to use more green packaging materials to package food products. The increasing demand for dairy products is one of the major drivers for the growth of the food industry, thus leading to the overall market growth.
Since the local players in the global green packaging market find it difficult to contend with the multinational players who have already established their position in terms of quality, features, and range of offerings, they started offering innovative solutions at a lower price compared to international players, thus leading to price wars in the market.