According to a new market report published by Transparency Market Research, the global green packaging market was worth $108,750 million in 2011 and is expected to reach $177,733 million in 2018, growing at a CAGR of 7.6 percent from 2013 to 2018.
Growing awareness
The research firm points towards growing awareness about carbon emissions, energy consumption and waste reduction targets, as well as consumers' preference for eco-friendly products, as key drivers in the forecast.
“Worldwide, the waste generated because of production and transportation of packaging materials has impacted the environment considerably over the past few years,” says the report.
“Manufacturers are thus continuously trying to use environmentally friendly packaging materials, which further support the growth of green packaging market.”
In the overall global market, Europe accounted for the highest share worth $41,325 million in 2011 followed by North America, which accounted for $32,625 million in 2011.
APAC booming
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.
Europe is expected to lead 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.
Transparency Market Research also says reusable and degradable packaging is expected to witness high growth rate in the Asia-Pacific region from 2013 to 2018.
Restraints
However, despite pointing out the market drivers, the report also highlights the main restrictions.
“Limited consumer demand, poor recycling infrastructure and regulatory concerns are the major restraints for the green packaging market; however cost-effective methods and advanced packaging technologies are likely to offset the prevailing restraints,” it says.
“The Asia Pacific region is likely to serve as an opportunity for the green packaging market players because of large consumer base, and growing food and beverage industries.”