Sustainable Packaging Market to Reach USD 554.35 Billion by 2032 | Driven by Rising Environmental Awareness, Regulatory Push, and Growth in Eco-Friendly Materials

The global sustainable packaging market is witnessing robust growth fueled by rising consumer demand for eco-friendly alternatives, increasing government regulations on plastic use, and the expansion of circular economy initiatives.

Austin, Aug. 22, 2025 (GLOBE NEWSWIRE) -- The global sustainable packaging market was valued at USD 320.76 billion in 2024 and is projected to reach USD 554.35 billion by 2032, expanding at a compound annual growth rate (CAGR) of 7.08% from 2025 to 2032.

Increase in usage of recyclable, biodegradable, and compostable packaging materials in the food & beverage, personal care, e-commerce, and healthcare sectors is significantly driving the market growth.

Sustainable Packaging is an approach to plastic waste and carbon footprint reduction. Sustainable packaging today emerges as a key solution that supports corporate ESG (Environmental, Social, and Governance) goals. Brands are exploring alternatives to help meet consumer demands and compliance pressures, embracing materials like paper, bioplastics, molded fiber, and reusable formats. Furthermore, the rising influence of e-commerce and online food & beverage delivery services has encouraged the demand for recyclable mailers, corrugated boxes, and lightweight packaging solutions.

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The U.S. Sustainable Packaging market size was USD 64.28 billion in 2024 and is expected to reach USD 115.23 billion by 2032 and grow at a CAGR of 7.57% over the forecast period of 2025-2032. It is due to significant consumer demand for green and recyclable packaging, bolstered by stringent government regulations related to single-use plastics. The nation’s healthy F&B e-business and retail sectors have radically switched to green conglomerates like paper cartons, corrugated boxes, and bioplastics.

Key Players:

• DuPont Teijin Films
• Mitsubishi Chemical Corporation
• Toray Industries
• SKC
• Filmquest Group
• Xamax Industries
• Polyplex Corporation
• Uflex
• Jindal Poly Films
• SRF Limited
• RETAL Industries
• Fatra
• Celanese Corporation
• BASF
• DSM-Firmenich Engineering Plastics
• Koch Industries
• Indorama Ventures
• Hengli Group
• Jiangsu Yuxing Film Technology
• Hefei Lekai Technology

Sustainable Packaging Market Report Scope:

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By Material

The largest market share is estimated for paper & paperboard, which was 45% by value in 2024 and is used broadly in carton, corrugated boxes, and labels. Recycling, lightweight, and cost efficiency of the material make it the most preferable green product in various industries. Paper packaged goods have a wide application in serving food & beverages, e-commerce shipping, and consumer goods.

By Packaging Type

Rigid packaging was the leading segment, accounting for 55% share of the market in 2024, on account of its widespread use in bottles, jars, trays and containers. Rigid packaging is favored as it is durable and protects products, in particular in the beverage, household good, and healthcare industries.

By Function

On the basis of end use, the food & beverage segment was the biggest in 2024, accounting for a 55% share of total revenue generated worldwide. The expansion is due to an increasing preference for recyclable cartons, compostable cups, and biodegradable film (used in snacks, dairy, beverages, and food products) from consumers. 

Regional Analysis

Europe has the largest share of the sustainable packaging market in 2024, 35.07% owing to the stringent regulatory norms on packaging, a high level of consumer awareness, and the government support to promote circular economy initiatives. The European Union (EU) single-use plastics reduction directive, EPR (extended producer responsibility) programs, and the “European Green Deal” have significantly increased the proliferation of recyclable, reusable, and compostable packaging. Pioneer countries such as Germany, France, the U.K., and others are ahead of the game in terms of deploying innovative bioplastics, fiber-based packaging, and loop-closing recyclate systems, thus consolidating the leadership of the region.

Recent Developments

• March 2025 – Amcor plc launched its new line of curbside-recyclable flexible packaging, designed for frozen foods and dry goods, to reduce landfill waste.
• January 2025 – Tetra Pak introduced fiber-based barrier technology as an alternative to aluminum layers in beverage cartons, enhancing recyclability while maintaining product safety.

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USPs of the Sustainable Packaging Market

• Circular Economy Integration – Empowers closed-loop recycling and reusing, reducing waste.
• Regulatory Compliance Benefit – Supports global plastic reduction and sustainability policies.
• Consumers Preference Change- Increased preference for eco-friendly brands improves the product placement.
• Material Innovation – Growth comes from bioplastics, molded fiber, and paper technology advances that differentiate.
• eCommerce Growth - Online shopping explosion drives need for recyclable and corrugated mailers.
• Corporate ESG Initiatives – Sustainable packaging helps reinforce brand targets for carbon neutrality and an environmentally friendly business.
• Long Term Cost Saving - Recyclable and reusable packaging lowers lifecycle costs when measured against frustrating single-use plastics.

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