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Sustainable Packaging Market Size, Share, Growth and Innovation by 2026
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The global sustainable packaging market is anticipated to grow at a robust CAGR of 5.3% during the forecast period 2018-2026. Some of the key players in this market include Amcor Limited, Ball Corporation, Crown Holdings, Inc., International Paper Company, Sealed Air Corporation, Bemis Company, Inc., Genpak LLC, and Reynolds Group Holdings.
Focus Shifting to Biodegradable Plastics over Conventional Plastics due to Rise in Eco-Friendly Packaging Solutions
The global demand for sustainable packaging market has surged in the last few years, which has prompted the packaging manufacturers to use biodegradable plastics than traditional packaging. This major shift has contributed to the rise in demand for sustainable packaging globally. Furthermore, with the changing lifestyle and increasing awareness towards pollution created by plastics, end-users have started investing on packaged food items.
As per packaging type, the sustainable packaging market is divided into boxes, trays, bottles, bags, sachets and pouches, films, and drum and others. As per material type, the market is classified into plastic, paper and paperboard, and aluminum metal. Of these, paper and paperboard segment is likely to lead the sustainable packaging market with a market share of 55.1% in the year 2018 and is estimated to dominate the global market during the forecast period. However, plastic segment is expected to grow at a CAGR of 5.0% from 2018-2026. Additionally, other segments are also predicted to expand at a CAGR of 4.6% in the forecast period.
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Europe to Dominate the Global Sustainable Packaging Market
According to regions, the sustainable packaging market is divided into North America, Europe, Latin America, and Middle East and Africa. Among these, Europe is projected to lead the market owing to the increase in disposable salary and wide presence of sustainable packaging manufacturers. North America is also expected to grow in the forecast period due to the high consumption of packaging. Also, the Middle East and Africa region is likely to grow at a significant rate from 2018-2026. In Latin America, the growth is estimated to be moderate in the forecast period.
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High Priced Raw Material to Hamper the Growth of Sustainable Packaging Market
Transparency Market Research states that there are some factors responsible for restricting the sustainable packaging market growth globally. Expensive raw material and low accessibility are some of the reasons which are hampering the growth and reducing the demand for sustainable packaging solutions. Also, many companies are not adopting green packaging as an effective solution to this market due to the high production cost and lack of government initiatives especially in emerging countries. The raw material used for sustainable packaging consists of bio-polymers, liquid biofuels, recyclable and cellulosic fiber, and some additives which are high in cost and thus restrict the overall growth of sustainable packaging market.
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