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Primary Catalyst Driving Plastic Free Packaging Market Evolution in 2025: Growing Popularity Of E-Commerce And Online Retail Drives Market Growth Due To Rising Demand For Sustainable Solutions Driver
Plastic Free Packaging
The rise in e-commerce and online retail spending is predicted to fuel the expansion of the plastic-free packaging industry. E-commerce involves conducting business via the internet, while online retailing specifically involves selling products to consumers via digital platforms. The reasons for these sectors' growth include convenience, a broader range of products, competitive pricing, and an accelerated consumer uptake of digital technologies. Plastic-free packaging is vital for supporting online retail and e-commerce, as its use leads to improved sustainability, lessened environmental effects, and meets the clamor for greener alternatives among consumers, in addition to safeguarding the product and attracting environmentally sensitive consumers. For example, information from the United States Census Bureau, a US government department, shows that in August 2024, the second quarter retail e-commerce sales in the United States stood at $291.6 billion, a rise of 6.7% compared to the similar period in 2023, and up by 1.3% from the first quarter of 2024. Consequently, the surge in e-commerce and online retail is spurring the growth of the plastic-free packaging sector.
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What is the future CAGR of the plastic free packaging market, and how will it impact industry expansion?
The market for plastic-free packaging has seen significant expansion in the past few years. The market is projected to increase from $6.04 billion in 2024 to $6.64 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 9.9%. The substantial growth experienced during the historic period can be linked to greater environmental consciousness, increased funding from food and beverage manufacturers, heightened understanding of damaging side effects, prohibitions on plastic bags and other plastic commodities, and the rising trend for e-commerce and online retail.
Expectations are high for robust expansion of the plastic-free packaging market in the years to come. The market size is projected to reach $9.59 billion in 2029, growing at a compound annual growth rate (CAGR) of 9.6%. The anticipated growth during the forecast period can be associated with the rigorous regulatory frameworks by the government and the surging focus on the principles of the circular economy. Major predicted trends for the forecast period are improvements in packaging materials and technologies, emergence of compostable and biodegradable materials, advancements in the field of material science, collaborations among manufacturers, suppliers and research institutions, and investigations into reusable packaging options.
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What are the most significant trends transforming the plastic free packaging market today?
Key players in the plastic-free packaging industry are turning their attention towards revolutionary edible packaging alternatives like plant-derived barrier coating to mitigate plastic pollution and deliver innovative, environmentally-friendly solutions to their clients. This type of coating, sourced from plants, serves as a protective layer on packaging surfaces. It acts as a shield against moisture, air, oil, and other factors that may affect the quality of the packaged goods. For instance, Melodea Ltd., an Israeli company specialising in packaging solutions, unveiled two eco-friendly, plant-based substitutes for packaging in January 2022. These substitutes are made from cellulose crystals extracted from the pulp of trees grown in industrial forests. The new materials they introduced are MelOx, a superior barrier coating that blocks off oxygen, oil, and grease, and Melodea VBcoat, which offers protection against water vapor in addition to oil and grease. These developments highlight the industry's move toward more sustainable and practical packaging solutions.
Which key market segments comprise the plastic free packaging market and drive its revenue growth?
The plastic free packaging market covered in this report is segmented -
1) By Packaging Type: Pouches, Boxes And Cartons, Bottles, Blisters, Trays, Other Packaging Types
2) By Material: Paper, Glass, Metal, Aluminum Foil, Other Materials
3) By End-Use: Food And Beverages, Pharmaceutical, Personal Care And Cosmetics, Consumer Goods, Electrical And Electronics
Subsegments:
1) By Pouches: Paper Pouches, Compostable Pouches, Plant-Based Pouches
2) By Boxes and Cartons: Cardboard Boxes, Corrugated Boxes, Paperboard Cartons
3) By Bottles: Glass Bottles, Aluminum Bottles, Paper Bottles
4) By Blisters: Paper Blisters, Compostable Blisters
5) By Trays: Paper Trays, Bamboo Trays, Plant Fiber Trays
6) By Other Packaging Types: Fabric Packaging, Edible Packaging, Wooden Packaging
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What regions are at the forefront of plastic free packaging market expansion?
North America was the largest region in the plastic free packaging market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the plastic free packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the leading players fueling growth in the plastic free packaging market?
Major companies operating in the plastic free packaging market are WestRock Company, International Paper Company, Amcor plc, Tetra Pak International S.A., Huhtamaki OYJ, Mondi plc, Futamura Group, Beatson Clark Limited, Vegware Ltd., TemperPack Technologies Inc., PaperFoam B.V., BioPak Pty Ltd, Pappco Greenware Pvt. Ltd., TIPA Corporation Ltd., Alter Eco Americas PBC, Sulapac Ltd., No Evil Foods Inc., Ecologic Brands Inc., EnviGreen Biotech Pvt. Ltd., Loop Industries Inc.
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What Is Covered In The Plastic Free Packaging Global Market Report?
•Market Size Forecast: Examine the plastic free packaging market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the plastic free packaging market for a structured understanding.
•Key Players Overview: Analyze major players in the plastic free packaging market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the plastic free packaging market.
•Segment Contributions: Evaluate how different segments drive overall growth in the plastic free packaging market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the plastic free packaging market.
•Industry Challenges: Identify potential risks and obstacles affecting the plastic free packaging market.
•Competitive Landscape: Review strategic developments in the plastic free packaging market, including expansions, agreements, and new product launches.
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