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Environmental Concerns Propel Growth Of Plastic Alternative Packaging Market: A Key Catalyst Accelerating Plastic Alternative Packaging Market Growth in 2025
"Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.How Large Will the Plastic Alternative Packaging Market Size By 2025?
In the last few years, the size of the plastic alternative packaging market has experienced a swift expansion. It is projected that it will rise from a worth of $6.22 billion in 2024 to a robust $7.3 billion in 2025, marking a compound annual growth rate (CAGR) of 17.4%. The exceptional growth during the historic period can be traced back to a surge in demand for industrial packaging products, heightened environmental worries about plastics, and a growing preference for alternatives to plastics.
How Big Is the Plastic Alternative Packaging Market Size Expected to Grow by 2029?
Rapid expansion is anticipated for the plastic alternative packaging market in the coming years, with projections estimating a rise to $14.1 billion by 2029, reflecting a compound annual growth rate (CAGR) of 17.9%. The escalation during the forecast period is credited to technological progression, increased philosophical understanding, government-led initiatives, and the growing availability of plastic alternative packaging. Key trends for the forecast time span encompass strategic alliances with research organizations and established firms, concentration on investment in mono-material packaging solutions, effort on exploiting industrial by-products for upcycling to innovate new plastic alternative packaging materials, use of artificial intelligence (AI), the drive towards mergers and acquisitions, and the application of eco-friendly bioplastics.
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Which Key Market Drivers Powering Plastic Alternative Packaging Market Expansion and Growth?
The escalating worries about the environmental damage caused by plastic use are fuelling the expansion of the plastic alternative packaging market. Plastic materials contain hazardous pollutants that can harm humans, animals, and the ecosystem. Hence, consumers are leaning towards environmentally friendly packaging substitutes for plastic. According to Earth.org, a Hong Kong-based NGO, it was projected in January 2024 that about 14 million tons of plastic find their way into the oceans every year, thereby endangering wildlife habitats and marine life. The report further stated that if no measures are implemented to curb this, the quantity could escalate to 29 million metric tons on an annual basis by 2040. When considering microplastics, the overall quantity of plastic in the ocean could reach 600 million tons by then. This mounting propensity towards plastic alternatives has drawn the attention of global businesses, bolstering the growth of the plastic alternative packaging market.
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Which Fast-Growing Trends Are Poised to Disrupt the Plastic Alternative Packaging Market?
Companies in the plastic alternative packaging industry are shifting their focus to mono-material packaging solutions as a way of offering a more sustainable system. These solutions are based on a single type of polymer, which enhances their recyclability as they do not need to be disassembled before recycling. These new packaging materials eliminate the necessity for separating different materials and reduce the risk of contaminating the recycling stream. Companies are adopting new polypropylene (PP) solutions, which serve as effective mono-material alternatives to multi-material plastics, providing advantages such as increased moisture barriers, heat resistance, and superior visibility. For example, TIPA, an Israel-based firm that specializes in compostable and biodegradable packaging solutions, launched a fully compostable and recyclable tray made from rice waste products in November 2023. With the capability of being disposed of in home compost bins, these trays can also be recycled with paper because of their unique pulp composition. They are an eco-friendly option to traditional plastic packaging, helping to lessen air pollution from the burning of agricultural waste.
What Are the Emerging Segments in the Plastic Alternative Packaging Market?
The plastic alternative packaging market covered in this report is segmented -
1) By Type: Starch-Based Plastic, Cellulose Based Plastics, Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Other Types
2) By Process: Bio-Based Or Non-Biodegradable, Biodegradable
3) By Application: Food And Beverage, Personal Care, Health Care, Other Applications
Subsegments:
1) By Starch-Based Plastic: Thermoplastic Starch (TPS), Starch Blends And Composites, Biodegradable Starch Films
2) By Cellulose-Based Plastics: Cellulose Acetate, Cellulose Film Products, Regenerated Cellulose
3) By Polylactic Acid (PLA): Injection-Molded PLA Products, Extruded PLA Films, Rigid And Flexible PLA Containers
4) By Polyhydroxyalkanoates (PHA): PHA Granules For Molding, PHA Films And Coatings, PHA Blends With Other Materials
5) By Other Types: Mushroom-Based Packaging, Paper And Cardboard Composites, Seaweed-Based Packaging, Other Biodegradable Materials
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Who Are the Global Leaders in the Plastic Alternative Packaging Market?
Major companies operating in the plastic alternative packaging market include BASF, Amcor plc, Tetra Pak International SA, Sealed Air, Evergreen Packaging, Rengo Co. Ltd, International Paper Company, Mondi Group PLC, Futamura Group, SECOS Group, Huhtamaki, Shanghai PRECISE Packaging Co, SIG Combibloc, Greatview Aseptic Packaging, BioPak, Himalayan Packaging Industries Pvt. Ltd., Decon India Plastics Private Limited, West Pharma, Qingdao Likang Packing., Smurfit Kappa, DS smith, Element Packaging LTD, Delyn Packaging Ltd, CP Packaging Ltd, Surepak innovative packaging company, Epac flexible packaging, Enviroplast Inc., TC Transcontinental, PolyFerm Canada, TerraVerdae Bioworks Inc., Kruger Inc., Klabin SA, HP Inc., Choose Packaging, Plastic Suppliers Inc., Saudi Investment Recycling Company (SIRC), Bemis Company Inc., Winpak LLC, Rotopak LLC, Gulf East Paper and Plastic Industries LLC, Arabian Packaging LLC, Amber Packaging Industries LLC, Diamond Packaging Industries LLC, Astrapak Ltd (RPC Group), Nampak Ltd., Mpact Pty Ltd, Foster Packaging, Consol Glass (Pty) Ltd., East African Packaging Industries Ltd (EAPI), Constantia Afripack (Pty) Ltd, Bonpak (Pty) Ltd., Frigoglass South Africa (Pty) Ltd.
Which are the Top Profitable Regional Markets for the Plastic Alternative Packaging Industry?
North America was the largest region in the plastic alternative packaging market in 2024. The regions covered in the plastic alternative packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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