Eco-Friendly Food Packaging Market Set to Grow at 6.2% by 2031, Driven by Recyclability Milestones and Consumer Push for Sustainability - DataM Intelligence

"The Eco-Friendly Food Packaging Market is projected to grow at a CAGR of 6.2% during the forecast period (2024-2031).The momentum is being significantly driven by global sustainability targets, increasing regulatory pressure, and headline-making industry actions such as Ferrero's recent announcement of achieving 100% recyclable packaging across its global product portfolio."According to the latest report by DataM Intelligence

Ferrero, the global confectionery giant, revealed on July 30, 2025, that it has successfully transitioned all its product packaging to be 100% recyclable, in line with its sustainability commitment. This major milestone by a household brand not only accelerates industry-wide awareness but also sets a precedent for other food manufacturers to follow. Ferrero's shift is poised to influence supplier demand, regulatory alignment, and consumer expectations globally.

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Growing Regulatory Mandates and Eco-Conscious Consumers Fuel Market Expansion

Governments worldwide are cracking down on single-use plastics and pushing mandates for compostable, biodegradable, and recyclable packaging. For instance, the European Union's Packaging and Packaging Waste Regulation (PPWR) and similar initiatives in the U.S. and Japan have created urgent demand for sustainable packaging alternatives across the food sector.

The DataM Intelligence report highlights that consumer sentiment is also undergoing a paradigm shift. Over 72% of consumers in developed markets now prefer food brands offering eco-packaging, even at a higher price point. This evolving mindset is influencing procurement, R&D, and brand positioning across the food industry.

Market Segmentation: Bioplastics, Paper, and Edible Films Gain Ground

The report segments the eco-friendly food packaging market by material, packaging type, and end-use industry. Among these, bioplastics and molded fiber packaging are gaining notable traction due to their compostability and scalability. Innovations in edible films, sugarcane pulp containers, and seaweed-based wrappers are also disrupting conventional packaging.

➥Material Type: Bioplastics, Paper & Paperboard, Metal, Glass, Edible Packaging

➥Packaging Type: Rigid, Flexible, Pouches, Trays, Cartons

➥End-Use: Bakery & Confectionery, Dairy, Fruits & Vegetables, Meat Products, Ready-to-Eat Meals

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Regional Insights: Europe and North America Lead; Asia-Pacific Shows Rapid Growth

Europe continues to lead the global market share, driven by strong regulatory backing and early adoption by food brands. Ferrero's success is a prime example of the continent's commitment to sustainability. North America follows closely, with increased investments in compostable solutions and state-level bans on non-recyclable packaging.

The Asia-Pacific region, led by China, India, and Japan, is emerging as a high-growth market due to expanding urban populations and evolving consumer awareness. Japan, in particular, has shown innovation leadership with its smart biodegradable food wraps and zero-plastic bento packaging models.

Industry Trends and Technological Advancements

Several trends are reshaping the market:

➥ Digital watermarking for better sortation in recycling plants

➥ Mono-material flexible films that simplify post-consumer processing

➥ AI-powered packaging machinery to reduce material wastag

➥ Zero-waste design approaches that eliminate secondary packaging

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Mergers, Partnerships, and Competitive Landscape

The market is witnessing strategic collaborations aimed at innovation and circularity:

➥ In Q2 2025, Amcor partnered with Pulpex to scale production of paper-based bottles for condiments and beverages.

➥ Tetra Pak launched its first-ever certified compostable food carton, piloted in Scandinavian markets.

➥ Startups like Notpla and Evoware are disrupting the scene with edible and seaweed-based packaging, attracting investments from global VC firms.

Key players profiled in the report include:

➸ Amcor Plc
➸ Tetra Pak
➸ Sealed Air Corporation
➸ Mondi Group
➸ Smurfit Kappa
➸ Huhtamaki Oyj
➸ Uflex Ltd
➸ DS Smith
➸ Novamont S.p.A
➸ Genpak LLC

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