United States Eco-Friendly Food Packaging Market to Reach US$ 28.6 Billion by 2031, Driven by Regulatory Push and Rapid Adoption of Sustainable Materials

Leander, Texas and TOKYO, Japan - Dec. 8, 2025 - "The Eco-Friendly Food Packaging Market is projected to grow at a CAGR of 6.2% during the forecast period 2024-2031."

The Eco Friendly Food Packaging Market is driven by escalating environmental concerns over plastic pollution, coupled with stringent government regulations on waste reduction and recyclability. Market growth is supported by surging consumer preference for green alternatives, innovations in biodegradable materials like bioplastics and paper based solutions, and expanding applications in convenience foods, beverages, and ready to eat products.

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☛ Recent Industry Developments :
United States :
✅ December 2025 :
Amcor plc unveiled its next generation recyclable fiber based packaging for fresh produce, targeting U.S. grocery chains. The launch is backed by a US$ 120 million investment in advanced manufacturing facilities in California and Georgia, enhancing barrier properties and shelf life extension for sustainable food transport.

✅ November 2025 :
Tetra Pak Inc. expanded its U.S. aseptic carton portfolio with fully compostable plant-based coatings, following successful pilots in dairy and plant milk segments. The company secured a US$ 90 million funding round to scale production and partner with major foodservice providers for zero waste initiatives.

✅ October 2025 :
Crown Holdings, Inc. introduced AI-optimized aluminum cans with embedded recycled content for beverage applications, in collaboration with U.S. breweries. This involves a US$ 65 million R&D investment to improve light weighting and circular economy compliance.

Global :
✅ December 2025 :
BASF SE announced a landmark agreement with a leading Asian food conglomerate to supply ecovio bioplastic for flexible packaging in snacks and frozen foods. The partnership allocates US$ 100 million for joint facility expansions in Southeast Asia to meet EU export standards.

✅ November 2025 :
Mondi Group launched its Bio based Liner range for e-commerce food delivery worldwide, emphasizing water based barriers and FSC certified fibers. The rollout is supported by a US$ 70 million investment in European and APAC mills for increased capacity.

✅ October 2025:
Smurfit Kappa acquired a Dutch biotech firm specializing in mycelium based packaging for perishables, valued at US$ 45 million. This acquisition bolsters Smurfit Kappa's global offerings in fungi derived, fully biodegradable alternatives for meat and produce.

☛ Core Catalysts Behind Market Growth :
Heightened global awareness of plastic waste and its environmental impact is propelling demand for recyclable, compostable, and reusable packaging solutions across the food supply chain.

Stringent regulations from bodies like the EU's Single Use Plastics Directive and U.S. state level bans on single use items are accelerating the shift to eco-friendly materials and circular economy models.

Technological advancements in biopolymers, active packaging for extended shelf life, and alternate fibers are enabling cost effective, high performance sustainable options for diverse food applications.

Rising urbanization, e-commerce growth in grocery delivery, and consumer willingness to pay premiums for green products are fueling investments and retail expansions worldwide.

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☛ Market Segmentation :
By Material :
Paper & Paperboard leads with a 45% share, favored for its versatility in rigid boxes, molded pulp trays, and flexible wraps for ready to eat and frozen foods, owing to excellent printability and recyclability. Plastic (biodegradable variants) holds 25%, driven by innovations in PHA and PLA for films and pouches. Metal accounts for 15%, prominent in cans and foils for beverages due to infinite recyclability. Glass represents 10%, used in premium jars for preserves and sauces. Others, including bio composites and mycelium, capture 5% and are gaining traction for niche sustainable applications.

By Type :
Recycled Content Packaging dominates with 40% share, propelled by cost savings and regulatory incentives for incorporating post consumer resins in bottles and cartons. Degradable Packaging accounts for 30%, benefiting from rapid breakdown in industrial composting for short shelf-life items. Reusable Packaging holds 30%, expanding in B2B foodservice and retail refill systems to minimize waste.

By Technique :
Active Packaging leads with 35% share, incorporating oxygen scavengers and antimicrobials to extend freshness in meats and bakery goods. Molded Packaging captures 25%, ideal for egg cartons and fruit trays from pulp. Alternate Fiber Packaging (e.g., bamboo, sugarcane) holds 20%, appealing for eco conscious branding. Multipurpose Packaging accounts for 20%, versatile for multi compartment meal kits.

By Application :
Food applications command 60% share, driven by demand for protective wraps, trays, and boxes in processed and fresh segments amid rising convenience eating. Beverages account for 40%, supported by sustainable bottles, cartons, and pouches amid health trends and plastic reduction pledges.

☛ Competitive Landscape :
The global Eco Friendly Food Packaging market is moderately consolidated yet innovative, characterized by strategic alliances, R&D in bio materials, and compliance with global sustainability standards.

Amcor plc leads with an estimated 18% share, renowned for its diverse portfolio of flexible and rigid sustainable solutions, including Mono Material films and recycled PET for global food brands.

Mondi Group holds approximately 16% market share, excelling in paper-based innovations like Barrier Pack Recyclable for snacks and leveraging vertical integration for cost efficiency.

Tetra Pak International captures around 14%, dominating aseptic cartons with plant polymer linings and strong emphasis on circularity in dairy and juice segments.

Ball Corporation commands nearly 12% share, pioneering lightweight aluminum packaging with high recycled content for beverages and aerosols through advanced manufacturing.

Crown Holdings, Inc. maintains close to 10% market share, focusing on specialty cans and ends with eco coatings, expanding in North America and Europe via acquisitions.

Other Key Players:
BASF SE, WestRock Company, Smurfit Kappa Group, Elopak AS, Huhtamaki Oyj.

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☛ Regional Analysis :
North America :
North America accounts for 32%, led by robust recycling infrastructure, corporate sustainability pledges, and consumer driven demand in the U.S. and Canada for biodegradable options in processed foods.

Europe :
Europe holds 28%, propelled by ambitious EU Green Deal targets, bans on single-use plastics, and high adoption in Germany, France, and the UK for compostable packaging in retail.

Asia-Pacific :
Asia-Pacific captures 25%, as the fastest growing region due to rapid urbanization, e-commerce boom, and regulatory pushes in China, India, and Japan for fiber based solutions.

Latin America :
Latin America represents 8%, with increasing focus on bio-based materials in Brazil and Mexico amid rising exports and health conscious snacking trends.

Middle East & Africa :
Middle East & Africa account for 7%, driven by premium sustainable imports in GCC countries and emerging initiatives in South Africa for water efficient packaging.

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