Eco-friendly packaging market to expand to USD 369.32-billion

Eco-friendly practices are gaining traction from various consumer segments. Governments worldwide are implementing policies to promote eco-friendly packaging solutions.

This consumer preference has resulted in sustainable products experiencing a growth rate of 2.7 times faster than traditional goods, despite the price premiums associated with eco-friendly alternatives.

Countries around the world have introduced bans on single-use plastics such as straws. Financial incentives such as subsidies and tax benefits motivate companies to invest in green technologies.

A report by Towards Packaging said, “The Government of India launched the PMFME scheme with a financial outlay of Rs 10,000 crore over five years (2020-2025) to support micro food processing enterprises in upgrading to sustainable practices.” As of now, over 43,000 enterprises have received assistance under this scheme.

In terms of consumers’ most favoured eco-friendly product categories, a majority of millennials (60%) opted for environmentally friendly food options. Additionally, cleaning products and clothing emerged as popular choices, particularly among Gen Z, with 56% expressing a preference for sustainable apparel.

Water bottles and coffee cups are prominently featured on the list of preferred eco-friendly products. Approximately 20% of the respondents to a survey conducted by Towards Packaging indicated a penchant for eco-conscious appliances, showing a growing trend in sustainable consumer behaviour.

The report said that 34% of women prioritise sustainability when selecting makeup and skincare products.

Despite significant growth, the eco-friendly packaging industry faces several challenges, primarily due to limited access to sustainable raw materials. Compostable or biodegradable materials, such as PLA (polylactic acid) and cellulose, involve specialised production processes that increase costs.