Increase in Health Awareness Contributes to Growth of Green Packaging Industry
A new market report from market intelligence firm Transparency Market Research (TMR) has estimated that the growth of green packaging – recycled-content packaging, reusable packaging and degradable packaging – will increase through 2020 due to the overall desire to be healthy and more conscious of our environment. The report, “Green Packaging Market – Global Industry Analysis, Trend, Size, Share and Forecast 2015 – 2021,” predicts a 6.2% CAGR between 2015 and 2021.
While there are a few road blocks in the green packaging market, such as increasing production cost, decreasing profit margins and a general lack of awareness of the industry, the positive aspects of the global green packaging market outweigh the negatives.
The increase in health awareness is the driving force behind the growth of the industry and the health benefits associated with sustainable packaging aligns with those needs. The demand for the green packaging industry has seen a boost because of its use of biodegradable materials for sustainability, recycling and life-cycle assessment (LCA) ensuring an increased life-cycle inventory (LCI). Consumers’ desire to be environmentally friendly is another factor that will contribute to the growth of sustainable packaging and the increase in government initiatives to keep eliminate as much pollution as possible supports that goal.
All of these factors contribute to the global green packaging market rising from being valued at $132.4 billion in 2014 to the prediction that it will reach $203.1 billion by the end of 2021.
The U.S. is currently the largest green packaging market in the world but overall, the global green packaging market is gaining steam due to demand in economies of countries like India and China, which is segmented under Asia Pacific. The market is segmented into Europe, Asia Pacific, North America and the rest of the world.
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