Green Packaging Market Size, Share and Trends 2025 to 2034

What is the Green Packaging Market Size?

The global green packaging market size is valued at USD 351.27 billion in 2025 and is anticipated to reach around USD 583.37 billion by 2034, expanding at a CAGR of 5.77% from 2025 to 2034. The green packaging market is growing because it is an efficient and cost-effective alternative to single-use packaging.

Market Highlights

• Europe dominated the global market with the largest market share of 37% in 2024.
• Asia Pacific is projected to expand at the notable CAGR during the forecast period.
• By packaging type, the Recycled content segment contributed the highest market share in 2024.
• By packaging type, the reusable packaging segment is estimated to be the fastest-growing segment during the forecast period.
• By application, the food and beverages segment will capture the most significant market share in 2024.
• By application, the healthcare segment is expected to grow at a significant CAGR from 2025 to 2034.

Market Size and Forecast

• Market Size in 2025: USD 351.27 Billion
• Market Size in 2026: USD 370.94 Billion
• Forecasted Market Size by 2034: USD 583.37 Billion
• CAGR (2025-2034): 5.77%
• Largest Market in 2024: Europe
• Fastest Growing Market: Asia Pacific

Impact of Artificial Intelligence (AI) on the Green Packaging Market

With the use of machine learning algorithms, AI can create high-quality packaging that uses minimum materials without requiring any protection. AI can also try different scenarios to predict how volumes will counter different trends and avoid excessive volumes. Sustainable packaging manufacturers and retailers are using AI not only to create more sustainable packaging but also to predict the performance of each design. AI can analyze the environmental impact of different packaging materials, including biodegradability, recyclability, and carbon footprint. AI-powered material design and optimization enables the development of biodegradable, compostable, and renewable packaging materials that are comparable to traditional plastics while reducing environmental impact and leading to green packaging market.

Green Packaging Market Growth Factors

• Single-use plastic packaging is making threats worldwide. Plastic emits greenhouse gases throughout its life cycle, from drilling to refining, manufacturing, and disposal of fossil fuels, which constitute 99% of plastic, and is a major driver of the green packaging market.
• Increased consumer safety has driven innovation in packaging and technology, focusing on reducing waste and reducing environmental impact, leading to the growth of the green packaging market.
• Swachch Bharat Abhiyan is one of the largest waste management initiatives in the world. Plastic waste management is a priority of Swachch Bharat Abhiyan, leading to the growth of the green packaging market.
• Green packaging is playing a significant role in achieving sustainability goals in various sectors such as e-commerce, shipping, and food packaging, which is leading to the growth of the green packaging market.

Market Scope

Segments Insights

Packaging Type Insights

Recycled content packaging segment dominated the global green packaging market in 2024. The extensive usage of materials such as plastic, glass, metal, and paper, which can be easily recycled, has propelled the growth of this segment. These materials are recycled by the manufacturers to produce a new packaging and hence the amount of wastage is drastically reduced. It has become the most popular and widely accepted type of green packaging.

Furthermore, the low cost of plastic and its high durability has made the use of recycled plastic popular across the globe. The low cost of the recycled plastic has gained rapid traction in the developing regions. Therefore, the surging adoption of the recycled plastic across various end use verticals has resulted in the dominance of this segment across the globe.

Green Packaging Market Revenue in USD Billion, by Type

On the other hand, the reusable packaging is expected to be the most opportunistic segment during the forecast period. These are made from plastic materials that are intended to longer and multiple uses. For instance, the drums are popularly used for the transportation of the liquid goods. The plastic containers are gaining rapid popularity among the vegetable and fruit vendors as it offers easy packaging and transportation solutions.

Application Insights

The food and beverages segment dominated the market in 2024. The increasing adoption of the green packaging solutions in the restaurants, packaged foods, and fast food chains has boosted the growth of this segment. The surging adoption of the compostable and pulp packaging in the food and beverages industry is expected to drive the growth of this segment in the forthcoming period.

The healthcare is expected to be the fastest-growing segment during the forecast period. The surging number of manufacturing facilities of various medicines and medical devices coupled with the stringent government regulations pertaining to the packaging and safety of the medical consumables is expected to drive the growth of this segment in the forthcoming years. Glass packaging and aluminum foils are among the top packaging materials used in the pharmaceutical industry.

Regional Insights

Europe Green Packaging Market Size and Growth 2025 to 2034

The Europe green packaging market size is exhibited at USD 113.05 billion in 2025 and is projected to be worth around USD 190.81 billion by 2034, growing at a CAGR of 5.96% from 2025 to 2034.

Europe was the leading green packaging market and it garnered a market share of around 37% in 2020. The stringent government regulations pertaining to the use of single-use plastics and increased awareness towards sustainability has fostered the demand for the green packaging across Europe. The government initiatives to promote the adoption of green packaging solutions are a major factor that has driven the growth of the Europe green packaging market.

Asia Pacific is expected to be the fastest-growing market during the forecast period. Asia Pacific is the manufacturing hub of the world. The low cost availability of plastic materials has fostered the adoption of therecycled plastic, recycled paper, and recycled glass packaging across various applications. Moreover, the surging growth of the food and beverages and the FMCG industry in the region is expected to be the most prominent driver of the green packaging market. Moreover, the government regulations regarding the plastic use is driving the adoption of the green packaging solution across Asia Pacific.

Green Packaging Market Companies

• Amcor Limited
• E. I. DuPont de Nemours and Company
• Mondi Limited
• Sealed Air Corporation
• TetraPak International S.A.
• Ardagh Group Co.
• PlastiPak Holdings, Inc.
• Bemis Company, Inc.
• Uflex limited
• ELOPAK AS

Market Developments

• In September 2024, Austria's Andritz is collaborating with PulPac to develop sustainable solutions. It will combine PulPac's dry mold fiber technology with Andritz's pulping and recycling capabilities to create a complete dry mold fiber production system. The partnership is designed to create sustainable packaging solutions. “This partnership with PulPac enables us to engineer economically viable and resource-saving solutions for Dry Molded Fiber products that contribute to the reduction of single-use plastics. This is perfectly in line with our commitment to driving the green transition,” said ANDRITZ Division Manager, Nonwoven & Textile, Andreas Lukas.
• In September 2023, Smurfit Kappa and WestRock announced an agreement to create a global leader in sustainable packaging. Smurfit Kappa and WestRock are joining forces to create Smurfit WestRock, a global leader in sustainable packaging with unparalleled scale, quality, product, and geographic diversity. WestRock Company and Smurfit Kappa are providers of sustainable fiber-based paper and packaging solutions.

Segments Covered in the Report

By Packaging Type

• Recycled Content Packaging
  • Glass
  • Paper
  • Plastic
  • Metal
  • Others
• Reusable Packaging
  • Plastic Container
  • Drums
  • Others
• Degradable Packaging

By Application

• Personal Care
• Food & Beverages
• Healthcare
• Chemical
• Shipping
• Others

By Material

• Paper
• Plastic
• Metal
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa