Zero Waste Packaging Market (By Material Type: Re-Usable Goods, Compostable Goods, Edible Goods; By Application: Food and Beverage, Healthcare, Personal Care, Industrial, Others; By Distribution Channel: Offline Retail, Online Retail) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global zero waste packaging market size was valued at USD 2 billion in 2022 and it is expected to reach around USD 4.63 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 8.8% during the forecast period 2023 to 2032.

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Key Takeaways:

• North America region accounted highest revenue share of over 39% in 2022.
• The Asia Pacific region is growing at a CAGR of 9.8% from 2023 to 2032.
• By material type, the compostable goods segment hit the highest revenue share of over 58% in 2022.

Zero waste packaging is hailed as a fresh industrial revolution. It guarantees that items will be packaged in a way that produces no waste. This is mostly accomplished through the use, recycling, and reuse of trash. Waste created by packing materials is an issue everywhere in the globe. As a result of being buried in landfills or thrown in the ocean, a sizable amount of the garbage also affects aquatic life and forms massive islands of rubbish. As a result, strict environmental rules have been developed. For instance, in 2020, the Singapore government launched a collaborative project called The Singapore Packaging Agreement (SPA). A joint initiative between the government of Singapore, NGOs and the packaging industry, to diminish packaging waste.

An agreement is optional in order to provide the sector freedom in implementing affordable waste reduction strategies. The requirement for zero waste retailers is being met by these growing concerns, which essentially encourage consumers to bring their own packing materials, including bags and containers, among others, to transport their purchases from the stores. Throughout the forecast period, these factors are projected to support the zero-waste packaging market's expansion.

The zero-waste packaging market is predicted to increase significantly as a result of the strict regulatory environment, the worldwide environmental crisis, and other factors. Over 200 million tonnes of plastic are being produced each year and landfilled. Furthermore, because it produces a significant amount of harmful gas waste during industrial burning, only a few number of recycling methods guarantee a totally clean-riddance. Furthermore, single-use plastics are prohibited in a large number of nations worldwide. The food and beverage businesses are quite concerned about this. Major businesses in the beverage industry claim that single-use plastic replacements are not currently practical or financially viable. Players in the zero-waste packaging industry should expect to benefit from significant innovation possibilities as a consequence of the critical need and need to address an enduring issue. Fast moving consumer goods (FMCG) corporations have partnered with businesses like Dabur India Ltd., which uses zero-waste packaging techniques to deliver products to customers using minimum packaging and collect the residual waste for reuse and recycling. This procedure increases the profitability for zero-waste packaging producers while raising environmental issues with regard to trash management throughout the world. 

The expensive cost of zero waste packaging materials, however, could serve as a market restraint. Though currently more expensive than plastic garbage, zero waste materials don't require extra costs like financing to clean the waste. For instance, according to estimates from the World Economic Forum, waste from plastic packaging causes an annual loss of $80 to $120 billion. Additionally, the quickly growing food and beverage sector and rising e-commerce sales are some of the reasons that are anticipated to create a number of potential opportunities for the market in the years to come.

Growth Factors

Waste created by packing materials is an issue everywhere in the globe. As a result of being buried in landfills or thrown in the ocean, a sizable amount of the garbage also affects aquatic life and forms massive islands of rubbish. As a result, strict environmental rules have been developed. For instance, in 2020, the Singapore government launched a collaborative project called The Singapore Packaging Agreement (SPA). 

The Singapore government, the packaging sector, and NGOs are working together on this program to cut down on packaging waste. The Agreement is optional in order to provide the sector freedom in implementing affordable waste reduction strategies. The requirement for zero waste retailers is being met by these growing concerns, which essentially encourage consumers to bring their own packing materials, including bags and containers, among others, to transport their purchases from the stores. Throughout the forecast period, these factors are projected to support the zero waste packaging market's expansion.

With the expansion of the consumer goods business, both marked and unmarked product consumption has multiplied, which in turn has raised the demand for sustainable packaging techniques. In an effort to use fewer raw materials, efforts include improving production methods, reducing the size and thickness of the actual packaging produced, eliminating unnecessary packaging, etc.

• Numerous uses for zero-waste packaging in the food, beverage, and other industries;
• Increasing demand for environmentally friendly packaging techniques.

Zero Waste Packaging Market Scope

Zero Waste Packaging Market Dynamics

Key Market Drivers

• Rising concern for environment- The biggest businesses in the world are rising to the challenge and implementing zero-waste packaging solutions as demand rises. Coca-Cola, for instance, recently revealed its World without Waste Initiative, with the goal of employing 50% recycled materials to attain 100% recyclable packaging. It also plans to collect and recycle one bottle or can for every item sold. Similar to this, Unilever announced a 50% decrease in its use of virgin plastics. It opened the door for brand-new techniques for handling and gathering plastic packaging.
• Adoption of Technologies- Over time, it is anticipated that the implementation of a number of cutting-edge technologies, including automation and 3D printing, will increase the production capacity of zero waste manufacturers, leading to lucrative market prospects. Additionally, increasing disposable income, the food and beverage industry's rapid expansion, and rising healthcare need are anticipated to increase demand for zero waste packaging and propel market growth.

Key Market Challenges 

• Lack of Knowledge: Because they are unaware of how their current practices harm the ecosystem, many businesses today do not practice sustainability. The majority of them also need the expert advice required to evaluate their operations and comprehend how embracing sustainable practices will enhance earnings while also helping to save the environment.
• Special disposal technique: Zero-waste packaging materials can need special disposal techniques. Customers might not, however, be aware with the many types of packaging or how to properly dispose of them. These issues can hamper the zero waste packaging market growth over the forecast period.

Key Market Opportunities

• End-user packaging with zero waste - Adoption of zero-waste packaging promotes producers and customers to switch to sustainable lifestyles that involve reusing packaging so that ultimately no trash is produced. The use of FMCG items has significantly increased, especially as the consumer goods sector has expanded over the past several years. This has increased demand for environmentally friendly packaging techniques like zero waste packaging.
• Demand advanced, robust, and reliable packaging solutions- The zero waste packaging market is anticipated to grow considerably as the e-commerce and food and beverage sectors continue to look for innovative, robust, and trustworthy packaging solutions. E-commerce is dislodging conventional brick and mortar businesses in many regions of the world. It also serves as a driving force behind the growing global demand for food delivery. Major pharmacies like Walgreens have launched online ordering and delivery companies in reaction to Amazon. Electronics, apparel, and other new services will be in high demand as a result of the growth of this business. The market for zero waste packaging is anticipated to expand as a result of the rising need for innovative packaging as well as technological advancements like automation and 3D printing.

Material Type Insights

In the material type category, compostable products held the greatest market share in 2022. This is largely due to increased knowledge and worries about the importance of waste among the worldwide population that might have negative impacts on the environment.

 As a result, consumers are increasingly looking for compostable goods as a reliable substitute for other disposable items when disposing of garbage. Since they are seen as a necessary alternative to other disposable items, compostable products have been more in demand for waste disposal. Additionally, the end-use industry's food and beverage sector is predicted to see the highest CAGR of 9.44% throughout the projection period.

Distribution Insights

Due to the rising demand for recycled and biodegradable packaging options, the offline sector dominated the worldwide zero waste packaging market. To reduce the usage of plastic, the retail firms are working with the suppliers of zero waste packaging solutions, which is anticipated to fuel the sector development over the forecast period. For instance, Virgin Megastore, a global network of entertainment retail stores, works with Avani Eco in November 2019. Virgin Megastore began utilizing customized Avani Bio's cassava bags in place of plastic bags at their UAE stores. The bags are entirely biodegradable since they are constructed of vegetable oil, organic polymers, and cassava starch. Another significant growth driver for the offline category in the next years will be the spike in consumer demand for eco-friendly packaging options.

Application Insights

The food and beverage sector held highest revenue share in 2022. The need for food and beverage packaging is mostly being driven by convenience foods because of its mobility, extended shelf lives, and simple manufacture. Convenience food is becoming in demand as a result of consumers' hectic lifestyles and the aging population. Innovative packaging and cutting-edge technologies have increased the range of easily available food alternatives, including packed, frozen, chilled, etc. Product safety and sustainability are the primary concerns of the majority of package manufacturers. Consumer goods corporations are increasingly packaging food, which has changed consumers' preferences for convenient foods. A lot of chemical suppliers are also shifting to more environmentally friendly solutions by using less plastic in packaging.

Geography Insights

Geographically speaking, North America has accumulated the greatest market share due to the enormous volume of surgeries performed there on the region's vast population of elderly patients. The surgical sutures market has benefited greatly from the region's availability of cutting-edge medical facilities and equipment.

Zero Waste Packaging Market Share, By Region, 2022 (%)

Recent Developments

• In April 2019, PulpWorks, Inc. made the decision to partner with Electrolux as part of the Booster Program for the Electrolux Innovation Factory, which had invited a select group of firms to support Electrolux's innovation efforts. The goal of PulpWorks' efforts has been to provide a reliable, biodegradable, all-pulp-and-paper alternative that can reduce the annual production of billions of plastic blister packaging.
• On January 24, 2019, Loop Industries, Inc. introduced reusable packaging at the World Economic Forum in Davos, Switzerland. This innovative method of high-quality packaging that can be returned and continuously refilled has prompted some of the major brands to begin testing the effectiveness of reusable packaging.

Zero Waste Packaging Market Companies

• Loop Industries Inc.
• PulpWorks, Inc.
• Lifepack
• Avani Eco.
• Loliware
• Aarohana Ecosocial Development
• Natural Vegan
• Agilyx
• Arekapak
• Bioplas
• Candy Cutlery
• Do Eat
• Evoware
• No Waste Technology
• Origin Materials
• Skipping Rocks Lab
• Sulapac
• TIPA

Segments covered in the report

By Material Type

• Re-Usable Goods
• Compostable Goods
• Edible Goods

By Application

• Food and Beverage
• Healthcare
• Personal Care
• Industrial
• Others

By Distribution Channel

• Offline Retail 
• Online Retail

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)