The plastic alternative packaging market involves various sustainable packaging products such as paper, glass, and bioplastics that provide an eco-friendly substitute for traditional plastic packaging. These sustainable packaging solutions help reduce plastic waste and provide superior product protection. Biodegradable materials provide moisture and oxygen barriers while ensuring recyclability. Growing environmental concerns regarding plastic pollution are accelerating the demand for sustainable packaging made from natural and recycled content.
The Global Plastic Alternative Packaging Market is estimated to be valued at US$ 6.11 Billion in 2024 and is expected to exhibit a CAGR of 16% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the plastic alternative packaging market are Amcor Plc, Mondi, DS Smith, Sealed Air, and Tetra Pak International SA. Amcor, for example, offers fiber-based packaging products like paper bottles and cartons that are recyclable alternatives to plastic.
Growing environmental awareness among consumers and stringent regulations banning single-use plastics are driving the demand for sustainable plastic alternative packaging across various end-use industries like food and beverages, pharmaceuticals, and consumer goods. For instance, companies are increasingly adopting paper-based bottles and cartons for milk, juice, and other beverages to reduce their plastic footprint.
The plastic alternative packaging market is expanding globally, especially in Europe and North America due to supportive regulatory framework and initiatives against plastic pollution. Many countries have implemented bans on SUPs and regulations mandating the use of recycled content in packaging. For example, the European Union announced the restriction of certain single-use plastic items by 2021 which will boost the regional market for alternatives.
Market Key Trends
One of the key trends in the plastic alternative packaging market is the growing popularity of bioplastics derived from renewable feedstock sources such as starch, sugarcane, and cellulose. Bioplastics are increasingly replacing petroleum-based plastics due to their biodegradability and sustainability credentials. Major players are investing in developing advanced bioplastic films, bottles, and clamshells with enhanced barrier properties using bio-based resins to complement traditional plastic materials. This is expected to significantly drive the adoption of bioplastics in food, medical, and homecare applications over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the capital requirements for setting up a plastics alternative packaging manufacturing facility are high. However, increasing environmental concerns provide opportunities for new entrants.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of various plastics alternative packaging options. Buyers can easily switch between offerings from different manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the raw materials required for plastics alternative packaging such as paper, glass, etc. have few substitutes and suppliers. However, established players have significant buyer power to negotiate prices.
Threat of new substitutes: The threat of new substitutes is high as innovative startups are constantly developing novel bio-based and non-plastic materials that can substitute traditional plastics. However, replicating functional properties at scale remains a challenge.
Competitive rivalry: The competitive rivalry is intense due to the presence of global packaging giants.
Geographical regions: North America accounts for the largest share in the global plastics alternative packaging market in terms of value due to stringent regulations prohibiting single-use plastics. The U.S. and Canada are spearheading the adoption of sustainable packaging formats.
Fastest growing region: Asia Pacific is projected to be the fastest growing region during the forecast period driven by favorable government initiatives and a growing consumer base that is increasingly conscious towards environment protection. Rapid industrialization and pending legislation against single-use plastics are further bolstering the adoption of plastics alternatives in the region.
What Are The Key Data Covered In This Plastic Alternative Packaging Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Plastic Alternative Packaging 's growth between 2024 and 2031.
:- Accurate calculation of the size of the Plastic Alternative Packaging and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Plastic Alternative Packaging Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Plastic Alternative Packaging vendors
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it