Plastic Alternative Packaging Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Plastic Alternative Packaging Market Size - Analysis

Plastic Alternative Packaging Market Trends

Environmental concerns related to plastic pollution have grown exponentially in recent years. Plastic waste has become one of the most pressing environmental issues globally, with an estimated 300 million tons of plastic waste being produced every year.

The need to be socially responsible as well as follow regulatory mandates will continue propelling the adoption of plastic alternative packaging materials. While plastic pollution remains an enormous challenge, it is heartening to see consumers and governments around the world taking meaningful action through their choices and policies.

Market Driver - Increasing Consumer Demand for Eco-friendly Packaging Alternatives, Driven by Sustainability Concerns

Sustainable brands extensively utilize platforms like Instagram and YouTube to highlight their green credentials and market the environmental benefits of the materials they employ. Furthermore, transparent product information through online research enables discerning customers to identify packaging made from genuinely sustainable sources like plants. They desire materials that are certified compostable or biodegradable.

This paradigm shift driven by end-user sustainability priorities is set to revolutionize packaging design, material innovation, and supplier choices. Consequently, this is expected to drive growth of the plastic alternative packaging market in the coming years.

One of the key challenges facing the plastic alternative packaging market is the high production costs for materials like bioplastics. While bioplastics are more environmentally sustainable since they are produced from renewable biomass sources rather than fossil fuels, the manufacturing costs are significantly higher.

All of these factors contribute to bioplastics having production costs that are approximately 2-3 times higher than traditional plastic materials like polyethylene and polypropylene currently. The premium pricing of bioplastics has hindered wider adoption by brand owners and restricted the market growth potential.

Market Opportunity – Growing Demand for Plastic Alternative Packaging in Food & Beverage Industry

Major food and beverage retailers, brands, and restaurant chains are actively searching for plastic alternative packaging materials like bioplastics or pulp-based solutions for their packaging needs. This will help drive higher and more consistent volumes for bioplastic resin manufacturers in the plastic alternative packaging market.

Key winning strategies adopted by key players of Plastic Alternative Packaging Market

Focus on bio-based and biodegradable materials: Companies like Amcor, Sealed Air Corp, and Pactiv have focused on developing plastic alternative packaging using bio-based and biodegradable materials like paper, sugarcane and bamboo instead of plastics. For example, in 2018 Amcor launched new fiber-based packaging called EcoFlex made from renewable agricultural byproducts like sugarcane for food and consumer goods companies.

Partnerships and acquisitions: Companies partner with material innovators or acquire startup firms developing novel plastic alternative packaging options. For example, Danone's acquisition of Rise Bar in 2018 helped them launch products packaged in biodegradable cellulose pouches. Procter & Gamble's partnership with TerraCycle led to launching Loop reusable packaging.

Segmental Analysis of Plastic Alternative Packaging Market

Insights, By Type: Sustainability Priorities Drive Starch-Based Plastic Growth

Food producers have widely adopted starch-based plastics for products where transparency about organic and natural sources is important to the target consumers. Continued education highlighting the 'green' attributes of these plastics compared to traditional petroleum-based ones helps maintain their popularity.

Insights, By Application: Changing Consumer Demands Fuel Food & Beverage Packaging Evolution

Plastic alternative materials that are lightweight, recyclable and compostable address this emergent preference better than conventional plastics. Their acceptance thus grows in food packaging for snacks, dry grocery, ready meals, and beverages. Customization abilities also support the introduction of varied stock-keeping units catering to niche tastes.

Insights, By Material Type: Paper & Paperboard Leads as the Optimum Sustainable Solution

Additionally, established recycling infrastructure streams ease reuse of paper waste. These advantages, coupled with reasonable costs, make paper & paperboard high a preferable substitution for plastic packaging, driving further advances in application formats like flexible paper pouches and laminated cartons.

Additional Insights of Plastic Alternative Packaging Market

• In the U.S., the plastic alternative packaging market reached USD 1.45 billion in 2023 and is expected to grow at a CAGR of 17.03%, driven by increasing consumer and regulatory demand for sustainable packaging options.
• The Asia Pacific region is projected to be the fastest-growing market for plastic alternative packaging due to government initiatives and increasing environmental concerns.
• Ocean Pollution: An estimated 8 million tons of plastic waste enter oceans annually, underscoring the urgent need for plastic alternative packaging solutions.
• Consumer Preference: Surveys indicate that over 70% of consumers are willing to pay a premium for products with plastic alternative packaging.
• Regulatory Impact: Over 60 countries have implemented bans or levies on single-use plastics, accelerating the adoption of plastic alternative packaging.

Competitive overview of Plastic Alternative Packaging Market

The major players operating in the plastic alternative packaging market include Amcor Plc, Mondi, DS Smith, Sealed Air, Tetra Pak International SA, Ball Corporation, WestRock, Huhtamaki, BASF SE, Berry Global, and Nampak.

Recent Developments in Plastic Alternative Packaging Market

Plastic Alternative Packaging Market Segmentation

• By Type
  • Starch-Based Plastic
  • Cellulose-Based Plastics
  • Polylactic Acid (PLA)
  • Polyhydroxyalkanoates (PHA)
  • Others
• By Application
  • Food & Beverage
    • Packaged Foods
    • Beverages
    • Ready-to-Eat Meals
  • Personal Care
    • Cosmetics
    • Toiletries
  • Healthcare
  • Others
    • Household Products
    • Industrial Goods
• By Material Type
  • Paper & Paperboard
  • Metal
  • Glass
  • Bioplastics