Carbon-negative Packaging Market Size - By Material, By Packaging Type, By End Use Industry, Share, Growth Forecast, 2025 - 2034

Carbon-negative Packaging Market Size

The global carbon-negative packaging market was valued at USD 92.4 million in 2024 and is estimated to grow at a CAGR of 7.1% from 2025 to 2034, due to regulatory pressure on carbon emissions and plastic waste, and innovations in bio-based polymers, carbon capture utilization (CCU), and biodegradable composites.
 

Key players in the carbon-negative packaging market faces significant challenges due to tariffs imposed by Trump administration. These tariffs include 125% tariff on imports from China, a 32% tariff on imports from Taiwan, and a baseline 10% tariff on all goods. These tariffs, especially those on bio-based inputs, recycled materials, and specialized manufacturing equipment necessary for sustainable packaging production, majorly impact the sustainable importing ecosystem. Consequently, U.S. manufacturers face increased production costs, particularly those dependent on offshore harvested bagasse, PLA, and bamboo. Such cost pressures hinder adoption, delays innovations, and diminish the competitive edge in the international market.
 

Although tariffs may create an opportunities for reshoring and investment on domestic capacity, the current infrastructure constrains near-term scalability. Besides, retaliatory tariffs from crucial trading partners like Canada and the EU hamper U.S. export prospects.
 

Globally, governments are putting restrictions on carbon emissions as well as plastic waste, which is significantly influencing the packaging industry. According to The Waste and Resources Action Programme, The plastic production, and use of disposal accounts for around 1.8 million tons of CO? emissions every year, highlights the importance of plastic waste reduction. Carbon tax, single-use plastic bans, and Extended Producer Responsibility (EPR) legislation are compelling the packaging industry to turn to greener options. These frameworks fulfill a regulatory need while creating opportunities for new sustainable materials and circular packaging.
 

Companies are adopting ESG policies, especially achieving carbon neutrality and net zero targets which are now becoming a core strategic focus for businesses. As the carbon footprint of a business is heavily affected by the form of packaging being used, businesses have started adopting carbon negative practices to enhance brand reputation and to show accountability towards the environment. Such initiatives increased investment towards developing sustainable packaging and decarbonizing the supply chains.
 

Carbon-negative Packaging Market Trends

• Companies are partnering with packaging manufacturers to integrate carbon packaging in their products. For instance, in April 2022, LVMH Beauty partnered with Origin Materials to introduce carbon negative packaging for their luxury perfume and cosmetics brands. This initiative enhances the LVMH Beauty’s sustainability efforts under the Life 360 program.
   
• Market is seeing material innovation that directly sequesters carbon out of the air over their lifetime. Materials such as biochar-enriched packing, hemp composite materials, and mycelium foam are gaining traction because they can store CO?. It shows an evolution from mere emissions reduction to building the packaging as a carbon sink to counteract climate targets worldwide.
   
• There is an increasing focus towards the use of closed-loop systems where the packaging is made for reuse, recycling, or composting. Circular economy principles are being increasingly followed by companies in such a way that packaging waste is reduced, materials are constantly recycled, and carbon emissions are proactively balanced.
   

Carbon-negative Packaging Market Analysis

Based on the material, the market is segmented into biodegradable polymers, paper & cardboard, bio-based plastics, organic fibers, and others.
 

• The paper & cardboard segment was valued at USD 37.1 million in 2024. The paper & cardboard segment is dominating in the market owing to its recyclability, availability, and the consumer demand for plastic-free alternatives. Brands in e-commerce, food delivery, and personal care are increasingly adopting FSC-certified and recycled paper-based packaging for their products to achieve sustainability goals and to cater to the consumer demand for sustainable packaging.
   
• The biodegradable polymers segment is expected to grow at a CAGR of 9.3% during 2025 to 2034. Growth of the biodegradable polymers is fuelled by the emergence of new PLA, PHA, and PBS materials with maintaining packaging performance while providing compostable solutions. Ban on traditional plastics and surging demand for environmentally friendly packaging in the consumer goods and food service industry are boosting the growth of the segment.

On the basis of end-use industry, the market is divided into food & beverage, personal care & cosmetics, healthcare & pharmaceuticals, electronics, and others. 
 

• Food & beverages segment dominated the market with a market share of 47.1% in 2024. The food & beverages segment leads the carbon-negative packaging market because of high consumption volumes and regulatory pressure on single-use plastics. To comply with corporate sustainability goals and fulfill consumer needs, businesses are adopting eco-friendly packaging like biodegradable trays, compostable films, and carbon-sequestering containers.
   
• The personal care & cosmetics segment is projected to grow at a CAGR of 8.6% during 2025 to 2034. Personal care & cosmetics segment is growing at significant space because of increasing consumer demand for eco-friendly packaging. Carbon negative packaging solutions are being adopted by brands in line with ESG objectives. Innovative designs, aesthetics, function, and biodegradability in packaging drives the adoption of carbon-negative packaging in personal care & cosmetics industry.
   

Based on packaging type, the market is segmented into bottles & jars, trays & containers, cartons & boxes, bags & pouches, wrappers & films, and others.
 

• The cartons & boxes segment was valued at USD 30.7 million in 2024. Cartons and boxes lead in the negative carbon packaging sector due to their extensive usage in e-commerce, retail, and food services. They are constructed from recycled paper, plant based fibers, or other materials that capture and hold carbon, offer superior strength, branding opportunities, and recyclability. In addition, these packaging materials result in a greater offset for carbon emissions, thereby enhancing their visibility which makes them suitable for brands that want to enhance sustainability reputation.
   
• The wrappers & films segment is projected to reach USD 22.4 million by 2034, due to increased demand for sustainable single-use and flexible packaging, especially in snacks, fresh produce, and personal care. Developments in biodegradable, compostable, and carbon negative films such as algae and cellulose based alternatives, are helping achieve the same performance as traditional plastics. This growth is also further driven by regulatory bans on plastic films and more investment in R&D for low emission barrier technologies.

• In 2024, the U.S. carbon-negative packaging market accounted for USD 23.7 million. The U.S. has one of the most advanced markets for carbon-negative packaging owing to consumer demand and corporate ESG commitments. Eco-friendly policies, such as the imposition of certain plastic bans in some states and increased scrutiny over supply chain emissions, are encouraging brands to embrace sustainable packaging. There is innovations in bioplastics and carbon-sequestering materials from established packaging companies and tech start-ups in the U.S.
   
• The Germany market is projected to grow at a CAGR of 6.4% through 2034. Germany leads the European region in adopting carbon negative packaging. The nation’s commitment to enhanced recycling and informative sustainable packaging standards has accelerated the development of alternative materials, especially in food and beverage and consumer packaged goods.
   
• The China carbon-negative packaging market is expected to grow at a CAGR of 10.2% during the forecast period. China, as one of the world’s largest packaging markets, is witnessing growing demand for carbon negative solutions due to increasing environmental policies and efforts to reduce plastic waste. The government’s restrictions on using plastic and the push for greener production policies are shifting business towards more eco-friendly materials.
   
• Japan carbon-negative packaging market is accounted for a share of 14.9% of the in Asia Pacific. Japan's adoption of carbon-negative packaging is driven by environmental innovation in consumer electronics, automotive, and food & beverage sectors. The country's high recycling rates coupled with government policies supporting the use of biodegradable materials. The robust R&D activities in advanced carbon-negative materials, bioplastics, and recyclable composites also boosts Japan’s sustainable packaging growth.
   
• South Korea is expected to grow at a CAGR of 8.7% during the forecast period. Government efforts to reduce plastics and implement green growth strategies are accelerating the adoption of carbon-negative packaging in South Korea. The country is shifting towards the use of recycled and biodegradable materials in food and beverage and cosmetics packaging to mitigate waste. South Korea's strong manufacturing capabilities, coupled with technological advancements in sustainable packaging, are helping further develop the market
   

Carbon-negative Packaging Market Share

The carbon-negative packaging industry is highly competitive and moderately fragmented with the presence of global players as well as regional players and startups. The top 4 companies market are Tetra Pak International S.A., Huhtamaki, Elopak, and Footprint, with a combined share of 36.1%. These companies focus on sustainability, advanced materials, and recyclable packaging solutions to strengthen their market position.
 

Regional players and small companies competing on cost-effective, innovative, and sustainable solutions to cater to diverse industry needs. The competition is enhancing product offerings and reach geographically by technological advancements, acquisitions, and mergers. With ongoing investments in R&D and material studies, competition is being driven by higher demand for multifunctional packaging, enhanced sustainability regulations, and growing carbon-negative packaging.
 

Carbon-negative Packaging Market Companies

The top 4 companies operating in the carbon-negative packaging industry are:

• Tetra Pak International S.A.
• Huhtamaki
• Elopak
• Footprint
   

Tetra Pak is focused on renewables, a carbon-centric economy, and the circular economy which aids low-carbon materials. This approach allows them to be a leader in the food and beverages industry. The company is also working on plant-based cartons from paperboard and sugarcane-based plastics. Regards to collaborations, Tetra Pak works in the field of carbon capturing and innovation of renewable materials.
 

Huhtamaki focuses on the eco-friendly solutions which include fiber-based, biodegradable, and compostable materials. The company is also investing in carbon-negative packaging technologies and committing itself to achieving operational carbon neutrality. Supporting fast-growing segments like food service and retail, the company’s product portfolio is bolstered by ongoing R&D efforts to transition from fossil-based to renewable, low-carbon materials.
 

Carbon-negative Packaging Industry News

• In February 2022, Pregis has launched a carbon-neutral protective packaging film, a major step forward in sustainable packaging solutions. The new film is composed of 100% recycled content and is intended to minimize environmental footprint while delivering high performance.
   
• In April 2023, Origin and SCG Packaging PLC have entered into a partnership to explore the possibility of licensing Origin's technology for an ASEAN-based manufacturing plant. This partnership incorporates a Joint Development Agreement (JDA) that will focus on developing SCGP-supplied eucalyptus feedstock-based, carbon negative, sustainable products. These products can be used in food packaging, logistics, automotive, construction, and many other industries.
   

This carbon-negative packaging market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) and volume (Kilo Tons) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Material

• Biodegradable polymers
• Paper & cardboard
• Bio-based plastics
• Organic fibers
• Others

Market, By Packaging Type

• Bottles & jars
• Trays & containers
• Cartons & boxes
• Bags & pouches
• Wrappers & films
• Others

Market, By End Use Industry

• Food & beverage
• Personal care & cosmetics
• Healthcare & pharmaceuticals
• Electronics
• Others 

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa