Plastic-free Packaging Market - By Packaging Type (Rigid Packaging, Flexible Packaging, Hybrid Packaging), By Material (Paper, Glass, Metal, Aluminum Foil), By End-use Industry & Forecast, 2024-2032

Plastic-free Packaging Market Size

Plastic-free Packaging Market was valued at USD 8.2 billion in 2023 and is expected to grow at a CAGR of over 4% between 2024 and 2032. Global awareness regarding environmental issues grows as more consumers are actively seeking sustainable alternatives to traditional plastic packaging.
 

Concerns over plastic pollution, particularly in oceans, have driven the demand for eco-friendly packaging solutions. This shift in consumer preference is a significant driver for the market, as brands increasingly adopt sustainable practices to meet the expectations of environment-conscious consumers. The push for plastic-free packaging aligns with the broader trend of reducing single-use plastics, thereby fueling market growth.
 

For instance, in April 2022, Melodea, an Israel-based start-up, developed two sustainable, plant-based plastic alternatives for traditional packaging. The alternatives are developed from cellulose crystals extracted through wood pulp in the industrial forests. MelOx is a high-performance, plant-sourced barrier coating offering protection from oxygen and oil & grease transmission.
 

Many companies are increasingly focusing on Corporate Social Responsibility (CSR) initiatives, which include reducing their environmental footprint. Adopting plastic-free packaging is often considered a tangible way for companies to demonstrate their commitment to sustainability. This trend is particularly strong among large corporations and consumer goods companies, where sustainability efforts are becoming integral to brand identity and customer loyalty. As more businesses prioritize CSR, the demand for plastic-free packaging solutions continues to rise, driving market growth.
 

One of the significant challenges in the plastic-free packaging market is the higher cost of sustainable alternatives as compared to traditional plastic packaging. The production of biodegradable or compostable materials often requires more resources and advanced technologies, leading to higher prices. For businesses, especially Small and Medium-sized Enterprises (SME), the cost of switching to plastic-free packaging can be prohibitive. This price disparity can limit the adoption of plastic-free solutions, particularly in price-sensitive markets, posing a challenge to market growth.
 

Plastic-free Packaging Market Trends

As environmental concerns continue to grow, there is an increasing demand for biodegradable and compostable packaging materials. These alternatives to traditional plastic are designed to break down naturally, reducing wastage and pollution. Companies are investing in Research and Development (R&D) to create packaging that not only meets consumer demand for sustainability but also maintains the integrity and safety of the products. The push toward biodegradable packaging is particularly strong in the food and beverage industry, where there is a need for safe and sustainable options that can handle various storage conditions while being environmentally responsible.
 

Advancements in material science are driving innovation in the plastic-free packaging market. Researchers and companies are developing new materials, such as plant-based polymers, cellulose, and algae-derived packaging, which offer similar functionalities to plastic but without the environmental drawbacks. These innovations are making it possible to create plastic-free packaging that is durable, versatile, and capable of meeting the diverse needs of different industries. The trend toward material innovations is expected to continue, with a focus on creating cost-effective & scalable solutions that can replace plastic packaging on a large scale.
 

The growing emphasis on circular economy principles is shaping the plastic-free packaging industry. Companies are increasingly exploring reusable packaging solutions that can be part of a closed-loop system, where materials are continuously recycled or repurposed. This trend is particularly evident in industries such as retail and e-commerce, where packaging waste is a significant concern. Initiatives such as refillable containers, returnable packaging, and zero-waste packaging solutions are gaining traction as businesses and consumers seek to reduce wastage as well as the environmental impacts. The shift toward a circular economy is driving the adoption of plastic-free packaging and encouraging the development of innovative solutions that support sustainability goals.
 

Plastic-free Packaging Market Analysis

Based on material, the market is divided into paper, glass, metal, aluminum foil, and others. The paper segment is expected to register a CAGR of 5% over the forecast period.
 

• In the plastic-free packaging industry, paper is one of the most widely adopted materials due to its versatility, sustainability, and ease of recyclability. Paper packaging includes products such as cardboard boxes, paper bags, wrapping paper, and molded pulp packaging, which are commonly used across various industries such as food & beverage, retail, and consumer goods.
   
• The growing consumer preference for eco-friendly options has driven companies to increase the use of paper as a primary packaging material. Additionally, advancements in material science have led to the development of stronger and more durable paper-based packaging solutions, making them a viable alternative to plastic.
   
• As governments and regulatory bodies continue to impose restrictions on plastic use, the demand for paper packaging is expected to rise, reinforcing its significance in the market.
   

Based on packaging type, the market is divided into rigid packaging, flexible packaging, and hybrid packaging. The rigid packaging segment is projected to account for the largest share in the global market with a revenue of over USD 6 billion by 2032.
 

• Rigid packaging, which includes materials such as metal, glass, and certain types of paperboards, is a significant segment within the plastic-free packaging market. This type of packaging is characterized by its sturdiness and ability to protect products during transportation and storage.
   
• Rigid packaging is widely used in industries, such as food & beverage, pharmaceuticals, and cosmetics, where product protection and shelf life are critical. In the context of plastic-free initiatives, rigid packaging made from sustainable materials, such as glass, metal, and paperboard, is gaining traction as companies seek durable yet eco-friendly alternatives to plastic.
   
• The demand for rigid, plastic-free packaging is expected to continue to grow as both businesses and consumers prioritize sustainability without compromising on product safety and integrity
   

North America dominated the global plastic-free packaging market in 2023, accounting for a share of over 30%. North America is experiencing a growing demand for plastic-free packaging, driven by increasing consumer awareness and pressure from environmental groups. The U.S. and Canada are the major players in this market, with both countries witnessing a shift toward sustainable packaging solutions across various industries, including food & beverage, personal care, and retail. In the U.S., large corporations and retailers are adopting plastic-free packaging as part of their sustainability initiatives, responding to consumer demand for eco-friendly products. The region is also witnessing a rise in state-level regulations aimed at reducing plastic waste, further driving the market. In Canada, government policies supporting wastage reduction and recycling are encouraging the adoption of plastic-free alternatives. The North American market is characterized by innovation in material science, with companies developing new, sustainable materials to replace traditional plastics.
 

U.S. is a pivotal market for plastic-free packaging, with growing consumer demand and increasing regulatory pressures driving the adoption of sustainable packaging solutions. Major corporations, particularly in the food & beverage, personal care, and e-commerce sectors, are leading the charge toward plastic-free packaging as part of their broader sustainability commitments. The U.S. market is also influenced by state-level regulations that target plastic waste, such as bans on single-use plastics in states, including California and New York. The rise of eco-conscious consumers and the increasing importance of Corporate Social Responsibility (CSR) are further propelling the market. Additionally, the U.S. is home to significant R&D efforts aimed at creating innovative, cost-effective alternatives to plastic packaging, positioning the country as a leader in the global shift toward sustainability.
 

For instance, in June 2024, Amazon opened the first U.S. automated fulfillment center in Ohio, aimed at eliminating plastic delivery packaging, including the transition from plastic air pillows to paper fillers. The work in Ohio enabled testing and rapid implementation, leading to the transition to paper filler for 95% of shipments in less than a year. Teams collaborated with suppliers to source paper fillers made from 100% recycled content, while also coordinating the transition across hundreds of fulfillment centers.
 

Japan is a key market for plastic-free packaging in Asia, driven by a strong cultural emphasis on environmental protection and wastage reduction. The Japanese government has implemented policies aimed at reducing plastic wastage, such as the Plastic Resource Circulation Act, which encourages the use of sustainable materials and the recycling of plastic products. Japanese consumers are highly conscious of environmental issues, leading to a growing demand for eco-friendly packaging solutions. The market is also characterized by innovations, with Japanese companies investing in the development of biodegradable and compostable materials. The country’s focus on sustainability, combined with its advanced technological capabilities, make Japan a significant player in the market.
 

China plays a crucial role in the global plastic-free packaging market, driven by the government's aggressive measures to reduce plastic pollution and promote sustainable development. The Chinese government has implemented a series of regulations aimed at curbing the use of single-use plastics and encouraging the adoption of environment-friendly alternatives. As the world’s largest consumer market, China's shift toward plastic-free packaging has a significant impact on the global supply chains. The country is also witnessing rapid growth in e-commerce, which is driving the demand for sustainable packaging solutions that can meet the needs of online retailers and logistics providers. China's focus on innovation and its large manufacturing base position it as a critical market for the production and adoption of plastic-free packaging.
 

South Korea is an emerging market for plastic-free packaging, with a strong government commitment to sustainability and wastage reduction. The South Korean government has implemented policies aimed at reducing plastic wastage, including bans on single-use plastics and initiatives to promote recycling and the use of eco-friendly materials. South Korean consumers are increasingly aware of environmental issues, driving the demand for sustainable packaging solutions across various industries. The market is also characterized by technological innovation, with South Korean companies developing advanced materials and packaging solutions that align with global sustainability trends. The country's focus on environmental protection and its growing consumer demand for eco-friendly products make South Korea a significant market for plastic-free packaging.
 

Plastic-free Packaging Market Share

Amcor PLC and Mondi have a significant share of the market. Amcor PLC holds a significant share in the plastic-free packaging industry due to its strong commitment to innovation and sustainability. As a global leader in packaging solutions, Amcor has made substantial investments in R&D to create high-performance, sustainable packaging alternatives. The company’s wide range of plastic-free products, including paper-based and recyclable packaging solutions, cater to various industries such as food & beverage, healthcare, and consumer goods. Amcor’s strategic focus on sustainability, combined with its extensive global reach and partnerships with major brands, has positioned it as a key player in the market. Furthermore, Amcor's pledge to make all its packaging recyclable or reusable by 2025 underscores its dedication to driving the market toward more sustainable practices, reinforcing its leadership position.
 

Mondi holds a prominent position in the global market, driven by its integrated approach to sustainability and innovation in packaging materials. As a leading global packaging and paper company, Mondi has developed a diverse portfolio of sustainable packaging solutions, including paper-based alternatives and fully recyclable products that meet the growing demand for plastic-free options. Mondi’s focus on the entire lifecycle of packaging—from responsible sourcing of raw materials to designing for recyclability—has resonated with environment-conscious consumers and businesses alike. The company’s commitment to sustainability is further evidenced by its participation in industry initiatives aimed at reducing plastic wastage and promoting a circular economy. Mondi’s ability to provide customized, sustainable packaging solutions across various sectors, coupled with its strong market presence, has solidified its significant share in the market.
 

Plastic-free Packaging Market Companies

Major players operating in the industry are:

• Amcor PLC
• Mondi
• Sealed Air Corporation
• WestRock Company
• Huhtamaki OYJ
• Smurfit Kappa
• Tetra Pak International S.A.
   

Plastic-free Packaging Industry News

• In August 2024, Google unveiled 100% plastic-free packaging for devices. Google’s new packaging is three times more durable and 70% more stretchable as compared to the previous material. The company has successfully replaced the last plastic elements such as shrink wrap and plastic tape, with fiber-based alternatives following through research and prototyping.
   
• In January 2024, Flora owner, Upfield, developed plastic-free, recyclable tub. Upfield unveiled the world’s first plastic-free, recyclable tub for its plant-based butters and spreads. The paper tubs are made from compressed wet paper fibers and are waterproof, oil-proof, and recyclable in local paper waste streams. The tub has received Conventional Plastic Free Certification and uses paper from a PEFC-certified supplier.
   

The plastic-free packaging market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Packaging Type

• Rigid packaging
• Flexible packaging
• Hybrid packaging

Market, By Material

• Paper
• Glass
• Metal
• Aluminum foil
• Others

Market, By End-Use Industry

• Food & beverages
• Pharmaceutical
• Consumer goods
• Electrical & electronics
• Others

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

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