The ever-increasing global emphasis on green and sustainable products is changing the packing market as we know it. The latest news involving this specific direction has found these trends in the larger market are not only inspiring new growth but making some companies turn away from certain strategies.
According to a recent study by Transparency Market Research, the global green packaging market was worth more than $108 billion in 2011, but has since shown impressive growth. With an expected compound annual growth rate of 7.6 percent, the industry is expected to expand to a new total of almost $178 billion by 2018.
Key factors that will help boost this shift include growing audience awareness of the effects of carbon emissions, more energy consumption and waste reduction targets different countries have put into place and consumers' demand for more ecologically-friendly products. Across the world, non-sustainable packaging has harmed some countries' environments - the United Kingdom, in particular, sees 20 percent of its overall waste coming from packaging. As such, manufacturers are working to better use these packaging materials, which will support the growth of the at-large green packaging market.
Constraints on the market will likely be represented by an initially limited global consumer demand, poor infrastructure for recycling and regulatory concerns. Fortunately, cost-effective methodology and advanced packaging technology may limit the damage of the blow.
Market changing quickly
Demand for these products in some locations may lead to faster change than ever, Plastics Today reported. One company that produces packaging for brands like Oreo, Chips Ahoy, Trident gum and Philadelphia cream cheese received support from more than 28 percent of its shareholders to change its packaging from non-recyclable plastic film to cardboard packaging, reflecting current market trends.
With demand like this only expected to grow in the future, it's likely that consumers and shareholders may help the new forms of packaging take hold faster than ever throughout the market. Packaging use represents more than a third of total sales for thermoplastic resins and similar types of plastic, representing up to 99 percent of all North American plastic uses. It's likely that if this adoption rises, the use of some forms of plastic will decline with more environmentally-friendly ones coming into play.
