The zero waste packaging market is estimated to be valued at US$ 1.57 Billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Zero waste packaging includes products made from sustainable and biodegradable materials that produce no waste at end of life. This includes packaging made from industrial compostable plastics, paper, glass, aluminum and reusable packaging systems. These packaging solutions are primarily used for food and beverage, cosmetics, pharmaceuticals and homecare products to name a few. They provide an eco-friendly solution to single use plastics currently choking waste streams.
Increasing government regulations regarding single use plastics and bans on specific plastic items across countries is a major driver for growth of zero waste packaging market. For instance, the European Union has implemented a directive banning select single use plastic items effective from 2021. Another driver is growing consumer preference for sustainable packaging solutions. Consumers are increasingly demanding eco-friendly alternatives and are willing to pay premium prices for brands offering zero waste packaging. However, high costs of production for zero waste packaging compared to traditional plastics and lack of infrastructure for collection and recycling remain a challenge for widespread adoption.
Strength: The zero waste packaging market has gained significant traction in the last few years owing to the increasing consumer preference for sustainable packaging solutions. Companies in this market offer innovative products that help reduce waste and are environment-friendly.
Weakness: Developing truly zero waste and recyclable packaging solutions require extensive research and testing and have high production costs. This makes such packaging less affordable for mass market commercial use. Additionally, lack of proper waste disposal and recycling infrastructure is also a challenge.
Opportunity: Stringent government regulations regarding single-use plastics and bans on non-degradable materials present a massive growth opportunity. Also, increasing consumer awareness about sustainability is driving the demand for zero waste options from major brands and retailers.
Threats: Availability of cheaper conventional plastic packaging continues to remain a major threat. Additionally, the current economic downturn due to Covid-19 pandemic can potentially impact the spending power of consumers on premium sustainable options.
The global zero waste packaging market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing environmental regulations against single-use plastic across many countries. The market size is projected to reach US$ 1.57 Billion in 2023.
Regional analysis: North America dominates the global zero waste packaging market currently, owing to stricter laws restricting plastic usage. Europe holds the second largest market share on back of rising awareness among consumers. However, Asia Pacific is projected to be the fastest growing market due to growing economy and rising disposable income of middle-class population driving the demand for sustainably packaged products.
Key players operating in the zero waste packaging market are Loop Industries Inc., Pulp Works Inc., Avani Eco, Loliware, Lifepack, Aarohana Ecosocial Development, and Package Free, GO Box, World Centric, and Biome. These companies offer innovative products utilizing biodegradable and recyclable materials along with modern packaging designs and formats to attract consumers as well as bulk users.