Global demand for green packaging is projected to rise 5.7 percent per year to $212 billion in 2015, with above-average demand growth in reusable and degradable packaging, a new report says.

World demand for green packaging — including recycled-content, reusable and degradable packaging — will rise 5.7 percent per year to $212 billion in 2015, according to new projections from the Freedonia Group.

In a new study, the industry market research firm says that recycled-content packaging will remain by far the largest product type through 2015 and beyond, although this segment is forecast to have the slowest increases due to the maturity of products like metal cans and glass containers.

Gains in recycled-content packaging will be supported by increased collection activity and processing capacity, coupled with greater use of recycled-content packaging by firms seeking to demonstrate environmental responsibility and differentiate their products.

“Also supporting advances will be efforts by industry associations, brand owners, packaging firms and others to promote recycling initiatives in order to raise the recycling rates of different types of packaging materials,” according to Freedonia. “However, increases in recycled-content packaging demand will be limited by the general maturity of products such as corrugated boxes and metal cans, and the existing high levels of recycled content in them.”

Meanwhile, above-average demand growth is expected in reusable and degradable packaging. Demand for reusable packaging will be boosted by accelerated global manufacturing activity. In particular, demand for reusable drums will benefit from an upswing in global chemical output, as chemicals comprise the leading application for these products.

While demand for degradable packaging will continue to see double-digit annual growth rates, marking the fastest advances in the market, it will only account for approximately 1 percent of the overall green packaging market through 2015. Gains will be driven by greater price competitiveness with conventional packaging options, capacity expansions, increased importance of sustainability in packaging and enhanced performance properties brought about by the use of additives, improved polymerization and new blending techniques.

According to the Freedonia Group, the Asia-Pacific region will see above-average gains, rising 7.2 percent in the 2010-2015 period to total approximately $79.1 billion. Asia-Pacific is expected to remain the largest regional market in the world, due to its large food and beverage industries, which represent the main green packaging applications.

Overall, some of the fastest growth will be in India, China and Indonesia. While Japan will remain one of the largest markets in the world, the country is forecast to see the slowest growth rate through 2015.

Central and South America, Eastern Europe and the Africa/Mideast region are also expected to experience above-average growth, though advances in these areas will stem from smaller bases. Collectively, these three regions only accounted for 12 percent of global green packaging demand in 2010.

Developing countries, such as Russia, Turkey, Brazil and Mexico, are also forecast to experience healthy gains.

The United States is the largest national green packaging market in the world, by a wide margin, accounting for 23 percent of global sales last year. Other large, generally mature markets such as Germany are unlikely to experience the same rate of growth as in emerging markets. Nonetheless, good opportunities will still be found in developed countries, especially for degradable packaging products.

In the immediate future, the global market value for the green- and sustainable-packaging market is projected to reach $107.7 billion in 2011 alone, according to a separate report from Visiongain. In a forecast released in July, the analyst firm reported that advanced technology in packaging will help sustain growth, although countries with poor recycling infrastructure, in addition to regulatory issues and limited consumer demand, could hamper market growth.

Resources

World Green Packaging to 2015
The Freedonia Group, August 2011

World Green Packaging Industry
Reportlinker.com, Aug. 23, 2011

The Sustainable & Green Packaging Market 2011-2021
Visiongain, July 5, 2011