Dive Brief:
- Sustainable packaging will continue to be a stable growing market from 2015 to 2021 as consumer awareness and concerns about packaging's environmental impact increase, according to a new report from Transparency Market Research.
- In addition to decreasing pollution buildup in landfills, green packaging also reduces toxic waste emissions.
- Green packaging offers food and beverage manufacturers a competitive advantage among consumers who base their product selections on brands' sustainability in packaging and processing methods.
Dive Insight:
The pressure to adopt green packaging has come from four major sources: consumers, environmental activists, competing manufacturers and the government. Local, national and global governing bodies have joined the effort to reduce packaging waste in recent years, including funding developments in recyclable and renewable packaging, packaging made from recycled materials and bioplastics. The U.S. still leads the world in implementing green packaging, but the Asia-Pacific region, particularly India and China, is the fastest-growing market.
Manufacturers themselves have also begun to research and develop new sustainable packaging types. For example, Coca-Cola unveiled its 100%-plant-based PET bottle last year. In the sustainability plan PepsiCo announced last month, the company committed to design 100% of its packaging to be recoverable or recyclable by 2025. It also announced partnerships aimed to boost packaging recovery and recycling rates.
Cost is a key barrier for many manufacturers looking to adopt green packaging. Production costs involved in sustainable packaging can reduce profit margins to an unsustainable rate for some companies, which may have hindered growth.