Eco-Friendly Food Packaging Market Report 2025

The eco-friendly food packaging market size has grown strongly in recent years. It will grow from $252.19 billion in 2024 to $274.21 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to environmental awareness and sustainability goals, government regulations and bans on single-use plastics, increased consumer preference for eco-friendly products, corporate sustainability initiatives, and reduced carbon footprint.

The eco-friendly food packaging market size is expected to see rapid growth in the next few years. It will grow to $408.44 billion in 2029 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to recycling and circular economy efforts, supply chain sustainability, cost savings and efficiency, marketing and brand image enhancement, and e-commerce and home delivery packaging solutions. Major trends in the forecast period include innovations in biodegradable and compostable packaging, smart and active packaging for food safety, collaboration across the food industry value chain, smart and active packaging for food safety, and use of recycled and repurposed materials.

The growth of the eco-friendly food packaging market is being driven by a rising consumer awareness of the drawbacks associated with plastic products in food packaging. The extensive use of single-use and non-degradable plastic packaging has detrimental effects on the environment, as plastic takes an extended period to decompose in landfills. The persistent presence of plastic waste poses significant harm to the environment, impacting plant and animal life, as well as human well-being. Countries like Germany and Austria lead in recycling waste, with rates of 56% and 52%, respectively, according to the World Economic Forum. Additionally, Wales has set ambitious recycling goals, targeting zero waste by 2050, while the EU is contemplating a new 2030 target of at least 65%. Increasing consumer awareness of the hazards associated with plastic food packaging is expected to fuel the growth of the eco-friendly food packaging market in the coming years.

The growing consumption of ready-to-eat food is anticipated to drive the growth of the eco-friendly food packaging market in the future. Ready-to-eat food is considered the most convenient alternative to traditional food, as it can be consumed at any time. The popularity of ready-to-eat and takeaway meals stems from their convenience, and eco-friendly packaging complements this trend by providing a sustainable and convenient way to package and consume food on the go. For example, in 2022, the Organisation for Economic Co-operation and Development (OECD), a governmental organization based in France, projected a 14% increase in global meat protein consumption by 2030. Thus, the rising consumption of ready-to-eat food is expected to fuel the growth of the eco-friendly food packaging market during the forecast period.

A notable trend in the eco-friendly food packaging market is the focus on technological advancement by major players. These companies are dedicating efforts to developing innovative technologies that facilitate a transition to environmentally friendly food packaging solutions, reducing environmental impact and minimizing plastic waste in landfills and oceans. For example, in October 2022, Huhtamäki Oyj, a Finland-based consumer packaging company, introduced an innovative and recyclable ice cream packaging solution based on paper-based technology. This packaging solution, composed of 95% renewable biobased material, utilizes a water-based barrier coating and SFI-certified paperboard, contributing to a reduction in packaging costs, waste, and environmental pollution. Technological advancements are expected to play a crucial role in shaping the eco-friendly food packaging market.

Leading companies in the global eco-friendly food packaging market are concentrating on creating innovative solutions, such as sustainable packaging services, to minimize environmental impact, improve product safety, and cater to the increasing consumer demand for eco-friendly options. Sustainable packaging services encompass a variety of solutions aimed at producing packaging that is environmentally friendly and reduces the negative effects on the planet. For example, in April 2024, Foodchain ID, a US-based company specializing in food safety and quality, introduced Sustainable Packaging Services, which significantly lowers environmental impact by reducing waste and carbon footprints through the use of recyclable and biodegradable materials. These services also bolster brand loyalty and market competitiveness by aligning with consumer preferences for eco-friendly practices, ultimately promoting sales growth and ensuring compliance with evolving regulations.

In December 2023, Inno-Pak LLC, a US-based designer and manufacturer of eco-friendly packaging solutions, acquired Albany Packaging for an undisclosed amount. This acquisition is intended to strengthen Inno-Pak's integrated manufacturing capabilities in North America, build a more resilient supply chain, increase investments in eco-friendly paper packaging solutions, and position the company to take advantage of favorable market trends in the food service and grocery sectors. Albany Packaging is a US-based manufacturer specializing in eco-friendly packaging boxes designed for the food industry.

Major companies operating in the eco-friendly food packaging market include Amcor plc, Mondi plc, Sealed Air Corporation, Ball Corporation, Tetra Pak International SA, BASF SE, Huhtamaki Oyj, Smurfit Kappa Group, Sonoco Products Co., Pactiv Evergeen Inc., European License Of PURE-PAK, Winpak Ltd., Printpak Holdings Inc, PaperFoam BV, Be Green Packaging, DS Smith plc, DuPont de Nemours & Company, Crown Holdings Inc., Ardagh Group Company, Uflex Limited, Graphic Packaging, Vegware Ltd., LimeLoop, Notpla Ltd., EcoEnclose LLC, Genpak LLC, Biopak Pty Ltd., Stora Enso Oyj, International Paper Company, Novamont S.p.A., NatureWorks LLC, Tetra Laval, Berry Global Inc., Reynolds Group Holdings Limited, BioMass Packaging, Sabert Corporation, World Centric.

Eco-friendly food packaging involves the use of materials that are environmentally safe and capable of degradation when packaging food products. The primary objective is to prevent tampering or contamination from physical, chemical, or biological sources, with active packaging being a widely adopted method to ensure the safety of food items.

The key types of eco-friendly food packaging include recycled content packaging, reusable packaging, and degradable packaging. Degradable eco-friendly food packaging serves as an alternative to petrochemical-based polymers, utilizing common biodegradable materials like chitosan, starch, gelatin cellulose, and polylactic acid. Various materials, including paper and paperboard, metal, glass, and plastic, are employed in the process, utilizing techniques such as active packaging, molded packaging, multipurpose packaging, and alternate fiber packaging. These eco-friendly packaging solutions find applications in diverse sectors, including food and beverages, bakery and confectionery, dairy products, meat products, fruits and vegetables, convenience food, among others.

The eco-friendly food packaging market research report is one of a series of new reports that provides eco-friendly food packaging market statistics, including eco-friendly food packaging industry global market size, regional shares, competitors with an eco-friendly food packaging market share, detailed eco-friendly food packaging market segments, market trends and opportunities, and any further data you may need to thrive in the eco-friendly food packaging industry. This eco-friendly food packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the eco-friendly food packaging market in 2024. The regions covered in the eco-friendly food packaging market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the Eco-Friendly Food Packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The eco-friendly food packaging market consists of sales of biodegradable material, sustainable packaging, green packaging, environmentally-friendly packaging, recyclable, reusable, and non-toxic material. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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