Sustainable Manufacturing Market Report 2026

The sustainable manufacturing market size has grown rapidly in recent years. It will grow from $210.03 billion in 2025 to $233.89 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to rising industrial environmental awareness, increasing global sustainability focus, growing corporate responsibility initiatives, expansion of recycling practices, early development of green manufacturing policies.

The sustainable manufacturing market size is expected to see rapid growth in the next few years. It will grow to $358.31 billion in 2030 at a compound annual growth rate (CAGR) of 11.3%. The growth in the forecast period can be attributed to growing demand for eco friendly products, rising regulatory pressure on emissions, increasing investment in clean manufacturing, strengthening corporate sustainability commitments, expanding adoption of circular economy models. Major trends in the forecast period include increasing adoption of resource efficient manufacturing practices, growing implementation of waste reduction and recycling processes, rising focus on low carbon production technologies, expansion of environmentally responsible industrial operations, strengthening emphasis on energy efficient manufacturing systems.

The growing consumer demand for eco-friendly products is anticipated to drive the expansion of the sustainable manufacturing market in the coming years. Increasing demand for environmentally friendly products is fueled by heightened environmental awareness, a stronger desire to lower individual carbon footprints, and a rising preference for sustainably and ethically produced goods. Sustainable manufacturing addresses this demand by ensuring products are made through environmentally responsible processes, reducing waste, conserving natural resources, and limiting environmental impact across the production lifecycle. For instance, in April 2024, according to the National Association of Convenience Stores, a US-based trade association representing the convenience and fuel retailing industry, survey findings for 2024 showed that 80% of consumers were either very or somewhat concerned about the environmental impact of their purchasing decisions, up from 68% in 2023 and 66% in 2022. In addition, 65% of Americans indicated they were willing to pay a premium for gasoline if fuel stations offered carbon-offsetting options. Therefore, rising consumer demand for eco-friendly products is expected to fuel the growth of the sustainable manufacturing market.

Leading companies operating in the sustainable manufacturing market are emphasizing the development of advanced solutions such as AI-driven digitization and energy-efficient automation platforms to optimize factory energy use, lower emissions, and support sustainable production growth. AI-driven digitization and energy-efficient automation platforms consist of intelligent software and interconnected systems that track, assess, and automate energy and resource consumption throughout manufacturing operations, enabling greater efficiency and reduced environmental impact. For example, in April 2025, Schneider Electric SE, a France-based provider of energy management and industrial automation solutions, introduced a range of sustainable manufacturing technologies at its Innovation Day Haiphong 2025 event. This portfolio includes smart power distribution systems, digitized energy management tools, and integrated software and service solutions tailored for industrial zones and smart manufacturing environments. These offerings assist manufacturers in cutting energy usage, improving operational performance, optimizing energy sources, and accelerating the shift toward low-carbon and renewable energy-based manufacturing operations.

In December 2025, Shawn Johal, a Canada-based entrepreneur focused on manufacturing and industrial investments, acquired Unicor Industries Inc. for an undisclosed amount. Through this acquisition, Shawn Johal intends to expand manufacturing capacity and speed up modernization efforts to strengthen Unicor’s role in precision injection molding and sustainable manufacturing across North America. Unicor Industries Inc. is a Canada-based manufacturer that delivers high-precision custom plastic injection molding services, supplying components to industries such as industrial manufacturing, medical, mining, automotive, HVAC, and lighting.

Major companies operating in the sustainable manufacturing market report are ArcelorMittal S.A., Siemens AG, Unilever PLC, Panasonic Holdings Corporation, Caterpillar Inc., Dow Inc., Veolia Environnement S.A., Schneider Electric SE, Honeywell International Inc., 3M Company, ABB Ltd., Umicore S.A., Braskem S.A., Indorama Ventures Public Company Limited, Novelis Inc., Vestas Wind Systems A/S, Berry Global Group Inc., Biffa plc, European Metal Recycling Ltd., Unifi Inc., Manufacturing Technology Centre Limited, NatureWorks LLC, Cirba Solutions LLC.

North America was the largest region in the sustainable manufacturing market in 2025. The regions covered in the sustainable manufacturing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the sustainable manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sustainable manufacturing market consists of sales of products such as eco-friendly textiles, sustainable furniture, green building materials, and sustainable footwear. 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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