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The global eco-friendly packaging market registered a revenue of nearly $163.5 billion in 2018 and is anticipated to grow at a 5.3% CAGR, surpassing $248.7 billion by 2026.
The market has witnessed a significant growth previously, but due to the unexpected COVID-19 outbreak, the market will witness a decreased growth rate in 2020, owing to the shut-down of many restaurants, prohibition on transportation, and imposition of several strict rules and regulations taken up by the government. This reduction will be majorly hampered due to the decreased availability of raw materials owing to strict prohibition on transportation. Our analysts have estimated the condition of the eco-friendly food packaging market during the COVID-19 outbreak and have come to the following conclusions.
| CAGR Pre COVID-19 | 5.5% |
| CAGR Post COVID-19 | 5.3% |
| Recovery By | Q3/Q4 2022 |
| Realtime BPS | 12 |
| *Estimated market Size, 2020, Pre COVID | USD 182.6 Billion |
| **Real Time market Size, 2020, Post COVID | USD 159.8 Billion |
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
Eco-friendly food packaging materials are made up of reusable, non-toxic, recyclable, and biodegradable materials that are made from recycled products. These packaging materials are helpful due to their non-reactivity with the packed products. Shift in the consumer preferences towards eco-friendly and recyclable materials, enhance the demand for food packaging segment. The growth is attributed to the various properties such as non-reactivity, reusability, and non-toxicity of these materials. These factors are positively impacting the adoption of eco-friendly food packaging, across the globe.
However, availability of cheaper products and various engineering problems related with the manufacturing of eco-friendly food packaging materials are the factors restraining the market growth. In addition, risk of contamination due to disposing of non-biodegradable products owing to difficulties faced during the differentiation of non-degradable and degradable and degradable products among people is significantly impacting the usage and recycling of food packaging materials. Moreover, requirement of costly equipment for recycling of food packaging products is also a considerable factor that is expected to limit the market growth in the near future.
The COVID-19 pandemic has impacted the eco-friendly food packaging market negatively. Recycling process of packaging materials involves complex mechanism and costly equipment for both processing and recycling of these materials. Besides eco-friendly food packaging materials are manufactured by using soybeans or corns, and hence there is risk of contamination owing to the pesticides sprayed on these crops. Adding to this, these packaging materials may produce methane when they are buried in the landfills. This methane is more hazardous than carbon dioxide and can absorb heat rapidly that can lead to climate change. These factors are responsible for hampering the market growth in the forecast period of time.
However, some companies are managing this crisis through several other ways to sustain. For example, company named as Nulogy located in Canada has extended its cloud-based technology platform; this technology is utilized for thermal screening of employees and can detect body temperature. This extension of platform has benefited the company by tracing employees in real-time so that they can continue their production with employee safety. On the other hand, government is also providing funds for various manufacturers to sustain in this tough situation.
The global eco-friendly food packaging market will witness stagnation in 2020 and is anticipated to follow the similar trend until the end of forecast period. The rapid stagnation is majorly attributed to the closure of various food chains across the globe during this pandemic. Moreover, significant decrease in the supply of raw materials due to prohibition of logistic services is hampering the market growth. Some companies have adopted various strategies to overcome this crisis. For example, company named as Flexible Packaging has shifted its food packaging business to production of face shield to sustain in the tough situations.
On the other hand, U.K. government is helping major key players by providing funds to sustain their business in this crisis. For instance, Dean Packaging that has served more than 20 years in packaging sector has received a 20K euro funding package through coronavirus business interruption loan scheme (CBILS) to continue its production in these tough times. In addition, many companies are shifting their business for temporary time to sustain this pandemic. For example, Bizongo and Indian B2B packaging company has shifted its packaging business to production of PPE kits and successfully completed its first shipment of more than 100,000 units of PPE.
Our group of skilled analysts provide a solution to help the companies to survive and sustain in this global pandemic. We support companies to make informed decisions based on our findings resulting from the comprehensive study by our qualified team of experts. Our study helps to acquire the following:
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