Sustainable packaging promises to deliver $140bn market

Demand for sustainable packaging is set to grow exponentially over the next five years, according to new figures that suggest the global market for packing materials that have a minimal impact on environment will reach $142bn (£89bn) by 2015.

The report from research firm Global Industry Analysts (GIA) predicts that while Europe and the US currently account for 70 per cent of the market for packaging that is either biodegradable or recyclable, growing demand from Asian markets will lead to an explosion in demand over the next few years.

The report, entitled Sustainable (Green) Packaging: A Global Strategic Business Report, credits increased corporate environmental awareness and government initiatives to reduce greenhouse gas emissions with driving the market for sustainable materials.

The latest figures follow a similar report from rival analyst Pike Research, which offered an even more bullish assessment of the sustainable packaging market, predicting the sector will balloon from $88m last year to $170bn by 2014, dramatically outpacing growth in the broader packaging market, which it expects to increase from $429bn in 2009 to $530bn by 2014.

Consumer-facing markets that rely heavily on branding seem to be particularly receptive to sustainable packaging, according to the GIA report, which says that cosmetics and food are among the leading adopters of green packaging. However, other sectors such as shipping and healthcare are similarly adopting the practice.

The report also predicts a shift in the types of sustainable packaging that are used, noting that while recycled materials currently account for about 90 per cent of the market in the US, the biodegradable packaging sector is currently enjoying faster growth rates.