The global plastic alternative packaging market is expected to grow from $61.23 billion in 2020 to $71.08 billion in 2021 at a CAGR of 16.10% according to the Reportlinker report. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $95.04 billion in 2025 at a CAGR of 7.63%.
The plastic alternative packaging market consists of sales of plastic alternative packaging by entities (organizations, sole traders, and partnerships), engaged in manufacturing plastic alternative packaging products. Only goods and services traded between entities or sold to end consumers are included. North America was the largest region in the plastic alternative packaging market in 2020. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The high cost of plastic alternative packaging products is projected to limit the growth of the plastic alternative packaging market over the forecast period. Biodegradable plastic packaging materials are expensive as compared to non-biodegradable materials. In June 2019, Amcor plc., an Australia-based company engaged in producing packaging for food, beverage, pharmaceutical, medical, home- and personal care, and other products acquired Bemis company Inc. for $6.8 billion. Bemis Company, Inc. is a US-based manufacturer of flexible packaging products and pressure-sensitive materials.
Growing environmental concerns associated with plastic usage is a major driver for the growth of the plastic alternative packaging market. Plastic products consist of deadly pollutants and cause harmful effects on humans, animals, and the environment.
Advances in technology are a major trend in the plastic alternative packaging market. Major companies dealing in the market are continuously focusing on introducing innovative and sustainable packaging solutions for various industries to maintain their position in the competitive business environment and to meet end-user requirements. In January 2020, Sealed Air Corporation has launched a new version of bubble wrap brand packaging material that is made with at least 90% recycled content. The recycled content used to make bubble wrap brand packaging is sourced from post-industrial materials that would otherwise end up in landfills.
Major players in the plastic alternative packaging market are Amcor Limited, Tetra Pak, Sealed Air Corporation, Plastic Suppliers Inc., Kruger Inc., Mondi, International Paper Company, Smurfit Kappa Group PLC, DS Smith PLC, and Klabin SA.