Published : 02 Dec 2025
The global eco-friendly food packaging market size was valued at USD 220.61 billion in 2024, is anticipated to surpass USD 500.33 billion by 2035, reflecting a projected CAGR of 8.0% from 2026 to 2035.
The eco-friendly food packaging market is quickly expanding as sustainability takes center stage in the global food and beverage industry. Eco-friendly packaging is currently regarded as an essential component of responsible food supply chains, owing to rising environmental concerns, government laws, and shifting consumer preferences. Instead of traditional plastic-based materials, new packaging solutions make use of recyclable, biodegradable, and compostable alternatives like paper, plant-based polymers, and molded fiber. These options provide comparable protective functions while reducing environmental effect.
Governments across the globe have introduced legislative measures to reduce single-use plastic waste and promote sustainable material usage. Policies banning certain plastic products and incentivizing the use of renewable resources have catalyzed innovation in packaging design and production. The emphasis is on materials that disintegrate naturally or can be recycled using existing recycling processes.
In parallel, leading foodservice and retail firms are including sustainable packaging into their corporate responsibility plans. Clear labeling, minimalist design, and life cycle assessments are also becoming commonplace, which improves transparency and environmental performance.
Governments throughout regions are implementing tough laws to reduce plastic waste and promote sustainable food packaging practices. Many countries, for example, have outlawed single-use plastics like straws, cutlery, and takeaway containers. Several states in the United States have passed extended producer responsibility (EPR) legislation, requiring producers to finance packaging material recycling and disposal.
The European Union’s directive on single-use plastics aims to reduce marine litter by targeting specific plastic products frequently found in oceans. Similarly, Asia-Pacific countries, such as India and China, have implemented national action plans focused on replacing plastics with biodegradable or reusable packaging alternatives. These regulatory efforts are not only reshaping industry practices but also fostering innovation in sustainable material development and waste management systems.
From an economic standpoint, eco-friendly packaging offers long-term cost benefits through waste reduction, resource optimization, and improved brand equity. Consumers are increasingly willing to pay more for sustainable products, incentivizing brands to adopt green packaging strategies.
Retailers and food producers are responding by shifting toward lightweight, recyclable, and compostable materials that align with evolving consumer expectations. In many regions, tax benefits, subsidies, or grants are being provided to support the adoption of sustainable packaging solutions, especially among small and medium enterprises. Moreover, cost savings from reduced waste disposal fees and enhanced operational efficiency contribute to the attractiveness of eco-friendly packaging in commercial applications.
Despite the good momentum, some hurdles remain in the eco-friendly food packaging business. The high initial costs of sustainable materials, as well as the scarcity of efficient composting and recycling facilities, can make widespread adoption difficult. For small-scale businesses, making the switch to eco-packaging can be financially burdensome, especially in markets where subsidies or support mechanisms are limited.
Another issue is a lack of worldwide consensus on what defines "eco-friendly." Inconsistent labeling and differing biodegradability requirements can cause uncertainty for both consumers and businesses. Furthermore, supply chain constraints in procuring sustainable raw materials and large-scale manufacturing might influence pricing and lead times. Continued investment in R&D, policy alignment, and infrastructure development will be key in resolving these challenges.
The worldwide eco-friendly food packaging market is divided into 4 segments: product, material, application and regional markets
North America dominates the worldwide eco-friendly food packaging business as a result of stringent environmental regulations and corporate sustainability commitments. The United States and Canada have passed legislation to prohibit single-use plastics and promote sustainable alternatives in a range of industries. Local governments and communities are actively pushing zero-waste initiatives and increasing the usage of green packaging solutions. The presence of large food and beverage firms with stringent sustainability goals helps North America maintain its leadership position.
Eco-friendly food packaging companies profiled in the report include Graphic Packaging International, LLC, Silgan Holdings Inc., Huhtamaki, Crown Holdings, Inc., Mayr-Melnhof Karton AG, TOPPAN Inc., Sealed Air, International Paper, Amcor Berry Global, DS Smith, and Sonoco Products Company.
Amcor & Berry Global (19 Nov 2024 (agreement signed) / 30 April 2025 (deal closed))
The merger between Amcor and Berry Global was completed on April 30, 2025. This all-stock transaction created a global leader in consumer and healthcare packaging solutions, combining their talent, resources, and reach across flexibles, containers, and closures.
The merger created a new global leader in packaging, with a combined revenue of approximately $24 billion and a footprint in over 140 countries. The combined company aims to enhance its innovation capabilities, expand its global reach, and meet customer and consumer demands for more sustainable packaging solutions.
Veritiv Acquires Orora Packaging Solutions (OPS) (3 Sept 2024 (agreement) / 11 Dec 2024 (completed))
This acquisition expands Veritiv’s specialty packaging distribution business. Orora has sustainable packaging capabilities and the deal strengthens Veritiv’s eco-packaging distribution reach.
| Parameter | Details |
| Size in 2024 | USD 220.61 Billion |
| Forecast by 2035 | USD 500.33 Billion |
| CAGR During 2026 – 2035 | 8% |
| Largest Product Segment (% Share 2025) | Boxes & Cartons – 30% |
| Largest Region Size (2025) | North America - USD 83.83 Billion |
| Fastest Growing Region (% CAGR) | Asia-Pacific – 9.4% |
| Key Players Covered | Graphic Packaging International, LLC, Silgan Holdings Inc., Huhtamaki, Crown Holdings, Inc., Mayr-Melnhof Karton AG, TOPPAN Inc., Sealed Air, International Paper, Berry Global Inc, Amcor plc, DS Smith, and Sonoco Products Company. |
Contact:
Mr. Richard Johnson
Acumen Research and Consulting
India: +91 8983225533