Zero-waste packaging promotes sustainable packaging techniques, where all materials are used, reused, or recycled in order to avoid any side effects. In brief, it is an idea of conserving natural resources by utilizing responsible production techniques which incorporate both consumption and recovery of various zero-waste packaging products such as re-usable goods, compostable goods, etc. Zero-waste packaging reduces the threats caused to human wellbeing or the environment due to the burning of conventional packaging materials. Manufacturers from around the globe are working to accomplish zero waste, from creating packaging materials. FMCG (Fast moving consumer goods) brands have tied up with companies such as Dabur India Ltd., who utilize zero-waste packaging methods to deliver merchandise to consumers through minimalized packaging material and collect the leftover trash back for reuse and recycling. This process further helps zero-waste packaging manufacturers to generate revenue while adding to the ecological concerns pertaining to waste management across the globe.
The zero waste packaging market is expected to surpass US$ 2415.90 million by the end of 2028 and exhibit a CAGR of 9.4% during the forecast period (2021 to 2028).
Waste produced through packaging materials is a problem around the world. A large portion of the waste is buried in landfills or dumped in the seas which further disturbs aquatic life and creates vast islands of trash. This has led to the development of stringent environmental policies, for example, in 2020, the Singapore government made a joint initiative named The Singapore Packaging Agreement (SPA). This is a joint initiative between the Singapore government, the packaging industry, and NGOs to reduce packaging waste. The Agreement is voluntary to provide flexibility for the industry to adopt cost-effective solutions to reduce waste. Such rising concerns cater to the need for zero waste stores, which practically actuate customers to bring their own packaging instruments such as bags and containers among others to carry their products from the shops. These factors are anticipated to help the growth of the zero waste packaging market throughout the forecast period.
The consumption of marked and non-marked products has increased multifold with the growth of the consumer goods industry, which in turn is boosting the need for sustainable packaging methods. Improvement in production processes, a decrease in the size and thickness of the actual packaging produced, elimination of superfluous packaging, etc. are some of the steps taken by endeavors in order to reduce the use of raw materials.
Among regions, North America held the highest market share of 38.5% in 2020, owing to greater awareness among the people in the U.S. and Canada with regards to the harm of plastic waste to the environment. The market in the Asia Pacific region is expected to grow at a CAGR of 9.9% over the forecast period owing to growing awareness about sustainable packaging in China, India, Japan, and Australia.
Figure 1. Global Zero Waste Packaging Market Revenue Share (%), By Region, 2020
Sustainability comes at a price, and frequently, it isn't advantageous or effectively feasible. Incessant fluctuations in the costs of raw-materials utilized for zero waste packaging methods in various countries result in an increase in the cost of the derived goods, which is anticipated to act as a barrier to the growth of the zero waste packaging market during the forecast period.
|Base Year:||2020||Market Size in 2021:||US$ 1431.93 Mn|
|Historical Data for:||2017, 2018, and 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||9.4%||2028 Value Projection:||US$ 2415.90 Mn|
Loop Industries Inc., PulpWorks Inc., Avani Eco, Loliware, Lifepack, Aarohana Ecosocial Development, Package Free, GO Box, World Centric, and Biome.
|Restraints & Challenges:||
Growing demand for sustainable packaging solutions in food & beverages, healthcare, personal care, and other applications is expected to create lucrative opportunities for market players during the forecast period. Moreover, the adoption of various emerging technologies such as 3D printing and automation is expected to propel the production capacity of zero waste manufactures over the long run, which in turn is expected to create profitable opportunities for the market during the forecast period. Additionally, rising disposable income, rapidly expanding food & beverages industry, growing demand from healthcare industry are expected to boost the demand for zero waste packaging and drive the market growth. For instance, as indicated by USDA's Economic Research Service, in 2018 Americans spent average of 9.7% of their total disposable income on food at home and food away from home. USDA demonstrates that $1.7 trillion was spent on all out food consumptions in the U.S. in 2018, up $78.2 billion from the earlier year
.Figure 2. Global Zero Waste Packaging Market Revenue Share (%), By Type, 2020
Based on Type, the global zero waste packaging market is segmented into re-usable goods, compostable goods, and edible goods. Among type, the compostable goods segment accounted for the highest market share of 57.0% in 2020 owing to growing applications of compostable goods in various end-use industries such as food & beverages, healthcare, and personal care. In foodservice packaging for restaurants, cafeterias, closed loop venues, and grocery store & prepared food bars, mostly compostable material is preferred for packaging.
Global Zero Waste Packaging Market - Impact of Coronavirus (COVID-19) Pandemic
The food & beverage industry saw dramatic effects from the pandemic. With the outbreak of the Covid-19, many food & beverage outlets have increased the usage of zero-waste packaging materials. During the lockdown and beyond, vast numbers of consumers turned to online grocery shopping, which in turn boosted the demand for zero-waste packaging. For instance, according to the U.S. National Retail Federation, U.S. digital grocery buyers increased from 131.6 million in 2020 to 137.9 million in 2021, recording 4.8% year-over-year growth.
Major players operating in the zero waste packaging market include Loop Industries Inc., PulpWorks Inc., Avani Eco, Loliware, Lifepack, Aarohana Ecosocial Development, Package Free, GO Box, World Centric, and Biome.
The zero-waste philosophy supports recycling and reuse of packaging. The returnable glass milk jug or glass bottle of sodas are the best instances of zero-waste packaging. A shift from plastic packaging will influence shoppers and manufacturers to reuse packaging leaving behind no waste. In different cases, the packaging can be totally reused, or the bundling biodegrades without causing any harm to the environment. A lot of manufacturers are presently changing to insignificant packaging and utilizing materials such as paper, glass, wood, and other eco-friendly and reusable materials rather than plastic packaging. The global zero waste packaging market faces few hindrances to its growth, due to concerns over significant expenses of implementation, as it imposes a cost burden on the organizations, and in many cases, creates inconveniences during its implementation.
Apart from these challenges, zero-waste packaging materials may require unique disposal methods. However, not all customers may be familiar with different packaging materials and how they must be disposed of. These factors can hamper the market growth over the forecast period.
Plant-based packaging options have seen huge development, with most of the materials made from organic sources. However, the right packaging choice relies upon the item being packaged. Bulkier products require a durable plant base like mushrooms. The byproducts of industries such as agribusiness, usually help minimize supply chain waste. For example, compacted plant strands such as coconut and mushroom fibers can be used in e-commerce business organizations as a biodegradable packaging alternative. In contrast to plastic polymers, compostable polymers are produced using corn starch. For instance, Ecovative Design, a Material Company provides sustainable alternatives to plastics. Mushroom-based packaging called Myco-composite has been embraced by IKEA, a home furnishing company that sells home accessories and interior items. The company is famous for its eco-friendly products and its drive to reduce wastage. Grown in a controlled environment, the Myco-composite packaging can grow around a mold, which then, at that point, precisely fits the products.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.