ZERO WASTE PACKAGING MARKET ANALYSIS

The Zero Waste Packaging Market is expected to surpass US$ 3.48 Billion by the end of 2030 and exhibit a CAGR of 12% during the forecast period (2023 to 2030).

Global Zero Waste Packaging Market: Growth Drivers

• High Demand for Reusable Packaging Worldwide: Due to its ability to produce zero waste, reusable packaging has been a major trend among consumers and manufacturers in recent years. Reusable packaging saves money and protects the environment. By using reusable materials, businesses may cut down on the need to constantly produce single-use packaging, saving money on the cost of raw materials, energy, and labor. Reusable packaging has a significantly smaller environmental impact than conventional packaging. It reduces trash by 95%, eutrophication by 60%, and global warming potential (GWP) by 75%. Compared to one-way bottles, refillable bottles produce fewer greenhouse gas emissions. Thus, reusable packaging will have a significant impact on the demand for zero-waste packaging in the next decade. For Instance, in 2023, The Coca‑Cola Company announced an industry-leading goal to significantly boost its use of reusable packaging. The Coca-Cola Company is an American multinational corporation founded in 1892, best known as the producer of Coca-Cola. The drink industry company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrups, and alcoholic beverages. By 2030, the company aims to have at least 25% of all beverages globally across its portfolio of brands sold in refillable or returnable glass or plastic bottles or in refillable containers through traditional fountains or Coca‑Cola Freestyle dispensers.
• Use of Organic Resources like Mushrooms and Corn: Zero waste is the ultimate objective of sustainable packaging. For Instance, in 2022, According to research by the Ellen MacArthur Foundation, just 14% of all plastic packaging gets recycled, with the remaining 40% finding their way into landfills and the remaining 32% ending up in ecosystems (the remaining 14% are utilized for energy recovery or cremation). Many firms are shifting to minimum packaging and using materials like paper, glass, wood, and other recyclable and sustainable materials in place of plastic. They have also switched from using plastic tape to Kraft paper tape.

Global Zero Waste Packaging Market: Restraints

• High and unstable raw material costs and inadequate infrastructure: The expensive cost of zero-waste packaging materials, however, could serve as a market restraint. Though currently more expensive than plastic garbage, zero-waste materials don't require extra costs like financing to clean the waste. For instance, in 2021, according to estimates from the World Economic Forum, waste from plastic packaging will cause an annual loss of $80 to $120 billion. Additionally, the rapidly growing food and beverage sector and rising e-commerce sales are some of the reasons that are anticipated to create a number of potential opportunities for the market in the years to come.

Global Zero Waste Packaging Market: Trends

Growing demand for sustainable packaging solutions in food and beverage, 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 manufacturers over the long run, which in turn is expected to create profitable opportunities for the market during the forecast period. Additionally, rising disposable income, a rapidly expanding food and beverage industry, and growing demand from the healthcare industry are expected to boost demand for zero waste packaging and drive market growth. For instance, as indicated by the USDA's Economic Research Service, Americans spent an average of 9.7% of their total disposable income on food at home and food away from home. The USDA demonstrates that $1.7 trillion was spent on all food consumption in the U.S. in 2020, up $78.2 billion from the earlier year.

Global Zero Waste Packaging Market: Impact of Covid 19

The food and beverage industry saw dramatic effects from the pandemic. With the outbreak of the COVID-19, many food and 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.

Global Zero Waste Packaging Market: Market Segmentation

Among regions, North America held the highest market share of 38.05% in 2022, 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, 2022

Global Zero Waste Packaging Market: By Type

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 2022, owing to growing applications of compostable goods in various end-use industries such as food and beverages, healthcare, and personal care. In foodservice packaging for restaurants, cafeterias, closed-loop venues, grocery stores and prepared food bars, mostly compostable material is preferred for packaging.

Figure 2: Global Zero Waste Packaging Market Revenue Share (%), By Type, 2022

Global Zero Waste Packaging Market: Key Developments

• In December 2021, Loop Industries, Inc. has created a patented technology that closes the loop on plastic waste in order to steer the globe toward a healthier and more sustainable future. The technology, to put it simply, significantly lessens the environmental damage that PET and polyester fiber waste often create.
• In May 2021, Tetra Pak, World Centric, and Loop Industries, Inc. are three pioneers in the field of zero-waste packaging. Tetra Pak was founded in 1952 by Dr. Ruben Rausing after he developed a substitute for cumbersome glass bottles that were previously used to package and distribute milk.
• In October 2021, Tetra Pak announced its strategic partnership with Poka, which reflects its commitment to zero waste. The partnership will empower food production workers with technology, equipment, and training that can expedite zero-waste procedures.

Global Zero Waste Packaging Market: Key Companies

Major players operating in the zero waste packaging market include Loop Industries Inc., Pulp Works Inc., Avani Eco, Loliware, Lifepack, Aarohana Ecosocial Development, and Package Free, GO Box, World Centric, and Biome.

*Definition: 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 the idea of conserving natural resources by utilizing responsible production techniques that 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 to human wellbeing or the environment caused by the burning of conventional packaging materials. Manufacturers from around the globe are working to achieve zero waste when creating packaging materials.