Sustainable Packaging Market Analysis
The sustainable packaging market is set to witness a spend growth of nearly USD 90 billion with spend momentum to accelerate at a CAGR of over 6% between 2019-2024. The growing necessity of rendering operations sustainable is driving buyers from the food and beverage, chemical, cosmetics, personal care, and pharmaceutical adopt sustainable packaging measures. Buyers from the food and beverage sector is exhibiting an exponential demand for sustainable packaging solutions as they are experiencing a high demand for convenient and branded food and beverages. The increasing stringency of the environment-related regulations is serving as a driving factor towards the adoption in the sustainable packaging market.
Top Spending Regions in the Sustainable Packaging Market
According to forecasts, North America followed by Europe will dominate the global sustainable packaging market. Their spend share is expected to increase owing to the prevalence of stringent environmental regulations and legislations.
North America
The changes observed in end-consumer preferences and in their purchase patterns are governing the demand in the sustainable packaging market in this region. Large brands are reorienting their packaging strategies to meet the growing demand for sustainable packaging.
Europe
Stringent environmental regulations and legislations are compelling buyers to partner with suppliers who are known to adhere to waste disposal and directives that govern the use of recycled content. In 2015, the EU passed a revised regulation called packaging and packaging waste directive, which stated rules for the production, marketing, using, refilling, and recycling of containers that contain beverages.
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What are the Key Price Trends in this Market?
- According to the sustainable packaging price trends, forecasts of increase in the prices of raw materials such as paper and paper products, plastic resins, glass cullet, limestone, and aluminum are driving the OPEX borne by suppliers.
- R&D expenses incurred by suppliers are expected to increase during the forecast period due to the growing importance of developing sustainable solutions as well as reduction in the weight of packaging materials.
- The increase in price of oil and gas is driving up the operating cost of transport and logistics providers. Decreasing availability of labor, including truck drivers, in regions such as North America and Europe is also compelling transport and logistics providers to increase the salaries of their employees
Download the free sample of this report to know what the key sustainable packaging procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Sustainable Packaging Market Report
- Global and regional spend potential for the sustainable packaging market for the period of 2019-2024
- Supplier relationship management practices in the sustainable packaging market
- Supplier margins and selection criteria in the sustainable packaging market
- Top sustainable packaging suppliers and their cost structures
- Top sustainable packaging suppliers in the US and their cost structures
- Sustainable packaging market spend analysis in the US
- Sustainable packaging price trends, and forecasts
- Cost drivers influencing the sustainable packaging prices
Insights into Sustainable Packaging Supply Market
- The sustainable packaging supply market is highly fragmented, with a large number of global and regional suppliers. This results in a high level of competition in the market.
- Buyers, especially those from the food and beverage and cosmetics industries, benefit from engaging in sourcing consortiums with similar buyers operating in their geographic proximity to meet their requirements for sustainable packaging.
- The global sustainable packaging market is fragmented, with multiple global and regional players. This necessitates buyers to outline strict parameters to categorize and rationalize their supply base. Such categorization is essential for buyers to ensure optimization of the procurement process and tracking the consistency of their suppliers.
Insights into Some of the Leading Sustainable Packaging Suppliers
The supply market dynamics hint at a substantial hike in suppliers' OPEX which will drive buyer's procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the sustainable packaging market. This sustainable packaging market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top sustainable packaging suppliers. The top sustainable packaging suppliers highlighted in this report include:
- Tetra Laval International SA
- International Paper Co.
- Stora Enso Oyj
- Amcor Plc
- Crown Holdings Inc.
- Smurfit Kappa Group Plc
Criteria to select suppliers in this dynamic sustainable packaging market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
