Impact of COVID-19 on the Global Green Packaging Market
The green packaging market has been negatively impacted in recent months owing to the lockdowns imposed in the majority of the countries due to the outbreak of COVID-19 in December 2019. Several countries, including Italy, U.S., and India, witnessed curfew-like situations where businesses (except essential goods and services) were not allowed to operate. The shutting down of restaurants and hotels, along with most manufacturing plants, has significantly impacted the demand for green packaging, owing to its high utilization in these sectors. Green packaging is also known as sustainable packaging. The manufacturing processes of packaging materials require energy and create waste, thus making it non-sustainable. However, designers can make packaging materials sustainable by considering the environmental impacts during their manufacture, usage, and disposal. Stringent government regulations and legislation, forcing manufacturers to choose sustainable packaging options over conventional packaging materials, are the major drivers for the growth of the green packaging market. Changing preferences towards more sustainable packaging materials and growing urbanization are some of the key factors fueling market growth.
Issues regarding sustainability, ethics, quality, environment, safety, and product costs are becoming increasingly important for modern-day consumers while making purchasing decisions. A number of these issues are also prescribed by the packaging regulations, which is anticipated to impact the global green packaging market positively. According to a study by the Ellen MacArthur Foundation, every year, over 8 million tons of plastic waste ends up in oceans across the globe. The report also predicts that the weight of plastic waste will be more than that of fish by 2050 unless radical actions are taken. A lot of the floating waste gets collected in several large ocean vortices, which are located far from land. It has been calculated that 95% of the plastic-based packaging material is lost to the economy after a short single-use cycle, which negatively impacts the environment. The demand for green packaging is anticipated to increase in the coming months as several governments prepare to lift the lockdowns in a phased manner. In the coming months, the demand for green packaging is anticipated to be moderate and is likely to grow in the next few years. The green packaging industry is anticipated to rebound in the first quarter of 2021 and grow at a significant CAGR over the next few years.
Global Packaged Food Sales (USD Billion)