Sustainable plastic packaging is defined as packaging that is made from materials that are environmentally-friendly and which are meant to have a lower impact on the environment through its lifecycle. The sustainable plastic packing market is exploding and growing rapidly due to regulations, eco-conscious consumers, and corporate sustainability goals, all enhanced by advancements in recycling and material science.
Key Growth Drivers and Opportunities
Eco-Friendly Trend among Consumers: An increase in consumer demand for sustainable products is driving the sustainable plastic packaging market, as buyers prefer products made with recyclable or biodegradable materials and are willing to pay higher prices. As consumers become more aware and concerned with environmental and social responsibility, companies are under more pressure to offer sustainable packaging, to the point that success determines whether companies are perceived as responsible. With the rise of social media and potential for bad reviews to proliferate online, there are additional pressures on companies that must be accounted for.
Challenges
The sustainable plastic packaging industry is hampered by factors such as higher manufacturing prices. Some other limiting factors are a lack of green raw materials, and durability and shelf live which can be difficult to achieve compared to traditional plastics.
Innovation and Expansion
Heinz and Tesco Collaborate with Berry Global, SABIC, and Plastic Energy to Introduce a Revolution in Recycled Soft Plastic Packaging
In May 2025, New certified plastic-negative and plastic-neutral certifications for product packaging are being made available to customers by AE GLOBAL, a pioneer in environmentally friendly packaging solutions. The environmental effect verification is carried out in collaboration with rePurpose Global, the top Plastic Action Platform in the world.
As a result of the collaboration, participating firms may now prominently display official on-pack indicators that indicate the effect of plastic recovery, whether they are collecting twice as much plastic (plastic negative) or the same amount (plastic neutral) as used to produce the packaging.
Berry Global and Mars Announce Packaging with 100% Recycled Content
In February 2025, Berry Global Group, Inc., collaborated with snacks and treats leader Mars to transition its pantry jars for M&M’S, SKITTLES and STARBURST brands to 100% recycled plastic packaging, exclusive of jar lids. This achievement advances the ongoing collaboration between Berry and Mars to develop packaging made with recycled content, and builds on a previous launch of the pantry jars with 15% recycled plastic in 2022. The updated jars are now rolling out across the country.
Inventive Sparks, Expanding Markets
The key players involved in the sustainable plastic packaging market are Amcor plc, Mondi, DS Smith, Sonoco Products Company, Sealed Air, and others. The main focuses of the market for sustainable plastic packaging will be innovation, collaboration, and meeting sustainability regulations. With increasing consumer demand for eco-friendly products, companies will focus on offering recyclable and biodegradable materials as an alternative to traditional plastics.
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