Carbon-Negative Packaging Market Size, Share, and Industry Analysis By Material (Bioplastics, Paper & Paperboard, Engineered Wood Products, Green Cement, Algae-Based, and Others), By Product Type (Films, Bags & Pouches, Boxes & Cartons, Trays, and Others), By End Use (Food & Beverages, Healthcare, Personal Care & Cosmetics, and Others), and Regional Forecast till 2032

The global carbon-negative packaging market is witnessing substantial growth as many small and large-scale packaging manufacturers are developing sustainable packaging materials as well as technologies such as bioplastics and compostable materials, which reduce carbon footprint.

Carbon-negative packaging helps decrease carbon emissions and combat climate change. The massively growing demand for sustainable packaging solutions is the prime factor driving the market growth.

Carbon-Negative Packaging Market Driver

Increasing Environmental Concerns Boost the Carbon-Negative Packaging Market Growth

Carbon-negative packaging plays a crucial role in tackling the growing climate change concerns. The packaging removes carbon dioxide from the atmosphere and contributes to the reduction of greenhouse gas concentrations. It also promotes the utilization of renewable resources and decreases pollution and waste. The growing environmental concerns boost the demand for carbon-negative packaging, further thriving market growth. Rising consumer preferences for sustainable packaging also drive market growth.

• According to sustainable packaging statistics, 66% of U.S. consumers and 80% of adults under 34 are ready to pay additional prices for sustainable products.

Carbon-Negative Packaging Market Restraint

High Upfront Costs Associated with Recycling Hampers the Market Growth

The high cost of carbon-negative packaging is a major factor limiting the market growth. In addition, the high cost of recycling processing of the packaging materials and fluctuation in raw materials prices also hampers the market growth.

Carbon-Negative Packaging Market Opportunity

Surging Emphasis on Adopting Sustainable Packaging Solutions to Lay the Groundwork for New Opportunities

Increasing adoption of sustainable packaging solutions will generate profitable growth opportunities. Businesses across several industries are increasingly integrating sustainability into their corporate strategies, boosting market growth.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the Carbon-Negative Packaging Market
• Key Industry Trends
• Regulatory Landscape for the Carbon-Negative Packaging Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis by Material

Based on material, the market is subdivided into bioplastics, paper & paperboard, engineered wood products, green cement, algae-based, and others.

The bioplastic segment is the leading segment of the global carbon-negative packaging market. Bioplastics are majorly developed from renewable resources such as sugarcane, corn flour, and cellulose. They are compostable, biodegradable, and have a smaller carbon footprint than other materials, propelling segmental growth.

Paper and paperboard are the second-leading segment. The material is derived from non-wood virgin fibers from annual food stems, such as straw, to develop carbon-negative packaging, thus cushioning the segment growth.

Analysis by Product Type

On the basis of product type, the market is fragmented into films, bags & pouches, boxes & cartons, trays, and others.

The boxes and cartons segment is the dominating segment. Boxes and cartons are designed with paper, which is a renewable resource and can be broken down naturally, eliminating waste and minimizing carbon footprint. They are used in several industries, such as food and beverage, personal care, and consumer goods, boosting segmental growth.

Bags and pouches are the second-dominating product type segment. The rising utilization of bags and pouches made with bioplastics in the food sector contributes to the segment’s growth.

Analysis by End Use

Based on end use, the market is subdivided into food & beverages, healthcare, personal care & cosmetics, and others.

The food & beverages segment is the dominating end-use segment. The segment is estimated to grow substantially over the forecast period. The carbon-negative packaging materials are biodegradable and can help in decreasing the environmental impact of food and beverage packaging, boosting segmental development.

The healthcare segment is the second-leading segment. The rising utilization of green packaging products, such as bags and pouches, in the healthcare segment aids segmental growth.

Regional Analysis

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On the basis of region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Europe is the dominating region of the global carbon-negative packaging market. The presence of major key players, as well as the rising initiatives by the government and packaging organizations to reduce the use of hazardous materials in packaging, enhances the market growth in the region. Moreover, the rising demand for carbon-neutral products by the food sector also cushions the market growth.

• In July 2020, Lee Strand introduced a new fresh milk product in the country’s first Tetra Pak package, which was labeled as ‘CARBON NEUTRAL.’ The Tetra Rex Plant-based package is FSC-certified and is designed entirely of paperboard and other controlled sources. Moreover, the plastic is plant-based and is developed from Bonsucro-certified sugarcane.

Asia Pacific is the second-leading region. The rising demand for green and sustainable packaging solutions from the healthcare and food sectors of the region boosts the market growth. In addition, the key initiatives by manufacturers also enhance the region’s development.

• In December 2023, Detpak, a South Australia-based packaging solutions manufacturer, announced the launch of Vanguard, the first wide range of compostable sugarcane bowls, plates, and containers with No-Added PFAS.

North America is the third dominating region. The growing demand for eco-friendly packaging materials from manufacturers and consumers is boosting the adoption of carbon-neutral packaging products, driving market growth.

The Latin America market will experience steady growth owing to the rising demand for environmentally-friendly packaging products for food products. The Middle East & Africa market is studied to witness moderate growth due to the increasing adoption of green packaging solutions in several industries.

Key Players Covered

The global carbon-negative packaging market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Elopak (Norway)
• Tetra Pak (Switzerland)
• Econovus (India)
• Emmerson Packaging (Ireland)
• SIG (Switzerland)
• Sealed Air (U.S.)
• DS Smith (U.S.)
• Notpla (U.S.)
• Smurfit Kappa (Ireland)
• Sandland Packaging (U.S.)

Key Industry Developments

• In July 2024, FORTIS X announced the launch of Africa’s first biodegradable and recyclable plant-based packaging. The revolutionary initiative encouraged the company’s Plastic Free July movement, promising millions to reduce the utilization of single-use plastics.
• In October 2020, Each & Every, a natural deodorant brand, declared the launch of sustainable packaging solutions. The black 100% plant-based sugarcane tubes are infrared readable for sorting during recycling.