Green packaging is likely to grow rapidly

The demand for green packaging in US is projected to rise 3.4 % annually to $43.9 billion in 2013, using 59 billion pounds of material. The market is comprised of recycled content, biodegradable and reusable packaging. This growth will outpace the overall packaging but will remain modest due to the maturity of several products and the fact that recycled content packaging has huge presence in metal and paperboard packaging.

The most rapid rise is likely to be seen for plastic recycled content packaging and biodegradable plastic packaging. 13% growth is expected for biodegradable plastic packaging through 2013. It will be driven by increased price competitiveness with conventional resins, lower pricing volatility than petroleum-based plastic packaging materials, and rapidly expanding capacity.

More sophisticated polymerizaton and blending techniques, efforts by brand owners to improve the environmental footprint of their packaging; and legislative bans on polystyrene foam food service disposables in some parts of the country would enhance the performance. These and other trends are presented in Green Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Along with the overall green packaging, the demand of recycled content packaging is likely to rise. Robust growth for plastic recycled content packaging will be forced by more concerted efforts to boost collection volume, further sustainability initiatives by plastic processors and brand owners, and an increased focus on the development of food-contact approved resin grades. Slow growth for paper recycled content packaging, which is dominated by the large but mature corrugated and paperboard box segment, will moderate the gains.

Reusable packaging is forecast to expand more slowly, held back by marginal growth for drums, which face competition from larger formats such as intermediate bulk containers (IBCs). More favorable prospects are anticipated for reusable plastic containers, IBCs and other reusable packaging types. In general, value gains will decelerate sharply from the 2003-2008 pace due to an expected moderation in raw material prices, especially for plastic and steel. The relatively long service life of most reusable packaging also limits the need for replacements, a factor that restricts growth in demand for new units.