The driving force of sustainable packaging has been gaining momentum worldwide, and China has become a major player in this trend.
As consumers are accustomed to moving towards greater environmental responsibility, the country’s commitment to reducing environmental impact through packaging is more important than ever.
In this article, GlobalData, a leading data and analytics company, explores how China’s sustainable packaging market grows, the factors driving this growth, and the opportunities and challenges of companies in the industry.
In recent years, the growth of China’s sustainable packaging market has been impressive. In 2023, the market generated a total revenue of $68.2 billion, reflecting the growing consumer demand for packaging solutions that are both environmentally friendly and sustainable and sustainable.
This figure represents a compound annual growth rate (CAGR) of 2.3% between 2018 and 2023.
This growth is not only in terms of revenue, but also in the amount of packaging consumed. The growth rate of market volume is 1.3%, reaching 128 million tons in 2023.
This shows a strong expansion driven by consumer demand and wider industry trends. As environmental issues continue to rise globally, China’s packaging market is adapting to new demands for environmentally friendly materials and practices.
One of the main drivers behind this growth is the rapid expansion of China’s e-commerce. According to GlobalData, the e-commerce market value reached 2.19trn in 2023, an increase of 9.8% from the previous year.
As online shopping continues to grow, so does the demand for packaging materials. However, this increased packaging consumption stimulates the need for more sustainable options.
Consumers are not only seeking convenience when shopping online; they are increasingly prioritizing sustainability. As a result, e-commerce businesses are under pressure to adopt sustainable packaging solutions to align with the value of their customers’ environmental values.
Companies that can successfully implement recyclable or compostable packaging materials are more likely to stand out in the competitive online retail space.
China’s sustainable packaging market is a competitive space, with local and international players competing for market share. Leading packaging companies are investing heavily in R&D to create innovative materials that reduce environmental impacts.
This includes the use of renewable resources for packaging materials and advances in design that promote recyclability or compostability.
