Eco-friendly Food Packaging Market Growth & Trends
The global eco-friendly food packaging market size is anticipated to reach USD 353.78 billion by 2030, registering a CAGR of 7.6% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is primarily driven by increasing consumer awareness and demand for sustainable products. With growing environmental consciousness, consumers are actively seeking packaging that minimizes environmental impact. This trend is especially strong among millennials and Gen Z, who are more willing to pay a premium for eco-conscious choices. For instance, brands such as Boxed Water and Just Water have gained popularity by offering water in recyclable or compostable packaging. Food service providers and retailers are also responding to this shift by adopting biodegradable or reusable alternatives to plastic containers and wraps.
Government regulations and international policies are also playing a crucial role in driving the eco-friendly food packaging market. Many countries have implemented bans or restrictions on single-use plastics, thereby accelerating the shift toward compostable, recyclable, or reusable packaging solutions. The European Union’s Single-Use Plastics Directive and Canada’s ban on plastic checkout bags, cutlery, and certain food containers are examples of regulatory actions that are pushing companies to invest in sustainable packaging options.
Corporate sustainability goals and ESG commitments have further intensified the move toward eco-friendly food packaging. Major food brands and FMCG companies are committing to reducing their carbon footprint and waste generation. For instance, Nestlé and Unilever have pledged to make 100% of their packaging recyclable or reusable within this decade. These goals are not only intended to meet regulatory standards but also to align with investor expectations around environmental, social, and governance (ESG) performance. The adoption of plant-based materials such as PLA (polylactic acid), paperboard, and mushroom packaging reflects these commitments.
Furthermore, technological advancements and innovations in material science are enabling the development of high-performance, eco-friendly packaging solutions. New materials such as seaweed-based packaging and cellulose-based packaging offer not only environmental benefits but also comparable durability and shelf-life performance to conventional plastics. Companies such as Notpla and TIPA are pioneering such innovations, which are increasingly being adopted by foodservice companies and fresh food suppliers. These innovations are creating a competitive edge for early adopters and are expected to lower costs through economies of scale, making eco-friendly packaging more accessible to a broader market.
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Eco-friendly Food Packaging Market Report
Eco-friendly Food Packaging Market Report Highlights
- Based on materials, the recyclable segment accounted for the largest share of over 43.0% of the market in 2024.
- The compostable material segment is expected to grow at the fastest CAGR of 8.2% during the forecast period.
- Based on product, the boxes & cartons segment accounted for the largest share of over 30.0% of the market in 2024.
- The bags segment is projected to grow at the fastest CAGR of 8.2% during the forecast period.
- Based on application, the foodservice segment dominated the market in 2024 by accounting for the largest revenue share of over 41.0% and is expected to expand at the fastest CAGR of 8.2% over the forecast period of 2025 to 2030.
- In March 2025, Nestlé invested approximately USD 17.0 million in its Girona coffee factory in Catalonia to establish two new sustainable packaging lines aimed at increasing the use of recyclable materials and reducing virgin plastic consumption. These new lines will produce the first Nescafé refill bags made from recyclable materials in Spain, which reduce packaging weight by 97% compared to glass jars, and a high-speed line packaging Nescafé sachets in recyclable mono-material, expected to cut virgin plastic use by 60 tonnes annually.
Eco-friendly Food Packaging Market Segmentation
Grand View Research has segmented the eco-friendly food packaging market based on material, product, application, and region:
Eco-friendly Food Packaging Material Outlook (Revenue, USD Million, 2018–2030)
- Biodegradable
- Recyclable
- Compostable
Eco-friendly Food Packaging Product Outlook (Revenue, USD Million, 2018–2030)
- Bags
- Boxes & Cartons
- Bottles & Jars
- Others
Eco-friendly Food Packaging Application Outlook (Revenue, USD Million, 2018–2030)
- Foodservice
- Food Processing
- Retail
List of key players in the eco-friendly food packaging market:
- Amcor plc
- Berry Global Inc
- Crown Holdings, Inc.
- DS Smith
- Graphic Packaging International, LLC
- Huhtamaki
- International Paper
- Mayr-Melnhof Karton AG
- Sealed Air
- Silgan Holdings Inc.
- Sonoco Products Company
- TOPPAN Inc.
- Tetra Pak
- Pappco Greenware
- Greendot Biopak Pvt. Ltd.
