Eco is an abbreviation for ecology, which defines the relationship between living things with their environment. Whereas, friendly signifies beneficial, or at least not harmful. Together, when implied to services or products, it implies positive or at least not harmful effects on the living things. 

The North America Eco-Friendly Food Packaging Market is estimated to witness a rise in revenue from US$ 49,707.3 Mn in 2021 to US$ 67,818.9 Mn by 2027. The market is registering a CAGR of 5.3% during the forecast period 2022-2027.

Eco-friendly packaging is also referred as green packaging, sustainable packaging or environment-friendly packaging. The packaging uses earth-friendly materials to pack a product. The packaging industry is now at the nexus of environmental protection, social justice and economic growth issues. Additionally, the eco-friendly packaging plays a vital role in satisfying the consumer demand for natural, recyclable and biodegradable packaging materials. It is used as a substitute to conventional food processing techniques (brining, acidification, high thermal treatments, dehydration and additive preservation).

Market Dynamics

The major factor responsible for the growth of the North America eco-friendly food packaging market includes the growing awareness among people and consumer preferences toward recyclable and eco-friendly packaging materials, increasing demand for packaged food and ready to eat food and advancements in food packaging technology. The growing literacy rates, working population and standard of living, individual’s interest have grown more responsive in the health and hygiene standards related to food products. Moreover, the consumption for ready to eat (RTE) food products has been surging over the last few decades on account of the changing socio-economic and demographic pattern of life such as busier lifestyle of consumers and their increasing income level. Furthermore, the advancements in food packaging technology such as smart packaging, edible packaging, self-cooling and self-heating packaging, anti-microbial packaging, water soluble packaging, flavor and odor and micro packaging boost the growth of the market in the North American region. 

Strategies adopted by companies coupled with a rising manufacturing facility and investment in eco-friendly food packaging provides growth opportunity for the North American market during the forecast period. However, the high cost of recycling process and poor infrastructure has negatively influenced the market growth in the region.

Report Summary

The study of the North America Eco-Friendly Food Packaging Market considers various market determinants, industry value chain analysis and competitor analysis of the market. The report discusses the analysis of the eco-friendly food packaging industry for the period 2017-2027, where the base year is 2021 and the forecast period is 2022-2027. The report provides a detailed analysis of the North America Eco-Friendly Food Packaging Market across 13 Chapters and 165 pages. The report includes data presentation across 23 tables and 56 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein bargaining power of buyers and competitive rivalry is high.

The subsequent section provides details of the market analysis based on different segments such as material type, packaging material, product, applications and country. The report includes detailed study of value chain of the industry. It includes raw material, design and development, distribution/marketing and end user. The report also covers extensively about the key competitors in the market for eco-friendly food packaging.

Impact of COVID-19 on North America Eco-Friendly Food Packaging Market 

In recent outbreak of the COVID-19 pandemic, the North America demand for the eco-friendly food packaging market is significantly reduced due to the reduced investments by government and private companies in packaging manufacturing, which leads to cutbacks in business lines. The market situation of food packaging industry is being halted and has forced the government authorities and key manufacturers to stop or delay their manufacturing processes and investment in such manufacturing plants, in order to control the spread of the novel coronavirus disease i.e., COVID-19. It further affects the business of its end-use industries who opt for such packaging on account of its versatile benefits, which may pose a negative influence on the market growth, amidst the pandemic.

Moreover, with the shutdowns and disruptions in eco-friendly food packaging, the public and private companies also delayed their investment or spending for expanding eco-friendly food packaging manufacturing plants. Therefore, it was pretty expected to limit the growth of the eco-friendly food packaging market. Furthermore, certain restriction on trade and lockdown imposed by government bodies has further interrupted the demand and supply of packaging in food industry throughout the region. 

Regulations/Standard of Eco-friendly Food Packaging

• Food and Drug Administration (FDA) 

FDA has introduced guidance for industry in order to use recycled plastics in food packaging which will assist manufacturers of food packaging in evaluating processes for PCR plastic into food packaging. 

• Food Safety Modernization Act (FSMA)

FSMA rules only apply to foods regulated by the FDA. The standard was technically covering commercial farms, packing operations and food processing facilities. The FDA finalized seven major rules to implement the FSMA including preventive controls for human food, preventive controls for animal food, produce safety, foreign supplier verification program, third-party certification, food defense (intentional adulteration) and sanitary transportation. 

• US Department of Agriculture (USDA)

The purpose of the USDA regulation is to oversees meat, poultry and many dairy products. It grants around 25% on the U.S. food supply. Additionally, the standard offers a range of support and programs in order to increase the research, development and buyer/consumer awareness about bioplastics. 

Key Takeaways from the North America Eco-Friendly Food Packaging Market Report

• Based on material type, the biodegradable segment holds the highest share in the North America eco-friendly food packaging market in 2021 owing to their high preference due to negligible impact on the environment. Whereas, non-toxic material segment is anticipated to grow at the highest CAGR during the forecast period as they have no ill effects on human health.
• In terms of packaging material, the paper & paperboard segment held the largest share in the eco-friendly food packaging market in 2021 owing to their degradable nature and high preference in the food & beverage industry.  Moreover, the gelatin films segment is expected to grow at the highest CAGR during the forecast period.
• On the basis of product, the boards & trays segment is estimated to hold the largest market share over the forecast period owing to their high demand. While, the jars segment is anticipated to project the highest CAGR during the forecast period as they are reusable and is an easy mode of delivering liquid food and beverages.
• By application, the food & beverages segment dominated the North America eco-friendly food packaging market in 2021 as reusable and recyclable packaging materials are commonly used for the packaging of beverages, which also boosts the market growth. Moreover, the bakery & confectionery segment is expected to register the highest CAGR during the forecast period.
• By region, US is expected to be the leading country in the North America eco-friendly food packaging market owing to the surging food & beverages sector, mandatory norms and policies framed by government bodies and escalating e-commerce sector. Moreover, Mexico is expected to project the highest CAGR in the North America eco-friendly food packaging market during the forecast period.

Competitive Landscape

The key players in the North America Eco-Friendly Food Packaging Market are Amcor Plc, Ball Corporation, BASF SE, Be Green Packaging, Crown, DS Smith, Berry Global Inc., Elevate Packaging, Elopak, Evergreen Packaging, GWP Group, Mondi, Smurfit Kappa Group, Sonoco Products Company, Tetra Laval, Westrock Company and Winpak Ltd., among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip of emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview 

North America Eco-Friendly Food Packaging Market is segmented based on material type, packaging material, product, applications and country. The industry trends in the eco-friendly food packaging market are sub-divided into different categories in order to get a holistic view of the North America marketplace. 

Following are the different segments of the North America Eco-Friendly Food Packaging Market:

By Material Type segment of the North America Eco-Friendly Food Packaging Market is sub-segmented into:

• Biodegradable
• Recyclable
• Compostable
• Reusable
• Natural Fiber
• Plant Based
• Non- Toxic Material

By Packaging Material segment of the North America Eco-Friendly Food Packaging Market is sub-segmented into:

• Paper & Paperboard
• Plastic
  • Starch-Based
  • Cellulose-Based
  • Polylactic Acid (PLA)
  • Others
• Glass
• Corn Starch
• Bubble Wrap Packaging
• Metal 
• Rice Husk
• Gelatin Films
• Others

By Product segment of the North America Eco-Friendly Food Packaging Market is sub-segmented into:

• Boards & Trays
• Bottles
• Containers
• Jars
• Box
• Milk & Other Beverage Cartons
• Tub
• Tableware
• Others

By Applications segment of the North America Eco-Friendly Food Packaging Market is sub-segmented into:

• Food and Beverage
• Bakery and Confectionery
• Others

By Country segment of the North America Eco-Friendly Food Packaging Market is sub-segmented into:

• The U.S.
• Canada
• Mexico