Eco-Friendly Flexible Packaging Market Insights in 2025

Eco-Friendly Flexible Packaging Market Trends 2025: Bioplastics and Online Retail Set to Surge

From 2025 to 2034, the global eco-friendly flexible packaging market is set for a massive revenue upswing, with projections of growth reaching hundreds of millions of dollars. In 2024, Europe led the eco-friendly flexible packaging market with a 34% share, while Asia Pacific is the fastest-growing region. Recycled plastics, pouches, recyclable packaging, and food & beverages dominated, with strong future growth in bioplastics and online retail.

Last Updated: 22 July 2025 Category: Packaging Products Insight Code: 5706 Format: PDF / PPT / Excel

The eco-friendly flexible packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The market is fueled by growing environmental awareness, bans on single-use plastics, and advancements in sustainable materials. With Europe emerging as the fastest-growing area and Asia Pacific holding the greatest share in 2024, the eco-friendly flexible packaging market is expanding quickly. The most popular material type was recyclable plastics, but bioplastics are predicted to rise significantly. Packaging was dominated by pouch forms, and the market for wraps and sachets will grow considerably.

Recyclable packaging was becoming more popular, but compostable and biodegradable packaging was the product functionality. Food and beverages accounted for the largest end use, while personal care and pharmaceuticals are set to grow quickly. Industrial supply was the main distribution channel, but online retail is poised for notable expansion.

Key Takeaways

  • Europe dominated the eco-friendly flexible packaging market with the largest revenue share of 34% in 2024.
  • Asia Pacific is the fastest-growing region in the market.
  • By material type, the recycled plastics segment contributed the biggest revenue share of 42% in 2024.
  • By material type, the bioplastics segment will expand at a significant CAGR between 2025 and 2034.
  • By packaging type, the pouches segment contributed 35% revenue share in 2024.
  • By packaging type, the wraps and sachets segment will expand at a significant CAGR between 2025 and 2034.
  • By product functionality, the recyclable packaging segment contributed 47% revenue share in 2024.
  • By product functionality, the compostable and biodegradable packaging segment will expand at a significant CAGR between 2025 and 2034.
  • By end-use, the food and beverages segment dominated the market with a share of 58% in the year 2024.
  • By end-use, the personal care and pharmaceuticals segment is expected to grow significantly over the studied period.
  • By distribution channel, the industrial supply chain segment contributed the biggest revenue share of 64 % in 2024.
  • By distribution channel, the online retail segment will expand at a significant CAGR between 2025 and 2034

Market Overview

The eco-friendly flexible packaging market refers to the global industry focused on the development and use of sustainable, lightweight, and environmentally friendly packaging solutions. These solutions aim to reduce plastic waste, lower carbon footprints, and meet regulatory and consumer demands for green alternatives. Packaging types include compostable films, recyclable pouches, bio-based wraps, and cellulose-based laminates, primarily serving sectors such as food & beverages, personal care, pharmaceuticals, and home care.

Eco-friendly flexible packaging continues to develop with new inventions in biodegradable and recyclable materials. By selecting flexible packaging, organizations can minimize waste, reduce costs, and invest in a healthier planet. Flexible packaging plays an important role in lowering environmental impact through lightweight design, material efficiency, expanded shelf life, and sustainability, too. With growth in multilayer flexible packaging, the sector is shifting towards a greener future. Selecting eco-friendly packaging solutions can assist businesses and consumers in contributing to a more sustainable world.

Key Metrics and Overview

Metric Details
End-Use Industries Food & Beverage, FMCG, Healthcare, Personal Care, E-commerce
Leading Region Asia Pacific
Market Segmentation By Material Type, By Packaging Type, By Product Functionality, By End-Use Industry, By Distribution Channel and By Region
Top Key Players Amcor, Mondi, Tetra Pak, Sealed Air, Uflex, Constantia Flexibles
  • Smarter solutions for food safety: With food safety standards becoming stronger than ever, packaging must ensure product safety under extreme conditions -whether cooling,high-temperature sterilization, or long-term storage.
  • Sustainability as a core design principle: Environmental sustainability is the most significant factor in the packaging sector currently. As regulators insert rigid rules and consumers urge environmentally conscious alterations, producers are shifting to materials and procedures that reduce their environmental impact.
  • The rise of convenient packaging formats: Current users, especially in urban surroundings, demand portability, convenience, and freshness. As lifestyle transforms and the number of single-person households grows, flexible packaging is becoming a great convenience.
  • New generation adhesives and substrates: Improved inventions are taking place in the substrates and adhesives segment, serving a balance between safety, sustainability, and performance. These systems are important in reducing less important organic compound emissions and energy usage, in line with global climate goals.
  • Regulatory compliance and harmonization: The EU Green Deal and the Plastics Directive: companies must accept the requirements for recycling, lower recycled content, and carbon footprint disclosure. Harmonization efforts make simple compliance with international needs, but also require higher quality control and traceability of the production procedure.

AI Integration in the Eco-friendly Flexible Packaging Market

A main benefit of Artificial Intelligence in packaging design is its potential to quickly examine a huge amount of data and draw perfect insights from it. This allows designers to create informed decisions, develop design quality, and test a large number of prototypes cost-effectively and in the shortest possible duration. AI-assisted tools access specialized databases containing information on packaging types, graphics, and materials. Utilising machine learning, they can find this data and provide design suggestions depending on the last successes and customer behaviour. This leads to quicker design cycles and greater accuracy in realization.

Additionally, AI-Powered packaging checking procedure can examine a huge range of defects, including surface defects like dents, tears, stains, creases, wrinkles, and color smudges, and any damage to logos. They can count the size of defects and choose the shade or color variations. These systems utilize high-level computer vision models to detect even subtle defects that can be skipped by human inspectors, ensuring that only high-quality packages reach the user and developing overall product integrity and customer satisfaction.

Market Dynamics

Driver

Flexible packaging owes its rising popularity to a range of advantages that make it ultimately selectable by both brands and consumers. Customers choose flexible bags and pouches over regular containers as they are convenient to open, store, and transport. Flexible packaging is selected by all for its environmental friendliness. The current flexible packaging includes a series of eco-friendly features, from the materials utilised to the intelligently designed products that expand their shelf life. It's a complete procedure that brings together sustainability and invention.

Eco-friendly flexible packaging pouches, etc., account for the use of 60% less plastic as compared to the accustomed rigid packaging. It leads to less waste reduction along with lower production costs, which means that there will be less wastage at the end of the package's shelf life, and it will assist the brand to cut some costs.

Restraint

The lesser availability of sustainable and recycled materials in the industry has led to higher costs of sustainable sourcing practices. The growth of sustainable materials needs companies to invest in higher research and development, which often leads to higher costs. Recycling materials take up valuable resources to collect, clean, break down, and repurpose them. The challenge to accepting sustainable packaging is making sure that the materials serve companies as an alternative without compromising quality.

Sustainable materials must be enabled to protect the product as designed during storage, transport, and delivery to the customer. Furthermore, sustainable materials are often biodegradable. The shelf life of the product may be cut down because of the packaging material. The aim of driving towards sustainability is to reduce carbon emissions. Packaging materials are often one-time utilised and trashed after serving their purpose.

Opportunity

Several countries are implementing new regulations for eco-friendly flexible packaging. Green brands must adopt eco-friendly packaging to comply with these regulations. In recent years, the use of plastic packaging has been heavily criticized, and several countries have taken steps to ban or restrict its use. This growth has made it compulsory for brands to serve eco-friendly packaging solutions. In the future, eco-friendly flexible packaging is expected to become even more widespread. This trend will promote environmental consciousness and help reduce long-term costs. Green brands will both defend the environment and earn users' trust through eco-friendly packaging, staying up with developments in this space, and utilizing environmentally friendly solutions to serve as an opportunity for brands to protect a sustainable future.

Segmental Insights 

How did Recycled Plastics Dominate the Eco-Friendly Flexible Packaging Market?

Recycled plastics assist sustainability by performing more than just lowering waste. It also saves energy and reduces greenhouse gas emissions. Utilising recycled plastics rather than new materials can save a lot of energy. For instance, creating recycled PET utilises up to 66% less energy than making new PET. Utilising less energy means that we burn fewer fossil fuels and release less carbon. This is a crucial fight against climate change.

Furthermore, the recycling procedure generates fewer pollutants than the manufacturing of new plastics. Growing its environmental advantages. Recyclable packaging is a material that can be constantly collected, separated, or recovered and made for reuse or recycling as secondary raw materials. Some of these materials include cardboard, paper, glass, aluminium, and plastics, which are recyclable and are considered environmentally friendly packaging alternatives to single-use plastics.

Bioplastics (PLA and PHA) are the Fastest-Growing Material

Bioplastics refer to plastics that are made with biodegradable characteristics in hopes of helping to lower the current environmental effects of regular plastics. It is a kind of plastic made from different biological materials, such as sugarcane, corn starch, algae, or potato starch. Due to this, bioplastics were crafted as an endeavour to be more eco-friendly, with some bioplastics even being compostable and biodegradable. Bioplastics are different from regular plastics, as biodegradable or bioplastics are not, as they can take many years to fully decompose in our landfills, which contribute to huge GHG Emissions. It serves as a way for constantly utilising the flexible characteristics of plastic without further damaging the environment, as biodegradable and compostable plastics can help lower the amount of GHG emissions made by regular plastics.

How did the Pouches (Stand-Up, Flat) Dominate the Eco-Friendly Flexible Packaging Market?

Gusset bags or flat-bottom bags are designed to stand upright. They approach in rectangular shapes and have flat bottoms. The expertise of these bags is their side foldings and gussets with packed pleats. The gusset stretches as you insert products, enabling them to carry a huge quantity. These bags are usually utilised to package solutions like instant coffee, snack items, and pet food. Hence, this can be created from multilayer or plastic films. Stand-up pouches are also known as doy-pack pouches, which are more well-known and easier to use. They stand straight on shelves and can conveniently attract buyers in the industry. For better ease, these pouches come in various kinds of opening systems, such as side spout, zipper, and standard.

Wraps and Sachets are the Fastest-Growing Segment

Wraps are a minimalist kind of flexible packaging crafted for a basic protection aim and to develop product visibility. Candies, baked goods, and fresh produce are generally covered in materials like polypropylene and cellophane. These wraps provide a simple path to protect products from pollution cases. At the same time, sachets are small flat packets that are easy for storing items like instant powders and spices. They include materials like polypropylene (PP and polyethylene (PE), which serve high barrier characteristics against oxygen and moisture, thereby confirming product freshness. Prevalent in the beverage, food, and cosmetics sector, among others, sachets are crafted for on-the-go consumption and travelling.

How did the Recyclable Packaging Dominate the Eco-Friendly Flexible Packaging Market?

Recyclable packaging decreases the environmental impact of packaging waste. It assists in reducing plastic pollution and protects natural resources by keeping waste out of landfills and oceans. Utilizing recycled materials, whether plastic, glass, or paper, releases lower carbon emissions than generating single-use plastics from scratch. Imagine millions of tons of packaging waste extracted from ecosystems for clearer air, soil, and water every year. Envision the impact of the recyclable packaging lifecycle from start to processing. Due to reuse, we can recycle materials back into the packaging lifecycle to keep our planet healthy for generations to come.

Compostable and Biodegradable Packaging is the Fastest-Growing Product

Modifications in industry demand have also driven the popularity of compostable and biodegradable packaging flexible films. As users become more environmentally conscious, the urge for environmentally friendly packaging continues to grow and develop. Flexible packaging has become a new trend in the future change and updating of the packaging sector due to its environmental protection, portability, and health. Several brands have started to invest in the manufacturing of flexible packaging products to align with consumer demand for environmentally friendly packaging. With the rising ban on non-recyclable plastics, flexible packaging suppliers that offer compostable and biodegradable solutions can benefit and continue to observe the emerging laws.

How did Food and Beverages Dominate the Eco-Friendly Flexible Packaging Market?

Flexible packaging is changing the food and beverage sector by serving cost-effective, sustainable, and consumer-friendly solutions. With constant growth and development in technology and materials, flexible packaging is ready to play an important role in the future of packaging, which not only aligns with consumer demand but also contributes to a more sustainable and effective supply chain. Flexible packaging materials frequently have good barrier properties, which protect contents from light, moisture, and oxygen, hence expanding the shelf life of food and beverage products. This is specifically advantageous for sensitive goods, helping to reduce food waste.

Personal Care and Pharmaceuticals are the Fastest-Growing End-User

Flexible packaging has come up with a breakthrough in the personal care and pharmaceutical sector. Like regular rigid packaging, flexible packaging is lightweight, versatile, and often needs fewer resources to generate. This not only lowers the overall environmental effect but also results in cost savings for pharmaceutical organizations. The flexibility of these materials enables inventive and space-effective designs, updating storage and transportation. Moreover, the lower weight of flexible packaging translates to lower transportation costs and decreased carbon emissions linked with the logistics of pharmaceutical products.

How did the B2B and Industrial Supply Dominate the Eco-Friendly Flexible Packaging Market?

For B2B companies, the supply chain is generally constructed around long-term stability and scale, too. Think of producers sending huge shipments to distributors, with rigid delivery schedules and managed agreements. These supply chains flourish on predictability and deeper supplier relationships. B2B and industrial supply have completely dominated the eco-friendly flexible packaging industry due to large producers and distributors heavily giving importance to sustainability commitments and regulatory compliance. Bulk shipments, protective packaging for sensitive parts, and branded industrial sacks are now widely used with recycled or bio-based materials. This range of industrial demands has driven quicker invention and economies of scale, creating eco-friendly, flexible packaging that is viable and cost-effective across the huge industry.

Online Retail is the Fastest-Growing Distribution Channel

The acceptance of flexible packaging is driven by its outstanding capability to lower material usage, carbon footprint, and energy consumption. Retailers are heavily conscious about their environmental effect, motivated by regulatory pressures and consumer demand for greener products. Main supermarkets and brands across the UK are now initiating the use of completely recyclable flexible packaging solutions. These efforts not only align with regulatory needs but also reverberate with strong sustainability credentials. Furthermore, the adaptability of flexible packaging enables inventive designs and developed product protection.

By Region

How did Europe Dominate the Eco-Friendly Flexible Packaging Solutions Market?

The growing demand for flexible packaging in Europe can be connected to different factors, including the highlighted consumer choice for portable, convenient, and eco-friendly solutions. Flexible packaging serves a different blend of benefits, such as product protection, expanded shelf life, and ease of transport, which have made it a favored choice for both producers and consumers. Furthermore, the shift toward sustainability in Europe has prompted the sector to focus on developing biodegradable and recyclable packaging options, driving innovation in the sector. The demand for sustainable solutions is especially revealed in the food and beverage sector, in which flexible packaging is utilised to track product quality and freshness while lowering environmental impact.

Asia Pacific is the Fastest-Growing Region

Due to rising urbanization, growing awareness, and flexible packaging options, the Asia Pacific region is at the forefront of the worldwide acceptance of sustainable packaging. Nations like India, China, and Indonesia have gained attention. Because of the heavy space for the growth in urbanization and e-commerce, India is selected as the Nation with the fastest-growing packaging industry. Although this expansion has problems. Growing environmental leakage from packaging waste is the outcome of infrastructure that has not kept up with the surge. Nevertheless, the sector is being ambitious with government programs and inventions.

Asia Pacific has managed the overall sustainable packaging growth, despite limitations such as limited recycling infrastructure. Rise in e-commerce, especially in growing economies, has mainly led to the growing need for flexible packaging to ensure durability and product safety. The choice for bio-based and recyclable materials is also developing the acceptance of flexible packaging across the region. Countries like India and China are the main contributors, with a rigid demand for packaged consumer goods driving this growth.

Top Companies in the Eco-Friendly Flexible Packaging Market

Eco-Friendly Flexible Packaging Market Key Players

Industry leader Announcement in the Industry

  • On 24 January 2025, Five Star Holding, a top company in sustainable packaging solutions, revealed that it has acquired Anduro manufacturing. Anduro is a leading supplier of flexible packaging, which includes laminated woven sacks for animal nutrition, pet food, and other consumer product companies in Latin America and the United States. (Source: Packaging Strategies)
  • On 4 December 2024, Nexgen Packaging, a top company in sustainable brand identification and packaging products, and Seaman Paper, a top company in international producer of environmentally sustainable packaging solutions, revealed that the two companies are collaborating to stretch the global reach of their sustainable product offerings. (Source: Pulpaper News)

Recent Developments

  • On 16 May 2025, Novolex revealed that it wanted achievements for its latest compostable butter wrap: the 2025 Gold Award for sustainability from the Flexible Packaging Association (FPA), and certification as compostable in commercial facilities by the Biodegradable Products Institute. (Source:Foodtech Biz)
  • On 10 April 2025, Lecta has disclosed Creaset HGP, a grease-proof paper flexible paper reflecting packaging solutions which meet the rising demand of current consumers. (Source: Pulpaper News)
  • On 25 September 2024, Notpla, a London-based maker of sustainable packaging, has snapped up Euro 20 Million in a Series A extension round, adding to its starting Euro 10 M raise. (Source: green queen)
  • On 25 June 2025, R4 Industrial USA, a proud division of GPI Beauty, is thrilled to reveal the huge opening of its state-of-the-art 76,000 square-foot flexible tube production facility in Las Vegas, which was ready to launch on 17 July 2025. (Source:CBS4indy)

Segmentation of the Eco-Friendly Flexible Packaging Market Segments

By Material Type

  • Paper
  • Bioplastics
  • PLA (Polylactic Acid)
  • PHA (Polyhydroxyalkanoates)
  • Starch-based Bioplastics
  • Recycled Plastics
  • Cellulose-based Films
  • Aluminium-Free Films

By Packaging Type

  • Pouches
  • Bags & Sacks
  • Wraps & Rolls
  • Sachets
  • Films & Laminates
  • Lids & Labels

By Product Functionality

  • Compostable Packaging
  • Recyclable Packaging
  • Biodegradable Packaging
  • Edible Packaging
  • Water-soluble Packaging

By End-Use Industry

  • Food & Beverages
  • Personal Care & Cosmetics
  • Pharmaceuticals
  • Home Care Products
  • Pet Food
  • Industrial & Chemical

By Distribution Channel

  • Online Retail / E-commerce
  • Offline Retail (Supermarkets, Pharmacies)
  • B2B / Industrial Supply

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa
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  • Insight Code: 5706
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 22 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Yogesh Kulkarni is an experienced Research Analyst specializing in the packaging sector, with a strong foundation in statistical analysis and market intelligence. He currently contributes his expertise to Towards Packaging.

Learn more about Yogesh Kulkarni

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

Recycled plastics hold the largest market share (42% in 2024) due to scalability and regulatory alignment. However, bioplastics—especially PLA and PHA are the fastest-growing materials, offering compostability and lower carbon footprints, positioning them as game changers in sustainable packaging over the next decade.

AI is revolutionizing both design optimization and quality control. Machine learning tools help companies simulate and refine packaging designs rapidly, while computer vision systems detect micro-defects, ensuring consistent quality. This leads to reduced waste, faster time-to-market, and improved ROI on packaging innovations.

Food and beverages dominate with 58% share due to the need for extended shelf life and barrier protection. However, personal care and pharmaceuticals are witnessing the fastest growth due to rising demand for lightweight, sustainable, and regulatory-compliant packaging options in these sectors.

Pouches (stand-up and flat) are leading due to convenience, lightweight design, and branding flexibility. Meanwhile, wraps and sachets are rapidly gaining ground for small-format and on-the-go products, especially in snacks, spices, and single-use cosmetics.

Regulations like the EU Green Deal and plastic use bans globally are compelling brands to shift toward recyclable, compostable, and low-emission materials. Compliance not only avoids penalties but also boosts brand perception and aligns with ESG goals—making regulatory alignment a core business strategy.

High production costs and limited availability of sustainable raw materials are key bottlenecks. Moreover, challenges with recycling infrastructure and ensuring product protection without compromising shelf life remain major concerns that require innovation and investment in R&D.

Online retail is the fastest-growing distribution channel, as e-commerce brands demand packaging that balances sustainability, durability, and lightweighting. Flexible packaging meets these criteria while supporting efficient logistics and reduced carbon footprints, making it central to D2C and B2C strategies.

Leading companies include Amcor Plc, Mondi Group, Sealed Air Corporation, Tetra Pak, Huhtamaki Oyj, and Berry Global. These firms are investing heavily in R&D, M&A, and global sustainability initiatives, ensuring robust market competition and rapid innovation cycles.