Download Sample
Schedule a Meeting
Table of Content
USA : +1 8044 419344
sales@towardspackaging.com
December 2025
The Europe sustainable packaging market is expected to increase from USD 87.95 billion in 2026 to USD 216.02 billion by 2035, growing at a CAGR of 10.50% throughout the forecast period from 2026 to 2035. This market is majorly driven by consumer demand and strict guidelines which has enhanced the usage of recyclable, recycled, and reusable materials. Increasing awareness among people regarding ecological issues has influenced the growth of the market. The rising focus towards decreasing packaging waste has influenced the growth of this market.
Europe sustainable packaging refers packaging that decreases its ecological influence through measures such as amplified recyclability, usage of recycled material, and decrease waste. The guideline focusing on to move in the direction of a circular economy by fuelling refill and reuse options, with creativities like return and deposit systems being fortified. There are officially binding goals for member states to decrease the quantity of packaging waste produced. Events also report overpackaging, with guidelines on unfilled space in e-commerce packages, and set goals for the usage of recycled content.
Technological transformation in the market plays a significant role in its expansion. The major changes that have significantly raised this market are development of plant-based materials, reusable packaging model, watermarking, digital product passports, smart packaging, usage of AI and digital tool integration in this sector. These variations focus to decrease plastic dependence, enhance circularity, and fulfil stricter legal and customer demands. It improves traceability, increasing digital watermarking for enhanced sorting, and smart packing that utilizes on-pack sensors to observe product integrity.
The major raw materials utilized in this market are reusable and plant-based materials.
The component manufacturing in this market comprises mono-materials and barrier layers.
This segment is growing focus on reduction of wastage, reuse, and recyclability.
The recycled content packaging segment dominated the market with highest share in 2024 due to strict packaging guidelines. There is a huge demand for eco-friendly packaging which has raised the demand for this market. It is progressively favoring sustainable choices, boosting brands to accept recycled materials. The usage of plastic recycled content in packing is rising, with efforts emphasizing on enhancing utilization of post-consumer recycled (PCR) resin and recycling processes. Advancement in recycling technology has raised the demand of this segment profoundly.
The degradable/ biodegradable packaging segment is expected to grow at the fastest CAGR during the forecast period. This segment is growing due to continuous advancement in material science. It has proactive approach towards sustainable packaging which pushed the adoption of this segment in various sectors. Huge investment towards research and development activities of packaging type has influenced the growth of this segment.
The recyclable packaging is the fastest-growing in the market, as it comprises well established recycling infrastructures. This segment is leading because of its biodegradability, renewability, and well-recognized, effectual recycling substructure. The increasing focus towards reducing material waste has influenced the growth of this segment. This segment comprises materials such as glass, wood, metal, paper, and various other.
The paper & paperboard segment dominated the market with highest share in 2024 due to its biodegradability and renewability. This segment is highly adopted due to its versatility and cost-effectiveness in e-commerce and food & beverage sector. The increasing awareness among consumers towards ecological impact has raised the demand for this segment. Increasing demand for convenient in food & beverage packaging is supporting this segment.
The bioplastics / bio-based plastics segment is expected to grow at the fastest CAGR during the forecast period. This segment is growing due to enhanced corporate sustainability goals. Several companies are dedicated to decreasing their carbon footprint and dependence on fossils, which influences the acceptance of bioplastics. There is an increasing consumer choice for sustainable and environment-friendly packaging substitute, boosting brands to accept bioplastics.
The PLA & starch-based materials are the fastest-growing in the market, as it comprises strong ecological benefits. It is widely utilized due to its transparency and strength in applications such as food packaging. It provides good mechanical support, strength, and clarity same as traditional plastics. It is utilized in a diversity of applications, comprising flexible films, agricultural films, compostable bags, and various other disposable products.
The food & beverages segment dominated the market with highest share in 2024 due to continuous innovation in the packaging industry. The necessity for extension of shelf life, durable consumer preferences, and product safety has promoted the usage of sustainable packaging. The rise in online grocery sales is additionally influencing the invention in sustainable packing for protection and durability at the time of transportation, with an emphasis on recyclable and lightweight materials. It also helps food brands to establish their image by adapting such packaging solution.
The E-commerce/ retail packaging segment is expected to grow at the fastest CAGR during the forecast period. This segment is growing due to continuous innovation in the packaging materials and rising e-commerce sector. The expansion of e-commerce sector raised the demand for packaging materials as well. Presence of plant-based alternatives for packaging has raised the demand for sustainable packaging. Customers are progressively attentive in sustainability and are eager to pay high for those products comes with environment-friendly packaging has promoted the consumption of these packaging.
The healthcare & pharmaceuticals expects the significant growth in the market. These companies are highly focused towards adoption of sustainable alternatives for packaging of products. Strong demand for protection of the integrity of medicines and enhance its shelf life has influenced the demand for this market. Increasing corporate social responsibility has also raised the demand for using sustainable packaging solution.
Germany held the largest share in the market in 2024, due to presence of strict regulatory framework. The increasing awareness among consumers towards ecological issues has influenced the demand for this market. The increasing focus towards decreasing plastic waste and growing recycling processes has boost the development of the market. Its robust industrial base offers a solid base for its packaging sector. Presence of pharmaceutical industries also raised the demand for this packaging.
Strict government guidelines towards packaging industry have enhanced the demand for the market. The rising trend for online shopping has boosted the demand for sustainable packaging. Presence of major manufacturing companies has raised the innovation process in this market which has influenced the growth of this sector. The increasing adoption for compostable, reusable, and recyclable packaging has influenced the demand for this market. Presence of robust e-commerce sector, which needs a noteworthy amount of transportation and defensive packaging. This has generated an upsurge in demand for recyclable, durable, and lightweight materials such as paper-based mailers and corrugated boxes.
The major factors influencing the growth of market are extension of food & beverages industry, increasing demand for enhanced shelf life of products, increasing e-commerce industry, and rising convenient packaging demand among consumers. The requirement for cost-effective, durable, and lightweight packaging choices for shipping efficacy. The demand for portable in packaging setups, such as single-serve, lightweight, and resealable pouches. The increasing demand for sustainable packaging among consumers has raised the adoption of such packages by a wide range of industries.
By Packaging Type
By Material Type
By Application
December 2025
November 2025
November 2025
December 2025
Annual Access, Limitless Research! Unlock all market research reports with our annual subscription. Stay on top of market trends and crucial insights year-round!
2500+
Client Queries in 20235000+
Insights Published40+
Consulting Projects Per Year25+
Analysts