Sustainable Films Packaging Market Booms USD 191.04 Bn in 2025 at 8.54 CAGR

Sustainable Films for Packaging Market Analysis 2025: Europe Leads With Strong Eco-Regulations and Bioplastic Investments

According to forecasts, the global sustainable films for packaging market will grow from USD 176 billion in 2024 to USD 392.7 billion by 2034, with an expected CAGR of 8.54%. In 2025, Europe led the sustainable packaging films market, with PLA and cellulose products dominating by share. Food and beverages topped applications, while Asia Pacific and the pharmaceutical sector are set for strong growth ahead.

Last Updated: 03 July 2025 Category: Material Packaging Insight Code: 5654 Format: PDF / PPT / Excel

The global sustainable films for packaging market is projected to reach USD 392.7 billion by 2034, expanding from USD 191.04 billion in 2025, at an annual growth rate of 8.54% during the forecast period from 2025 to 2034. The growing consumer demand for fresh fruits and vegetables, rising environmental awareness, supportive government regulations promoting eco-friendly alternatives, and rising innovation in packaging materials are expected to drive the growth of the global sustainable films for packaging market over the forecast period. Sustainable packaging films are increasingly becoming the key focus and greatest option for lowering plastic waste.

Several companies operating in the market are focused on adopting sustainable materials to develop sustainable packaging films and align with the principles of the circular economy. The market is also experiencing significant growth, driven by the growing demand from various end-use businesses, including food and beverage, pharmaceutical, consumer goods, and others, which require high-quality standards and sustainable films for packaging. Additionally, the market is expanding rapidly in Europe, fuelled by stringent government initiatives, rising focus on adopting biodegradable packaging, and growing demand from multiple industries.

Sustainable Films for Packaging Market Size 2024 - 2034

Key Takeaways

  • In terms of revenue, the market is valued at USD 191.04 billion in 2025.
  • The market is projected to reach USD 392.7 billion by 2034.
  • Rapid growth at a CAGR of 8.54% will be observed in the period between 2025 and 2034.
  • Europe dominated the sustainable films for packaging market in 2025.
  • Asia Pacific is expected to grow at a significant CAGR during the forecast period.
  • By products, the polylactic acid (PLA) and cellulose segment held the dominating share of the market in 2025.
  • By products, the segment is expected to grow at a notable rate.
  • By application, the food and beverages segment dominated the global market in 2025.
  • By application, the pharmaceutical segment is expected to grow at the fastest CAGR during the forecast period.

Market Overview

Sustainable films for packaging are films are often made from eco-friendly and sustainable materials. Sustainable films for packaging can be recyclable, reusable, biodegradable, and are generally made from renewable resources or recycled content. Plastic takes nearly 1000 years to decompose, which has increased the demand for sustainable packaging materials. In recent years, these films have become increasingly popular owing to their numerous benefits, such as natural resource conservation, reduced greenhouse gas emissions, and minimized overall waste generation. Sustainable films for packaging are films are manufactured to align with principles of the circular economy, by reducing landfill and boosting sustainability.

Key Metrics and Overview

Metric Details
Market Size in 2025 USD 191.04 Billion
Projected Market Size in 2034 USD 392.7 Billion
CAGR (2025 - 2034) 8.54%
Leading Region Europe
Market Segmentation By Products, By Applications and By Region
Top Key Players Amcor plc, Rani Group, Mondi, Berry Global Inc., UFlex Limited, Pregis LLC, Constantia Flexibles, Sealed Air
  • The rising demand for sustainable packaging films across various industries is expected to boost the market’s revenue during the forecast period. Their lightweight design results in consuming less fuel during production and transportation, which further uses less energy and reduces the overall environmental footprint compared to other traditional plastic alternatives.
  • The rise in online grocery shopping and the rapid expansion of the e-commerce industry are expected to propel the demand for sustainable packaging films that can protect products during shipping and handling, accelerating the market’s growth of the market in the coming years.
  • The restricted use of single-use plastics and a favourable government framework for using environmentally friendly packaging materials are significantly contributing to the overall growth of the sustainable films for packaging market during the forecast period.
  • The rapid urbanization, along with the changing lifestyles, is expected to boost the consumer demand for convenient and packaged foods, supporting the market’s growth in the coming years.
  • The rising consumer inclination for packaging materials that are recyclable or reusable, and biodegradable, is improving environmental sustainability while maintaining their functional requirement.
  • The incorporation of smart packaging technology, includes advanced features such as QR codes, RFID tags, NFC tags, and printed electronics, is anticipated to fuel the expansion of the sustainable films for packaging market during the forecast period. Smart packaging technology facilitates better product verification, improved safety, and enhanced consumer experiences.

How is Artificial Intelligence Integration Impacting the Growth of the Sustainable Films for Packaging Market?

In today's rapidly evolving technological landscape, artificial intelligence integration holds great potential to reshape the landscape of sustainable packaging films by improving manufacturing efficiency, optimizing material usage, and enhancing sustainability. AI-powered solutions in sustainable film packaging offer new innovative ways to enhance recyclability, reduce waste, and eliminate the chances of human error. The utilization of advanced Machine learning (ML) algorithms can identify, sort, and process recyclable materials effectively. The effective biodegradable materials and eco-friendly alternatives significantly lower the overall environmental footprint and promote economic circularity in the packaging industry landscape. Therefore, AI-driven recycling systems provide a systematic approach to address the issue of packaging waste and optimize the use of recycled materials.

Market Dynamics

Driver

Growing Consumer Demand for Sustainable Packaging Film

The rising consumer demand for sustainable packaging film is expected to fuel the growth of the sustainable films for packaging market during the forecast period. Sustainable packaging films reduce the environmental footprint while maintaining their functional requirement. In recent years, sustainability is playing a crucial role in developing packaging materials, encouraging businesses across various industries such as food & beverage, consumer goods, and pharmaceutical sectors to adopt mono-materials. Consumers are increasingly demanding eco-friendly and sustainable packaging options, which increases the demand for recyclable and biodegradable films to reduce the usage of traditional fossil fuel-based plastic. Bio-based packaging significantly increases the utilization of renewable resources and reduces greenhouse gas emissions. Thus, driving the market’s growth.

Restraint

Rising Recycling Issues

The recycling issues related to plastic waste are expected to hamper the market's growth. The market often faces the complexity of recycling issues, particularly in middle and lower-income countries, owing to limited recycling infrastructure. In addition, the fluctuation in the price of raw materials, which are widely used in sustainable packaging films, can adversely impact the profitability of manufacturers. Such factors may hinder the growth of the global sustainable films for packaging market during the forecast period.

Opportunity

How is the Rising Emphasis on the Circular Economy and the Government's Stringent Policies Impacting the Growth of the Market?

The rising emphasis on the circular economy, along with the government's stringent policies, is projected to offer lucrative growth opportunities to propel the growth of the sustainable films for packaging market. Several governments around the world have implemented stringent policies to promote biodegradable and compostable materials. Governments are responsibly addressing the ongoing environmental concerns about single-use packaging waste by enacting stringent regulations to reduce plastic waste and promote a circular economy. Moreover, the surge in the number of awareness campaigns and implementation of various strategies for zero–plastic waste to reduce landfill, oceans, and other ecosystems, is driving the market’s expansion in the coming years.

Segment Insights

Why Did the Polylactic Acid (PLA) and Cellulose Segment Dominate the Sustainable Films for Packaging Market in 2024?

The polylactic acid (PLA) and cellulose segments held a dominant presence in the sustainable films for packaging market in 2024, owing to their efficient recyclability and biodegradability properties, which make them an attractive option for sustainable film packaging. PLA is derived from renewable resources such as sugarcane or cornstarch. Polylactic acid (PLA) and cellulose are widely adopted for the packaging of food and beverage goods.

On the other hand, the polyethylene (PE) segment is expected to grow at a significant rate, due to its lightweight and recyclable nature. The lightweight nature of PE films significantly lowers greenhouse gas emissions during transportation, and it also requires less energy during production compared to other packaging materials. Polyethylene (PE) film is extensively used in numerous forms, such as stretch wrap, shrink wrap, and other types, to meet the needs of diverse products. In addition, a rising focus on sustainability and stringent environmental concerns, such as bans on single-use plastics, are expected to fuel the segment’s expansion during the forecast period.

Increasing Demand in the Food and Beverages Industry

The food & beverages segment accounted for a significant share of the sustainable films for packaging market in 2024. The surge in the consumption of fruits, vegetables, and processed meats & sausages has led to an increasing demand for sustainable packaging films owing to their lightweight, adaptable, and protective packaging options. The rapid urbanization, along with the rising trend of grocery shopping in supermarkets, has significantly increased the demand for sustainable packaging films. In addition, stringent environmental regulations are promoting the use of biodegradable and compostable materials in the food & beverage Industry. 
On the other hand, the pharmaceuticals segment is expected to grow at a notable rate during the projection period, owing to the rising need for safe, secure, and sustainable packaging solutions in the pharmaceutical industry. This film has temperature control & moisture-resistant properties to protect the content from microbial contamination. Additionally, the rapid technological innovation includes new material formulations to enhance the strength, functionality, and flexibility of sustainable films has led to an increase in their adoption in the pharmaceutical segment.

  • In November 2024, Klöckner Pentaplast, a pioneer in sustainable packaging, announced the launch of the kpNext MDR1, a new medical device packaging film designed to meet the growing demand for environmentally friendly packaging solutions in healthcare. The kpNext MDR1 film offers performance comparable to traditional medical device packaging, including clarity, device protection, and ease of processing.

Regional Insights

Europe's Sustainable Initiatives Supporting Dominance

Europe held the dominant share of the sustainable films for packaging market in 2024. The region has an established packaging sector supporting food & beverage, consumer goods, and pharmaceuticals, major users of sustainable films for packaging solutions. The region's high per capita income drives demand for fresh & packaged foods such as processed meats, sausages, fruits, and vegetables. The rapid shift toward biodegradable, recyclable, and compostable materials, mainly due to the rising regulatory pressures to minimize carbon emissions and increasing emphasis on environmental sustainability, is significantly contributing to the regional market’s growth. In addition, the integration of smart packaging technology, the rising expansion of the e-commerce industry, bans on single-use plastics, and rapid advancement in biodegradable packaging and recycling technologies are expected to support the growth of the sustainable films for packaging market during the forecast period.

On the other hand, Asia Pacific is expected to grow at the fastest CAGR. The growth of the region is driven by the rising awareness of its environmental benefits, rapid urbanization, increasing consumer inclination for sustainable packaging films, and growing demand from various end-user industries. Asia Pacific has an ever-growing population base, a surge in disposable income, an abundance of raw materials, and increasing expansion of food processing operations, which are positively influencing the market’s growth. Furthermore, the expansion of the e-commerce sector, coupled with the increasing expansion of the retail supply chain, is expected to bolster the market’s revenue in the region. Government organizations are increasingly promoting the use of sustainable packaging to reduce the environmental impact of packaging waste and improve sustainability.

Sustainable Films for Packaging Market Key Players

Sustainable Films for Packaging Market Companies

Latest Announcement by the Industry Leader

  • In December 2024, Berry Global Group, Inc. and VOID Technologies proudly announced their strategic collaboration to commercialize a new high-performance polyethylene (PE) film designed for pet food packaging. This innovative film delivers superior strength, toughness, and puncture resistance, enabling an all-PE solution suitable for store drop-off recycling while helping eliminate problematic non-recyclable materials. (Source: Berry Global)

Recent Developments

  • In March 2024, TOPPAN Inc. (TOPPAN), a TOPPAN Group company and wholly owned subsidiary of TOPPAN Holdings Inc., and India-based TOPPAN Speciality Films Private Limited (TSF) have developed GL-SP, a barrier film that uses biaxially oriented polypropylene (BOPP) as the substrate, and announced their plan to launch production and sales. GL-SP is a new addition to the range of products for sustainable packaging in the TOPPAN Group’s GL BARRIER1 series of transparent vapor-deposited barrier films, which enjoy a leading share of the global market. 
  • In March 2025, Innovia Films, a producer of biaxially oriented polypropylene films for labels, graphics, packaging, and tobacco, announced the launch of a new production line for eco-friendly films at its Schkopau facility close to Leipzig in Germany. The new line, spanning 8.8m, produces films from 15 to 50 microns (µm) with an annual capacity of 35,000 tons (t).(SourcePackaging Gateway)

Segmentation Covered in the Report

By Products

  • Polypropylene (PP)
  • Polyethylene (PE)
  • Polyethylene Terephthalate (PET)
  • Polylactic acid (PLA)
  • Others

By Applications

  • Food and Beverage
  • Pharmaceutical
  • Consumer Goods
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
Share With : linkedin twitter facebook
  • Insight Code: 5654
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 03 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

The food & beverage sector leads in adoption due to the need for lightweight and protective packaging. Pharmaceuticals are also a high-growth sector, driven by demand for safe, contamination-resistant packaging. The e-commerce boom and regulatory shifts are further creating lucrative opportunities across industries.

AI is revolutionizing packaging by optimizing material usage, enhancing recyclability, and improving production efficiency. AI-powered systems can sort and process materials more accurately, reduce waste, and support circular economy goals—making technology integration a critical investment area.

The market is expected to nearly double from USD 191.04 billion in 2025 to USD 392.7 billion by 2034. Sustained regulatory pressure, rapid urbanization, e-commerce growth, and innovation in sustainable materials will continue to propel this market over the next decade.

Stringent regulations in Europe and Asia Pacific, such as bans on single-use plastics and mandates for compostable materials, are compelling companies to innovate or risk losing market access. Compliance and alignment with sustainability goals are becoming key differentiators among players.

Europe currently leads due to strong sustainability mandates and infrastructure. Asia Pacific is projected to grow at the fastest CAGR, driven by urbanization, consumer awareness, and government initiatives in countries like China and India.

Challenges include inadequate recycling infrastructure, especially in developing regions, and volatile raw material costs. These factors can affect profitability and scalability, requiring companies to develop cost-efficient and localized supply chains.

Polylactic acid (PLA) and cellulose dominate due to their biodegradable nature and suitability for food packaging. Polyethylene (PE) is also gaining traction for its lightweight and recyclable features, especially for e-commerce and retail packaging.

Leading players like Berry Global, Innovia Films, and Klöckner Pentaplast are launching new biodegradable, high-barrier films and investing in R&D. Collaborations, new production lines, and material innovations are central to staying competitive.