Sustainable Packaging Trends Push U.S. Market Toward USD 73.81 Billion Milestone by 2034

According to Towards Packaging consultants, the global sustainable packaging market is projected to reach approximately USD 73.81 billion by 2034, increasing from USD 49.18 billion in 2024, at a CAGR of 4.15% during the forecast period 2025 to 2034.

Ottawa, Aug. 13, 2025 (GLOBE NEWSWIRE) -- The global U.S. Sustainable packaging market size stood at USD 51.23 billion in 2025 and is projected to reach USD 73.81 billion by 2034, according to a study published by Towards Packaging, a sister firm of Precedence Research.

The market is driven by increasing consumer demand for eco-friendly products, rising environmental awareness, and stringent government regulations on single-use plastics. Companies are adopting recyclable, biodegradable, and compostable materials to reduce carbon footprints and align with corporate sustainability goals. Innovations in packaging design, such as lightweight materials and renewable resources, are enhancing product appeal while minimizing waste.

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The food and beverage, personal care, and e-commerce sectors are key contributors to market growth due to high consumption and packaging needs. Additionally, brand differentiation and shifting preferences toward ethical products are encouraging businesses to invest in sustainable solutions. Supportive policies, recycling infrastructure advancements, and corporate commitments to net-zero targets further accelerate the adoption of sustainable packaging in the U.S.

What is Meant by Sustainable Packaging?

Sustainable packaging refers to materials and designs that minimize environmental impact throughout their lifecycle from sourcing and production to use, disposal, and potential regeneration. It encompasses eco-friendly alternatives to conventional plastics, emphasizing recyclability, biodegradability, compostability, renewable resources, and alignment with circular economy principles.

Recent innovations are accelerating progress in this field. Mycelium (mushroom)-based packaging, grown from agricultural waste, offers a robust, fully compostable alternative to polystyrene. Algae- and seaweed-derived materials are emerging as edible and biodegradable packaging options, used for food containers and sachets. Edible coatings and water-soluble films dissolve harmlessly, reducing plastic reliance.

Advanced solutions like Kiriboard, a lattice-designed cardboard packaging, and battery-free, smart packaging systems that monitor food freshness and extend shelf life represent cutting-edge developments in sustainable and tech-driven packaging.

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What Are the Latest Trends in the U.S. Sustainable Packaging Market?

Biodegradable, Compostable & Plant-Based Materials

Rapid growth in packaging made from corn starch, sugarcane bagasse, bamboo, algae, seaweed, mushroom mycelium, and even edible options like rice or millet cups closes the sustainability loop.

Reuse & Circular-Economy Systems

Rise of refillable, returnable packaging models (e.g., Loop, RPCs, deposit systems), reducing production waste significantly. These models align with Extended Producer Responsibility (EPR) trends and cut packaging production by up to 90%.

Smart & Active Packaging Innovations

Integration of QR codes, NFC, RFID, and even battery-free sensors to enable traceability, freshness monitoring, and spoilage prevention. Cutting-edge designs can actively release preservatives or monitor food in real time.

Advanced Recycling & Mono-Material Strategies

Scaling up chemical and enzymatic recycling (e.g., enzymatic PET) and AI-assisted sorting, along with the proliferation of mono-material packaging to facilitate recycling.

Lightweight, Minimalist & Functional Design

Emphasis on minimal material use, reduced inks, natural tones, honeycomb structures, and lightweight formats, benefiting both the environment and e-commerce logistics.

Carbon & Impact Transparency Labels

Surge in carbon footprint labeling and environmental impact disclosures on packaging to inform consumers and support compliance with sustainability regulations.

Edible & Water-Soluble Packaging

Packaging that dissolves in water or is fully edible (made from seaweed, rice, millet, etc.), eliminating traditional waste entirely.

Eco-Friendly Inks & Adhesives

More use of water-based, soy-based, or compostable inks and adhesives, which facilitate cleaner recycling and reduce harmful residues.

Barrier Coatings & Active Films

Development of eco-compatible barrier coatings (e.g., starch, cellulose) and active packaging features like oxygen or antimicrobial films to extend product shelf-life and reduce food waste.

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What is the Potential Growth Rate of the U.S. Sustainable Packaging Market?

E-Commerce Expansion

The surge in online shopping has increased demand for lightweight, recyclable, and protective packaging materials. For instance, the United States Business Association of E-Commerce estimated that the U.S. is the largest market for Amazon.com, and its top e-commerce sales Hobby & Leisure, is the largest category. Amazon’s 2024 e-commerce sales were USD 147.6 billion, a 6.22% increase over 2023. March 2024 saw 2.2 billion visits to Amazon.com. The U.S. holds up to 39.1% of the global e-commerce industry as of 2024.

Limitations & Challenges in the U.S. Sustainable Packaging Market

High Waste Management Costs & Potential Brand Reputation Risks

The key players operating in the U.S. sustainable packaging market are facing issues due to high waste management costs and strict regulatory laws, which are estimated to limit the market growth. Increasing federal and state bans on single-use plastics, along with Extended Producer Responsibility (EPR) laws, are limiting the production and sale of many disposable packaging formats.

The environmental and financial burden of landfill disposal and waste processing makes disposable packaging less attractive for businesses. Continued use of single-use disposable packaging can lead to negative public perception and loss of environmentally conscious customers.

More Insights of Towards Packaging:

U.S. Pharmaceutical Packaging Market - The global U.S. pharmaceutical packaging market is predicted to expand from USD 52.48 billion in 2025 to USD 99.44 billion by 2034, growing at a CAGR of 7.36%.
U.S. Cosmetic Packaging Market - The U.S cosmetic packaging market is forecast to grow from USD 2.1 billion in 2025 to USD 3.27 billion by 2034, driven by a CAGR of 5.05% from 2025 to 2034.
U.S. Sustainable MAP Trays Market - The U.S. sustainable MAP trays market is on the horizon, with growth expected to reach hundreds of millions by 2034.
U.S. 503B Compounding Pharmacy Packaging Market - The U.S. 503B compounding pharmacy packaging market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034.
Single Serve Packaging Market - The single serve packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.
U.S. Vacuum Sealer Bags Market - The U.S. vacuum sealer bags market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.
U.S. Food Storage Containers Market - U.S. food storage containers market is set for steady growth from 2025 to 2034, driven by the increasing demand for lightweight and convenient food containers.
U.S. Custom Cardboard Boxes Market - A revenue surge in the U.S. custom cardboard boxes market is on the horizon, with growth expected to reach hundreds of millions by 2034.
U.S. Personalised Packaging Market - The U.S. personalised packaging market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034.
U.S. Cardboard Storage Boxes Market - As people look for more sustainable packaging options, the demand for cardboard storage boxes is rising, and this growth will carry on from 2025 to 2034.

Segment Outlook

Material Insights

The paper segment holds a dominant position in the sustainable packaging market due to its biodegradability, recyclability, and low environmental footprint compared to plastics. It is widely accepted in municipal recycling systems, making it easier for consumers and businesses to adopt. The material’s versatility allows it to be used in various formats, including cartons, bags, and molded fiber packaging catering to industries like food, beverages, cosmetics, and e-commerce.

Increasing regulatory restrictions on single-use plastics and growing consumer preference for eco-friendly packaging further drive demand. Additionally, advancements in water-resistant coatings and printing technologies have enhanced paper’s durability and appeal in sustainable packaging solutions.

The plastic segment is growing at the fastest rate in the U.S. sustainable packaging market due to innovations in biodegradable, compostable, and recycled plastics that reduce environmental impact while retaining the durability, flexibility, and barrier properties of conventional plastics. The material’s lightweight nature lowers transportation costs and carbon emissions, making it attractive for e-commerce and food packaging. Advancements in chemical and mechanical recycling technologies, such as enzymatic PET breakdown, are improving recyclability and quality of recycled plastics. Additionally, rising adoption of post-consumer recycled (PCR) content in packaging, coupled with corporate commitments to circular economy goals, is fueling demand. Regulatory incentives and consumer acceptance of eco-friendly plastic alternatives further accelerate this growth.

Application Insights

The food and beverages segment dominates the U.S. sustainable packaging market due to the sector’s high consumption volume and strict regulatory requirements for food safety and labeling. Rising consumer demand for eco-friendly, recyclable, and compostable packaging, driven by growing environmental awareness, has led brands to adopt sustainable solutions such as paper-based containers, biodegradable films, and plant-based plastics.

The shift toward ready-to-eat meals, online food delivery, and premium packaged goods further boosts the need for innovative, lightweight, and protective packaging that maintains freshness while reducing waste. Additionally, major food and beverage companies are integrating sustainable packaging into their ESG goals, reinforcing this segment’s market leadership.

The healthcare segment is the fastest-growing in the U.S. sustainable packaging market due to increasing emphasis on reducing medical waste and adopting eco-friendly alternatives without compromising safety and sterility. Rising demand for sustainable packaging in pharmaceuticals, medical devices, and diagnostic kits is fueled by regulatory pressures, such as FDA guidelines and environmental compliance standards.

Advancements in biodegradable plastics, recyclable blister packs, and compostable pouches are enabling the sector to meet both sustainability and functional requirements. Additionally, growing awareness among healthcare providers and patients about environmental impact, coupled with corporate commitments from pharmaceutical companies to integrate circular economy principles, is accelerating adoption in this segment.

Packaging Insights

Recycled content packaging dominates the U.S. sustainable packaging market due to its ability to reduce reliance on virgin raw materials, lower carbon emissions, and support circular economy goals. It aligns with stringent federal and state regulations promoting waste reduction and recycling, as well as corporate sustainability commitments requiring the use of post-consumer recycled (PCR) materials. The growing availability of high-quality recycled plastics, paper, and metals has made it easier for manufacturers to meet performance standards while maintaining eco-friendly credentials.

Consumer preference for products with clear environmental labeling further boosts demand. Additionally, advancements in recycling technologies, such as chemical and enzymatic processes, have improved material recovery rates, reinforcing this segment’s market leadership.

The degradable packaging segment is the fastest-growing in the U.S. sustainable packaging market due to rising demand for materials that naturally break down without leaving harmful residues, addressing concerns over landfill overflow and plastic pollution. Growing consumer awareness about environmental impact, coupled with increasing adoption of compostable and biodegradable solutions made from plant-based materials like cornstarch, sugarcane bagasse, and mushroom mycelium, is driving market expansion.

Supportive government policies, bans on certain single-use plastics, and incentives for compostable alternatives are further accelerating adoption. Technological advancements have enhanced the durability and barrier properties of degradable packaging, making it suitable for sectors such as food, beverages, and personal care, thereby fueling rapid growth in this segment.

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Recent Breakthroughs in the U.S. Sustainable Packaging Market:

In February 2025, Berry Global Group, Inc. signed a collaboration with Mars, a leader in snacks and treats, to switch all of the packaging for its pantry jars for the M&M’s, SKITTLES, and STARBURST brands to 100% recycled plastic, excluding the jar lids. Building on the 2022 launch of the pantry jars with 15% recycled plastic, this accomplishment furthers Berry and Mars' ongoing partnership to create packaging with recycled content.

Access our exclusive, data-rich dashboard dedicated to the U.S. Sustainable Packaging Market built specifically for decision-makers, strategists, and industry leaders. The dashboard features comprehensive statistical data, segment-wise market breakdowns, regional performance shares, detailed company profiles, annual updates, and much more. From market sizing to competitive intelligence, this powerful tool is your one-stop solution to gaining actionable insights into the U.S. sustainable packaging industry.

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U.S. Sustainable Packaging Market Players

Amcor Group GmbH
The Smurfit Kappa Group plc
Mondi Group
Tetrapak USA Ltd.
Huhtamaki Americas Inc.
Berry United States Group, Inc.
Crown Holdings, Inc.
Sonoco Products Company
Be Green Packaging
Evergreen Packaging

U.S. Sustainable Packaging Market Segments

By Material

Glass
Paper
Metal
Plastic

By Packaging Type

Recycled content packaging
Reusable packaging
Degradable packaging

By Application

Food and beverage
Personal care
Healthcare
Others

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About Us

Towards Packaging is a global consulting and market intelligence firm specializing in strategic research across key packaging segments including sustainable, flexible, smart, biodegradable, and recycled packaging. We empower businesses with actionable insights, trend analysis, and data-driven strategies. Our experienced consultants use advanced research methodologies to help companies of all sizes navigate market shifts, identify growth opportunities, and stay competitive in the global packaging industry.

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