Eco-Friendly Flexible Packaging Market Growth 2025-2034 | Driven by Sustainability Goals and Plastic Bans

According to Towards Packaging consultants eco-friendly flexible packaging market is experiencing strong growth, driven by rising consumer demand for sustainable and lightweight packaging solutions.

Ottawa, Aug. 20, 2025 (GLOBE NEWSWIRE) -- The eco-friendly flexible packaging market size is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation, according to a study published by Towards Packaging, a sister firm of Precedence Research.

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This market focuses on using recyclable, compostable, and biodegradable materials such as paper, plant-based plastics, and bio-films to reduce environmental impact. Innovations in barrier coatings, inks, and manufacturing processes are enhancing durability, print quality, and product protection while maintaining eco-friendly attributes.

Regulatory pressures, corporate sustainability commitments, and the shift toward circular economy practices are further boosting adoption across food and beverages, personal care, pharmaceuticals, and e-commerce sectors. The market is becoming a key driver in reducing packaging waste and promoting greener supply chains.

What is Meant by Eco-friendly Flexible Packaging?

Eco-friendly flexible packaging refers to packaging solutions designed to minimize environmental impact while maintaining functionality, durability, and consumer appeal. Unlike conventional flexible packaging made from non-biodegradable plastics, eco-friendly alternatives use sustainable materials such as recycled paper, compostable bioplastics, plant-based films, and recyclable polymers. These materials reduce waste generation, lower carbon footprints, and support circular economy principles by enabling reuse, recycling, or composting after use.

Eco-friendly flexible packaging is lightweight, requiring less material and energy for production and transportation, which further reduces environmental impact. It also incorporates innovations like water-based inks, advanced barrier coatings, and minimalistic designs to ensure product safety and shelf life while remaining sustainable. Widely adopted in industries such as food and beverages, personal care, pharmaceuticals, and e-commerce, eco-friendly flexible packaging is gaining traction due to increasing environmental regulations, corporate sustainability initiatives, and growing consumer preference for greener, more responsible product choices.

What are the Key Emerging Trends in the Eco-Friendly Flexible Packaging industry?

• Innovative Biodegradable Materials:
  

The industry is embracing groundbreaking materials like mycelium-based packaging, grown from fungal roots and agricultural waste, strong, compostable, and environmentally restorative. Seaweed- and algae-based packaging is also gaining traction for being edible, renewable, and compostable.

• Edible & Water-Soluble Packaging:
  

Water-soluble packaging made from rice starch and seaweed, and edible formats like sachets and pods, are emerging as zero-waste innovators, particularly for single-serve applications.

• Minimalist, Single-Material Designs:
  

Brands are reducing material layers, eliminating unnecessary coatings, and focusing on minimalism to boost recyclability and reduce production waste.

• Eco-Friendly Inks, Adhesives & Labels:
  

Water-based and soy-based inks, along with compostable adhesives and label designs, are improving recyclability and reducing harmful chemical residues.

• Smart, Interactive Packaging:
  

Incorporating digital features like QR codes, NFC tags, RFID, and printed electronics into eco-friendly flexible packaging is enhancing traceability, consumer engagement, and recycling education.

• Circular Economy & Refill Models:
  

Reusable packaging systems, refill-return programs, and chemical recycling (e.g., advanced Mylar processing) are gaining ground, reinforcing circular economy principles.

• Advanced Barrier & Smart Solutions:
  

Flexible packages are now integrating sensors and active materials like moisture or temperature indicators, further enhancing product protection and reducing food waste.

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What Potentiates the Growth of the Eco-Friendly Flexible Packaging Market?

Corporate Sustainability Goals

Corporate sustainability goals are a powerful catalyst for the growth of the eco-friendly flexible packaging market. These goals shape how companies source, design, and deliver packaging, creating a ripple effect across the industry. Major consumer brands like Unilever, Nestlé, PepsiCo, and L’Oréal have pledged to ensure their packaging is recyclable, reusable, or compostable, often by 2025 or soon thereafter, driving broad demand for eco-friendly flexible packaging alternatives. To meet sustainability targets, companies are investing in research and development.

Brands are pushing for mono-material and recyclable flexible films, as well as bioplastics like PLA and PHA, aligning with regulatory requirements and circular economy principles. Sustainability targets encourage cross-industry cooperation. Nestlé, for instance, invests in recycled plastics and supports circular economy systems, while Estée Lauder’s initiative includes 71% of its packaging being recyclable, refillable, reusable, or recoverable. Eco commitments bolster brand image. Unilever highlighted that its sustainable brands grew 69% faster than others, illustrating how green packaging can enhance consumer trust and sales.

Moreover, younger consumers, especially Gen Z, prefer sustainable packaging, with 82% willing to pay more, amplifying demand for greener flexible options. Nestlé (India) introduced 100% recycled PET bottles for their Kinley water brand, reinforcing their goal to make all packaging recyclable or reusable by 2025. Additionally, in August 2025, SIG (Australia) developed the country's first fully recyclable bag-in-box wine packaging, removing aluminum layers and facilitating kerbside recycling, a tangible shift to eco-friendly flexible structures. Furthermore, in July 2025, Amazon (U.S.) reduced single-use plastics by 16% in packaging by adopting recyclable paper alternatives, right-sizing boxes, and innovative paper-based protective wraps driven by customer sustainability expectations.

Sustainability goals are not just corporate statements; they translate into real-world investments in materials innovation, design processes, and scalable eco-packaging solutions. As more brands set aggressive environmental objectives, demand for sustainable flexible packaging (such as recyclable films, compostable bioplastics, and mono-material formats) will continue to accelerate.

Limitations & Challenges in the Eco-Friendly Flexible Packaging Market

Limited Material Availability & Performance Limitations

The supply of high-quality, eco-friendly raw materials can be inconsistent, affecting scalability and meeting large-volume demand. Some biodegradable or compostable materials may have lower barrier properties, shorter shelf life, or reduced durability compared to traditional packaging. Many regions lack the facilities to properly collect, sort, and recycle eco-friendly flexible packaging, reducing its environmental effectiveness.

More Insights of Towards Packaging:

• Flexible Packaging for Beverage Market - The flexible packaging for beverage market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.
• Flexible Green Packaging Market - The global flexible green packaging market is expected to increase from USD 31.49 billion in 2025 to USD 54.29 billion by 2034, growing at a CAGR of 6.24%.
• Sustainable Flexible Packaging Market - The sustainable flexible packaging market is accelerating, with forecasts predicting hundreds of millions in revenue growth between 2025 and 2034.
• Paper Cores Market - The global paper cores market is forecast to grow from USD 4.92 billion in 2025 to USD 7.23 billion by 2034, driven by a CAGR of 4.37% from 2025 to 2034.
• Barrier Coated Flexible Paper Packaging Market - The barrier-coated flexible paper packaging market is forecast to grow from USD 18.21 billion in 2025 to USD 30.37 billion by 2034.
• Commercial Packaging Market - The commercial packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.
• Flexible Packaging Adhesive Market - The global flexible packaging adhesive market is expected to increase from USD 5.76 billion in 2025 to USD 8.02 billion by 2034.
• Next-Generation Packaging Market - The global next-generation packaging market is projected to reach USD 25.5 billion by 2034, expanding from USD 14.55 billion in 2025.
• Leak-Proof Flexible Packaging Market - The leak-proof flexible packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.
• Renewable Material Packaging Market - The renewable material packaging market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034.

Regional Analysis:

Who is the Leader in the Eco-Friendly Flexible Packaging Market?

Europe dominates the eco-friendly flexible packaging market due to its stringent environmental regulations, strong recycling infrastructure, and high consumer demand for sustainable products. The European Union’s policies, such as the Single-Use Plastics Directive and the Circular Economy Action Plan, mandate the adoption of recyclable, compostable, and biodegradable packaging solutions.

Additionally, major European brands and retailers actively integrate sustainability into their supply chains, driving demand for eco-friendly materials like bioplastics, paper-based laminates, and compostable films. Advanced technological capabilities, a mature packaging industry, and strong public awareness of environmental issues further reinforce Europe’s leadership in this market, making it a global benchmark for sustainable packaging practices.

Germany Market Trends

Germany leads in packaging innovation and recycling systems, with strict packaging waste laws (VerpackG) and strong demand for biodegradable and recyclable materials in the food, beverage, and personal care sectors.

France Market Trends

Implements robust regulations banning certain single-use plastics and promoting compostable packaging, supported by consumer preference for eco-conscious products.

U.K. Market Trends

In the U.K. eco-friendly flexible packaging market is driven by Extended Producer Responsibility (EPR) schemes, plastic packaging taxes, and brand commitments to reduce virgin plastic use.

Italy Market Trends

Strong in bioplastics production, particularly PLA and PHA, due to a developed bio-based materials sector.

Netherlands Market Trends

The Netherlands focuses on circular economy strategies and invests in closed-loop recycling systems for flexible packaging.

Spain Market Trends

Rising adoption in the food and agriculture sectors, supported by government incentives for sustainable materials, drives the growth of the eco-friendly flexible packaging market in Spain.

How is the Opportunistic Rise of the Asia Pacific in the Eco-Friendly Flexible Packaging Market?

Asia-Pacific is the fastest-growing region in the eco-friendly flexible packaging market due to rapid urbanization, rising middle-class income, and increasing awareness of environmental issues. Governments in countries like China, India, and Japan are introducing strict regulations to reduce single-use plastics and promote biodegradable, recyclable, and compostable packaging materials. Expanding e-commerce and food delivery industries are accelerating demand for sustainable flexible packaging formats.

Additionally, growing investments by global and local packaging manufacturers in eco-friendly materials such as paper-based laminates, plant-based plastics, and bio-films are fueling market expansion. Strong consumer preference for sustainable brands, coupled with corporate sustainability goals, further boosts the region’s growth potential.

China Market Trends

Implements nationwide bans on single-use plastics and invests heavily in biodegradable packaging solutions, driven by strong e-commerce and food delivery sectors.

India Market Trends

Government initiatives like the Plastic Waste Management Rules and rising consumer awareness are accelerating the adoption of compostable and paper-based flexible packaging.

Japan Market Trends

Focuses on advanced bio-based films and recyclable materials, supported by strict recycling laws and high technological innovation.

Australia Market Trends

National Packaging Targets promote 100% reusable, recyclable, or compostable packaging by 2025, boosting eco-friendly packaging demand.

South Korea Market Trends

Enforces stringent waste segregation and recycling regulations, driving demand for high-performance recyclable packaging films.

How Big is the Success of the North American Eco-Friendly Flexible Packaging Market?

North America is experiencing notable growth in the eco-friendly flexible packaging market due to increasing environmental regulations, strong corporate sustainability commitments, and growing consumer demand for green packaging solutions. The U.S. and Canada are witnessing a shift toward recyclable, compostable, and bio-based packaging, driven by initiatives like plastic bans, Extended Producer Responsibility (EPR) programs, and recycling infrastructure investments. Expanding e-commerce and food delivery sectors further fuel demand for lightweight, sustainable packaging formats.

Additionally, major packaging companies are investing in advanced materials and technologies, while brand owners in the food, beverage, and personal care industries are actively integrating eco-friendly packaging to align with ESG goals.

How Crucial is the Role of Latin America in the Eco-Friendly Flexible Packaging Market?

Latin America is growing at a considerable rate in the eco-friendly flexible packaging market due to increasing government initiatives to reduce plastic waste, rising environmental awareness among consumers, and the expanding food and beverage sector. Countries like Brazil, Mexico, and Chile are implementing regulations to limit single-use plastics and promote biodegradable and recyclable materials.

The growth of retail, e-commerce, and agricultural exports in the region is driving demand for sustainable packaging formats that are lightweight, cost-effective, and environmentally responsible. Additionally, collaborations between local packaging producers and global sustainability-focused brands are accelerating the adoption of innovative, eco-friendly flexible packaging solutions.

How does the Middle East and Africa lead the Eco-Friendly Flexible Packaging Market?

The Middle East and Africa region presents significant growth opportunities for the eco-friendly flexible packaging market due to rising environmental concerns, increasing urbanization, and government-driven sustainability initiatives. Countries like the UAE, Saudi Arabia, and South Africa are introducing bans or restrictions on single-use plastics, encouraging the use of biodegradable, recyclable, and compostable packaging materials. Rapid growth in the food & beverage, personal care, and pharmaceutical sectors is fueling demand for sustainable packaging formats. Additionally, the expansion of retail chains, e-commerce platforms, and tourism is boosting adoption. With increasing investments from global packaging players and rising consumer preference for eco-conscious brands, the region holds strong potential for accelerated market growth.

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Segment Outlook

Material Type Insights

The recycled plastic segment dominates the eco-friendly flexible packaging market due to its cost-effectiveness, durability, and ability to meet sustainability goals without compromising product protection. Recycled plastics significantly reduce dependence on virgin materials, lowering carbon footprints and minimizing landfill waste. Advancements in recycling technologies have improved the quality and versatility of recycled plastics, making them suitable for food, beverage, personal care, and household product packaging.

Moreover, growing regulatory pressures and corporate commitments toward circular economy practices are driving higher adoption of recycled materials. Consumer preference for environmentally responsible packaging also boosts demand, solidifying recycled plastic’s leading position in the market.

The bioplastic segment is the fastest-growing material type in the eco-friendly flexible packaging market due to increasing demand for renewable, compostable, and biodegradable packaging solutions. Made from plant-based sources such as corn starch, sugarcane, and cellulose, bioplastics offer a sustainable alternative to petroleum-based plastics, helping brands reduce their environmental impact. Rising government regulations restricting single-use plastics, combined with incentives for bio-based materials, are accelerating their adoption across food, beverage, and personal care packaging.

Technological advancements are enhancing the strength, flexibility, and barrier properties of bioplastics, making them competitive with conventional materials. Additionally, growing consumer awareness of climate change and preference for eco-conscious products are fueling the shift toward bioplastics, driving their rapid penetration into global packaging markets.

Packaging Type Insights

The pouches segment holds a dominant position in the eco-friendly flexible packaging market due to its lightweight structure, cost efficiency, and ability to minimize material usage while providing strong product protection. Pouches offer excellent barrier properties, extending shelf life and reducing food waste, which aligns with sustainability goals.

They are highly versatile, suitable for packaging food, beverages, personal care, and household products. The segment’s dominance is further supported by advancements in recyclable, compostable, and biodegradable pouch materials, meeting both regulatory requirements and consumer eco-preferences. Additionally, their compact design reduces transportation emissions, making pouches a preferred choice for brands aiming to lower environmental impact.

The wraps and sachets segment is the fastest-growing packaging type in the eco-friendly flexible packaging market due to its suitability for single-serve and portion-controlled products, which are increasingly popular in food, beverage, and personal care sectors. These formats use minimal material while offering excellent product protection and convenience, aligning with sustainability and waste-reduction goals. Growing adoption of recyclable, compostable, and biodegradable materials in wraps and sachets is driving demand, especially in markets with strict packaging regulations.

Their lightweight design reduces transportation costs and emissions, while advancements in printing and barrier technologies enhance branding opportunities, making wraps and sachets a preferred eco-friendly solution for brands targeting on-the-go consumers.

Product Functionality Insights

The recyclable packaging segment dominates the eco-friendly flexible packaging market due to its ability to align with circular economy principles and meet increasing regulatory requirements for waste reduction. Recyclable packaging helps minimize environmental impact by enabling materials to be reprocessed into new products, reducing the need for virgin resources.

Advancements in mono-material designs and recycling technologies have enhanced the performance and recovery rates of recyclable packaging, making it suitable for diverse applications in food, beverage, personal care, and household products. Growing consumer preference for sustainable packaging, combined with brand commitments to recyclability targets, further drives its widespread adoption, securing its leading position in the market.

The compostable and biodegradable packaging segment is the fastest-growing product functionality in the eco-friendly flexible packaging market due to rising consumer and regulatory demand for solutions that naturally break down without leaving harmful residues. Made from renewable materials such as plant fibers, starch, and biopolymers, these packaging options offer an environmentally responsible alternative to traditional plastics.

Increasing government bans on single-use plastics and incentives for compostable solutions are accelerating adoption, particularly in the food, beverage, and personal care sectors. Advances in material science have improved strength, barrier properties, and shelf life, making compostable and biodegradable packaging both practical and sustainable for a wide range of applications.

End-Use Industry Insights

The food and beverages segment dominates the eco-friendly flexible packaging market due to the sector’s high consumption of packaging for product preservation, safety, and branding. Growing consumer demand for sustainable food and drink options has pushed brands to adopt recyclable, compostable, and biodegradable packaging solutions that reduce environmental impact. Flexible packaging in this segment offers excellent barrier properties, maintaining freshness and extending shelf life while minimizing material use.

Additionally, the rise of convenience foods, ready-to-eat meals, and on-the-go beverages has fuelled the need for lightweight, portable, and eco-friendly formats. Regulatory pressures to reduce single-use plastics further strengthen the segment’s leadership in sustainable packaging adoption.

The pharmaceutical segment is the fastest-growing end-user in the eco-friendly flexible packaging market due to increasing demand for sustainable and compliant packaging solutions that ensure product safety and integrity. Rising environmental concerns, along with stringent regulations on packaging waste, are driving pharmaceutical companies to adopt recyclable, compostable, and biodegradable materials. Flexible packaging offers excellent barrier protection against moisture, oxygen, and contaminants, extending the shelf life of medicines while reducing material usage. Additionally, advancements in eco-friendly laminates, films, and mono-material structures are making sustainable options more compatible with pharmaceutical requirements. Growing global healthcare needs and corporate sustainability commitments further accelerate this segment’s rapid growth.

Distribution Channel Insights

The industrial supply chain segment dominates the distribution channel in the eco-friendly flexible packaging market due to its ability to handle large-scale, bulk orders and meet the diverse needs of various industries efficiently. Manufacturers rely on these channels to source sustainable packaging materials in high volumes, ensuring a consistent supply for sectors such as food, beverages, pharmaceuticals, and personal care.

The industrial supply chain offers strong logistics capabilities, streamlined procurement processes, and established relationships with packaging producers, enabling faster delivery and cost efficiency. Additionally, its role in promoting certified eco-friendly materials and compliance with environmental regulations strengthens its position as the leading distribution channel.

The online retail segment is the fastest-growing distribution channel in the eco-friendly flexible packaging market due to the rapid expansion of e-commerce and increasing consumer preference for convenient, home-delivered purchases. Online platforms offer a wide variety of sustainable packaging options, making it easier for businesses and individuals to source recyclable, compostable, and biodegradable solutions.

The ability to compare products, access bulk discounts, and receive doorstep delivery drives adoption among small businesses and eco-conscious consumers. Additionally, heightened environmental awareness and demand for certified green products encourage online retailers to expand their eco-friendly offerings, fueling growth in this channel and making it the most dynamic in the market.

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Recent Breakthroughs in the Global Eco-Friendly Flexible Packaging Market:

• In August 2025, Mondi plc, a company focused on manufacturing paper and eco-friendly packaging, introduced FunctionalBarrier Paper Ultimate, a paper-based solution that satisfies even the most exacting packaging specifications, to its lineup of high-performance barrier papers. Mondi is expanding production of this high-performance barrier paper, which provides outstanding protection against oxygen, water vapor, and grease with an oxygen transmission rate (OTR) below 0.5 cm°/m7d and a water vapor transmission rate (WVTR) below 0.5 g/md.
• In March 2025, Green Lab, an eco-packaging manufacturing company, formally joined the American market. Green Lab, a division of Frasers & Neave Group, one of the biggest SGX-listed corporations in Southeast Asia, offers its eco-friendly packaging options in North America. The company offers FSC-certified, 100% recycled paper bags and environmentally friendly food packaging that competes with conventional options in terms of both cost and performance, and several container shipments are currently on their way.

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Eco-Friendly Flexible Packaging Market Companies

• Amcor Plc
• Mondi Group
• Sealed Air Corporation
• Tetra Pak International S.A.
• Huhtamaki Oyj
• UFlex Ltd.
• Constantia Flexibles
• Berry Global Inc.
• Novolex
• FlexPak Services
• Printpack, Inc.
• DS Smith Plc
• Coveris Holdings S.A.
• WestRock Company
• Clondalkin Group
• Glenroy, Inc.
• ProAmpac
• BioBag International AS
• Plastic Suppliers, Inc.
• Futamura Group

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
  • 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
    

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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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