U.S. Sustainable Packaging Market Expected to Reach $73.8 Billion The U.S. sustainable packaging market is poised for sig- nificant growth over the next decade, according to new market sizing research from Towards Packaging. Valued at $49.18 billion in 2024, the market is projected to reach $73.81 billion by 2034, representing a compound annual growth rate (CAGR) of 4.15 percent. This steady expansion is being driven by a combination of shifting consumer ex- pectations, regulatory pressures, technological innova- tion, and material advancements. Among packaging materials, paper-based products held the largest revenue share in 2024, thanks to their broad recyclability, established supply chains, and favor- able public perception. The report highlights increased adoption of recycled-content packaging across multiple sectors, with fiber-based materials like corrugated boxes, molded pulp, and folding cartons experiencing the stron- gest growth. These materials are widely seen as practical, scalable, and curbside-recyclable alternatives to plastics, especially as both consumers and brands seek options aligned with circular economy principles. The food and beverage industry continues to lead in sustainable packaging adoption, accounting for the larg- est end-use market share. Consumer demand for less plastic and more recyclable or compostable formats is es-
pecially pronounced in this category. Regulatory scrutiny over food packaging safety and single-use plastics has also prompted many producers to shift toward recycled or fiber-based alternatives. Other high-growth segments include personal care, pharmaceuticals, and e-commerce, where packaging plays a central role in brand image and environmental responsibility. One of the core drivers of growth is increasing public awareness about packaging waste. According to Towards Packaging, the United States generates nearly 40 million tons of plastic waste annually, but very little is effectively recycled. This gap has spurred a widespread shift in con- sumer behavior, with many Americans actively seeking out brands that offer products in environmentally responsible packaging. In response, companies are redesigning pack- aging to minimize plastic, improve recyclability, and incor- porate renewable or compostable inputs. The rise of e-commerce and grocery delivery services has also accelerated demand for sustainable packaging. As online retailers ship products directly to consumers’ homes, they face mounting pressure to eliminate unnec- essary packaging and replace plastic with recyclable op- tions. A recent Two Sides survey reveals that 52 percent of U.S. consumers prefer products ordered online to be de- livered in paper packaging. Fiber-based mailers, molded pulp trays, and right-sized corrugated boxes have become popular alternatives to poly mailers and plastic foam. CONTINUED ON PAGE 42
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September 8, 2025
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