Standardisation of rules relating to sustainability will result in a seven per cent annual growth rate of recyclable packaging materials over the next four years.
A study by US research company Technavio segmented the market on the basis of types of materials, end users, and geography.
It found that Europe was the largest market for recyclable packaging, with Germany the strongest in this region.
Europe's high market share is believed to be due to the impact of major consumer goods companies such as Nestlé and Pernod Ricard.
According to Technavio, the market's growth has been due to:
- Standardised industry norms
- Increased demand from the food and beverage industry
- Growth in the organised retail sector
“The global recyclable packaging materials market is witnessing the standardisation of rules, regulations, and methods relating to the manufacture of sustainable green packaging,” Sharan Raj, lead analyst at Technavio for packaging research, said.
“Manufacturers of food and beverages demand eco-efficient packaging materials that can preserve food and maintain its nutritional value.
“Companies like Cadbury, Coca-Cola, ConAgra Foods, Nestlé, and Pepsico use sustainable packaging materials, including plastic and metals, which gives them a competitive advantage over other market players."
According to the Australian Packaging Covenant (APC), the overall recycling rate for post-consumer packaging in Australia was 61.3% in 2014-2015.
"Trends over the last 12 years continue to be positive, albeit this year glass volumes are showing a yearly downturn (as they did six years ago)," stated the APC in its report.
"This has put downward pressure on the overall materials percentage recycled."
