08/19/2025
U.S. Sustainable Packaging Market Expected to Reach $73.8 Billion by 2034
Source: Two Sides, August 11, 2025
The U.S. sustainable packaging market is poised for significant 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%. This steady expansion is being driven by a combination of shifting consumer expectations, regulatory pressures, technological innovation, 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 favorable 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 strongest 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 largest end-use market share. Consumer demand for less plastic and more recyclable or compostable formats is especially 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.