US Plastic-free Packaging Market Size, Share, Trends and Forecasts 2031

Key Findings

• The US Plastic-free Packaging Market is expanding rapidly due to rising environmental concerns and stricter sustainability regulations.

• Increasing consumer demand for eco-friendly packaging alternatives is reshaping the market landscape in US.

• Innovative materials such as paper, plant-based biopolymers, seaweed films, and compostable fibers are gaining popularity.

• Food & beverage companies in US are among the largest adopters of plastic-free packaging solutions.

• E-commerce growth and sustainable branding strategies are accelerating adoption in multiple sectors.

• Local governments are introducing bans and incentives that further support the shift away from plastics.

• Challenges around cost, scalability, and performance continue to limit mainstream adoption.

• Long-term growth outlook remains positive as sustainability becomes a central driver of consumer behavior and corporate responsibility.

US Plastic-free Packaging Market Size and Forecast

The US Plastic-free Packaging Market is projected to grow from USD 18.5 billion in 2025 to USD 42.7 billion by 2031, registering a CAGR of 14.9%. This strong growth is driven by stricter government policies, corporate sustainability initiatives, and rising consumer preferences for environmentally responsible packaging. Companies in US are increasingly investing in R&D to develop alternatives that match the durability and cost-effectiveness of plastic. Expansion in the food & beverage, personal care, and e-commerce sectors is fueling wider adoption. By 2031, plastic-free packaging is expected to capture a significant share of the overall packaging market in US.

Introduction

Plastic-free packaging refers to the use of materials that completely avoid conventional plastics, focusing instead on biodegradable, compostable, or recyclable alternatives. In US, demand is rising as both consumers and businesses seek to reduce plastic waste and carbon footprints. The growing awareness of ocean pollution, landfill challenges, and climate change is driving systemic change across industries. Plastic-free solutions are being integrated across multiple sectors including food delivery, retail, FMCG, and e-commerce. This shift marks a transformative opportunity for sustainable material innovation and long-term ecological benefits.

Future Outlook

The future of the US Plastic-free Packaging Market is poised for strong expansion, driven by stricter government mandates, corporate ESG commitments, and growing consumer advocacy for green solutions. Material science innovations such as algae-based polymers, edible packaging, and nanocellulose films will expand the range of viable alternatives. Cost reduction through scaling and technological efficiency will enable broader adoption across mass-market applications. Collaboration between governments, businesses, and NGOs will play a crucial role in accelerating this transition. By 2031, plastic-free packaging will no longer be a niche alternative but an integral part of mainstream supply chains in US.

US Plastic-free Packaging Market Trends

• Rising Consumer Preference for Eco-friendly Products
  In US, consumers are increasingly prioritizing sustainable products and packaging in their purchasing decisions. Surveys show that a significant portion of consumers are willing to pay a premium for environmentally responsible packaging. This trend highlights how eco-consciousness has shifted from a niche concern to a mainstream purchasing factor. Social media campaigns and environmental advocacy groups are further amplifying awareness and influencing behavior. As consumer demand grows, brands in US are adapting quickly to retain loyalty and stay competitive.

• Growth in Food & Beverage Industry Adoption
  The food and beverage sector is emerging as a primary adopter of plastic-free packaging in US. Restaurants, cafes, and packaged food companies are switching to compostable and recyclable alternatives to meet both regulatory requirements and consumer demand. This trend reflects the sector’s significant role in driving packaging waste and its potential impact in leading change. Partnerships with sustainable material startups are becoming more common. Over the next few years, this sector is expected to account for the largest market share in plastic-free packaging adoption.

• Advances in Material Innovation and Biopolymers
  The development of new bio-based materials is a defining trend in US’s plastic-free packaging landscape. Innovations such as mushroom-based packaging, seaweed films, and starch-based polymers are making sustainable solutions more versatile. This trend showcases the importance of R&D in addressing durability, shelf life, and cost challenges. Material advancements are also opening opportunities across industries beyond food, including cosmetics, electronics, and healthcare. By enabling performance parity with plastics, these innovations will accelerate mainstream adoption.

• Expansion of E-commerce and Sustainable Branding
  E-commerce in US is rapidly growing, creating rising demand for protective yet sustainable packaging solutions. Companies are replacing plastic fillers with paper-based cushioning and recyclable mailers to align with green branding. This trend underscores how consumer expectations for sustainability extend into online shopping experiences. Brands are leveraging eco-friendly packaging as a differentiator to build trust and win customer loyalty. The alignment of digital commerce with sustainability goals is expected to further fuel market growth.

• Government Policies and Regulatory Mandates
  Governments in US are implementing bans on single-use plastics and offering incentives for sustainable packaging adoption. This trend shows the crucial role of policy in shaping industry behavior and accelerating change. Regulatory compliance is forcing companies to rethink supply chains and adopt eco-friendly alternatives. Incentives, subsidies, and certifications are also supporting smaller businesses in transitioning to sustainable options. Policy enforcement will remain one of the strongest drivers of long-term industry transformation.

Market Growth Drivers

• Stringent Environmental Regulations
  Governments in US are imposing stricter rules on plastic usage, including bans on single-use plastics and extended producer responsibility programs. These regulations are compelling businesses to adopt plastic-free alternatives quickly. This driver demonstrates how compliance is directly influencing market adoption. It also highlights how regulatory frameworks are ensuring long-term accountability for waste management. Regulatory support will remain a cornerstone of industry expansion.

• Increasing Corporate ESG Commitments
  Companies in US are adopting sustainability goals as part of their ESG strategies, leading to investments in plastic-free packaging. This driver underscores the alignment of business objectives with consumer expectations for environmental responsibility. Firms are increasingly reporting sustainable packaging initiatives in their CSR disclosures. Partnerships with sustainable material suppliers are also rising. Corporate leadership in this area is expected to set industry-wide benchmarks.

• Rising Consumer Awareness of Plastic Pollution
  Growing awareness of the environmental impact of plastics, particularly ocean and landfill pollution, is fueling demand for alternatives. This driver shows how consumer activism and advocacy are influencing corporate strategies. It demonstrates the power of public opinion in accelerating market change. Educational campaigns and grassroots initiatives are amplifying awareness across demographics. The heightened focus on environmental issues will continue to drive adoption.

• Technological Advancements in Sustainable Materials
  Continuous innovations in bio-based and compostable materials are making plastic-free packaging more durable and cost-effective. This driver highlights how technology is solving performance and scalability challenges. It also underscores the role of innovation in expanding applications across industries. As technologies mature, adoption will broaden across both premium and mass-market segments. Material science will remain critical to long-term market growth.

• Expansion of E-commerce and Retail
  The rapid growth of e-commerce and modern retail in US is increasing demand for sustainable packaging solutions. This driver reflects how shifts in consumer purchasing behavior directly impact packaging requirements. Online platforms are adopting eco-friendly options to meet customer expectations. It also highlights the role of logistics in shaping packaging innovation. The continued rise of digital commerce will act as a strong enabler for the market.

Challenges in the Market

• High Cost of Plastic-free Alternatives
  Plastic-free packaging materials are generally more expensive than conventional plastics, posing challenges for price-sensitive markets in US. This challenge underscores how cost remains a significant barrier to adoption. Smaller businesses in particular struggle to absorb higher expenses. Until scaling reduces costs, adoption may remain limited to larger firms and premium segments. Addressing affordability will be crucial for mass adoption.

• Limited Scalability and Supply Chain Constraints
  Many sustainable materials are not yet produced at scale, creating supply shortages in US. This challenge highlights the infrastructure and production limitations in the industry. It also underscores how scalability affects both affordability and availability. Without large-scale production facilities, widespread adoption will remain constrained. Building resilient supply chains will be key to solving this issue.

• Performance Limitations Compared to Plastics
  While innovations are advancing, many plastic-free alternatives still lack the durability and flexibility of plastics. This challenge reflects how performance concerns can limit adoption in industries like food and electronics. It also demonstrates the need for continued R&D investment. Without solving these issues, adoption will remain restricted to specific applications. Performance parity remains a top priority for innovation.

• Consumer Price Sensitivity
  In US, a significant portion of consumers remain highly price-conscious, limiting their willingness to pay more for sustainable packaging. This challenge shows the gap between sustainability awareness and actual purchasing behavior. It underscores the importance of competitive pricing strategies. Until price parity is achieved, adoption may remain slower in certain demographics. Bridging this gap will be critical for broader market penetration.

• Regulatory and Standardization Gaps
  Inconsistent regulations and the lack of standardized certifications for plastic-free packaging create confusion in US. This challenge highlights how fragmented frameworks hinder industry growth. Without clear guidelines, both businesses and consumers face uncertainty about product claims. It also allows greenwashing to undermine trust. Stronger standardization is needed to strengthen credibility and adoption.

US Plastic-free Packaging Market Segmentation

By Material Type

• Paper & Paperboard

• Plant-based Polymers

• Seaweed & Algae-based Materials

• Mushroom & Starch-based Packaging

• Others

By Application

• Food & Beverages

• Personal Care & Cosmetics

• E-commerce & Retail

• Healthcare & Pharmaceuticals

• Others

By Distribution Channel

• Online Platforms

• Offline Retail (Supermarkets, Specialty Stores, Packaging Distributors)

By End User

• Consumer Goods Companies

• Hospitality & Foodservice Industry

• Healthcare Institutions

• E-commerce Platforms

Leading Key Players

• Amcor Plc

• Mondi Group

• Huhtamaki Oyj

• Tetra Pak International

• Novamont S.p.A.

• Notpla Ltd.

• Biopak

• Regional packaging innovators in US

Recent Developments

• Amcor expanded its paper-based packaging solutions in US to reduce reliance on plastics.

• Notpla Ltd. launched seaweed-based packaging products for the food industry in US.

• Mondi Group partnered with retailers in US to introduce plastic-free e-commerce mailers.

• Biopak collaborated with hospitality brands in US to provide compostable foodservice packaging.

• Local startups in US introduced mushroom-based sustainable packaging for retail applications.

This Market Report Will Answer the Following Questions

1. What is the projected size of the US Plastic-free Packaging Market by 2031?

2. Which sectors in US are leading adoption of plastic-free alternatives?

3. What role do material innovations play in overcoming performance challenges?

4. What are the key cost and scalability barriers in this market?

5. Who are the leading players shaping the plastic-free packaging industry in US?