The private markets are constantly evolving. New sectors emerge and recede in the span of a few years. It can be challenging to identify and track the most promising pockets of growth. That’s why PitchBook analysts have developed a methodology to define and categorize emerging spaces.
In this post, we look at sustainable packaging—one space that is quickly taking off.
What is sustainable packaging?
Sustainable packaging is packaging that is biodegradable, compostable, returnable, and, in some cases, even edible. These products are gradually grabbing market share from plastics which have come under fire over the past decade for having a harmful effect on the environment and the health of humans, plants, and animals. Countless countries have banned plastic bags while other single-use plastic products are slowly being replaced with sustainable alternatives.
With governments across the globe taking plastics out of circulation, and with growing awareness of the accumulation of plastics in oceans and landfills, consumers are supporting the move to more sustainable options.
Quick stats
542
943
$26.08B
881
Key growth metrics
94
(TTM)
$259.43M
(TTM)
$1.20M
(TTM)
$22.25M
(TTM)
Sustainable packaging companies founded by year
Types of sustainable packaging
Some sustainable packaging providers develop raw materials to replace plastic, while others manufacture the actual packaging. The leading types of sustainable packaging raw materials include bioplastics, seaweed and algae, plastic additives, mycelium, molded fiber, and reusable materials.
Bioplastics
Cost to produce: $2 to $7 per kilo. Expected to reach price parity with plasticManufacturing method: Procured from plants or other natural sources
Main use cases: Industrial, consumer
Mycelium
Cost to produce: Expected to be cost comparable to polystyrene (PS)Manufacturing method: Grown using agricultural waste as a feedstock
Main use cases: Replaces PS packaging
Seaweed and algae
Cost to produce: Likely costlier than plasticManufacturing method: Chemical and heat treated seaweed to extract polysaccharides
Main use cases: Cling film, bags, straws, cups
Molded fiber
Cost to produce: Molded paper cups estimated to cost $2,333.0/tonManufacturing method: New or recycled fiber pulp is prepared, pressed into molds, and trimmed
Main use cases: Cups, plates, cutlery, bottles
Food waste
Cost to produce: Varies based on waste streamManufacturing method: Varies
Main use cases: Cling film, foam plastic, bioplastic inputs
via Source: Sparkoncept, FutureBridge, Matmatch, and Matter | Geography: Global
Trending sustainable packaging companies
Origin Materials
Founded: 2008
Total Raised: $263.86M
📍West Sacramento, CA
Origin Materials Inc is a carbon-negative materials company. The Origin platform turns the carbon found in biomass into useful materials, while eliminating the need for fossil resources and capturing carbon in the process. Among other products, Origin offers carbon-negative polyethylene terephthalate (PET) plastic produced from sustainable wood residues using Origin technology.
The company received $200 million of development capital from Danone, Nestlé, Pepsico, Mitsubishi Gas Chemical, AECI, Apollo Oil, Sylebra Capital, Senator Investment Group, Electron Capital Partners, BNP Paribas and other undisclosed investors on June 25, 2021 through a private placement. At the same time, it acquired Artius Acquisition through a reverse merger, resulting in the combined entity trading on the NAS Stock Exchange under the ticker symbol ORGN on June 25, 2021.
ProAmpac
Founded: 2015
Total Raised: $3.96B
📍Cincinnati, OH
ProAmpac manufactures flexible packaging requiring less material and therefore less carbon-intensive fossil fuel. The company offers a range of plastic and paper packaging products including pouches, wraps, bags, films and other related products to meet food, home, personal care, healthcare, retail, shipping, and pet packaging needs, thereby providing sustainable packaging products and helping customers achieve their sustainability goals.
The company received $4.99 million of debt financing on March 31, 2022. Previously, the company completed a $345 million debt refinancing round on November 23, 2021.
Notpla
Founded: 2014
Total Raised: $21.57M
📍London, England
Notpla is a non-chemically modified, polysaccharide-based material. It’s classified as a natural, organic substance by EU law. Notpla is biodegradable and home-compostable. The company’s products include plastic-free takeaway food containers, flexible films, paper products, edible films, and more.
The company is reportedly seeking an undisclosed amount of venture funding as of January 27, 2023. Previously, the company was awarded GBP 1 million from the Earthshot Prize on December 2, 2022.
Trending investors in sustainable packaging
Plug and Play Tech Center
Deal count in sustainable packaging: 23
Latest deal date: January 2024 (upcoming)
📍Sunnyvale, CA
Plug and Play Tech Center is an accelerator that invests in seed, early-stage, and later-stage companies across a variety of sectors, including consumer products and services, financial services, healthcare, IT, materials and resources, and technology. Founded in 2006, Plug and Play Tech Center has invested in startups like UBQ Materials and Notpla.
Innovate UK
Deal count in sustainable packaging: 22
Latest deal date: August 2023
📍Swindon, United Kingdom
Founded in 2007, Innovate UK is part of the United Kingdom’s research and innovation agency based in Swindon. The firm is a non-departmental public body funded by a grant-in-aid from the UK government. It drives productivity and economic growth by supporting businesses across sectors and regions. Innovate UK has invested in companies like Cambond, the manufacturer of a bio-resin to replace formaldehyde-based resins in packaging and other materials.
NYSERDA
Deal count in sustainable packaging: 7
Latest deal date: August 2023
📍Albany, NY
NYSERDA is a public benefit corporation founded in 1975 that provides analysis and information, programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels. NYSERDA has invested in companies like Ecovative, a developer of compostable materials—used for sustainable packaging, among other products—made from mycelium.
Get to know some of PitchBook’s other emerging spaces
- Carbon capture & removal
- Clean meat
- Digital freight brokerage
- Election tech
- eVTOLs and air taxis
- Ghost kitchens
- Indoor farming
- Insect-based foods
- Modular construction
- Neurotechnology
- Smart clothing and jewelry
- Space tourism
Learn more about sustainable packaging and the private markets
Read our analyst note on sustainable packaging and the novel materials set to replace plastics
PitchBook Analyst Note: Unwrapping Sustainable Packaging
Learn about the growth in carbon offset trading platforms
Emerging Space Brief: Carbon Offset Trading Platforms
Explore electric vehicle charging infrastructure, another emerging space we’re watching
Emerging Space Brief: Electric Vehicle Charging Infrastructure
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*The data included in this article is accurate per PitchBook data as of August 31, 2023; data is subject to change frequently
