Canada Sustainable Packaging for Food Market

Canada Sustainable Packaging for Food Market Insights Forecasts to 2035

• The Canada Sustainable Packaging for Food Market Size was estimated at USD 2610.33 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.67% from 2025 to 2035
• The Canada Sustainable Packaging for Food Market Size is Expected to Reach USD 5310.34 Million by 2035

According to a Research Report Published by Decision Advisor & Consulting, the Canada Sustainable Packaging for Food Market is anticipated to reach USD 5310.34 million by 2035, growing at a CAGR of 6.67% from 2025 to 2035. The Canadian market for sustainable packaging is expanding due to a number of factors, including government initiatives and regulations, technological advancements and innovations, and growing awareness of the environmental impact of packaging materials. The growing popularity of refillable containers, which are an important packaging option for businesses trying to lessen their impact on the environment, is a notable development trend for sustainable packaging.

Market Overview

The industry centred on packaging solutions intended to reduce environmental impact throughout the product life cycle, while guaranteeing food safety and quality, is referred to as the Canadian sustainable packaging for food market. Eco-friendly materials like cardboard, paperboard, bioplastics (PLA), and compostable films that come from recyclable, renewable, or biodegradable resources are used in sustainable food packaging. It comprises a variety of product types intended to support the industry, such as boxes, pouches, bottles, trays, films, and mailers. This market supports the food and beverage sector by offering packaging that satisfies growing consumer and regulatory demands for sustainability while preserving product integrity and freshness. Government programs encouraging zero plastic waste, growing consumer awareness of environmental effects, and technological advancements are important motivators.

The Canadian government has released a planning notice for pollution prevention that specifically targets plastic food packaging. By 2028, the proposal mandates that major grocery stores with sales of more than $4 billion create plans to prevent pollution by switching to reusable, recyclable, or compostable food packaging and cutting back on superfluous packaging.

Objectives consist of: By 2035, the food value chain will have less problematic packaging.

By 2026, 75% of fresh produce will be distributed plastic-free or in large quantities; by 2028, that percentage will rise to 95%. Selling a sizable portion of goods in reuse-refill systems (20% by 2026, 50% by 2030, and 60% by 2035).

By ensuring that, by 2035, the proportion of post-consumer recycled content in non-reusable plastic is rising.

Report Coverage

This research report categorises the market for the Canada sustainable packaging for food market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada sustainable packaging for food market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada sustainable packaging for food market.

Driving Factors

The demand for sustainable packaging over conventional packaging is fueled by growing awareness of the dangers of using non-biodegradable materials like plastic in traditional packaging, which is driving market expansion. The market is also driven by government initiatives. For instance, the implementation of the Canada-wide Strategy on Zero Plastic Waste, the Canadian Council of Ministers of the Environment has since approved an action plan. Biodegradable packaging, recycled waste materials, reusable systems, mono-material packaging, compostable plastic substitutes, digital printing innovations, smart packaging solutions, and plantable packaging are just some of the technological developments and innovations that are significantly supporting the market's expansion.

Restraining Factors

The market demand is being constrained by the higher cost of sustainable packaging compared to non-sustainable packaging. Furthermore, the market is being hampered by the lack of raw materials.

Market Segmentation

The Canada sustainable packaging for food market share is classified into type, packaging format, and process.

• The flexible segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period.

The Canada sustainable packaging for food market is segmented by type into rigid, and flexible. Among these, the flexible segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period. Generally, flexible packaging uses less material than rigid packaging, which influenced the market revenue. Besides, the packaging has a smaller environmental impact because less plastic is used to make it.

• The tertiary packaging segment held a significant share in 2024 and is projected to grow at a rapid pace over the forecast period.

The Canada sustainable packaging for food market is segmented by packaging format into primary packaging, secondary packaging, and tertiary packaging. Among these, the tertiary packaging segment held a significant share in 2024 and is projected to grow at a rapid pace over the forecast period. The segment is driven by it combining several units into larger, more effective loads, and tertiary packaging reduces total packaging waste. Also, maximising material utilisation and minimising packaging's negative environmental effects can support sustainability objectives.

• The biodegradable segment dominated in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

The Canada sustainable packaging for food market is segmented by process into recyclable, reusable, and biodegradable. Among these, the biodegradable segment dominated in 2024 and is anticipated to grow at a significant CAGR during the forecast period. Biodegradable materials break down more readily and pose fewer threats to ecosystems and wildlife. Additionally, a lot of biodegradable packaging materials come from renewable resources, like plant-based sources, which lessens reliance on limited fossil fuels.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Canada sustainable packaging for food market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Atlantic Packaging Products Ltd.
• Crown Packaging
• SupremeX Inc.
• Canadian Custom Packaging & The Color Group
• Planetize Packaging
• Reusables.com
• Infinite Nanotechnology
• Mitchel-Lincoln Packaging Ltd.
• Royal Containers Ltd.
• Others

Recent Developments:

• In October 2025, Donmar Foods unveiled new sustainable packaging for its powdered chicken soups and other ingredients. They feature a minimalist design, vibrant colours, lighter-weight materials to reduce environmental impact, and a built-in measuring scoop. The launch coincided with a redesigned website to enhance customer experience.
• In June 2025, Danone Canada announced a major investment in its Boucherville, Quebec, plant to modernise production and develop more sustainable packaging solutions. The initiative includes CAD $70 million for packaging innovation and automation, plus a CAD $9 million program to produce yoghurt cups with 30% recycled PET content.
• In May 2025, Diamond Edge Ventures (DEV), the corporate venture arm of Mitsubishi Chemical Group, invested in Freshr Sustainable Technologies, a Canadian startup pioneering active, compostable food packaging designed to extend shelf life and reduce food waste. Freshr’s proprietary approach enables more sustainable and functional packaging solutions by immobilising these natural active agents onto plastic films.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. Decision Advisor has segmented the Canada Sustainable Packaging for Food Market based on the below-mentioned segments:

Canada Sustainable Packaging for Food Market, By Type

• Rigid
• Flexible

Canada Sustainable Packaging for Food Market, By Packaging Format

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

Canada Sustainable Packaging for Food Market, By Process

• Recyclable
• Reusable
• Biodegradable

FAQ

Q: What is the size and forecast for the Canada sustainable packaging for food market?

A: The market was valued at USD 2,610.33 million in 2024 and is expected to reach USD 5,310.34 million by 2035, growing at a CAGR of 6.67% from 2025 to 2035.

Q: What does sustainable packaging for food mean in Canada?

A: Sustainable food packaging involves packaging materials designed to reduce environmental impact while ensuring food safety and quality. These include eco-friendly materials like cardboard, paperboard, bioplastics (PLA), and compostable films, sourced from renewable, recyclable, or biodegradable resources. The market covers boxes, pouches, bottles, trays, films, and mailers used in the food and beverage sector to meet regulatory and consumer sustainability demands.

Q: What are the main types and packaging formats?

A: The market segments by type into rigid and flexible packaging. Flexible packaging dominates due to lower material use and environmental impact. Packaging formats include primary (direct food contact), secondary (grouping primary packages), and tertiary packaging (transportation and bulk handling), with tertiary packaging seeing rapid growth due to efficiency and waste reduction.

Q: What are the common sustainable processes used?

A: Processes include recyclable, reusable, and biodegradable packaging, with biodegradable materials leading due to better ecosystem compatibility and use of plant-based resources.

Q: What are the key drivers for market growth?

A: Growth is driven by consumer awareness of environmental harm from traditional plastics, government policies like Canada’s zero plastic waste strategy, technological innovations (e.g., biodegradable plastics, smart packaging), and the rising preference for refillable containers.

Q: What challenges restrain the market?

A: Challenges include higher costs compared to conventional packaging and limited availability of sustainable raw materials.

Q: Who are the notable players?

A: Leading companies include Atlantic Packaging Products Ltd., Crown Packaging, SupremeX Inc., Canadian Custom Packaging & The Color Group, Planetize Packaging, Reusables.com, Infinite Nanotechnology, Mitchel-Lincoln Packaging Ltd., and Royal Containers Ltd.

Q: What are recent developments?

A: In 2025, Donmar Foods launched sustainable packaging for powdered chicken soups featuring lightweight, eco-friendly materials and customer-centric design elements. Danone Canada invested CAD $70 million in packaging innovation and automation, including PET cups with 30% recycled content. Diamond Edge Ventures invested in Freshr Sustainable Technologies, enabling compostable food packaging that extends shelf life.