Benchmark International

The global green industry is forecast to grow at a significant rate between 2022 and 2026. Over the past decade, the green economy’s market capitalization grew from $2 trillion in 2009 to more than $7 trillion in 2021. It also nearly doubled its share of the global investable market from 4% to more than 7%. Last year, the market grew at a steady rate and is expected to continue to do so with the growing adoption of strategies by key players.

The global green economy is substantial, diversified, and rapidly expanding. There has been strong equity market performance in the last two to three years. Long-term growth drivers for the green economy continue to deliver solutions to global challenges, primarily climate change.

There is a significant and growing investment opportunity in the green economy. As we see more global environmental challenges, the green economy grew at a compound annual growth rate (CAGR) of around 14% over the past 12 years. The green industry can be seen as the fifth largest industrial supersector by market capitalization. It is materially larger than the oil & gas industry, and it recently outpaced the retail sector. When looking at future growth estimates, the green economy could grow to be the first or second largest industry.

The green economy is quite diversified and encapsulates a growing array of technologies, many of which represent areas that are growing quickly, such as efficiency, energy management, and transport equipment. Transport equipment includes green solutions across rail, rail, shipping, and aviation. This market’s value more than quadrupled between 2018 and 2021. Also, energy management and efficiency more than tripled in size between 2016 and 2021. This is driven by growth in cloud computing, which by itself accounted for 61% of the sector’s growth during that period of time. Other areas are seeing more limited growth, such as renewable energy equipment.

Investment in many industries is also rapidly becoming more driven by green solutions. 42% of the automobile and auto parts sector’s market cap is now focused on lower-carbon solutions. This is primarily driven by growth in the electric vehicle market. Utilities are currently the second greenest sector, with 27% of its market cap focused on low-carbon solutions, including renewable power generation.

On a global scale, the green economy is diverse, with the most concentration in countries such as the United States (54%) and China (12%). And while smaller in total size, Japan and some European countries have a higher exposure to the green economy.

Green Technology and Sustainability Market

The global green technology and sustainability market was valued at $11.49 billion in 2021 and is projected to grow from $13.76 billion in 2022 to $51.09 billion by 2029. That’s at a significant CAGR of 20.6%.

Solutions and services that are employed in this market include green building, crop monitoring, air and water pollution monitoring, and carbon footprint management. The future potential for this market is forecast to surge in developing economies and emerging markets. It is expected that many companies will pursue the capture of market share for their own green tech solutions. This will call for more global and domestic venture capital to ramp up the needed R&D spending to drive innovation in the sector. This also represents an opportunity for M&A deals to address growth strategies and the adoption of new technologies.

Green Packaging Market

The global green packaging market is seeing significant growth due to increasing awareness of sustainable living. Many healthcare and food & beverage companies are using packaging that is better for the environment. This type of raw packaging includes paper, glass, and metal that can be quickly recycled. However, it does come with higher production costs with the prices of raw materials, which is expected to be a challenge to growth. Still, people are increasingly aware and concerned about environmental impacts, something that is leading to higher demand for sustainable packaging and processing. Fortunately, sustainability initiatives have advanced a great deal, forcing manufacturers to downgrade materials to create thinner and lighter packaging and reduce waste. Legislative packaging regulations are also contributing to positive growth in the market globally.

The total global green packaging market is estimated to reach $353.2 billion by the year 2028. Its global market revenue was valued at $265.1 billion in the year 2021 and is expected to grow at a CAGR of 4.9% by 2028. Much of this growth is being driven by increased demand for sustainable packaging in the pharmaceutical industry. Also, growth in this space will continue to be driven by government regulations and initiatives.

Green Marketing Market

Green marketing is the marketing of products and services based on environmental factors and awareness. Companies that have adopted green marketing make all decisions regarding the company's products (processing, packaging, and distribution) based on green initiatives. Many of these practices are often part of a larger set of environmental, social, and governance (ESG) standards. The growth of the green market worldwide is being driven by sectors such as health, food and agriculture, natural resources, and industrial processing.

Green Building Materials Market

Green building materials enhance the sustainability and efficiency of a building in terms of design, construction, maintenance, and renovation. These materials are sourced from renewable waste products to be energy efficient, such as bamboo, straw bales, and recycled plastic, among many others. Green building materials reduce environmental impacts associated with installation, transportation, fabrication, processing, disposal, and recycling.

The green building materials market is being driven by increasing demand for structures with low greenhouse gas emissions, as well as lower operational and maintenance costs offered by the construction of green buildings due to less energy consumption. The global green building materials market was valued at $280.5 billion in 2021. The market is forecast to reach $523.7 billion by 2027, at a CAGR of 11.06%.

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com 

ABOUT BENCHMARK INTERNATIONAL

Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $8.25 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the #1 Sell-side, Privately Owned M&A Advisor in the World by Pitchbook’s Global League Tables.

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