by The Biodegradable Packaging market is estimated to be valued at US$ 12,121.8 Mn in 2023 and is expected to exhibit a CAGR of 20.8% over the forecast period, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biodegradable packaging includes packaging materials that can breakdown in a composting environment. It is widely used for food packaging, pharmaceutical packaging and various other applications. Key products in biodegradable packaging market includes plastic, paper, and bioplastics. Plastic biodegradable packaging includes materials like polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS) etc. These plastics are FDA approved and suitable for food packaging applications.
Market Dynamics:
The Biodegradable Packaging Market Growth is driven by increasing concerns regarding plastic pollution across the globe. Plastic pollution has severe negative impact on environment as plastics do not degrade easily. According to United Nations Environment Programme (UNEP), around 300 million tons of plastic waste is generated globally every year out of which only 9% gets recycled while the rest enters in oceans or landfills. This plastic waste degrade very slowly, entering food-chain and causing severe health issues. Moreover, governments across various countries are imposing strict regulations banning single use plastics. For instance, in 2019 European Union imposed a ban on single use plastic items like straws, cutlery, plates etc. due to environmental concerns. Such initiatives and regulations are fueling adoption of biodegradable packaging solutions. Additionally, growing consumer preference for sustainable packaging is also propelling market growth. However, high production cost of biodegradable packaging as compared to conventional plastics is a major challenge.
SWOT Analysis
Strength: Biodegradable packaging is an environmentally friendly alternative to single-use plastic packaging. It decomposes quickly without harming the environment. Biodegradable packaging made from paper and plant-based materials are as effective as traditional plastic in protecting products. Switching to biodegradable packaging helps companies appeal to eco-conscious consumers and improve their brand image.
Weakness: Biodegradable packaging materials like paper and plant-based plastics are generally more expensive than traditional plastic. The production technologies for biodegradable packaging are still evolving and costs may remain higher than fossil fuel-based plastics. Biodegradable packaging needs to break down completely and may not do so in all environments like landfills.
Opportunity: Regulatory push towards banning single-use plastics in many countries presents a massive market opportunity for biodegradable alternatives. Growing consumer demand for sustainable products also encourages packaging companies and retailers to switch to biodegradable options. Partnerships between bioplastics producers and packaging converters can help address sustainability goals across supply chains.
Threats: Established petrochemical industry lobbies against plastic bans and legislation favoring bioplastics. Cheap virgin plastic continues to dominate the mainstream packaging market. Slow scale-up of bioplastics production limits their price competitiveness against traditional plastics.
Key Takeaways
The global biodegradable packaging market is expected to witness high growth, exhibiting a CAGR of 20.8% over the forecast period, due to increasing regulatory push for phasing out single-use plastics and growing consumer demand for eco-friendly products. The market size for biodegradable packaging was valued at US$ 10,101.7 Mn in 2021.
Regional analysis: North America dominated the biodegradable packaging market in 2021 due to stringent regulations restricting plastic waste in the region. Asia Pacific is expected to witness the fastest growth during the forecast period supported by a growing packaging industry, large consumer base, and initiatives to curb plastic pollution in countries like India and China.
Key players: Key players operating in the biodegradable packaging market are BASF SE, Smurfit Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation, Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited, and International Corp. These companies are focusing on expanding their bioplastics and paper-based packaging portfolios through acquisitions and new product development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
