Bio-degradable Packaging Market: Global Size, Share, Trends, Growth and Forecast Outlook 2022-2032
Bio-degradable Packaging Market : Overview and Definition
The global bio-degradable packaging market size was USD 10.8 billion in 2021. The market is projected to reach USD 35.5 billion by 2032, at a CAGR of 13.1% during the forecast period 2022-2032. Biodegradable packaging is manufactured using biopolymers, which are molecules often found in living organisms, like cellulose and proteins. Biopolymers are used to produce an ample variety of biodegradable packaging, from containers with lids to films. Bio-degradable packaging materials with short decomposition rates are capable of being decomposed by the action of biological processes. The market for bio-degradable packaging adoption is growing at an optimized pace across multiple industries such as consumer goods, food & beverages and more.
The biodegradable packaging market is a rapidly growing sector driven by increasing demand for eco-friendly packaging solutions. Biodegradable packaging is made from natural materials that can decompose and break down into the environment without causing harm. The use of biodegradable packaging can help to reduce waste, decrease the carbon footprint, and lower the amount of harmful chemicals released into the environment.
Based on material type, the biodegradable packaging market can be segmented into starch-based, cellulose-based, and others. The starch-based segment dominated the market in 2020, accounting for over 40% of the total market share. This can be attributed to the widespread use of starch-based materials such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA) in various applications.
Bio-degradable Packaging Market : Key Drivers
The biodegradable packaging market is being driven by several key factors that are contributing to its rapid growth. Some of the major drivers of the market include:
Increasing Demand for Eco-Friendly Packaging: The demand for eco-friendly packaging solutions is increasing rapidly as consumers become more aware of the impact of plastic waste on the environment. Biodegradable packaging provides an alternative solution that can help to reduce waste, decrease the carbon footprint, and lower the amount of harmful chemicals released into the environment.
Government Regulations and Initiatives: Governments around the world are taking initiatives to reduce plastic waste and promote sustainable packaging solutions. For example, the European Union has set a target to make all packaging in the EU recyclable or reusable by 2030, and several countries have implemented taxes on plastic bags and other single-use plastics. These initiatives are driving the demand for biodegradable packaging solutions.
Growing Awareness about Sustainability: Consumers are becoming more aware of the impact of their choices on the environment and are seeking out products that are more sustainable. This trend is driving the demand for biodegradable packaging solutions, as consumers are increasingly choosing products that are packaged in a way that is more environmentally friendly.
Increasing Use in Food and Beverage Industry: The food and beverage industry is a major user of packaging materials, and there is a growing trend towards using biodegradable packaging in this sector. This is being driven by factors such as increased consumer demand for sustainable packaging solutions and the need to comply with government regulations.
Technological Advancements: Technological advancements are making it easier and more cost-effective to produce biodegradable packaging materials. For example, advances in the production of bio-based plastics are making them a more viable alternative to traditional petroleum-based plastics.
Growing Shift Towards Eco-friendly Packaging
The most used material for packaging is plastic. Despite the ease of producing plastic packaging materials, there are multiple environmental consequences, like long decomposition rates and damage to natural ecosystems. The hasty increase in non-biodegradable packaging waste has caused adverse environmental concerns, which has made the world concerned about the overuse of plastics packaging. Consumers are becoming environmentally aware and looking forward to minimizing their participation in rising environmental pollution. The companies across many sectors are increasingly using eco-friendly packaging materials such as metals, biopolymers and more. Further, this growing shift from conventional packaging to more sustainable and eco-friendly packaging materials, it is expected that the global bio-degradable market will have an optimistic future ahead.
Government Support & Initiatives
Governments across the countries worldwide are playing a vital role in promoting eco-friendly packaging. Pollution limiting has become one of the major priorities of most countries and the governments in these countries are strongly focusing on limiting the excessive use of plastic and other environmentally hazardous packaging materials. For instance, the government in Indian asked the e-commerce companies to stop using plastic in packaging products. More than an E-commerce trend, eco-friendly packaging is being supported more and more by governments around the world, which in turn is expected to bolster the growth of bio-degradable packaging market in coming years.
Bio-degradable Packaging Market : Challenges
While the biodegradable packaging market is growing rapidly, there are also several challenges that need to be addressed. Some of the major challenges facing the market include:
Higher Cost: Biodegradable packaging materials are generally more expensive than traditional plastics. This higher cost can make it more difficult for manufacturers to adopt biodegradable packaging solutions, especially in industries where profit margins are already low.
Limited Availability of Raw Materials: The availability of raw materials for biodegradable packaging is limited, which can create supply chain challenges. The production of bio-based plastics requires significant amounts of land and other resources, which can limit the availability of these materials.
Performance Limitations: Biodegradable packaging materials can have performance limitations compared to traditional plastics. For example, they may not be as durable or have the same barrier properties. This can limit their use in certain applications, such as packaging for highly sensitive products.
Lack of Clear Regulations and Standards: There is a lack of clear regulations and standards for biodegradable packaging, which can make it difficult for manufacturers to navigate the market. This can also create confusion among consumers about what biodegradable packaging means and how to dispose of it properly.
Misconceptions and Misuse: There is a risk that biodegradable packaging may be misused or disposed of improperly, which can lead to negative environmental impacts. For example, if biodegradable packaging is not disposed of properly, it may not break down as intended and can still contribute to plastic pollution.
Bio-degradable Packaging Market : Report Scope
Base Year Market Size
Forecast Year Market Size
Bio-degradable Packaging Market : Segmentation
The research offers a comprehensive analysis of bio-degradable packaging market with respect to following sub-markets:
By Packaging Type
- Food & Beverage Packaging
- Pharmaceuticals Packaging
- Personal & Home Care Packaging
• North America (U.S. & Canada)
• >Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
• Asia Pacific (China, India, Japan, South Korea, Indonesia, Australia, New Zealand and Rest of Asia Pacific)
• >Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
• Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
Bio-degradable Packaging Market : Regional Synopsis
The biodegradable packaging market is experiencing strong growth worldwide, with significant demand for sustainable packaging solutions in various regions. Here's a brief overview of the biodegradable packaging market in different regions:
North America: The North American biodegradable packaging market is expected to grow at a significant rate due to increasing demand for eco-friendly packaging solutions and government initiatives to reduce plastic waste. The United States is the largest market for biodegradable packaging in the region, with a growing number of manufacturers offering biodegradable packaging products.
Europe: Europe is the largest market for biodegradable packaging, accounting for over 40% of the total market share. This can be attributed to the strict government regulations and initiatives to promote sustainable packaging solutions in the region. Countries like Germany, France, and the UK are major players in the biodegradable packaging market in Europe.
Asia Pacific: The Asia Pacific region is expected to experience strong growth in the biodegradable packaging market due to increasing consumer awareness about sustainable packaging and government initiatives to reduce plastic waste. Countries like China and India are major players in the market due to their large population and growing demand for eco-friendly products.
Middle East and Africa: The Middle East and Africa region is expected to experience moderate growth in the biodegradable packaging market due to increasing environmental concerns and government initiatives to reduce plastic waste. The market in this region is still in its early stages, with limited adoption of biodegradable packaging solutions.
South America: The South American biodegradable packaging market is expected to grow at a moderate rate due to increasing demand for eco-friendly products and government initiatives to reduce plastic waste. Brazil is a major player in the market due to its large population and growing demand for sustainable packaging solutions.
Bio-degradable Packaging Market : Key Players
- BASF SE
- The International Paper Company
- Mondi plc
- Smurfit Kappa Group plc
- Stora Enso Oyj
- MeadWestvaco Corporation
- NatureWorks LLC
- Mayr-Melnhof Karton AG
Bio-degradable Packaging Market : Recent Developments
The biodegradable packaging market is constantly evolving and there have been several recent developments in the industry. Here are some of the notable developments:
Increased Investment in Research and Development: There has been a significant increase in investment in research and development of biodegradable packaging materials. This has led to the development of new and innovative materials that are more sustainable, cost-effective, and have improved performance.
Partnerships and Collaborations: There have been several partnerships and collaborations in the biodegradable packaging market between manufacturers, suppliers, and other stakeholders. These collaborations are aimed at developing new materials, increasing the availability of raw materials, and improving the sustainability of the packaging supply chain.
Expansion of Production Facilities: Several manufacturers of biodegradable packaging have expanded their production facilities to meet the growing demand for sustainable packaging solutions. For example, in 2020, Danimer Scientific opened a new manufacturing plant for biodegradable plastic in Georgia, USA.
Launch of New Products: There have been several new product launches in the biodegradable packaging market, including new materials, products, and packaging solutions. For example, in 2021, Nestle launched a new biodegradable coffee capsule made from plant-based materials.
Advances in Recycling Technologies: There have been significant advances in recycling technologies for biodegradable packaging materials. For example, researchers have developed a new process that uses enzymes to break down plant-based plastics, which can then be recycled and used to create new products.