The biodegradable packaging market involves the production and use of biodegradable materials like paper, plastic, and metals for packaging various products to increase their shelf life. Biodegradable packaging helps reduce the environmental impact of packaging waste as it breaks down and decomposes completely unlike conventional plastic that needs centuries to degrade. It is majorly used for packaging food and beverages, pharmaceuticals, and personal care products.
The biodegradable packaging market is estimated to be valued at USD 111.55 Bn in 2024 and is expected to reach USD 167.52 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6% from 2024 to 2031.
Key Takeaways
Key players operating in the biodegradable packaging 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, International Corp., Solenis, DuPont, Ball Corp, Novamont, Tetra Pak International SA, Biopak PTY, Imex Packaging, and Elevate Packaging Inc. Key players are focusing on developing novel biodegradable materials and packaging solutions to cater to the growing demand from various end-use industries.
The Biodegradable Packaging Growth is increasing significantly owing to the rising environmental concerns regarding plastic waste and stringent government regulations on the use of plastic packaging. Many organizations and brands are opting for biodegradable packaging to fulfill their environmental sustainability goals and improve their brand image.
Technological advancements like improving the barrier properties of biodegradable materials, development of nanocomposites, and bio-based polymers are further driving the growth of the biodegradable packaging market. Novel technologies help enhance the performance characteristics of biodegradable packaging making them a viable alternative to conventional packaging.
Market Trends
The adoption of bio-based and plant-based materials for packaging like paper, wood, agricultural waste is increasing in the biodegradable packaging market. These raw materials have lower carbon footprint and emissions as compared to petroleum-based plastics.
Customers are increasingly demanding sustainable packaging options which is promoting innovations in active and intelligent biodegradable packaging like antimicrobials, oxygen scavengers for increasing shelf-life without comprising on sustainability.
Market Opportunities
Growth in the food delivery and takeaway market during the pandemic has raised demand for sustainable food packaging creating opportunities for biodegradable packaging manufacturers and suppliers.
Rising focus on circular economy principles provides opportunities for companies to introduce recyclable and compostable flexible packaging like pouches, wraps made from biodegradable materials.
Impact of COVID-19 on Biodegradable Packaging Market Growth
The COVID-19 pandemic has adversely impacted the Biodegradable Packaging Market Regional Analysis. Government lockdowns and movement restrictions imposed during the initial stages of the pandemic disrupted supply chains and production activities. This led to a fall in demand for packaged goods across various end-use industries like food and beverages, industrial, medical and personal care. Lower consumer spending also limited the use of flexible and rigid biodegradable packaging products. However, with the focus on health and safety rising amid the pandemic, demand picked up for compostable and biodegradable food packaging to reduce the risk of virus transmission through reusable containers. Online grocery shopping and takeaway food also contributed to growth in biodegradable bags and packaging. Looking ahead, increased awareness about sustainability and environment protection is likely to support higher adoption of biodegradable alternatives to conventional plastics in the coming years. Manufacturers will need to ensure reliable supply chains and flexibility in production to cater to volatile demand trends in a post-COVID world.
Geographical Regions with High Concentration of Biodegradable Packaging Market
In terms of value, the biodegradable packaging market in Europe accounts for the major share currently. Strict regulations limiting the use of single-use plastics and promotion of bio-based and compostable items have driven faster adoption of biodegradable packaging in the region. Countries like Germany, UK, Italy, France and Spain contribute significantly to the European market. North America is another large and important regional market led by the US. Growth in the Asia Pacific region is forecast to be the fastest through the next decade. Rapid industrialization, growing food processing and pharmaceutical sectors, coupled with policy push for sustainable solutions are fueling market expansion in China and India. Improving consumer awareness about ecological packaging is also propelling the biodegradable packaging industry across developing Asian economies.
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