Biodegradable Packaging Market Expected to Expand at a Steady 2022-2030


The biodegradable packaging market was valued at USD 81.7 billion in 2020, and it is expected to reach USD 117.8 billion by 2027, registering a CAGR of 6.3during the period 20212027Biodegradable packaging solutions are increasingly finding applications in various industries due to their low environmental impact and high demandBiodegradable packaging made from renewable resources reductions dependence on petroleum and reduces the amount of waste material while still yielding a product that provides similar benefits to traditional plasticsThese products are usually made of renewable raw materials, such as starch and celluloseMoreover, biodegradable plastic can decompose into inorganic compounds, CO2, methane, and water, by the enzymatic action of microorganisms.

Besides, growth in biodegradable production is poised to drive biodegradable packaging adoption in various applicationsDemand for biodegradable packaging is increasing currently and is expected to continue to progress as businesses are now utilizing packaging as a medium to promote their sustainability initiatives, along with their products.

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Moreover, starchbased plastics are being enhanced by using starch as a biodegradable feedstock to make other biopolymers and has successfully developed viable replacements for petroleumbased plasticsFor instance, major beverage players, such as Carlsberg, are leading the way by actively supporting research into biodegradable beverage bottle innovationsIts partnership with EcoXpak has resulted in developments regarding zerowaste material use, which aligns with its goal to create a 100biodegradable beverage bottle made from green fiber.

Global Biodegradable Packaging Market Dynamics

DriversGrowing Conscientious Population

Rising consumer awareness regarding the environmental effect of packaging products and a willingness to replace packaging materials with alternatives with a lower carbon footprint or made from renewable resources are the main drivers for developing and using these materials.

Increasing awareness is driving innovation in Biodegradable packaging, as federal institutions to are taking part in the innovation of Biodegradable packaging solutionsFor instance, a publicprivate partnership between the European Commission and the biobased Industries Consortium (BIChas launched the FRESH project funded by the BioBased Industries Joint Undertaking (BBI JU).

Challenges: Growing Investments in NonBiodegradable and Recyclable Packaging Solutions

Recyclability is expected to be the greatest challenge, as more companies that use packaging products are focusing on recyclable, reusable packagingCompared to a 5market share of biodegradable packaging, the recyclable packaging segment occupied a whopping 79market share in 2017Moreover, recyclable packaging is expected to maintain a significant lead in the upcoming years.

Compared to a 5market share of biodegradable packaging, the recyclable packaging segment occupied a whopping 79market share in 2017Moreover, recyclable packaging is expected to maintain a significant lead in the upcoming yearsFurther, the agenda targets singleuse plastics to eliminate themThis policy is expected to act as the greatest challenge for adopting biodegradable packaging solutions in Europe.

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Scope of the Report

The study categorizes the biodegradable packaging market based on material type and application and application at the regional and global levels.

By Material Type Outlook (Sales/Revenue, USD Million, 20172027)

  • Plastic
    • StarchBased Plastics
    • Polylactic Acid (PLA)
    • Polyhydroxyalkanoates (PHA)
    • Other Plastics
  • Paper
    • Kraft Paper
    • Flexible Paper
    • Corrugated Fiberboard
    • Boxboard

By Application Outlook (Sales/Revenue, USD Million, 20172027)

  • Food Packaging
  • Beverage Packaging
  • Pharmaceutical Packaging
  • Personal Care/Homecare Packaging
  • Other Applications

By Region Outlook (Sales/Revenue, USD Million, 20172027)

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

The paper segment by material type is projected to account for the largest market share

Based on material type, the global biodegradable packaging market is divided into plastic and paperIn 2020, the paper segment accounted for the largest market share of 95.1in the global biodegradable packaging marketThe increasing demand for packaged and fast food, driven by the development of retail infrastructures in emerging economies, fuels the global biodegradable packaging materials marketFlexible paper packaging is gaining popularity in many countries, as it is ecofriendly and costeffective.

The retail market is a crucial driver for the demand for flexible packaging papers used in retailers’ packaging of various productsMacroeconomic indicators, such as the booming economy and increased household consumption and demographic factors, such as population growth, globalization, and urbanization, significantly affect the retail trends and influence flexible packaging paper consumption, thereby fostering the market growth.

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Asia Pacific accounts for the highest CAGR during the forecast period

Based on the regions, the global biodegradable packaging market has been segmented across North America, AsiaPacific, Europe, South America, and the Middle East & AfricaGlobally, Asia Pacific is estimated to hold the highest CAGR of 7.7in the global biodegradable packaging market during the forecast periodIn the Asia Pacific, Chinese consumers are becoming increasingly environmentfriendly, and various brands are pushing the agenda and promoting earthfriendly productsFor instance, a survey was conducted by the China Chain Store Association, wherein about 70of the respondents said that they are willing to pay a premium to curb the pollutionAs a result, it is likely to impact the market growth over the forecast period positively.

Moreover, India is one of the fastest emerging countries globally, with rapid investment in various industriesCompanies, such as Biogreen, only offer biodegradable products to the industries, which further helps promote green packaging, thereby complementing the market growth.

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Key Market Players

Every company follows its business strategy to attain the maximum market shareCurrently, Tetra Pak International SA, Kruger Inc., Amcor Limited, Mondi PLC, Biopac Limited, Plastic Suppliers Inc., International Paper Company, Bemis Company Inc., DS Smith PLC, Klabin SA, Rengo CoLtd, and Smurfit Kappa Group PLC are some of the leading players operating in the global biodegradable packaging market.

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