- Summary
- Table Of Content
- Methodology
Biodegradable Packaging Market Introduction :
Consegic Business Intelligence analyzes that the Biodegradable packaging Market size is growing with a CAGR of 4.9% during the forecast period (2024-2031). The market accounted for USD 103.25 billion in 2023 and it is projected to be valued at USD 150.82 Billion by 2031.
Biodegradable Packaging Market Definition & Overview :
Biodegradable packaging is a type of packaging designed to break down naturally and safely in the environment. Unlike traditional packaging materials, which take hundreds or thousands of years to decompose, this packaging is made from materials that are broken down by microorganisms in the soil or water. This packaging refers to product packaging made of materials that break down quickly upon disposal without causing harm to the climate, oceans, or the environment. Its purpose is to reduce the environmental impact associated with packaging by ensuring that it degrades naturally over time. It usually refers to the packaging material that can be broken down and decomposed naturally by microorganisms such as bacteria or fungi.
Packaging plays a vital role in protecting the shelf life of the food material as well as protecting the product. Plastic is a widely used packaging material. Traditional plastic is derived from petroleum derivatives and it takes hundreds of years to decompose. Due to its adverse environmental effects, biodegradable material is highly considered as a packaging material. The packaging is decomposed naturally and no harmful residues are left behind. Production of this packaging uses fewer resources, which leads to lower greenhouse emissions. Various materials such as plant based plastics which include cornstarch and cellulose are used in the production of biodegradable plastic.
Biodegradable Packaging Market Insights :
Biodegradable Packaging Market Dynamics - (DRO) :
Key Drivers :
Increased preference towards biodegradable packaging is fuelling the market growth
The environmental effects of conventional packaging materials, such as plastics, which frequently contribute to pollution and damage ecosystems, are becoming more and more apparent to people. Since biodegradable packing materials decompose naturally and leave less of an environmental footprint over time, they are thought to be more environmentally friendly. Biodegradable materials easily break down in a matter of months or years when they are made from naturally occurring sources, such as plant fibers or mushroom mycelium. They are easily transformed by microorganisms into organic matter, which enriches the soil rather than piling up garbage.
This packaging is an environment-friendly substitute for conventional packaging materials, with a wide range of applications across several industries. Moreover, Eco-friendly substitutes for typical plastic wraps used extensively in the food sector are biodegradable wraps. The natural decomposition and breakdown of the materials used to make these wraps lessens their influence on the environment. Suitable options for biodegradable package wraps are compostable films, which are made from renewable materials like cornstarch or plant fibers. They serve several functions, including offering an environmentally friendly way to store food and wrapping sandwiches, fresh produce, and baked goods. In the larger endeavor to lessen single-use plastics and encourage ecologically friendly packaging methods, companies involved in the production of packaging materials are creating biodegradable materials for packaging.
For instance, In 2020, a US-based firm called Peel On created Peel on-Fresh, a plant-based, biodegradable packaging material. Peel ON-Fresh prolongs the shelf life of most fruits and vegetables by up to 100% as well as is 100% biodegradable.
Thus, the increase in the use of biodegradable products for packaging is driving the biodegradable packaging market growth and trends.
Increasing awareness of environmental issues associated with conventional packaging materials is propelling the demand for these packaging
Environmental issues present serious risks, which is why citizens, activists, and legislators are searching for options that cut waste and carbon emissions. Conventional packaging options posseses long-lasting detrimental effects on the environment, especially those composed of polymers derived from petroleum. These materials contribute to greenhouse gas emissions, wind up in landfills, and take millennia to break down. The growing focus on sustainability is evolving from rhetoric to practical steps and is now seen as a business requirement. Enterprises seeking to improve their operations with worldwide sustainability targets are progressively resorting to these packaging options strategic measures to accomplish those goals. In this situation, choosing this packaging represents a commitment to a global cause rather than just a personal preference. Government initiatives and programs regarding environmental changes are also the reasons for increasing awareness about the use of biodegradable and sustainable packaging.
For instance, According to the Ministry of External Affairs, Government of India, in July 2023, the ban on single-use plastic products was introduced to reduce global warming and the adverse effects of plastic on the ecosystem.
Thus, rising awareness about the negative effects of plastic and plastic products is boosting the biodegradable packaging market.
Key Restraints :
Difficulties in the recycling process are limiting the market growth
One of the major restraints to the widespread use of biodegradable plastics is their high cost of production and recycling. Biodegradable plastics are usually obtained from renewable resources like plant starches or sugarcane, as opposed to regular plastics, which are frequently made from easily accessible and reasonably priced petrochemicals. Higher manufacturing costs result from more complicated and resource-intensive production procedures for biodegradable plastics.
Additionally, recycling biodegradable plastics presents difficulties. While the infrastructure for recycling conventional plastics is well-established, distinct facilities and procedures are needed for recycling biodegradable plastics. Similarly, biodegradable plastics pose risk of contaminating the recycling process and require particular conditions to break down if they find their way into conventional recycling processes.
Moreover, the expenses associated with gathering, classifying, and manipulating biodegradable plastics for recycling frequently surpass those of conventional plastics. The economic viability of recycling biodegradable plastics thus becomes an important consideration for waste management systems as well as manufacturers. Thus, manufacturing biodegradables is often more expensive than traditional plastics, especially with smaller production volumes which hinders the expansion of the biodegradable packaging market.
Future Opportunities :
Advancements and innovations are expected to boost the market growth in upcoming years
Advancements and innovations in this packaging are rapidly evolving in response to the global environmental concerns associated with traditional plastic packaging and are expected to create lucrative opportunities and biodegradable packaging market trends in the coming years. The utilization of novel materials made from renewable resources, such as plant-based polymers like polylactic acid (PLA) and polyhydroxyalkanoates (PHA), is one advancements. These materials lessen the long-term effects of plastic pollution because they not only have qualities that are comparable to or better than those of traditional plastics, but they also decompose more quickly in natural settings.
Furthermore, by adding chemicals that quicken the breakdown process or creating composite materials that combine the strength of conventional plastics with the biodegradability of organic materials, researchers have been able to increase the biodegradability of packaging. Additionally, businesses are looking into ways to manage this packaging at the end of its useful life more optimally so that it breaks down effectively in a variety of waste management systems. These developments address the growing concerns about the ecological impact of typical plastic materials and help to create packaging that is more ecologically friendly and sustainable.
For instance, In March 2024, Fedrigoni Self-Adhesives announced its new range of compostable self-adhesive materials, developed with the aim of providing high-performance labels for fully compostable packaging.
Thus, these advancements and innovations are driving the biodegradable packaging market opportunities and trends.
Biodegradable Packaging Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 150.82 Billion |
| CAGR (2024-2031) | 4.9% |
| By Type | Paper (Rigid, Flexible) and Plastic (Starch, Cellulose, PLA, PHA, and Others) |
| By Material | Bioplastic, Cornstarch, Seaweeds, Mushroom, and Others |
| By Application | Bottles, Cups, Boxes and cartons, Bags, Wraps, Others |
| By End-use Industry | Food and Beverages, Pharmaceuticals, Personal care, Others |
| By Region | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | Evergreen packaging, Smurfit Kappa Group, Amcor plc, International Paper, Mondi, WestRock, Green Pack, Kruger Inc, Ranpak, Tetrapak, and Pactiveevergreen |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Biodegradable Packaging Market Segmental Analysis :
Based on the Type :
The type is categorized into paper and plastic. Paper is further bifurcated into rigid and flexible. Plastic is further bifurcated into starch, cellulose, polylactic acid, polyhydroxyalkanoates, and others. In 2023, paper accounted for the highest biodegradable packaging market share. Paper packaging or paper-based containers are biodegradable, recyclable, and a sustainable alternative to traditional plastic packaging. Paper is made from trees, a renewable resource that is sustainably managed. Compared to traditional plastic its production and disposable generates significantly lower greenhouse emissions. Moreover, based on the analysis, unlike plastic, paper naturally decomposes without leaving harmful microplastics behind. Paper is a recyclable material, which often boosts recycling rates above 70%. Paper tends to be molded into various shapes and sizes, making it suitable for a wide range of products for packaging.
For instance, In September 2023, ProAmpac launched the ProActive RP 1000 HB paper packaging solution. It provides a high barrier against moisture and oxygen, increasing the shelf-life of the product and helping to keep the food items fresh.
Thus, these advancements are boosting the biodegradable packaging market demand and trends of the paper packaging segment globally.
Moreover, the plastic segment is expected to grow at the fastest CAGR in the overall biodegradable packaging market. Plastic materials made from natural sources replace conventional plastic materials as they are biodegradable and a sustainable alternative. Bioplastics are materials derived from renewable resources like plants, bacteria, or algae. Bioplastics reduce the reliance on fossil fuels and their associated greenhouse gas emission compared to traditional plastic. As per the analysis, bioplastics offer strength, flexibility, and barrier protection which make them ideal for packaging.
For instance, In October 2023, Stora Enso launched containers for hazardous waste collection. These containers have low carbon emissions (lower by 66% as compared to traditional plastic).
Thus, these factors are boosting the demand and trends for the plastic segment globally.
Based on the Material :
The type is categorized into bioplastic, cornstarch, seaweed, mushroom, and others. In 2023, the bioplastics segment accounted for the highest market share in the biodegradable packaging market. Bioplastic packaging is a sustainable alternative to traditional plastic packaging, derived from renewable resources such as plants, starches, or agricultural by-products. Unlike conventional plastics, bioplastics have the potential to degrade naturally, reducing the environmental burden associated with plastic waste. They are designed to be compostable or biodegradable, offering a more eco-friendly option. As per the analysis, bioplastic decomposes under natural conditions and emits fewer greenhouse gases which makes packaging with biodegradable material a preferred choice as a packaging material.
For instance, In May 2021, TerraVerdae, launched its bioplastic line of PHA-based resin. These resins are biodegradable and sustainable, making it a sustainable plastic alternative. Thus, these factors are boosting the bioplastic segment.
However, the mushroom segment is expected to grow at the fastest CAGR in the overall biodegradable packaging market. Mushroom mycelium packaging involves using the network of thread-like structures from fungi, known as mycelium, to create sustainable packaging materials. As per the analysis, mycelium is easily grown on agricultural waste, forming a sturdy and customizable material that can be molded into various shapes to replace traditional packaging, such as foam or plastic. This eco-friendly alternative has gained attention for its minimal environmental impact, as mycelium packaging is compostable and can even be used as fertilizer. It represents a promising avenue for reducing reliance on non-biodegradable materials in packaging applications.
For instance, In 2023, Ecovative launched its new mushroom mycelium-based lines called MycoComposite, offering an alternative for plastic foams for protective packaging. Thus, these innovations are expected to boost the mushroom segment trends.
Based on the Application :
The application is categorized into bottles, cups, boxes and cartons, bags, wraps, and others. In 2023, boxes and cartons accounted for the highest market share in the biodegradable packaging market. The packaging made from boxes and cartons are eco-friendly alternative to traditional packaging materials. These materials typically break down naturally, reducing environmental impact. As per the analysis, boxes and cartons have become a preferred packaging choice, because of their ability to deliver protection for tough handling products.
For instance, According to the European Commission Report, in 2023, The European corrugated board market is expected to reach USD 24 billion by 2026, driven by the expansion of e-commerce and the increasing demand for sustainable packaging solutions.
Due to affordability, functionality, and sustainability, the boxes and cartons are leading to the dominance of this segment.
Moreover, the bottles segment is expected to grow at the fastest CAGR in the overall biodegradable packaging market. Biodegradable bottles are environment-friendly containers for water and beverages designed to break down naturally, causing fewer environmental hazards. Owing to this, beverage companeris are also adopting biodegradable bottles for the packaging of their drinks.
For instance, In 2023, Coca-Cola announced launch of its sustainable bottle. It is the first-ever beverage bottle made from plant based plastic.
Thus the advancements in biodegradable bottles are driving the demand and trend for the growth of the segment.
Based on the End-Use Industry :
The end use industry segment is categorized into food and beverages, pharmaceuticals, personal care, and others. In 2023, the food and beverages segment accounted for the highest market share in the overall biodegradable packaging market of 48.77% and it is expected to grow at the fastest CAGR in the overall biodegradable packaging market. As per the analysis, the food and beverages industry is increasingly approving sustainable packaging to address environmental concerns. Biodegradable materials, such as compostable plastics and plant-based packaging, aim to decrease the environmental influence of packaging waste. This change lines up with the growing consumer demand for sustainable practices in the industry.
For instance,In May 2023, BASF launched its biopolymer ecovio, for paper-based packaging of hot and cold drinks, snacks, and food wrapping paper.
Thus, the significant growth in the food and beverage packaging industry is boosting the segment growth.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2023, Europe accounted for the highest market share at 34.85% valued at USD 35.98 Billion in 2023, it is expected to reach USD 52.98 Billion in 2031. In Europe, Germany accounted for a major market share of 23.05% in the year 2023. Based on the biodegradable packaging market analysis, European consumers are more aware of environmental issues and tend to prioritize sustainability when making sustainable decisions. Well-developed recycling and composting infrastructure facilitates the proper disposal and decomposition of products are the factors that drive the biodegradable market. Moreover, numerous public institutions and government agencies across Europe prioritize sustainable packaging. Thus, these factors are driving the growth of the region. Additionally, consumers are willing to pay more for products packaged sustainably, encouraging companies to invest in biodegradable alternatives.
For instance, According to the report published by the United States Department of Agriculture, on September 06, 2022, "Zero Waste" is one of the top five consumer trends in Germany 2022-2023 and more than 2/3rd of German consumers are calling on companies to behave as environmentally conscious as possible, for example by using environmentally friendly materials.
Furthermore, the Asia Pacific region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.4% during 2023-2031. Consumers in Asia Pacific are becoming increasingly aware about the environmental issue and harmful impact of plastic pollution. Moreover, governments across the region are implementing stricter regulations regarding plastic waste and promoting greener alternatives. Thus, awareness and government initiatives are driving the growth of the market.
Top Key Players & Market Share Insights :
The global biodegradable packaging Market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The biodegradable packaging industry is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships.
The key players in the market include-
Recent Industry Developments :
- In November, 2023, Roberts Mart launched it new compostable packing film to dispose of packaging material.
Key Questions Answered in the Report
What was the market size of the Biodegradable packaging Market in 2023? +
In 2023, the market size of biodegradable packaging was USD 103.25 billion.
What will be the potential market valuation for the biodegradable packaging industry by 2031? +
In 2031, the market size of biodegradable packaging will be expected to reach USD 150.82 billion.
What are the key factors driving the growth of the Biodegradable packaging Market? +
Increased preference towards biodegradable packaging.
What is the dominant segment in the Biodegradable packaging Market for the end user? +
In 2023, the food and beverages segment accounted for the highest market share of 48.77% in the overall Biodegradable packaging Market.
Based on current market trends and future predictions, which geographical region is the dominant Biodegradable packaging region in the Biodegradable packaging Market? +
Europe accounted for the highest market share in the overall market.
