April 18, 2024

Global Biodegradable Packaging Is Estimated To Witness High Growth Owing To Increasing Demand For Sustainable And Eco-Friendly Packaging Materials

Market Overview:

Biodegradable packaging refers to the packaging materials that can break down and decompose when exposed to microorganisms and oxygen. It includes materials such as paper & paperboard, plastic and jute. These materials are used to pack food & beverage products, pharmaceuticals and agricultural goods. They provide similar protective functions as conventional plastics while ensuring safety in disposal with no harmful emissions.

Market Dynamics:

The growth of the global biodegradable packaging market is majorly driven by increasing awareness about eco-friendly and sustainable packaging solutions. Consumers are shifting their preference towards green packaging to reduce environmental impact. Moreover, stringent government regulations regarding use of conventional plastics is further propelling the demand for biodegradable alternatives. For instance, European Union has imposed ban on single-use plastic items.

Another major driver is growth in food & beverage industry worldwide. Biodegradable packaging materials like paper are widely used in packaging of foods, beverages and medicines. Rising disposable incomes coupled with changing lifestyles have fueled the demand for packaged and convenient foods, thereby boosting adoption of biodegradable packaging.

SWOT Analysis

Strength: Biodegradable packaging is eco-friendly and sustainable as it decomposes without harming the environment. It offers branding opportunities to companies by highlighting their commitment to sustainability. Being plant-based, biodegradable packaging is renewable and does not deplete limited natural resources like fossil fuels.

Weakness: Biodegradable packaging has high production costs compared to conventional plastics. There is a lack of infrastructure for collection and commercial composting of biodegradable waste at scale. The degradation process of some bioplastics is slow and they may not fully decompose without the right commercial composting conditions.

Opportunity: Stringent government regulations banning single-use plastics and policies encouraging sustainable alternatives present a massive market opportunity. Growing consumer preference for eco-friendly products is driving demand. New technologies to bring down costs and improve performance of biodegradable materials will boost their large-scale adoption.

Threats: Limited supply of biomass feedstock for producing bioplastics increases their price volatility. Conventional plastic packaging industry exerts strong lobbying against pro-sustainability policies. Customers may perceive biodegradable packaging as less durable than plastics.

Key Takeaways

The Global Biodegradable Packaging Market Demand sssis expected to witness high growth, exhibiting CAGR of 20% over the forecast period, due to increasing consumer demand for sustainable packaging and stringent regulations against single-use plastic usage.

Regional analysis: North America dominated the biodegradable packaging market in 2023 due to strict laws promoting alternatives to petroleum-based plastics. Asia Pacific is anticipated to be the fastest growing market exhibiting a CAGR of 25% owing to rapid industrialization and rise of e-commerce sector in China, India triggering packaging needs.

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. The market is highly competitive with these industry leaders constantly investing in R&D to make bioplastics more cost effective and suitable for various applications.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research

    2. We have leveraged AI tools to mine information and compile it