July 19, 2024

Plastic Packaging (Bags) Is The Largest Segment Driving The Growth Of Bioplastic Packaging Market

Market Overview:

Bioplastic packaging products are made from renewable resources such as corn starch, sugarcane, vegetable fats and oils, and are known for their lower carbon footprint, recyclability and compostability. They help reduce dependence on petroleum and lower greenhouse gas emissions.

Market key trends:

One of the major trends driving the growth of the bioplastic packaging market is the rising adoption of sustainable packaging solutions among end-use industries such as food and beverages, pharmaceuticals and cosmetics. These industries are increasingly preferring bioplastic packaging over conventional plastics due to growing concerns regarding environmental pollution and need for eco-friendly solutions. Factors such as biodegradability and renewability are increasing the demand for bioplastic packaging globally.
SWOT Analysis

Strength: Bioplastic packaging is a sustainable alternative to conventional plastics as they are produced from renewable sources like corn, sugarcane etc. They help reduce dependence on fossil fuels.
Weakness: Bioplastics have higher production costs than traditional plastics. Their properties like heat resistance, moisture resistance are still inferior compared to petroleum-based plastics.
Opportunity: Growing consumer awareness about environment protection and tightening regulations against single-use plastics present an opportunity for bioplastics market. Developing newer bioplastic materials with superior properties also presents new opportunities.
Threats: Established petrochemical industry lobby against bioplastics and fluctuating agricultural commodity prices affect the raw material supply of bioplastics.

Key Takeaways

The Global Bioplastic Packaging Market Size is expected to witness high growth, exhibiting a CAGR of 29.% over the forecast period, due to increasing regulations banning single-use plastics in many countries. The European Union passed a directive in 2019 banning single-use plastic items like straws, cotton buds, cutlery, plates by 2021. Such directives are fueling demand for bioplastic packaging alternatives.

The Asia Pacific region dominated the global market in 2023 with a share of around 35%, owing to favorable government policies supporting bioplastics and presence of agriculture-based economies like India and China. Europe is the second largest market for bioplastic packaging due to high recycling rates and strict regulations against single-use plastics. Stringent norms by the European Commission aim to make all plastic packaging recyclable or reusable by 2030, boosting regional market.

Key players operating in the bioplastic packaging market are BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company. BASF is one of the leading players and offers various bioplastic resins and blends like Ecoflex, ecovio, ultrashield etc. for packaging applications. DSM also has a comprehensive portfolio including packaging grades of PHA (polyhydroxyalkanoates), PLA (polylactic acid).

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it