Biodegradable Packaging Market Portrays Is Booming Worldwide Business Forecast 2027

Description

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 6.3% during the period 2021-2027. Bio-degradable packaging solutions are increasingly finding applications in various industries due to their low environmental impact and high demand. Bio-degradable 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 plastics. These products are usually made of renewable raw materials, such as starch and cellulose. Moreover, bio-degradable plastic can decompose into inorganic compounds, CO2, methane, and water, by the enzymatic action of microorganisms.

Besides, growth in bio-degradable production is poised to drive bio-degradable packaging adoption in various applications. Demand 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.

Moreover, starch-based plastics are being enhanced by using starch as a bio-degradable feedstock to make other biopolymers and has successfully developed viable replacements for petroleum-based plastics. For instance, major beverage players, such as Carlsberg, are leading the way by actively supporting research into bio-degradable beverage bottle innovations. Its partnership with EcoXpak has resulted in developments regarding zero-waste material use, which aligns with its goal to create a 100% biodegradable beverage bottle made from green fiber.

Global Biodegradable Packaging Market Dynamics

Drivers: Growing 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 solutions. For instance, a public-private partnership between the European Commission and the bio-based Industries Consortium (BIC) has launched the FRESH project funded by the Bio-Based Industries Joint Undertaking (BBI JU).

Challenges: Growing Investments in Non-Biodegradable and Recyclable Packaging Solutions

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

Compared to a 5% market share of bio-degradable packaging, the recyclable packaging segment occupied a whopping 79% market share in 2017. Moreover, recyclable packaging is expected to maintain a significant lead in the upcoming years. Further, the agenda targets single-use plastics to eliminate them. This policy is expected to act as the greatest challenge for adopting bio-degradable packaging solutions in Europe.

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, 2017-2027)

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

By Application Outlook (Sales/Revenue, USD Million, 2017-2027)

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

By Region Outlook (Sales/Revenue, USD Million, 2017-2027)

• 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 paper. In 2020, the paper segment accounted for the largest market share of 95.1% in the global biodegradable packaging market. The increasing demand for packaged and fast food, driven by the development of retail infrastructures in emerging economies, fuels the global biodegradable packaging materials market. Flexible paper packaging is gaining popularity in many countries, as it is eco-friendly and cost-effective.

The retail market is a crucial driver for the demand for flexible packaging papers used in retailers' packaging of various products. Macroeconomic 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.

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, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is estimated to hold the highest CAGR of 7.7% in the global biodegradable packaging market during the forecast period. In the Asia Pacific, Chinese consumers are becoming increasingly environment-friendly, and various brands are pushing the agenda and promoting earth-friendly products. For instance, a survey was conducted by the China Chain Store Association, wherein about 70% of the respondents said that they are willing to pay a premium to curb the pollution. As 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 industries. Companies, such as Biogreen, only offer biodegradable products to the industries, which further helps promote green packaging, thereby complementing the market growth.

Key Market Players

Every company follows its business strategy to attain the maximum market share. Currently, 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 Co. Ltd, and Smurfit Kappa Group PLC are some of the leading players operating in the global biodegradable packaging market.

Recent Developments

• In March 2018, Tetra Pak’s packaging material factory in Izmir, Turkey, received the world’s top honors for manufacturing excellence. It became the 22nd factory worldwide to win the prestigious award in more than 40 years.
• In April 2018, Plastic Suppliers Inc. announced new financing facilities of USD 35 million, including funding of USD 23 million for capital expansion to increase capacity in 2018 and 2019. This is in response to the increase in demand for its EarthFirst® sustainable packaging and label film businesses.
• In July 2018, Kruger Inc. started the production of new specialty products at its Brompton Mill at the end of July.
• In February 2021, Mondi Group increased its release liner range by adding two new paper-based sustainable EverLiner products, EverLiner Labelite and EverLiner M R, made from recycled and lightweight materials. They offer more environmentally friendly solutions in a variety of applications.

Key Issues Addressed

• What is the market size by various segmentation of the biodegradable packaging by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the biodegradable packaging market?
• What are the key opportunities and trends for manufacturers involved in the biodegradable packaging supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of biodegradable packaging in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.