Market Outlook:

The biodegradable packaging market size is poised to reach USD 15,844.72 Million by 2023, with a projected escalation to USD 32,736.81 Million by 2031, reflecting a compound annual growth rate (CAGR) of 9.7% during the forecast period (2024-2031). 

Over the years, there has been a strong consumer awareness concerning the use of eco-friendly Products, particularly in the packaging department in the market after the pandemic. Market development is founded on the higher demand for ecological film and label materials, besides the escalating tendencies towards the usage of recyclable and biodegradable products in the different fields of usage. Biodegradable packaging solutions are those packaging systems which are derived from a recovered material utilising a manufacturing process as well as incorporated in a product or part. Recycled material is any material which have already been used for the purpose for which they were created to be used before getting into packaging. The use of post-consumer content is encouraged because it cuts down the waste footprints of organisations and enhances manufacturing. When a company incorporates recycled products, the recycled content will increase a company’s sustainability and because the process used adopt high degree of efficiency, it is link with cost advantage. The author successfully contributed in presenting issues and facts around the topic as various technological advancements are now creating different recyclable packaging material innovation. Producers are more concerned with the development of packing materials that are eco-friendly besides meeting the level of protection and performance desired in the intended packaged goods. Moreover, thanks to the applications of recycled packaging, the market is experiencing frequent innovations of new materials, forms, and technologies of production.

Market Dynamics:

Driver:

Individuals have begun using biodegradable and recyclable plastic or other material such as papers or cardboard for packing and labelling, biodegradable packaging consists of natural elements like Petroleum and corn based biodegradable, these packing material can be recycled most of the time and can decompose the environment also very easily.  Increasing consumer consciousness about importance of biodegradable packaging to safeguard environment and mitigate enviromental pollution is one of the main drivers of growth of global biodegradable packaging market. The biodegradable packaging finds more application in food and beverages, pharmaceutical and home care product packaging industries. Some of the important players like Pepsi and Coca- cola companies are now using an easy recyclable and 100% compostable PET plastic bottle. Many other companies like Real and Tropicana are using biodegradable packaging material which is made up of paper and plastic mixture. Pharmaceutical company also prefer to use different dosage of medicines packed into eco-friendly packaging material because these packaging material is non toxic in nature.Moreover, increasing demand of food and beverages is one of the major factors for growth of global biodegradable packaging market. Several stakeholders have offered various forms of biodegradable packaging material that is made of the various material including; biodegradable packing containing peanuts, mushroom, corn-starch and recycled cardboard papers. These biodegradable packaging materials are totally safe and NON TOXIC in nature and they degrade in very less time compared to other normal plastic. They have also brought the concept of eco-friendly and recyclable plastic since these plastics are widely used by retail sectors to pack the daily and heavy consumer products. These ecofriendly plastic are strong and durable in nature increase in demand for innovation in ecofriendly and biodegradable packaging is one of the most apparent reasons for the growth of global biodegradable packaging market.

Restraint:

Sustainable materials for packaging has somewhat a problem with availability and reliability in the supply chain which in a way slow down the overall market growth. In this aspect, the authors conclude that the procurement of raw materials is a problem since the supply is scarce hindering the manufacturer’s ability to plan their production schedules and address consumers’ needs, which is costly. It also limits the versatility and innovation of packagers in their packaging portfolio. Also, a transition from conventional to green packaging may be costly to a number of firms, including those in the small-scale category. For this reason, the expense associated with sustainable packaging could act as a limiting factor of market growth. Further, certain packaging types may not meet the standards or needs of some end-products industries that might slow market growth.

Opportunity:

Consumers and manufactures have shown interest in recycled plastic packaging products. Recycled plastic packaging is crucial as it is Friends of the Earth , this means that already recycled plastic packaging is more sustainable than normal plastic packaging. It means that it has a significantly smaller carbon footprint than creating new plastic, which can be reused for other packaging goods. It is also picking up immense popularity in the food and beverage sectors, which is because this material is not only chemical & heat resistant but is also best for storing food and best for Microwave, fridge, or Freezer use. Furthermore, with such materials, the cost of producing them is considerably cheaper and is a way more environmentally friendly option to plastic packaging. The increase in the usage of lightweight post-consumer recycled plastic packaging, including R-PET, resulting in reduced transport costs, is also antithetical to market growth. Furthermore, due to its high resistant properties to abrasion and breakage, the material is used widely in various end-user industries for material packaging of their products to enhance the market.

Key Players:

• Stora Enso Oyj
• Smurfit Kappa Group
• WestRock Company
• Georgia-Pacific LLC
• Amcor plc
• Pactiv Evergreen Inc.
• Berry Global Group
• Huhtamaki Oyj
• Mondi Group
• Tetra Pak International S. A
• Swedbrand Groups
• Winpak Ltd.
• Stora Enso Oyj
• Georgia-Pacific LLC
• Kruger Inc.
• Others

Recent Development:

• In June 2024: Last year, Bioelements Group, a company specialized in sustainable packaging at the regional level in Latin America, revealed their line of action in the United States. The company later located its US base of operation in Houston while also launching a BIOLab research center. Bioelements is grouped under an innovative packaging line made of biobased, biodegradable, and compostable substrates engineered by science and technology. With this expansion, the company would like to better mirror the various packaging needs of the US brands within retail, online, food, home, personal care, and specialty segments. 

• In February 2024: SEE, a leading packaging solutions firm at the global level for protein packaging, announced a new biobased industrial compostable tray to support sustainable packaging. The formation of this tray we are accustomed for food processing facilities experienced thorough testing procedure. The most recent innovation from SEE is the CRYOVAC overwrap having a USDA certified biobased resin with 54 % biobased content from renewable sources of which is wood cellulose..

Segment Insights:

By Material

Over the years, there has been a strong consumer awareness concerning the use of eco-friendly Products, particularly in the packaging department in the market after the pandemic. Market development is founded on the higher demand for ecological film and label materials, besides the escalating tendencies towards the usage of recyclable and biodegradable products in the different fields of usage. Biodegradable packaging solutions are those packaging systems which are derived from a recovered material utilising a manufacturing process as well as incorporated in a product or part. Recycled material is any material which have already been used for the purpose for which they were created to be used before getting into packaging. The use of post-consumer content is encouraged because it cuts down the waste footprints of organisations and enhances manufacturing. When a company incorporates recycled products, the recycled content will increase a company’s sustainability and because the process used adopt high degree of efficiency, it is link with cost advantage. The author successfully contributed in presenting issues and facts around the topic as various technological advancements are now creating different recyclable packaging material innovation. Producers are more concerned with the development of packing materials that are eco-friendly besides meeting the level of protection and performance desired in the intended packaged goods. Moreover, thanks to the applications of recycled packaging, the market is experiencing frequent innovations of new materials, forms, and technologies of production.

By End-user

Currently, the food & beverages segment is dominating and expected to boost its position in the market during the forecast period. Eco-friendly kind of packaging material that are integral to the food & beverages industry’s needs. The health consciousness of consumers among food & beverage manufacturers continues to increase and new healthier consumers push the viability of sustainable products. In terms of application, increasing consumer preference for sustainable packaging including tray boxes used in food corners, restaurants, and take away services will also boost the segmental trends. The second dominating application segment in the market is the personal care & cosmetics. The escalating use of tubes, bottles, and films & wraps for cosmetics and propriety will drive this segmental growth.

Regional Insights:

North America remains the market leader for sustainable packaging market share. Some of the constraints affecting North America region are seating of major and minor players in the US, escalating government rules and regulation in response to consumer evolving demands, food packaging manufactures, and propelling concern for sustainability. A favourable factor that also supports this market growth is the highly developed paper & paperboard recycling facilities in the region. Asia Pacific stands the second most dominating region and it is said that the expansion in this region would be greatly expanded within the said time span. The mobile food selling industries’ sales growth and the vast availability of raw materials in the region drives the market growth. In addition, the increasing food & beverage industry coupled with the development and usage of highly recycloable packagings will also give rise to important opportunities for expansion of the Asia Pacific sustainable product packaging market. Next, the European region is visible to be growing rapidly in the market. Some of the key drivers restraining the market growth in Europe include the absence of single-use plastic in the packaging industry, increasing consumer awareness regarding ecological products, and heightened manufacturer concern for developing reusable packaging materials. The market is also progressing due to the participation of the main European countries such as the United Kingdom, Germany, and others. Moderate growth in Latin America is expected in the course of the forecast period. This paper finds that the fast-growing retail outlet and food & beverage industry is putting pressure on ensuring that packaging materials are eco-friendly. The Middle East & Africa is expected to experience steady growth because of the increasing healthcare and pharma industries in the region.

Segmentation:

By Type

• Recycled Content Packaging

• Reusable Packaging

• Degradable Packaging

By Packaging Format

• Bottle & Jar

• Boxes & Carton

• Cans

• Trays & Clamshell

• Cups & Bowls

• Pouches & Bags

• Films & Wrap

• Labels & Tapes

• Others

By Material

• Paper & Paper Board

• Bioplastic

• Bagasse

By End-User 

• Food & Beverage

• Personal Care Cosmetics

• Pharmaceuticals

• Homecare

• Other Consumer Goods

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Biodegradable Packaging market in the world.

2. Use the PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Biodegradable Packaging market.

3. Leading company profiles reveal details of key Biodegradable Packaging market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Biodegradable Packaging market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Biodegradable Packaging Market?

• Rising consumer preference for sustainable and eco-friendly packaging solutions due to increasing environmental awareness biodegradable packaging.

2) What would be the CAGR of the Global Biodegradable Packaging Market over the forecast period?

• The Global Biodegradable Packaging Market is poised to grow at a CAGR of 9.7% from 2024 to 2032.

3) Which region will provide more business opportunities for the growth of the Global Biodegradable Packaging Market in the future?

• The North America region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Biodegradable Packaging Market?

• Stora Enso Oyj, Smurfit Kappa Group, WestRock Company, Georgia-Pacific LLC, Amcor plc, Pactiv Evergreen Inc., Berry Global Group, Huhtamaki Oyj, Mondi Group, Tetra Pak International S. A, Swedbrand Groups, Winpak Ltd., Stora Enso Oyj, Georgia-Pacific LLC, Kruger Inc., Others.

5) What are the segments in the Global Biodegradable Packaging Market?

• By Material, By Packaging Format, By Type, By End-use are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Biodegradable Packaging Market in 2032?

• The estimated revenue for the Global Biodegradable Packaging Market in 2031 is USD 32,736.81 Million.