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The biodegradable packaging materials market is estimated to increase by USD 40.32 billion and grow at a CAGR of 6.88% between 2023 and 2028. The market is experiencing significant growth, driven by the shift towards sustainable and eco-friendly solutions by end-users. This trend is being fueled by increasing environmental concerns and regulatory pressures. The market is also expanding as more companies adopt biodegradable packaging to reduce their carbon footprint and enhance their brand image. However, the high cost of biodegradable packaging materials compared to conventional packaging remains a challenge. Despite this, the market is expected to continue growing due to the increasing demand for sustainable packaging solutions and advancements in technology leading to cost reductions. The use of bioplastics, a key component of biodegradable packaging, is gaining popularity due to their ability to decompose naturally and reduce waste in landfills. The market is expected to reach new heights with continued innovation and investment in research and development.
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The market share growth by the food segment will be significant during the forecast period. Biodegradable paper and plastic packaging are used for packaging various food products, including fruits, vegetables, confectionery items, convenience foods, meat, and dairy items. In 2020, the food packaging segment accounted for the largest share of 36.49% in the global biodegradable paper and plastic packaging market. While the overall market is driven by favorable economic conditions and environmental concerns, the food packaging segment is driven by changing consumer behavior and the rising preference for convenience foods, which requires the use of special types of packaging.
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The food segment was valued at USD 30.99 billion in 2018. Urbanization is one of the main reasons for the increasing market for food packaging. Urban families prefer processed and packaged food due to time constraints. The consumption of packaged food is increasing in India, China, Brazil, Thailand, and other developing countries. Additionally, it is expected to grow at a CAGR of 6.21% between 2022 and 2027, which is expected to drive the growth of the market in focus during the forecast period.
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Europe is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2022, Europe was the largest market for biodegradable paper and plastic packaging. The region is expected to have significant growth in the bioplastic packaging market during the forecast period as it is characterized by a high demand for packaging made from biodegradable materials, such as paper and bioplastics, for wrapping organic food and premium and branded products with specific requirements. Bioplastics are replacing petroleum-based plastics in the packaging industry. Hence, the packaging industry in Europe is expected to grow, concurrently driving the biodegradable paper and plastic packaging market. Some of the major revenue contributors to the biodegradable paper and plastic packaging market in Europe are the UK, Germany, Italy, France, and Sweden. In addition, there are strict rules and policies against the use of non-recyclable plastics in the region.
The market is witnessing significant growth due to increasing environmental concerns and stringent regulations against plastic waste. Flexible packaging, particularly pouches, is a major application segment for biodegradable packaging materials. These materials offer several advantages over traditional packaging options, such as reduced carbon footprints and biodegradability. Metal and glass packaging have a high carbon footprint and are not biodegradable, making them less preferred in the market. Recyclers are increasingly focusing on biodegradable packaging materials to reduce their environmental impact. Legislation against plastic waste and the promotion of sustainable packaging solutions are key drivers for the market. Biodegradable packaging materials include those made from plant-based components, such as bagasse, paper & paper board, starch, and cellulose. These materials can be further processed into various forms, including bio-plastic, using microorganisms in waste management facilities. Glue and other additives can be made from renewable sources to make the packaging completely biodegradable. E-commerce companies are also adopting biodegradable packaging solutions as part of their corporate social responsibility initiatives. Wind power and other renewable energy sources are used in the production of biodegradable packaging materials to reduce their carbon footprint. The market is expected to continue its growth trajectory in the coming years.
The global market is experiencing significant growth, primarily fueled by the shift towards the adoption of bioplastic packaging solutions by end-users. With rising environmental concerns and an increasing awareness of the detrimental effects of traditional packaging materials on the ecosystem, consumers are actively seeking products packaged in biodegradable materials. This trend has prompted many stakeholders in industries such as food and beverage, retail, healthcare, and logistics to prioritize the use of bioplastic packaging to align with corporate social responsibility initiatives and sustainability efforts.
End-users, including retailers and food processors, are recognizing the importance of offering products in eco-friendly packaging formats to meet consumer preferences and environmental regulations. Biodegradable packaging materials, derived from plant-based components and microorganisms such as bagasse, sugarcane, and sorghum, offer recyclable, lightweight, and eco-friendly features. This shift towards biodegradable paper and plastic packaging formats, such as boxes/cartons, serves to mitigate packaging waste and reduce the environmental impact of packaging materials, promoting composting and contributing to the overall conservation of the environment. As consumer demand for sustainable packaging solutions continues to rise, the biodegradable packaging materials market is expected to witness sustained growth in the coming years.
The continuous development of new products is the primary trend in global market growth. Market vendors are investing in new product development and product innovation due to increasing demand and adoption of biodegradable paper and plastic packaging. They are constantly developing their product portfolio and investing in developing materials with specific properties for different applications.
Moreover, the manufacturers of packaging materials are now looking to differentiate their products from those of their competitors by offering the best possible biodegradable packaging products to meet the needs of their customers. Product development by some vendors encourages other vendors to introduce innovative products in order to remain competitive in the market. Such new product development is expected to increase the acceptance of biodegradable paper and plastic packaging during the forecast period.
The lack of adequate infrastructure is a major challenge to global market growth. The limited availability of collection infrastructure is one of the biggest challenges in improving the amount of recovered paper. The lack of awareness about the recycling of biodegradable materials and poor recycling habits result in such materials being dumped in landfills rather than being sent for composting or recycling. Landfills contain a staggering amount of paper waste. In the 20th century, paper used to be a rare commodity; however, currently, it is one of the common resources that is highly exploited. When paper is thrown away in landfills, it can cause long-term problems.
Landfills emit greenhouse gases and methane, which is dangerous for the environment. This is because landfills lack proper light, water, and bacterial activities, which are essential for the decaying process. As the global population increases, the amount of waste generated and the waste that goes to landfills is also rising. Plastic-coated paper milk cartons require composting facilities for proper degradation. A shortage of such facilities worldwide is one of the major challenges faced by the market. The lack of investments in building proper infrastructure for composting or recycling papers is a severe problem that hinders the growth of the global biodegradable paper and plastic packaging market.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor Plc - The company offers biodegradable paper and plastic packaging solutions such as Performance Paper under the brand LifeSpan.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Compostable Plastic Market: Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, UK, France, China - Size and Forecast
Biodegradable Medical Plastics Market: Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Germany, France, China, Japan - Size and Forecast
Water-soluble Pods Packaging Market: Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Japan, Germany, Canada, China - Size and Forecast
The market is witnessing significant growth due to increasing concerns regarding plastic waste and its environmental impact. Flexible packaging, particularly pouches, is a major application segment for biodegradable materials. Several alternatives to traditional plastic packaging are gaining popularity, such as metal, glass, and paper & paper board. Biodegradable packaging materials, including bagasse, starch, and bio-plastic, are derived from renewable resources and have a lower carbon footprint compared to plastic. These materials can be composted, making them an attractive option for brand owners seeking to reduce their environmental impact. Legislation against single-use plastic products and the rise of sustainable packaging solutions are key drivers for the market. Materials like wood pulp, cellulose, and plant-based components are popular choices for eco-conscious consumers and companies. Microorganisms are used to degrade biodegradable packaging materials, making them a more sustainable alternative to traditional packaging. The recycled packaging market is expanding due to the cost benefits and environmental impact of using recycled materials, as opposed to single-use plastic packaging and fossil fuel-based plastics.
Furthermore, the market is also influenced by the logistics industry and e-commerce, which require lightweight and recyclable packaging solutions. The Compostable Packaging market is expected to grow due to political collaborations and the emergence of new markets. Agriculture is another sector that is adopting biodegradable packaging materials to reduce waste and promote sustainability. Wind power and other renewable energy sources are being used to produce biodegradable packaging materials, further reducing their carbon footprint. The use of recycled materials in biodegradable packaging is also on the rise, as part of corporate social responsibility initiatives. The food and beverage sector is increasingly adopting paper-based packaging Overall, the market is expected to continue growing as consumers and businesses seek more sustainable packaging solutions. This shift includes innovations in bio-friendly plastics and biodegradable plastics, such as coffee capsules, resealable plastic containers, and zipper bags, which help reduce plastic waste generation and improve greenhouse gas balances. Bio-based or natural resources are increasingly utilized in the food packaging sector, supported by initiatives like BDP for Biodegradable Packaging to promote eco-friendly packaging solutions and address the pollution of seas and other natural environments.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.88% |
Market growth 2024-2028 |
USD 40.32 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.22 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 31% |
Key countries |
US, UK, China, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amcor Plc, BASF SE, BioPak Pty Ltd., Elevate Packaging Inc., Georgia Pacific, Holmen AB, Hood Packaging Corp., International Paper Co., Kruger Inc., Mayr-Melnhof Karton AG, Mondi Plc, NatureWorks LLC, Novamont S.p.A., Oji Holdings Corp., PMMI Media Group, Smurfit Kappa Group, Stora Enso Oyj, Tetra Pak Group, and WestRock Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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