Biodegradable Packaging Material Market by Application, Product, and Geography - Forecast and Analysis 2023-2027

Biodegradable Packaging Materials Market Forecast 2023-2027

The biodegradable packaging materials market is estimated to increase by USD 30.96 billion and grow at a CAGR of 6.03% between 2022 and 2027. The growth of the market depends on several factors, including a shift toward the use of bioplastic packaging by end-users, government initiatives that promote the use of bioplastic packaging, and rising environmental stewardship. The market is witnessing remarkable expansion, largely driven by the growing preference for bioplastic packaging solutions among consumers worldwide. As environmental consciousness rises and concerns over the ecological impact of conventional packaging materials intensify, there is a notable shift towards products packaged in biodegradable alternatives. This evolving consumer behavior has prompted various sectors including food and beverage, retail, healthcare, and logistics to prioritize the adoption of bioplastic packaging. Such initiatives are aimed at aligning with corporate social responsibility goals and advancing sustainability agendas.

What will be the size of the Biodegradable Packaging Materials Market During the Forecast Period?

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Segmentation

This report extensively covers market segmentation by application (food, beverage, pharmaceutical, personal and home care, and others), product (paper and bioplastics), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Application

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 29.53 billion in 2017 and continued to grow by 2021.  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.

By Regions

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Europe is estimated to contribute 34% 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. 

Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by the increasing emphasis on sustainability and environmental conservation across various industries. With a growing awareness of the environmental impact of traditional packaging materials, businesses in the food and beverage, healthcare, retail, and logistics sectors are increasingly adopting biodegradable packaging solutions. These materials, derived from plant-based components and microorganisms, offer eco-friendly alternatives to conventional packaging, aligning with corporate social responsibility initiatives and regulatory frameworks aimed at reducing packaging waste and promoting sustainability.

Key players in the market are focusing on developing innovative biodegradable packaging materials such as bagasse, made from sugarcane or sorghum fibers, which are recyclable, lightweight, and environmentally friendly. Bagasse packaging, particularly in the form of boxes or cartons, is gaining popularity due to its versatility and sustainable features. Additionally, biodegradable packaging materials cater to various packaging needs, including serving elements for hot and cold food, with the added benefit of being compostable and suitable for microwaving. As brand owners prioritize eco-friendly packaging solutions to meet consumer demands and enhance their environmental credentials, the biodegradable packaging materials market is poised for continued expansion in the coming years.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

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.

Significant Market Trend

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.

Major Market Challenge

The lack of adequate infrastructure is a major challenge to the 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.

Key Market Customer Landscape

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

Who are the Major Biodegradable Packaging Materials Market Companies?

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:

• BASF SE
• BioPak Pty Ltd.
• Cargill Inc.
• Elevate Packaging Inc.
• Georgia Pacific LLC
• Holmen AB
• Hood Packaging Corp.
• International Paper Co.
• Kruger Inc.
• Mayr Melnhof Karton AG
• Mondi plc
• NatureWorks LLC
• Novamont Spa
• Plantic Technologies Ltd.
• Smurfit Kappa Group

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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

• Application Outlook 
  • Food
  • Beverage
  • Pharmaceutical
  • Personal and home care
  • Others

• Product Outlook
  • Paper
  • Bioplastics

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Argentina
    • Brazil
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In today's environmentally conscious world, the Biodegradable Packaging Market is witnessing unprecedented growth and transformation, impacting a multitude of sectors including Agriculture, Food and Beverage, Healthcare, E-commerce, Logistics, Retail, and Personal Care. The adoption of eco-friendly packaging solutions is not only driven by consumer demand but also by the urgent need to reduce the Carbon Footprint and address the detrimental effects of Single-use Plastics on the environment. One of the key players in this transformation is the Boxes/Cartons Packaging Format, which provides a versatile and sustainable alternative to traditional packaging materials. Made from Renewable Resources such as Wood Pulp, Paper, and Natural Fiber, these cartons offer Recyclable, Lightweight, and Eco-friendly features, aligning with the sustainability goals of businesses across various industries.

In the Food and Beverage sector, where packaging plays a crucial role in preserving freshness and preventing Freezing, biodegradable packaging solutions have gained significant traction. From Paperboard containers to packaging materials made from Paper, Starch, and Glue, the emphasis is on reducing waste and promoting sustainability throughout the supply chain. Similarly, the Healthcare sector has recognized the importance of Lightweight Packaging that ensures product safety while minimizing environmental impact. Biodegradable packaging options in this industry offer a responsible solution for Disposable Packaging needs, addressing both hygiene requirements and sustainability concerns.

E-commerce and Retail industries are also embracing Biodegradable Packaging to meet the evolving preferences of environmentally conscious consumers. From Rigid Packaging made from Recyclable Materials to innovative Molecular Spectroscopy techniques for material analysis, businesses are leveraging technology and sustainable practices to reduce their Carbon Footprint and promote a circular economy. Moreover, the Logistics industry is undergoing a paradigm shift towards sustainable packaging solutions to mitigate Supply Chain Disruptions and optimize operational efficiency. By incorporating Recyclable Packaging materials and minimizing the use of Single-use Plastics, companies are not only reducing costs but also contributing to a healthier planet.

In the Personal Care sector, the demand for eco-friendly packaging options is on the rise, with consumers seeking products that align with their values. Biodegradable packaging materials offer a viable solution, providing both functionality and sustainability without compromising on quality. As the Biodegradable Packaging Market continues to evolve, businesses across industries are recognizing the importance of adopting Renewable Resources and embracing Sustainable Practices. By investing in innovative packaging solutions and prioritizing environmental stewardship, companies can minimize their impact on the planet while meeting the growing demand for eco-friendly products in a rapidly changing world.

Biodegradable Packaging Materials Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.03%
Market growth 2023-2027	USD 30.95 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.56
Regional analysis	Europe, North America, APAC, Middle East and Africa, and South America
Performing market contribution	Europe at 34%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Amcor Plc, BASF SE, BioPak Pty Ltd., Cargill Inc., Elevate Packaging Inc., Georgia Pacific LLC, Holmen AB, Hood Packaging Corp., International Paper Co., Kruger Inc., Mayr Melnhof Karton AG, Mondi plc, NatureWorks LLC, Novamont Spa, Plantic Technologies Ltd., Smurfit Kappa Group, Stora Enso Oyj, TotalEnergies SE, WestRock Co., and Oji Holdings Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis, market trends, market growth analysis, market research and growth, market research report, market growth and forecasting, Market forecasting and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Biodegradable Packaging Materials Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the biodegradable packaging materials market between 2023 and 2027
• Precise estimation of the biodegradable packaging materials market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of biodegradable packaging materials market vendors

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