The
biodegradable packaging market involves the production and use of biodegradable
materials like paper, plastic, and metals for packaging various products to
increase their shelf life. Biodegradable packaging helps reduce the
environmental impact of packaging waste as it breaks down and decomposes
completely unlike conventional plastic that needs centuries to degrade. It is
majorly used for packaging food and beverages, pharmaceuticals, and personal
care products.
The biodegradable packaging
market is estimated to be valued at USD 111.55 Bn in 2024 and is expected
to reach USD 167.52 Bn by 2031, growing
at a compound annual growth rate (CAGR) of 6% from 2024 to 2031.
Key Takeaways
Key players operating in the biodegradable packaging are BASF SE, Smurfit
Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation,
Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited,
International Corp., Solenis, DuPont, Ball Corp, Novamont, Tetra Pak
International SA, Biopak PTY, Imex Packaging, and Elevate Packaging Inc. Key
players are focusing on developing novel biodegradable materials and packaging
solutions to cater to the growing demand from various end-use industries.
The Biodegradable
Packaging Growth is increasing significantly owing to the rising
environmental concerns regarding plastic waste and stringent government
regulations on the use of plastic packaging. Many organizations and brands are
opting for biodegradable packaging to fulfill their environmental
sustainability goals and improve their brand image.
Technological advancements like improving the barrier properties of
biodegradable materials, development of nanocomposites, and bio-based polymers
are further driving the growth of the biodegradable packaging market. Novel
technologies help enhance the performance characteristics of biodegradable
packaging making them a viable alternative to conventional packaging.
Market Trends
The adoption of bio-based and plant-based materials for packaging like
paper, wood, agricultural waste is increasing in the biodegradable packaging
market. These raw materials have lower carbon footprint and emissions as
compared to petroleum-based plastics.
Customers are increasingly demanding sustainable packaging options which is
promoting innovations in active and intelligent biodegradable packaging like
antimicrobials, oxygen scavengers for increasing shelf-life without comprising
on sustainability.
Market Opportunities
Growth in the food delivery and takeaway market during the pandemic has
raised demand for sustainable food packaging creating opportunities for
biodegradable packaging manufacturers and suppliers.
Rising focus on circular economy principles provides opportunities for
companies to introduce recyclable and compostable flexible packaging like
pouches, wraps made from biodegradable materials.
Impact of COVID-19 on Biodegradable
Packaging Market Growth
The COVID-19 pandemic has adversely impacted the Biodegradable
Packaging Market Regional Analysis. Government lockdowns and movement
restrictions imposed during the initial stages of the pandemic disrupted supply
chains and production activities. This led to a fall in demand for packaged
goods across various end-use industries like food and beverages, industrial,
medical and personal care. Lower consumer spending also limited the use of
flexible and rigid biodegradable packaging products. However, with the focus on
health and safety rising amid the pandemic, demand picked up for compostable
and biodegradable food packaging to reduce the risk of virus transmission
through reusable containers. Online grocery shopping and takeaway food also
contributed to growth in biodegradable bags and packaging. Looking ahead,
increased awareness about sustainability and environment protection is likely
to support higher adoption of biodegradable alternatives to conventional
plastics in the coming years. Manufacturers will need to ensure reliable supply
chains and flexibility in production to cater to volatile demand trends in a post-COVID
world.
Geographical Regions with High Concentration of Biodegradable Packaging Market
In terms of value, the biodegradable packaging market in Europe accounts for
the major share currently. Strict regulations limiting the use of single-use
plastics and promotion of bio-based and compostable items have driven faster
adoption of biodegradable packaging in the region. Countries like Germany, UK,
Italy, France and Spain contribute significantly to the European market. North
America is another large and important regional market led by the US. Growth in
the Asia Pacific region is forecast to be the fastest through the next decade.
Rapid industrialization, growing food processing and pharmaceutical sectors,
coupled with policy push for sustainable solutions are fueling market expansion
in China and India. Improving consumer awareness about ecological packaging is
also propelling the biodegradable packaging industry across developing Asian
economies.
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Packaging Market
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