by Biodegradable packaging includes various products like flexible packaging, rigid packaging, packaging paper & coatings. These packaging helps to reduce environmental pollution due to their biodegradable nature, which breaks down and decomposes into elements found in nature like water, carbon dioxide and biomass. Additionally, biodegradable packaging decreases the amount of waste sent to landfills and it holds great advantage for its disposal in industrial composting facilities.
The global Biodegradable Packaging Market is estimated to be valued at US$ 37,919.7 Mn in 2023 and is expected to exhibit a CAGR of 20.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising awareness about harmful effects of plastic usage and stringent government regulations limiting the usage of plastic are majorly driving the demand for biodegradable packaging globally. Additionally, growing popularity of eco-friendly packaging solutions due to increasing environmental concerns is anticipated to boost market growth over the forecast period. The expanding e-commerce industry is further expected to positively influence demand for sustainable packaging alternatives like biodegradable packaging for shopping deliveries in coming years.
Porter’s Analysis:
- Threat of new entrants: The high capital requirements in research and development, marketing, and production act as a barrier for new players to enter this market.
- Bargaining power of buyers: The global biodegradable packaging market consists of numerous buyers across various end-use industries. This provides buyers with high bargaining power.
- Bargaining power of suppliers: Key raw materials used in biodegradable packaging such as paper, plastics and additives have many global suppliers which reduces individual supplier power.
- Threat of new substitutes: Emerging alternatives like packaging using agricultural residue and leaves are expected to pose a threat to the existing substitutes used in biodegradable packaging.
- Competitive rivalry: The global biodegradable packaging market is dominated by few leading players. Intense competition exists among these players to gain larger market share.
Key Takeaways
The global biodegradable packaging market is expected to witness high growth, exhibiting CAGR of 20.% over the forecast period, due to increasing awareness regarding environmental hazards of plastic packaging waste.
Regionally, North America dominates the global biodegradable packaging market followed by Europe. Stringent government regulations regarding plastic packaging waste and presence of major players in the region drives the market. Asia Pacific is expected to witness fastest growth due to growing population, rapid industrialization and rising disposable income in the region.
Key players operating in the biodegradable packaging market 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, and International Corp. These players are focusing on new product launches and expansion strategies to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
