by Biodegradable packaging refers to packaging materials that can be decomposed by bacteria or other living organisms. It mainly includes paper and paperboard, plastic, and others. Biodegradable packaging helps reduce the harmful environmental impact of plastics, as it decomposes after use without leaving behind any toxic residue. It also comes with added advantages such as moisture barrier properties and printability. The growing awareness about climate change and environmental protection has propelled the demand for sustainable alternatives to traditional plastic packaging.
The global Biodegradable Packaging Market is estimated to be valued at US$ 40 Billion 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:
Sustainable packaging mandates by regulatory bodies across countries is a major trend fueling market growth. Many developed nations have proposed or already implemented bans on single-use plastics to curb marine pollution. The European Union passed a law in 2019 banning 10 single-use plastic products. Similarly, countries like India and China have mandated the use of biodegradable and compostable packaging for food delivery and e-commerce sectors. These regulatory pushes are encouraging packaging producers to invest in bioplastic research and shift production towards sustainable options. As traditional plastic packaging gets outlawed gradually, the demand for biodegradable alternatives is projected to spike over the next decade.
Segment Analysis
The global biodegradable packaging market comprises disposable tableware, foodservice packaging, retail carrier bags, garbage bags and food packaging & storage products among others. Disposable tableware segment currently dominates the market owing to high demand for eco-friendly disposables from foodservice industry.
Key Takeaways
The global biodegradable packaging market is expected to witness high growth over the forecast period. The global Biodegradable Packaging Market is estimated to be valued at US$ 40 Billion in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030.
Asia Pacific region is projected to be the fastest growing market due to rising environmental regulations in countries like India and China. Countries like India and China are investing heavily in R&D to develop innovative and cost effective biodegradable materials for packaging.
Key players operating in the biodegradable packaging market are BASF SE, International Paper Company, Mondi PLC., Amcor PLC., Tetra Pak International SA, Kruger Inc., Biopac UK Ltd and StoraEnso. These players are focusing on strategic partnerships and new product development to strengthen their market position. For instance, in 2022 BASF partnered with TIPA to develop bio-based and compostable food packaging solutions.
