Impact of COVID-19 on the Global Bioplastic Packaging Market
Bioplastics are developed using biodegradable feedstock to reduce the problems caused by conventional plastics. Also, strict government guidelines against the consumption of non-recyclable plastics are driving the growth of the market. However, due to the COVID-19 outbreak, there have been losses in the production of these materials, which has affected the market growth. Similarly, the high cost of bio-based materials may hamper the growth of the market. Biobased materials are widely used in the packaging of food products. The growing adoption of bioplastic packaging solutions due to various benefits offered, such as their environment-friendly and biodegradable nature, is a key factor expected to drive the growth of the global market over the forecast period. Furthermore, the increase in research & development activities and investments by beverage manufacturers is another factor expected to boost market growth.
Geographically, Europe dominates the global bioplastic packaging market, followed by North America and Asia-Pacific, due to stringent government regulations against the consumption of non-recyclable plastics and increasing awareness about sustainable packaging in the manufacturing industry. The COVID-19 pandemic has impacted most industries owing to the downfall of the manufacturing sector, coupled with the shutdown of factories. The sales of prominent manufacturing industries are also expected to be affected during the forecast period. The outbreak of COVID-19 has disrupted supply chain activities and caused a shortage of shipping capacity. The manufacturing sector is facing challenges such as the availability of raw materials which is increasing the lead time. Post lockdown, the market is expected to grow significantly in the Asia-Pacific region with the resumption of economic activity in countries such as Japan, China, India, and South Korea.
FOREIGN DIRECT INVESTMENTS IN TOP COUNTRIES, 2016–2019 (USD MILLION)