Biodegradable Plastic Packaging Market Share

Biodegradable Plastic Packaging Market Overview

The global biodegradable plastic packaging market size is anticipated to register a ~19.2% CAGR between 2021 and 2028 and reach an approximate value of USD 13.2 billion in 2028.Packaging makes it easy to carry products, shipping and it's often used for advertising. Plastic packaging weighs less than glass or metal, making it an effective and convenient choice for carrying items. Despite the increased interest in eco-friendly products, the production of conventional plastic packaging means that society's demand is still not being met. Quick and efficient concepts for packaging are in high demand to combat climate change and the future shortage of fossil resources. With the demands of converters and brand owners, bioplastics are gaining momentum in the packaging industry. Biodegradable packaging is a way to ensure that goods are safe from the dangers of natural degradation. Bioplastics use resources as efficiently as possible, keeping food safe, enduring high heat, and preserving their shape over time. Biodegradable plastic packaging offers the same qualities as conventional plastics while being more eco-friendly. Biodegradable plastic bags are created from all-natural plant-based raw ingredients, allowing for a natural breakdown process where bacteria and fungus in the environment organically metabolize the polymers. This also aids in the breakdown of a biodegradable plastic structure. Biodegradable packaging made from natural products such as starch, cellulose, protein, and vegetable oil is a promising solution to plastic packaging. Many stores have begun using recycled paper and biodegradable plastic bags for packaging in response to government regulations.

One of the most notable benefits of employing biodegradable polymers to generate plastic bags is the considerable reduction in carbon emissions produced during the production process compared to normal plastic. Composting or recycling biodegradable plastics is required to ensure the optimal breakdown of the plastic particles and permit the natural composting process. In the future years, the biodegradable plastic packaging industry is expected to rise rapidly. Biodegradable polymers derived from those sources are mostly renewable and aid in preserving a sustainable environment. Traditional plastics for packaging are hazardous, non-biodegradable, and contribute to global warming and water and air pollution. The growth of emerging economies and the increasing demand for biodegradable plastics from end-use industries are expected to create significant opportunities for biodegradable plastics manufacturers. More food and beverage manufacturers are adopting biodegradable plastics to address environmental and economic concerns. Due to increasing government regulations, industries are being forced to reduce their carbon footprint, causing a demand for biodegradable plastics in the packaging industry. However, high costs prevent the biodegradable plastic packaging market from growing more than its traditional equivalent. Growing government initiatives are supporting the growth of the biodegradable plastic packaging market.

Moreover, biodegradable plastics are increasingly being applied to cosmetics packaging for compact powders, creams, and lipsticks, as well as beverage bottles. Increasing demand for sustainable packaging across industries is fueling the growth of the biodegradable plastic packaging market.

The spread of awareness about the environment and the adoption of strict new regulations to boost the growth of the biodegradable plastic packaging market during the forecast period, 2021–2028. The biodegradable plastic packaging industry is full of potential; companies are developing new technologies to make materials from readily available ingredients. Shoppers buying more products online and businesses adopting retail strategies have altered how the biodegradable packaging industry works. There is a huge demand for biodegradable packaging due to the growing e-commerce sector, along with growing concerns about reducing our plastic waste. On the other hand, surging levels of investment in biodegradable packaging and the rising number of initiatives promoting sustainable packaging are expected to create lucrative growth opportunities that will lead to the growth of the biodegradable plastic packaging market during the forecast period.

The main obstacle of the biodegradable plastic packaging market is its high cost compared to conventional plastics. Because of the cost and lack of biodegradable, environmentally friendly materials, retailers and other market players have found it difficult to find effective packaging materials.

The biodegradable plastic packaging market has experienced major impact because of the COVID-19 pandemic, involving the impacts of nationwide lockdown, organizations reconsidering materials used in packaging. Because of COVID-19, the packaging industry has been experiencing a major setback in its progress toward sustainability. Packaging companies are developing new technologies in their packaging that are friendly to the environment, reusable, and biodegradable. But the issue of hygiene and safety in reusable packaging delayed forward progress on an environmentally friendly and circular supply chain. Countries around the world have been banning single-use plastics, including Colombia, parts of the United States, China, Zimbabwe, Albania, Cameroon, Romania, and many other countries. Companies announce targets that they plan to meet by a certain year in the effort to become as sustainable as possible. Unfortunately, consumers worry that one could get the virus by touching a surface or object that has the virus on it. Despite the fact that the exact danger was unknown, sustainability programs remained paused or decreased in many parts of the world in the early months of the pandemic. However, to reduce the spread of infection, some countries and US states have either reversed or released bans on single-use plastics, while others have imposed market prohibitions on reusable bags.

The global market for biodegradable plastic packaging has been classified based on type, application, and region. On the basis of type, the biodegradable plastic packaging market is divided into starch based plastic, cellulose based plastics, polylactic acid (PLA), polyhydroxyalkanoates (PHA), and others. Polylactic acid (PLA) is the most common type of biodegradable plastic. PLA, or polylactide, is a versatile biodegradable thermoplastic. It's made from lactic acid monomers, which can be produced from 100% renewable resources like corn and sugar beets. Polylactide, used in biodegradable plastic packaging and resins, can alternative to petroleum-based thermoplastics. It is broadly used in different applications such as healthcare, pharma, packaging, and automobile. Polylactides break down into non-toxic products while degrading and being biodegradable and biocompatible, reducing plastic waste.

Based on application, the biodegradable plastic packaging market is segmented into food and beverage, pharmaceutical, personal/homecare, and others. The food and beverage segment continues to hold the leading share in terms of revenue. Growing concern about the environment has led to increased biodegradable plastics in food and beverages. Biodegradable plastic packaging is being used for everything from bottles and cups to chip bags and coffee pods. Plant-based plastics and other biodegradable polymers are used in food and beverage packaging because they are more environmentally friendly than traditional plastic.

Biodegradable Plastic Packaging Market SegmentationThe global biodegradable plastic market is expected to witness high growth during the forecast period owing to the growing packaging industry across the globe. The demand for biodegradable plastic is driven by environmental concerns and government regulations across countries.

Based on region, the biodegradable plastic market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific accounts for the largest market for biodegradable plastic, followed by Europe, given these regions' flourishing food & beverage and healthcare industries. China dominates the Asia-Pacific biodegradable plastic market due to the product's availability at affordable prices and the prevalence of various manufacturers in the region. Due to urbanization, India and China are driving the demand for biodegradable plastic packaging in the Asia-Pacific region. A huge population in the region provides plenty of opportunities for the biodegradable plastic packaging market. Each e-commerce transaction requires proper packaging to transport goods from supplier to the receiver, which drives the biodegradable plastic packaging market. In addition, changing laws concerning the use of petroleum-based plastics in Asia and Europe and fluctuations in oil prices have fueled demand for biodegradable plastic. At the same time, North America is expected to register the highest growth rate due to the rising demand for biodegradable plastic in the region. The increasing number of key players such as Plastic Suppliers Inc. (US), International Paper Company (US), Smurfit Kappa Group PLC (US), WestRock Company (US), and Bemis Company Inc. (US) in the region is also fueling the North America biodegradable plastic packaging market during the forecast period. The rising number of research activities in the region and the availability of experts in the field are key driving factors for the market. Additionally, the country section of the report provides individual market impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as consumption volumes, production sites, and volumes, import-export analysis, price trend analysis, cost of raw materials, downstream and upstream value chain analysis are some of the major pointers used to forecast the market scenario for individual countries. Additionally, the presence and availability of global brands and their challenges faced due to low or high competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data. Innovative packaging trends, especially sustainable packaging solutions, are paving the way for biodegradable plastic packaging. As leading players in the paper packaging market are headquartered in North America, the barrier to entry and competitiveness for new entrants is considerably high in the region.

Key Players

List of the Key industry participants in the biodegradable plastic packaging market are

Tetra Pak International SA (Switzerland), Plastic Suppliers Inc. (US), Kruger Inc. (Canada), Amcor PLC (Switzerland), Mondi PLC (UK), International Paper Company (US), Smurfit Kappa Group PLC (US), DS Smith PLC (UK), Klabin SA (Brazil), Rengo Co. Ltd (Japan), WestRock Company (US), Stora Enso (Sweden), Bemis Company Inc. (US), and Rengo Co. Ltd (Japan)Recent Development

Intended Audience

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  Government and Research Organizations

  
  


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  Consulting Companies in the Biodegradable Plastic Packaging Market

  
  


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  Raw Material Suppliers

  
  


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  Research Consultants

  
  


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  Investors and Shareholders