The biodegradable Packaging Market size is forecast to reach $78.1 billion by 2027, after growing at a CAGR of 15.5% during 2022-2027 due to rising demand for eco-friendly and recycled packaging products. The biodegradable materials are used for packaging encompass starch-based plastic, polylactic acid (PLA), cellulose, gelatin, polycaprolactone, polyhydroxyalkanoates (PHA), and others. The extensive use of polythene films for food & beverages and pharmaceuticals products packaging is projected to boost the growth of the biodegradable packaging market during 2022-2027. According to the European Bioplastic, biodegradable plastics are expected to increase to 1.8 million in 2025 due to increasing production of PHA’ and PLA in the United States and Europe. Hence, increasing production of bioplastics is expected to grow the industry size during the projected era.
The tragedy of COVID-19, which is declared as a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. This has affected the demand and supply chain activities, thereby limiting the growth in 2020. Thus, all activities were on hold due to this pandemic which, in turn, limiting the demand for packaging products and hamper the market growth during the era.
The report “Biodegradable Packaging Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Biodegradable Packaging Industry.
The Europe region dominated the biodegradable market, due to the high consumption of biodegradable materials such as PLA, PHA, polyethylene films, and others with a growing population and production of bioplastics.
Bioplastic is used for food packaging, cosmetic packaging, pharmaceutical packaging, and others due to its high biocompatibility. According to the India Brand Equity Foundation (IBEF), India’s drugs and pharmaceuticals exports stood at US$ 20.14 billion in FY21, which increase the demand for plastic materials.
Increasing consumption of recycled packaging products due to sustainability may hamper the biodegradable plastics market growth as biodegradable materials are recycled but not 100%.
The plastic segment dominated the global biodegradable plastics market in 2020. Bioplastic material such as PLA, cellulose, PHA, and others are highly biodegradable and biocompatible products, which provides hygienic packaging. Biodegradable plastics made from traditional petrochemicals are engineered to break down more quickly and are used in food packaging. Bioplastic such as PHA is used in medical devices like sutures and cardiovascular patches. Hence, increasing consumption of bioplastic is expected to grow the demand in the market.
The food packaging segment held the largest share in the biodegradable packaging market in 2020 and is growing at a CAGR of 20.11% during 2022-2027 with increasing consumers' demand for healthy, safe, and hygienic food. Biodegradable materials such as starch-based plastic, polyhydroxybutyrere, and polylactic acid are used for food packaging and beverages packaging due to their high strength, versatility, and recyclability properties. Furthermore, recycled packaging products such as polycaprolactone are used in food packaging due to excellent biodegradability and biocompatibility as well as bio re-absorbability. Thus, the increasing food sector is expected to grow the demand for biodegradable packaging products during the forecast period. According to the India Brand Equity Foundation (IBEF), India’s food processing sector is expected to reach US$ 535 billion by 2025-26. However, the Indian government approved Rs. 107.42 crore (US$ 15.25 million) to implement 28 food processing projects, which helps to reduce food waste and increasing demand for recycling packaging and biodegradable materials. Which will further influence the market growth.
Europe dominated the biodegradable packaging market with a share of 35% in 2020. Growing demand for packaged food with increasing population and rapid investment in beverages industry growth is driving the biodegradable packaging market. According to Eurostat, Europe exported 11% of dairy products and 16% of drinks to the United Kingdom in 2018. However, the combined export market share was 39% of dairy products and drinks in the European food and drink industry. According to the European Bioplastics, biodegradable materials including polylactic acid, polyhydroxybutyrate, polycaprolactone, starch-based bioplastic, and others accounted for over 1.2 million tons of the global bioplastics production capacities in 2020. Furthermore, the production capacity of global bioplastic increased to around 2.11 million tons in 2020 and is expected to grow by 2.87 million tons in 2025. Thus, increasing the rapid turnover of biodegradable materials will expect to boost biodegradable packaging in the scenario.
Bioplastic packaging is used for the packing of cosmetic, pharmaceutical products, food and beverages, and others due to its environmental nature. Thus, according to the India Brand Equity Foundation (IBEF), India's beauty, the cosmetic market will reach US$ 20 billion by 2025. Furthermore, India’s domestic pharmaceutical market is estimated at US$ 41 billion in 2021 and is expected to reach US$ 65 billion by 2024 and around US$ 120-130 billion by 2030. On the other hand, according to the Association of Plastics Manufacturers and the European Association of Plastics Recycling and Recovery Organizations, in 2018 plastic post-consumer waste was collected to be recycled around 9.4 million tons. Thus, these factors are driving the market growth.
The manufactures are highly consuming bioplastics for food packaging as it provides hygienic food for a long period to the consumers. According to the Euro Bioplastic, in 2020, bioplastic packaging remains 47% (0.99 million tons) production of the total bioplastics market. Furthermore, 46 percent of bioplastics were produced in the Asia Pacific and 17% in North America in 2020. Although, the production of bioplastic packaging materials is expected to grow by 18% by 2025. Thus, high production of these materials is expected to grow the consumption of bioplastics which, in turn, will be expected to market size during the projected era.
PLA, PHA, and other biodegradable materials are ideal in packaging due to being eco-friendly but these are not 100% recycled. Thus, increasing demand for recycled plastics may hamper the market growth. Recycled packaging is helping to reach the sustainability goals of the manufacturer. For instance, Amcor is pledging to develop all of its packagings to be recyclable by 2025. Furthermore, according to the Environmental Protection Agency (EPA), 70 % of plastic is destroyed or recycled in landfills in the United States. Although, in 2019 Kellogg’s aimed to switch to completely recyclable packaging by 2025. Thus, increasing demand for recycled packaging may hamper the demand for biodegradable packaging.
2. BASF SE
3. Stora Enso
4. Amcor Limited
5. Smurfit Kappa Group
6. RockTenn
7. Sealed Air Corporation
8. Mondi Group PLC
9. Reynolds Group Holding Limited
10. Tetra Pak International SA, and among others.
In Mar 2020, Amcor collaborated with the Healthcare Plastics Recycling Council (HPRC) which will help foster more sustainable practices and innovation across the healthcare industry and enables to improve the recyclability of plastic products. The company will support the coalition with its expertise in packaging design for medical devices and applications in hospitals and other treatment settings.
This product will be delivered within 2 business days.
COVID-19 Pandemic
The tragedy of COVID-19, which is declared as a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. This has affected the demand and supply chain activities, thereby limiting the growth in 2020. Thus, all activities were on hold due to this pandemic which, in turn, limiting the demand for packaging products and hamper the market growth during the era.
Report Coverage
The report “Biodegradable Packaging Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Biodegradable Packaging Industry.
- By Packaging Product: Plastic (Polylactic Acid Bioplastic, Polyhydroxyalkanoate (PHA), Starches Based Bioplastic, Cellulose Based Bioplastic, Gelatin Based Bioplastic, Others), Paper and Cardboards (Kraft Paper Roll, Paper Bags, Others), Bubble Wrap (Corrugated Bubble, Green Wrap, Others), and Others
- By Application: Food Packaging (Fast Food, Processed Food, Frozen Food, Others), Beverage Packaging, Pharmaceutical & Medical Sector (Drug Delivery, Medical Devices, Others), Consumer Goods, Cosmetic & Personal Care (Skin Care Products, Hair Care Products, Others), and Others
- By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and the Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (the Middle East and Africa)
Key Takeaways
The Europe region dominated the biodegradable market, due to the high consumption of biodegradable materials such as PLA, PHA, polyethylene films, and others with a growing population and production of bioplastics.
Bioplastic is used for food packaging, cosmetic packaging, pharmaceutical packaging, and others due to its high biocompatibility. According to the India Brand Equity Foundation (IBEF), India’s drugs and pharmaceuticals exports stood at US$ 20.14 billion in FY21, which increase the demand for plastic materials.
Increasing consumption of recycled packaging products due to sustainability may hamper the biodegradable plastics market growth as biodegradable materials are recycled but not 100%.
Biodegradable Packaging Market Segment Analysis - By Packaging Product
The plastic segment dominated the global biodegradable plastics market in 2020. Bioplastic material such as PLA, cellulose, PHA, and others are highly biodegradable and biocompatible products, which provides hygienic packaging. Biodegradable plastics made from traditional petrochemicals are engineered to break down more quickly and are used in food packaging. Bioplastic such as PHA is used in medical devices like sutures and cardiovascular patches. Hence, increasing consumption of bioplastic is expected to grow the demand in the market.
Biodegradable Packaging Market Segment Analysis - By Application
The food packaging segment held the largest share in the biodegradable packaging market in 2020 and is growing at a CAGR of 20.11% during 2022-2027 with increasing consumers' demand for healthy, safe, and hygienic food. Biodegradable materials such as starch-based plastic, polyhydroxybutyrere, and polylactic acid are used for food packaging and beverages packaging due to their high strength, versatility, and recyclability properties. Furthermore, recycled packaging products such as polycaprolactone are used in food packaging due to excellent biodegradability and biocompatibility as well as bio re-absorbability. Thus, the increasing food sector is expected to grow the demand for biodegradable packaging products during the forecast period. According to the India Brand Equity Foundation (IBEF), India’s food processing sector is expected to reach US$ 535 billion by 2025-26. However, the Indian government approved Rs. 107.42 crore (US$ 15.25 million) to implement 28 food processing projects, which helps to reduce food waste and increasing demand for recycling packaging and biodegradable materials. Which will further influence the market growth.
Biodegradable Packaging Market Segment Analysis - By Geography
Europe dominated the biodegradable packaging market with a share of 35% in 2020. Growing demand for packaged food with increasing population and rapid investment in beverages industry growth is driving the biodegradable packaging market. According to Eurostat, Europe exported 11% of dairy products and 16% of drinks to the United Kingdom in 2018. However, the combined export market share was 39% of dairy products and drinks in the European food and drink industry. According to the European Bioplastics, biodegradable materials including polylactic acid, polyhydroxybutyrate, polycaprolactone, starch-based bioplastic, and others accounted for over 1.2 million tons of the global bioplastics production capacities in 2020. Furthermore, the production capacity of global bioplastic increased to around 2.11 million tons in 2020 and is expected to grow by 2.87 million tons in 2025. Thus, increasing the rapid turnover of biodegradable materials will expect to boost biodegradable packaging in the scenario.
Biodegradable Packaging Market Drivers
Increasing Demand for Biodegradable Packaging from End-Use Sector
Bioplastic packaging is used for the packing of cosmetic, pharmaceutical products, food and beverages, and others due to its environmental nature. Thus, according to the India Brand Equity Foundation (IBEF), India's beauty, the cosmetic market will reach US$ 20 billion by 2025. Furthermore, India’s domestic pharmaceutical market is estimated at US$ 41 billion in 2021 and is expected to reach US$ 65 billion by 2024 and around US$ 120-130 billion by 2030. On the other hand, according to the Association of Plastics Manufacturers and the European Association of Plastics Recycling and Recovery Organizations, in 2018 plastic post-consumer waste was collected to be recycled around 9.4 million tons. Thus, these factors are driving the market growth.
Growing Consumption of Bioplastics for Food Packaging Application
The manufactures are highly consuming bioplastics for food packaging as it provides hygienic food for a long period to the consumers. According to the Euro Bioplastic, in 2020, bioplastic packaging remains 47% (0.99 million tons) production of the total bioplastics market. Furthermore, 46 percent of bioplastics were produced in the Asia Pacific and 17% in North America in 2020. Although, the production of bioplastic packaging materials is expected to grow by 18% by 2025. Thus, high production of these materials is expected to grow the consumption of bioplastics which, in turn, will be expected to market size during the projected era.
Biodegradable Packaging Market Challenges
Growing demand for 100% Recyclable Packaging Solutions
PLA, PHA, and other biodegradable materials are ideal in packaging due to being eco-friendly but these are not 100% recycled. Thus, increasing demand for recycled plastics may hamper the market growth. Recycled packaging is helping to reach the sustainability goals of the manufacturer. For instance, Amcor is pledging to develop all of its packagings to be recyclable by 2025. Furthermore, according to the Environmental Protection Agency (EPA), 70 % of plastic is destroyed or recycled in landfills in the United States. Although, in 2019 Kellogg’s aimed to switch to completely recyclable packaging by 2025. Thus, increasing demand for recycled packaging may hamper the demand for biodegradable packaging.
Biodegradable Packaging Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Biodegradable Packaging Market. Major players in the Biodegradable Packaging Market are:
1. International Paper2. BASF SE
3. Stora Enso
4. Amcor Limited
5. Smurfit Kappa Group
6. RockTenn
7. Sealed Air Corporation
8. Mondi Group PLC
9. Reynolds Group Holding Limited
10. Tetra Pak International SA, and among others.
Acquisitions/Technology Launches
In Mar 2020, Amcor collaborated with the Healthcare Plastics Recycling Council (HPRC) which will help foster more sustainable practices and innovation across the healthcare industry and enables to improve the recyclability of plastic products. The company will support the coalition with its expertise in packaging design for medical devices and applications in hospitals and other treatment settings.
This product will be delivered within 2 business days.
Table of Contents
1. Biodegradable Packaging Market- Market Overview
2. Biodegradable Packaging Market- Executive Summary
3. Biodegradable Packaging Market- Comparative analysis
4. Biodegradable Packaging Market- Market Forces
5. Biodegradable Packaging Market- Strategic Analysis
6. Biodegradable Packaging Market- By Packaging Product (Market Size -$Million)
7. Biodegradable Packaging Market- By Application (Market Size -$Million)
8. Biodegradable Packaging Market- By Geography (Market Size -$Million/Billion)
9. Biodegradable Packaging Market- Entropy
10. Biodegradable Packaging Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
Methodology
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