Global Biodegradable Packaging Market Overview, 2023-28

Biodegradable packaging is a material that decomposes spontaneously and returns to the environment as water, carbon dioxide, and organic waste. These packaging solutions, made mostly of plant-based materials such as starch and cellulose, provide a sustainable alternative to standard plastic and paper-based options. They are designed to degrade faster when exposed to natural conditions, effectively reducing the ecological imprint of the things they contain. Biodegradable packaging, which has properties such as low toxicity, reduced waste, and zero hazardous emissions, frequently uses the action of microorganisms to accelerate decomposition. It is an important waste management tool, particularly in sectors that stress environmental responsibility. Biodegradable packaging effectively protects the quality of the products it houses in terms of functioning, while ensuring a limited environmental impact. Biodegradable packaging is commonly used in the food and beverage industries to wrap and preserve perishable commodities, reducing food waste and pollution. It is also used in agriculture to store and transport fruits, vegetables, and other commodities, reducing the carbon footprint of transportation and storage. Furthermore, biodegradable packaging is utilized to package consumer goods such as apparel, electronics, and personal care items in retail. Biodegradable packaging is also utilized in the healthcare business to package medical devices, pharmaceuticals, and other related products, reducing waste and improving sustainability. It is also utilized in the logistics business for shipping and moving goods, as it reduces waste and has a low environmental impact. The government's expanding endeavours to create biodegradable packaging materials are likely to drive rapid growth in the market for compostable packaging. Growing investments in sustainable packaging choices will propel the biodegradable packaging business to profitability. Political alliances and the opening of new markets would also serve as market drivers, increasing the industry's growth rate.

According to the research report, “Global Biodegradable Packaging Market Overview, 2023-28” the market is anticipated to cross USD 135 Billion by 2028, increasing from USD 94.16 Billion in 2022. The market is expected to grow with 6.62% CAGR by 2023-28. The global market is being pushed primarily by increased consumer awareness of the environmental consequences of traditional packaging materials. In accordance with this, tough government rules prohibiting the use of single-use plastics are forcing industry to seek out sustainable alternatives. Furthermore, advances in material science have resulted in cost-effective, environmentally friendly packaging alternatives. Furthermore, the growth of e-commerce activities is creating a demand for more environmentally friendly shipping and packing solutions. Furthermore, worldwide alliances and partnerships are promoting knowledge transfer and innovation in this industry. The industry is also being boosted by an increase in corporate social responsibility efforts that target environmentally sustainable operations. Aside from that, waste management programs that promote recycling and composting are hastening market acceptability. Other factors driving market growth include rising disposable income, international trade policies that facilitate the global distribution of sustainable packaging solutions, and intensive research and development (R&D) activities. Biodegradable plastic and paper packaging are commonly used in the packaging of materials and goods that are moved from one location to another, as plastic allows logistics companies to transfer material and goods across long distances and in all weather conditions. In the wake of sustainable development, logistic companies are increasingly turning to biodegradable packaging materials as they offer a low-cost alternative to synthetic polymer packaging materials and are non-toxic to the environment. Biodegradable plastic packaging protects items from water, dirt, dust, and other potentially hazardous environmental conditions, keeping things safe and secure. Because of its ability to be quickly cast and converted into any shape, biodegradable plastic is extremely versatile. It is used to protect other packed cardboard and other commodities during the transit phase. The increased usage of biodegradable plastic in logistical packaging is a major factor driving the growth of the worldwide biodegradable packaging market.

There is a growing awareness of environmental issues and the need for sustainable and eco-friendly packaging options. Consumers in the Asia-Pacific region are becoming more environmentally conscious and are actively seeking products with reduced environmental impact. Many countries in the Asia-Pacific region have implemented or are considering regulations and policies to reduce plastic waste and promote sustainable packaging. This includes bans on single-use plastics, incentives for biodegradable packaging, and extended producer responsibility (EPR) programs. As disposable incomes in the Asia-Pacific region increase, consumers are willing to spend more on eco-friendly and premium products, including those with biodegradable packaging. Companies are recognizing the growing demand for sustainable packaging options and are increasingly adopting biodegradable materials for their products. This trend is especially evident in industries like food and beverage, cosmetics, and personal care. Ongoing research and development have led to the creation of innovative biodegradable packaging materials that are more affordable, durable, and efficient. These advancements make biodegradable packaging a more attractive option for businesses in the region. Also, more companies are investing in the production and distribution of biodegradable packaging materials in the Asia-Pacific region, leading to increased availability and reduced costs. Collaboration between governments, industries, and non-governmental organizations in the region has led to the development of sustainable packaging solutions and initiatives that promote the use of biodegradable materials. The Asia-Pacific region's diverse consumer base includes a significant portion of young, environmentally-conscious consumers who actively seek out eco-friendly products, including those with biodegradable packaging.

Biodegradable packaging is designed to break down and decompose naturally, whereas traditional plastic materials are known for their persistence in the environment. However, there are some biodegradable materials that are designed to mimic the properties of plastic, providing a more eco-friendly alternative to traditional plastics. These materials are sometimes referred to as biodegradable plastics or bioplastics. Traditional plastics, which are derived from fossil fuels and can persist in the environment for centuries, have raised significant environmental concerns due to their contribution to plastic pollution. Biodegradable plastics offer a way to mitigate these concerns by breaking down into natural components over a relatively short period. Many governments and regions are implementing regulations and policies to reduce the use of single-use plastics and promote biodegradable alternatives. This regulatory support is driving the demand for biodegradable plastics in packaging. Consumers are increasingly looking for sustainable and eco-friendly packaging options. Biodegradable plastics are seen as a more environmentally responsible choice, which aligns with consumer preferences for products with reduced environmental impact. Many businesses are setting sustainability goals and commitments to reduce their environmental footprint. Adopting biodegradable plastics in their packaging helps companies align with these goals and demonstrate their commitment to sustainability. The production and distribution of biodegradable plastics have become more integrated into the supply chains of various industries, making it easier for businesses to source and use these materials. Biodegradable plastics can be used for a wide range of packaging applications, including food packaging, bags, and disposable cutlery, among others. This versatility makes them a practical choice for businesses looking to reduce their environmental impact.

Boxboard paper material, which is a type of paperboard, is growing in the biodegradable packaging market. Boxboard paper is made from renewable and recyclable resources, such as wood pulp from sustainably managed forests. It is seen as an eco-friendly alternative to non-renewable and non-recyclable packaging materials like plastic. As consumers and businesses become more environmentally conscious, there is a growing demand for sustainable packaging solutions. Boxboard paper is highly recyclable. It can be recycled multiple times, reducing the need for new raw materials and the environmental impact associated with production. This recyclability is in line with circular economy principles, where materials are reused and recycled to minimize waste. While boxboard paper is not inherently biodegradable like some bioplastics, it is compostable under the right conditions. When disposed of in composting facilities, boxboard paper can break down into organic matter, contributing to soil health. This makes it an environmentally friendly choice for certain packaging applications. Businesses often use boxboard paper packaging to convey their commitment to sustainability and eco-friendliness. It can enhance a brand's image and attract environmentally aware consumers. On the other hand, starch-based plastic materials, also known as starch-based bioplastics or biodegradable plastics, are growing in the biodegradable packaging market. Starch-based plastics are designed to biodegrade under certain conditions, typically in industrial composting facilities. This characteristic makes them an eco-friendly alternative to conventional plastics, which can persist in the environment for extended periods. Many regions and countries have implemented regulations and policies to reduce plastic waste and promote biodegradable alternatives. This regulatory support encourages the adoption of starch-based plastics in the packaging industry. Consumers are increasingly seeking products with reduced environmental impact. Starch-based bioplastics align with consumer preferences for eco-friendly and sustainable packaging solutions. The production of starch-based plastics often results in a lower carbon footprint compared to traditional plastics. This can be an attractive feature for companies looking to reduce their environmental impact. Starch-based plastics can be used for a wide range of packaging applications, including bags, food containers, cutlery, and more. Their versatility makes them suitable for various industries, including food and beverage, retail, and hospitality.

Based on the application, the healthcare and pharmaceutical sectors are subject to strict regulations and guidelines regarding the safety and quality of products, including packaging. Many regulatory authorities are encouraging or requiring the use of sustainable and environmentally friendly packaging materials, which is driving the adoption of biodegradable packaging in these industries. Healthcare and pharmaceutical companies are recognizing the importance of environmental responsibility. They are taking steps to reduce their carbon footprint and minimize their impact on the environment. Adopting biodegradable packaging is seen as a responsible choice that aligns with corporate sustainability goals. The pharmaceutical industry, in particular, generates a significant amount of packaging waste due to the use of single-dose blister packs, vials, and other materials. Biodegradable packaging can help reduce this waste and contribute to more sustainable waste management practices. Patients and consumers increasingly expect sustainable and eco-friendly packaging for pharmaceutical products. Biodegradable packaging options are seen as more responsible and environmentally conscious choices, which can enhance a company's reputation and brand image. Biodegradable packaging is also gaining traction in the clinical trial and research segments of the pharmaceutical industry. Sustainable packaging materials are used for the safe and eco-friendly storage and transport of pharmaceutical samples and materials. Many pharmaceutical companies have committed to reducing their environmental impact as part of corporate social responsibility (CSR) initiatives. Biodegradable packaging aligns with these green initiatives and demonstrates a commitment to sustainability. Biodegradable packaging materials often have a lower carbon footprint compared to traditional plastics, which can contribute to reducing the overall environmental impact of the supply chain in the healthcare and pharmaceutical sectors.

On the basis of distribution channel, retailers are becoming more environmentally conscious and are actively seeking products with sustainable and eco-friendly packaging. Retailers recognize that offering biodegradable packaging aligns with consumer preferences and can attract eco-conscious customers. Retailers can use biodegradable packaging as a unique selling point to differentiate themselves from competitors. This can help them stand out in a crowded market and attract customers who prioritize sustainable choices. In many regions, there are regulations and initiatives aimed at reducing the use of single-use plastics and promoting sustainable packaging options. Retailers are adopting biodegradable packaging to ensure compliance with these regulations and demonstrate their commitment to responsible business practices. Using biodegradable packaging enhances a retailer's brand image as an environmentally responsible and socially conscious business. This positive image can foster customer loyalty and attract consumers who want to support sustainable brands. Biodegradable packaging helps reduce the environmental impact of packaging waste. Retailers are increasingly aware of their role in waste generation and are taking steps to minimize their contribution to plastic pollution. Retailers are looking to minimize their supply chain's environmental footprint, and using biodegradable packaging materials can be part of that strategy. Reducing the carbon footprint associated with packaging materials and distribution is in line with sustainability goals. Advances in biodegradable packaging materials have made them more cost-competitive, making it feasible for retailers to adopt these materials without significantly impacting their bottom line. Retailers are implementing various sustainable practices throughout their operations, from energy-efficient lighting in stores to reduced water consumption and waste management. Using biodegradable packaging is another aspect of these broader sustainability initiatives.

Market Drivers

• Consumer Preferences and Brand Image: Consumer preferences are a significant driver for the biodegradable packaging market. Many consumers are now seeking eco-friendly and sustainable products, and they prefer brands that demonstrate a commitment to environmental responsibility. Biodegradable packaging enhances a brand's image and can attract a larger customer base. Companies are increasingly incorporating sustainability into their marketing strategies to meet these consumer demands, driving the adoption of biodegradable packaging solutions.
• Corporate Social Responsibility (CSR): Companies are increasingly embracing corporate social responsibility (CSR) initiatives, which involve taking voluntary actions to minimize the negative impact of business operations on the environment and society. As part of CSR, businesses are transitioning to biodegradable packaging to demonstrate their commitment to sustainability and reduce their carbon footprint. This is a driver for the biodegradable packaging market as it aligns with the goals of responsible business practices and fosters a positive corporate image.

Market Challenges

• Waste Management and Disposal Infrastructure: An on-going challenge in the biodegradable packaging market is the lack of appropriate waste management and disposal infrastructure in many regions. Biodegradable materials require specific conditions, such as composting facilities, to break down efficiently. Without the necessary infrastructure in place, biodegradable packaging may not fulfil its environmental promise and could end up in landfills or incineration, defeating the purpose of using these materials.
• Standardization and Labelling: The lack of standardized labelling and certification for biodegradable packaging can confuse consumers and make it challenging for businesses to communicate the true environmental benefits of their products. There is a need for clear and universally recognized standards and labels to verify the biodegradability and compostability of packaging materials. Without standardized criteria, the market may face skepticism and a lack of trust from consumers and businesses alike.

Market Trends

• Customization and Personalization: A growing trend in the biodegradable packaging market is customization and personalization. Companies are using biodegradable materials to create unique and branded packaging solutions that align with their product offerings and values. Customized packaging not only enhances brand recognition but also promotes eco-friendliness, making it a key trend in the market.
• Technological Advancements: Continuous advancements in technology are driving the biodegradable packaging market. These innovations include the development of advanced materials, such as biodegradable Nano composites and coatings that improve the performance and shelf life of biodegradable packaging. Additionally, smart packaging technologies, like QR codes for recycling information and freshness indicators, are being integrated into biodegradable packaging, enhancing its functionality and appeal to consumers.

Covid-19 Impacts

COVID-19 disrupted global supply chains, leading to challenges in the production and distribution of biodegradable packaging materials. Delays in the supply of raw materials and disruptions in manufacturing facilities affected the availability of these products. Some consumers and businesses may have been hesitant to invest in higher-cost biodegradable packaging options due to financial uncertainties and the perceived premium associated with eco-friendly materials. While some regions continued to prioritize sustainability and implemented regulations to reduce single-use plastics, in others, the focus shifted towards addressing immediate health concerns. This divergence in priorities affected the speed of regulatory changes and the extent to which biodegradable packaging was promoted or mandated. The closure of restaurants and reduced foodservice operations led to a decline in the demand for foodservice packaging, which often includes biodegradable options. This affected the segment of the biodegradable packaging market catering to the food and beverage industry. The pandemic has heightened awareness of health and hygiene, leading to a surge in demand for single-use, disposable items, including biodegradable packaging. Consumers became more conscious of the materials used in packaging and their impact on health and the environment, leading to a preference for eco-friendly options. With lockdowns and restrictions in place, e-commerce and online shopping experienced significant growth during the pandemic. This shift in consumer behaviour increased the demand for packaging materials, including biodegradable packaging, as companies sought sustainable alternatives for shipping and delivery to reduce their carbon footprint.

Competitive Landscape

Leaders in the global biodegradable packaging market are working on developing new materials that break down naturally without causing environmental harm. These companies are collaborating with scientists and researchers to explore innovative bio-based materials. Additionally, they are making strategic investments in manufacturing processes that can scale up the production of eco-friendly packaging solutions. Regulatory compliance is a significant focus, where they are working to meet the strict standards set for biodegradable materials. Furthermore, they are conducting life-cycle assessments to ensure that their products are genuinely sustainable from production to disposal. To expand their geographical reach, they are entering into collaborations with local distributors in emerging markets. They are also engaging with customers to understand their needs and fine-tuning their products accordingly. The market studied comprises WestRock Company, The Smurfit Kappa Group Plc, BASF SE, The International Paper Company, Amcor Plc, DS Smith plc, Mondi Group, Tetra Laval Group, Elevate Packaging, Kruger Inc., Ranpak Holding Corporation, Sealed Air Corporation, DuPont, Clearwater Paper Corporation, Oji Holdings Corporation, Stora Enso Oyj, Genpak, LLC, Novamont S.p.A, Kaneka Corporation and Huhtamaki Group.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Biodegradable Packaging market Outlook with its value and forecast along with its segments
• Region-wise Biodegradable Packaging market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions covered in the report

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East & Africa

By Material Type:

• Paper
• Plastic
• Bagasse

By Paper:

• Corrugated Fiberboard
• Kraft Paper
• Paperboard
• Flexible Paper
• Boxboard
• Others (Greaseproof paper, Corrugated BubbleWrap)

By Plastic:

• Cellulose-based plastics
• Polylactic acid (PLA)
• Starch Based
• Poly-3-Hydroxybutyrate (PHB)
• Polyhydroxyalkanoates (PHA)
• Others (protein-based bio-plastics, genetically modified bio-plastics)

By Application:

• Food Packaging
• Beverage Packaging
• Personal/Homecare Packaging
• Healthcare/Pharmaceutical
• Logistic
• Others (Agriculture)

By Distribution Channel:

• Wholesalers
• Retailers
• Others

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Biodegradable Packaging industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.