Biodegradable Packaging Materials Market Report 2025

This Biodegradable Packaging Materials Market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The biodegradable packaging materials market size has grown strongly in recent years. It will grow from $111.65 billion in 2024 to $122.26 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth during the historic period can be attributed to the increasing demand from eco-conscious consumers, the rise of recyclable packaging, the growth of online food delivery services, the increased use of recycled materials, and the expansion of e-commerce.

The biodegradable packaging materials market size is expected to see strong growth in the next few years. It will grow to $173.45 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth during the forecast period can be attributed to the rising demand for bio-based materials, increasing consumer demand for eco-friendly products, growing environmental concerns, the greater use of biodegradable packaging, and the rising popularity of plant-based packaging. Key trends in the forecast period include the adoption of biodegradable packaging, innovations in packaging design, advancements in paper and cardboard, the rise of eco-labels, and improvements in recycling technologies.

The growing demand for sustainable packaging is expected to drive the expansion of the biodegradable packaging materials market in the future. Sustainable packaging refers to eco-friendly materials and design practices that aim to reduce environmental impact throughout a product’s lifecycle. It focuses on recyclability, biodegradability, and minimizing waste, all while ensuring the protection and functionality of products. The rising demand for sustainable packaging is largely driven by increasing awareness of issues such as plastic pollution, deforestation, and landfill waste, as well as consumer preference for eco-friendly products, corporate sustainability initiatives, and long-term cost savings through lightweight, recyclable materials. Biodegradable packaging contributes to sustainable packaging by naturally breaking down into non-toxic components, thereby reducing landfill waste and pollution. For example, in April 2022, a report by Trivium Packaging, a US-based sustainable metal packaging company, found that about 86% of consumers were willing to pay more for sustainable packaging. As a result, the increasing demand for eco-friendly packaging solutions is boosting the growth of the biodegradable packaging materials market.

Leading companies in the biodegradable packaging materials market are focused on developing innovative solutions, such as water-based barrier coatings, to improve the durability of packaging while maintaining its eco-friendly attributes. Water-based barrier coatings are environmentally friendly coatings that protect against moisture, oils, and grease, extending shelf life and enhancing the functionality of biodegradable packaging. For example, in March 2024, Archroma, a Switzerland-based chemicals company, introduced Cartaseal OGB F10, a per- and poly-fluoroalkyl substances (PFAS)-free barrier coating designed to resist oil and grease in food and non-food packaging. Made from bio-based raw materials, this coating offers superior performance and maintains its protective properties even in folded applications, all while being biodegradable. Cartaseal OGB F10 provides a strong barrier against oil and grease, ensuring the integrity and freshness of both food and non-food products.

In May 2023, TIPA Compostable Packaging, an Israel-based manufacturer of compostable flexible packaging solutions, acquired Bio4Pack for an undisclosed amount. This acquisition was aimed at strengthening TIPA Compostable Packaging's portfolio of sustainable packaging solutions and expanding its market presence in Europe. Bio4Pack, a Germany-based packaging company, specializes in compostable packaging materials.

Major players in the biodegradable packaging materials market are BASF SE, Mitsubishi Chemical Corporation, Braskem S.A., Smurfit Kappa Group, Tetra Pak International S.A., Corbion Purac, Green Dot Bioplastics Inc., Dunapack Packaging, Danimer Scientific Inc., Fabbri Group S.p.A., Vegware Limited, Novamont S.p.A., Paptic Ltd., Biopacktech Co. Ltd., BioGreen Packaging, Teysha Technologies, Packware GmbH, TIPA LTD., Cardia Bioplastics Ltd., Futamura Group, Avani, Biome Bioplastics Limited.

North America was the largest region in the biodegradable packaging materials market in 2024. The regions covered in biodegradable packaging materials report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the biodegradable packaging materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Biodegradable packaging materials are designed to break down naturally over time through the action of microorganisms such as bacteria, fungi, or algae. These materials serve as a more sustainable alternative to conventional plastics, helping to mitigate environmental concerns related to waste and pollution.

The main types of biodegradable packaging materials include paper and paperboard, plastic, jute, and wood. Paper and paperboard, which are made from natural fibers or recycled materials, are biodegradable, lightweight, and commonly used for food packaging, gift wrapping, and cartons. This material is used in a variety of applications such as trays, bags, boxes, clamshells, and pouches. It caters to several end-use industries, including food and beverages, cosmetics and personal care, pharmaceuticals, and consumer goods.

The biodegradable packaging materials market research report is one of a series of new reports that provides biodegradable packaging materials market statistics, including the biodegradable packaging materials industry global market size, regional shares, competitors with the biodegradable packaging materials market share, detailed biodegradable packaging materials market segments, market trends, and opportunities, and any further data you may need to thrive in the biodegradable packaging materials industry. This biodegradable packaging materials market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The biodegradable packaging materials market consists of sales of bamboo, bagasse, starch-based foams, and coconut coir. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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