Biodegradable foams are sustainable polymers that can decompose into carbon dioxide, water, and biomass through microbial action within a few months under composting conditions. They are used in packaging applications such as loose fill packaging, protective packaging, and cushions & void fill. Biodegradable foam products exhibit excellent cushioning properties, provide surface protection, and insulate against impact and vibration damage.
The global biodegradable foam market is estimated to be valued at US$ 906.1 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing consumer awareness regarding environmental protection and government initiatives to curb pollution are the key factors driving the growth of the global biodegradable foam market. As biodegradable foams can decompose into natural elements without harming the environment, their adoption is increasing across industries for more sustainable packaging applications. Another major driver is the implementation of stringent regulations restricting the use of conventional plastics. Various regions and countries worldwide have either banned or levied heavy taxes on single-use plastics which is propelling the demand for biodegradable alternatives like foams. Additionally, biodegradable foam manufacturers are constantly innovating their product offerings in terms of performance, cost, and processing methods to appeal to a broader customer base.
Segment Analysis
The biodegradable foam market is segmented into type and application. Based on type, the market is categorized into starch based foam, protein based foam, and others which includes polyhydroxyalkanoates and cellulose foam. The starch based foam segment currently dominates the market and is projected to grow at a CAGR of over 20% during the forecast period. This is primarily attributed to abundant availability and low cost of starch as a raw material for production of biodegradable foam.
PEST Analysis
Political: Governments across regions are promoting adoption of biodegradable and eco-friendly materials through regulations mandating use of certain percentage of bioplastics in packaging applications. This is positively impacting growth of biodegradable foam market.
Economic: Rising disposable incomes and growing economies are leading to increase in demand for packaged food and consumer goods. This in turn is propelling the need for sustainable packaging solutions like biodegradable foam.
Social: Consumers are increasingly preferring eco-friendly products and packaging made from renewable resources to reduce environmental footprint. This changing preference is fueling market growth.
Technological: Continuous technological advancements are improving properties of biodegradable foam to make it suitable for wider range of applications. Development of cost effective production techniques is also supporting market expansion.
Key Takeaways
The global biodegradable foam market share is expected to witness high growth during the forecast period. The global biodegradable foam market is estimated to be valued at US$ 906.1 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030.
Regionally, the market in North America dominates currently owing to stringent regulations regarding use of conventional plastics and presence of major players. However, Asia Pacific region is projected to showcase fastest growth in the coming years led by developing economies of China and India exhibiting rapid industrialization.
Key players operating in the biodegradable foam market are BASF SE, Arkema SA, Dow Chemical Company, Synbra Technology BV, and Sekisui Alveo AG. BASF SE holds the leading market position on account of its diverse product portfolio and extensive global presence. The key players are largely focused on new product development and expansion strategies to strengthen their market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.