Biodegradable packaging includes packaging material such as paper, paperboard, cardboard, bioplastics, etc. that can break down and decompose within 6-12 months when discarded. These products have minimal impact on the environment as they decompose and do not contribute to landfill waste.
The global Biodegradable Packaging Market is estimated to be valued at US$ 37,919.7 Mn or Mn in 2023 and is expected to exhibit a CAGR of 20.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major market trends in the biodegradable packaging market is the rising adoption of bio-based and biodegradable materials for packaging various products. Major brands and manufacturers are focusing on sustainable packaging solutions to reduce environmental impact. For instance, in 2021 Coca-Cola introduced plant-based fiber bottles developed from bio-based and fiber materials that are fully biodegradable. Similarly, Zespri, a fruit brand switched to biodegradable bags and packaging for its kiwifruit exports. stringent government regulations regarding single-use plastic usage and bans on non-biodegradable packaging are also driving the growth of biodegradable alternatives. Various countries have implemented regulations prohibiting or imposing levies on plastic usage.
SWOT Analysis
- Strength: Biodegradable packaging is more environment friendly as compared to conventional plastic packaging. It reduces the pollution caused by non-degradable plastic packaging.
- Weakness: Biodegradable packaging has higher production costs than conventional plastic packaging. It also has lower moisture and gas barriers than plastics that limit their application.
- Opportunity: Strict government regulations regarding use of single use plastics and policies promoting use of eco-friendly alternatives present an opportunity for biodegradable packaging market.
- Threats: Availability of alternatives like compostable and recyclable materials pose competition to biodegradable packaging. Fluctuations in raw material prices also poses threat.
Key Takeaways
The global biodegradable packaging market is expected to witness high growth, exhibiting CAGR of 20% over the forecast period, due to increasing awareness about environmental hazards of plastic waste and stringent government regulations against plastic usage.
Regional analysis: Asia Pacific dominates the global biodegradable packaging market and is expected to witness fastest growth during the forecast period. The growth in Asia Pacific region can be attributed to growing food and pharmaceutical packaging industry and rising Disposable Income in countries like China and India which increases the demand for packaged food items. Europe is also one of the major biodegradable packaging market owing to stringent government regulations regarding single use plastic usage in the region.
Key players operating in the biodegradable packaging market are BASF SE, Smurfit Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation, Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited, and International Corp. Major players are focusing on new product launches, partnerships and expansion of production facilities to strengthen their market presence. For instance, BASF partnered with Potsdam Institute for Climate Impact Research (PIK) in 2022 to develop biodegradable packaging materials with reduced carbon footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
