PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515544
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515544
Biodegradable Packaging Material Market size was valued at USD 101,541.2 Million in 2023, expanding at a CAGR of 6.20% from 2024 to 2032.
Biodegradable packaging is made of materials that naturally disintegrate and return to the environment as water, carbon dioxide, and organic matter. These packaging solutions, which are predominantly made of plant-based materials like starch and cellulose, provide a more sustainable alternative to typical plastic and paper-based options. They are designed to degrade more quickly when exposed to natural factors, hence reducing the ecological imprint of the products they contain. Biodegradable packaging frequently uses the action of microorganisms to accelerate decomposition, as it has minimal toxicity, reduces waste, and emits zero hazardous emissions. It is an important waste management technique, particularly in companies that place a high value on environmental responsibility. In terms of functionality, biodegradable packaging effectively protects the integrity of the products it contains while minimizing environmental impact.
Biodegradable Packaging Material Market- Market Dynamics
Increasing Retail Demand for Environmentally Friendly Packaging
The increase in retailer demand for environmentally friendly packaging. Retailers have a huge influence on consumer decisions and are, in many respects, the gatekeepers of product placement and visibility. Sustainability has made its way into retail firm evaluation criteria, often becoming a significant consideration alongside price and quality. As a result, producers find themselves in a position where using biodegradable packaging is no longer an option but a need for market survival. Retailers, for their part, are responding to both consumer expectations and governmental demands by ensuring that their supply chains are environmentally responsible. Those who achieve these increasing standards will benefit from improved shelf location, promotional support, and, in some circumstances, financial incentives. The synergy between merchants and producers drives up the demand for biodegradable packaging solutions.
Biodegradable Packaging Material Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 6.20% over the forecast period (2024-2032)
Based on Type segmentation, Degradable Packaging is the dominant section of the Biodegradable Packaging Material Market.
Based on Material Type segmentation, in 2023, the plastic category will lead the global market.
Based on Packaging Format segmentation, the Boxes & Cartons segment had the highest market share (23.31%) in 2023.
Based on Application segmentation, the Food & Beverage segment held the majority of the market share
Based on Distribution Channel segmentation, Retailers was the leading type in 2023
Based on region, Asia Pacific was the leading revenue generator in 2023
The Global Biodegradable Packaging Material Market is segmented based on Type, Material Type, Packaging Format, Application, Distribution Channel, and Region.
The market is divided into three categories based on Type: Recycled Content Packaging, Reusable Packaging, and Degradable Packaging. Degradable Packaging is the dominant section of the Biodegradable Packaging Material Market. Degradable packaging is designed to degrade into natural components over time, hence lowering its environmental impact. This sort of packaging provides a sustainable alternative because it decomposes naturally, unlike typical plastics, which can remain in the environment for hundreds of years.
The market is divided into three categories based on Material Type: Plastic, Paper & Paperboard, and Bagasse. In 2023, the plastic category led the global market for biodegradable plastics. Bioplastic materials such as PLA, cellulose, and PHA, among others, are extremely biodegradable and biocompatible, making them ideal for hygiene packaging. Biodegradable plastics, manufactured from traditional petrochemicals are designed to degrade more quickly and are utilized in food packaging. Sutures and cardiovascular patches are examples of medical devices that use bioplastics like PHA. As a result, rising bioplastic usage is likely to drive market demand higher.
Biodegradable Packaging Material Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Throughout the projection period, Asia Pacific is expected to maintain its leadership and hold the top rank in the global market for green packaging. Because of rising population density, convenient meals and drinks are being consumed more frequently. Furthermore, the regional market is expected to grow as green packaging makers in China, India, Japan, and South Korea prioritize ecologically friendly packaging solutions in response to growing consumer environmental concerns. Raw materials for cartons, bags, boxes, and other packaging equipment are readily available in South-East Asia. This is expected to have a positive impact on the markets.
In North America, the biodegradable packaging market is predicted to increase significantly over the forecast period, owing to rising demand for bio-based packaging in the food and consumer products sectors. Bio bags and bio-based plastics outperform conventional plastics in terms of tensile strength, eco-friendliness, and convenience. This is projected to boost demand for biodegradable plastics.
Major market players include Amcor, Be Green Packaging, DS Smith, DuPont, and Evergreen Packaging. The Biodegradable Packaging Market is consolidated as a result of increased rivalry, acquisitions, mergers, and other strategic market changes and decisions to improve operational efficiency. These vendors have a large geographic footprint and a strong partner ecosystem to serve a wide range of consumer categories. The biodegradable packaging market is highly competitive, with numerous suppliers providing identical products and services.
In April 2022, Karat Packaging Inc. stated that it had entered into a formal joint venture agreement with Happiness Moon, Co. Ltd. to form a new organization, Green Earth Technology, to construct a new 180,000-square-foot facility in Taiwan. The new plant will use cutting-edge robotic automation to produce compostable food service goods from bagasse, a derivative of sugar cane pulp that is a rapidly expanding source of 100% compostable foodservice products.
GLOBAL BIODEGRADABLE PACKAGING MATERIAL MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Amcor
Be Green Packaging
DS Smith
DuPont
Evergreen Packaging
Mondi
Nampak
Ball Corp.
Sealed Air
Tetra Laval
Others