PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1661608
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1661608
Global Biodegradable Films Market was valued at USD 1.45 billion in 2024 which is estimated to be valued at USD 2.67 billion in 2032 growing at a CAGR of 7.91% during the forecast period 2025-2032. The global biodegradable films market refers to the marketplace for biodegradable films or sheets that may be destroyed by natural processes such as fungus or bacteria without leaving hazardous residue in the environment.
The demand for biodegradable films has been growing steadily in the recent years, driven by increased environmental awareness and regulations regarding plastic waste reduction. Biodegradable films offer an eco-friendly alternative to traditional plastic films that takes several years to decompose and largely contributes to pollution.
Technological Advancements driving the Global Biodegradable Films Market
Technological developments are contributing significantly the global market of biodegradable films. A new class of high-performance films has been evolved through material sciences, which would be comparable, if not exceed, the usual plastics. Recent cellulose film development, allowing for transparent films that are thin, flexible yet strong, expands the horizon toward eco-friendly package solutions. With all these developments, biodegradable films become even more competitive and appealing to the food packaging, agricultural, and healthcare industries. Their investments in research and development enable companies to set a speed in adopting sustainable packaging, contribute to reducing environmental impacts, and turn towards a circular economy.
For Instance, in November 2024, The F3 project, which was initiated in 2022 is still going strong. It is a collaboration between VTT Technical Research Centre of Finland, LUT University, and 34 industrial partners. Funded by the EU's ERDF program, it aims to develop sustainable cellulose-based films to replace conventional plastic packaging. Recent breakthroughs have led to the development of transparent, biodegradable films seamlessly integrated with paper-based materials. This innovation addresses the plastic waste crisis by offering eco-friendly, recyclable packaging solutions. The success of this project underscores the role of technological advancements in driving the global biodegradable films market toward a more sustainable future.
Advancements in Agricultural Applications Propelling the Growth of the Biodegradable Films Market
Innovations in agricultural applications are also propelling the growth of the biodegradable films market. Researchers are developing biodegradable mulch films that not only prevent weed growth but also release nutrients into the soil, enhancing crop yield and soil health. For instance, in November 2024, UMass Lowell researchers received a USDA grant to develop such films, aiming to reduce plastic pollution and improve agricultural sustainability. These advancements highlight the versatility of biodegradable films and their potential to address environmental challenges across various sectors.
High Demand from Food Packaging Sector
Starch-based polymers such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA) are increasingly being used as raw materials to create food and beverage packaging goods due to their ease of disposal, degradability, and recyclability. As a result, companies are using green packaging labelling for branding and client acquisition, meeting a growing demand for biodegradable materials in food packaging and compostable bag applications.
For example, a SeaFilm food packaging project in the European Union (EU) aims to create an alternative to single-use plastic for the conservation of frozen fish. This film is made of seaweed and edible algae, which can either be disposed of or consumed along with the fish.
Preference of Consumer Towards Eco-Friendly Plastic Products
In the recent years, there has been a noticeable shift in consumer preference towards eco-friendly plastic products, including biodegradable films. This trend has been driven by growing concerns about the environmental impact of traditional plastics that contribute to the pollution in landfills and oceans.
Consumers are increasingly seeking products made from sustainable materials, and biodegradable films offer a promising alternative to traditional plastics. These films are designed to break down more quickly and completely, often within a few months or years, and can be made from a variety of biodegradable materials, such as plant-based polymers, cellulose, starch, and proteins.
Government Schemes
Governments around the world are becoming aware of the environmental issues associated with the traditional plastic films that have a harmful impact on the wildlife and ecosystems. As a result, many governments are promoting biodegradable films through various schemes, grants, and incentives. For example, in January 2022, the U.S. Department of Energy announced an investment if USD 13.4 million to reduce the plastic emissions and design new plastic solutions which are biodegradable and recyclable. The government aims to reach net zero carbon emissions in the nation by the year 2050. Also,in the U.S., the Department of Agriculture offers funding and technical assistance to support the development of biobased products, including biodegradable films made from the agricultural waste.
Impact of COVID-19
The pandemic had a substantial negative impact on the biodegradable films market. The industry's expansion over the previous year was limited by the interruptions in labour, transportation, and supply chains, as well as the lack of materials. During the initial phase of the pandemic, production facilities all around the world were shut down. Also, the launch of the bioplastics was delayed as result of the post-pandemic economic crisis. Supply chain interruptions frequently presented problems for market suppliers. However, the need for necessary packaging, such as e-commerce shipment had seen a tremendous increase.
Impact of Russia-Ukraine War
The Russia-Ukraine war had an adverse impact on the global biodegradable films market due to supply chain disruptions resulting in shortage of raw materials used in the production of biodegradable films. Russia is a major supplier of raw materials such as polyethylene, which is used in the production of biodegradable films. If the war continues, this could lead to further increase in prices of raw materials and finished products, therefore adversely impacting the market.
Key Player Landscape and Outlook
Major producers of biodegradable films use cutting-edge, environmentally friendly technology, specialised finishing and decorative procedures, and a range of materials to provide high-quality packaging solutions. For instance, in 2020 Fabbri Group (Italy) and BASF SE collaborated to create a new cling film specifically for packaging fresh foods. In accordance with the cooperation, BASF SE's Ecovio approved recyclable and bio-based bioplastic will be used by Fabbri Group to create the stretched film, Nature Fresh.
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work