Biodegradable packaging helps reduce carbon footprint as it decomposes and converts into elements found in nature such as water, carbon dioxide, and biomass. The global shift towards usage of sustainable and eco-friendly products is contributing to market growth.
The Global biodegradable packaging market is estimated to be valued at US$ 111.55 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the biodegradable packaging 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, International Corp., Solenis, DuPont, Ball Corp, Novamont, Tetra Pak International SA, Biopak PTY, Imex Packaging, and Elevate Packaging Inc.
Key opportunities in Biodegradable Packaging Market Demand include rising adoption from food and beverage industry and government initiatives promoting usage of eco-friendly products. Moreover, adoption is expected to increase from pharmaceutical, cosmetics and personal care industries globally.
Major players are focused on global expansion by enhancing their manufacturing capacities and distribution networks across countries like US, Germany, Brazil, China and India. for instance, Amcor expanded its production facility for flexible packaging in Wuxi, China in 2020.
Market drivers
Stringent regulations on usage of single use plastic by governments worldwide is a key factor driving the demand. Over 60 countries have implemented full or partial bans on single-use plastic bags. Rising concerns over plastic waste accumulation globally coupled with growing preference for sustainable packaging solutions from end use industries and consumers are further fueling the biodegradable packaging market growth.
PEST ANALYSIS
Political: Stringent government regulations and bans on single-use plastics in many countries are driving the demand for biodegradable packaging. Many governments offer subsidies and tax benefits to promote the use of sustainable packaging materials.
Economic: Rising environmental concerns and disposable income are factors positively impacting the market growth. However, high initial costs of biodegradable materials compared to traditional plastics hampers market growth to some extent.
Social: Growing health and environmental awareness among consumers have increased the acceptance of sustainable packaging. Rapid urbanization and changing lifestyles favor the use of convenient, eco-friendly packaging products.
Technological: Manufacturers are investing in research & development to improve barrier properties, strength, and lifetime of biodegradable materials. Emerging technologies allow production of packaging from agricultural waste and other renewable feedstocks.
The market for biodegradable packaging is highly concentrated in Europe and North America both in terms of value. The strict regulations against single-use plastics and active government support for sustainable options make these developed markets very lucrative. Asia Pacific region is expected to witness the fastest growth during the forecast period supported by rapidly growing food packaging and healthcare industries, rising income levels and environmental concerns in major economies like India and China. Countries like India, Brazil offer promising prospect with initiatives to curb plastic pollution and investment in infrastructure for waste management and recycling.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
