|Status : Published||Published On : Nov, 2023||Report Code : VRFB11023||Industry : Food & Beverage||Available Format :||Page : 200|
Biodegradable packaging materials are designed to break down naturally over time, minimizing environmental impact. They are typically made from organic substances like plant-based polymers or starches. Unlike traditional plastics, which can persist in the environment for centuries, biodegradable materials decompose into non-toxic elements, water, and biomass. This process is facilitated by microorganisms like bacteria and fungi. While biodegradable packaging offers an eco-friendlier alternative, proper disposal methods are crucial to ensure effective decomposition. It's important to note that not all biodegradable materials are equal, and certifications or standards may indicate their authenticity and environmental benefits.
Global biodegradable packaging materials market was worth USD 445.00 billion in 2022 and is expected to reach USD 750.00 billion by 2030 with a CAGR of 6.81% during the forecast period, i.e., 2023-2030. Biodegradable packaging materials demand is rising due to increasing environmental awareness, stringent regulations, and a rising demand for sustainable alternatives to conventional plastics. Consumer preference for eco-friendly options and corporate sustainability initiatives also contribute to the rising demand for biodegradable packaging materials.
Geographically, the biodegradable packaging materials market is expanding rapidly in North America, Europe and the Asia Pacific, as a result of the stringent environmental regulations, heightened consumer eco-consciousness, and corporate sustainability commitments; however, the market confronts constraints such as higher production costs, limited material availability, and varying decomposition rates. Overall, the global biodegradable packaging materials market offers potential prospects for market participants to develop and fulfill the growing needs of wide range of industries including transportation, energy storage, consumer electronics, and other industries.
Insight by Type
Based on the type, the global biodegradable packaging materials market is segmented into recycled content packaging, reusable packaging, and degradable packaging. In 2022, the degradable packaging segment dominated the global biodegradable packaging materials market due to its versatility and eco-friendly attributes. Materials like PLA (Polylactic Acid) and PHA (Polyhydroxyalkanoates) offer effective packaging solutions while being biodegradable. Major brands, such as Coca-Cola and Danone, utilize PLA-based bottles, showcasing the dominance of degradable packaging in the industry.
Insight by Material
Based on the material, the global biodegradable packaging materials market is segmented into plastic, paper & paperboard, bagasse, and natural fiber. In 2022, paper and paperboard segment dominated the global biodegradable packaging materials market due to its widespread availability, cost-effectiveness, and eco-friendly attributes. It boasts a dominant position owing to its versatile applications, including packaging for food, cosmetics, and pharmaceuticals. For instance, corrugated cardboard boxes offer sturdy and sustainable alternatives for shipping. Additionally, paper-based materials like molded pulp packaging provide protective solutions while being biodegradable. Moreover, consumer preference for easily recyclable and compostable options further bolsters the prominence of paper and paperboard in biodegradable packaging, reflecting a shift towards more sustainable practices in packaging industries around the world.
Insight by Packaging Format
Based on the packaging format, the global biodegradable packaging materials market is segmented into bottles & jars, boxes & cartons, cans, trays & clamshells, cups & bowls, pouches & bags, films & wraps, labels & tapes, and others. In 2022, boxes & cartons segment dominated the global biodegradable packaging materials market due to their widespread use and recyclability. Cardboard and paper-based packaging are commonly used for various products, and their biodegradability appeals to environmentally conscious consumers. Companies like Amazon have shifted towards using biodegradable boxes, emphasizing their dominance in this segment.
Insight by End-use Industry
Based on the end-use industry, the global biodegradable packaging materials market is segmented into food & beverages, personal care, healthcare, and other end-use industries. In 2022, the food & beverages industry dominated the global biodegradable packaging materials market due to its high demand and stringent sustainability requirements. Consumers increasingly prioritize eco-friendly packaging for consumables. Biodegradable materials like PLA (Polylactic Acid) and bagasse-based containers offer viable alternatives to traditional plastics. Moreover, compostable films derived from natural sources are used to wrap fresh produce. Major brands, like Nestlé and PepsiCo, are transitioning to biodegradable packaging for various products to align with sustainability goals. Regulatory initiatives also play a role, with governments encouraging or mandating the use of biodegradable materials in the food and beverage industry to reduce environmental impact.
Insight by Distribution Channel
Based on the distribution channel, the global biodegradable packaging materials market is segmented into wholesalers, retailers, distributors, resellers, and others. In 2022, the food & beverages industry dominated the global biodegradable packaging materials market due to their pivotal role in distribution. They purchase packaging materials in bulk and supply them to retailers and manufacturers. Major wholesalers like Uline and Berlin Packaging have a significant impact on the market, influencing the adoption of biodegradable packaging materials across industries.
Biodegradable Packaging Materials Market Report Coverage
Base Year Considered
2023 - 2030
Market Size in 2022
Revenue Forecast in 2030
Segments Covered in the Report
By Type, By Material Type, By Packaging Format, By End-Use Industry and By Distribution Channel
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report
North America, Europe, Asia-Pacific, Middle East, and Rest of the World
Rising demand for eco-friendly and sustainable packaging
Consumer demand for eco-friendly and sustainable packaging is a significant driver for the global biodegradable packaging materials market. As environmental awareness grows, consumers seek products with minimal ecological impact. Biodegradable materials like plant-based PLA (Polylactic Acid) and bagasse-based packaging address this concern. Companies like Coca-Cola and Unilever are adopting these materials to meet consumer expectations. Additionally, governments are implementing policies to promote biodegradable packaging, further accelerating market growth. This shift towards eco-conscious consumerism exemplifies a pivotal force in the growth of the global biodegradable packaging materials market.
Stringent government regulations and policies
Stringent government regulations and policies aimed at reducing plastic waste are a significant driver for the global biodegradable packaging materials market. Many countries are implementing bans or levies on single-use plastics, compelling industries to adopt sustainable alternatives. For instance, the European Union's Single-Use Plastics Directive has set ambitious targets for reducing plastic waste, fostering a surge in demand for biodegradable options. Similarly, several states in the US like California have enacted legislation to restrict single-use plastics. This regulatory push is steering industries towards embracing biodegradable materials, making it a pivotal force propelling the growth of the global biodegradable packaging market.
Doubts around quality and performance
One major challenge for the global biodegradable packaging materials market is ensuring consistent quality and performance. As the market expands, maintaining uniformity in material properties, such as strength, durability, and decomposition rate, becomes crucial. Variability in sourcing and production processes can lead to inconsistencies, impacting the reliability of biodegradable materials. Moreover, standards and certifications for biodegradability vary, causing confusion for consumers and industries. Overcoming this challenge requires establishing robust quality control measures and standardized testing protocols, along with clear industry-wide standards to guarantee the effectiveness and reliability of biodegradable packaging materials.
Asia Pacific (APAC)
Middle East and Africa (MEA)
The global biodegradable packaging materials market is segmented into North America, Europe, the Asia-Pacific, South America, and the Middle East and Africa region. The global biodegradable packaging materials market was dominated by the Asia-Pacific in 2022 due to The Asia-Pacific (APAC) region leads the global biodegradable packaging materials market due to its extensive consumer base, rapid industrialization, and governmental efforts to combat plastic pollution. Countries like China and India have immense populations increasingly inclined towards sustainable consumption. This drives demand for biodegradable packaging materials. For example, India's 'Plastic Waste Management Rules' emphasize the adoption of eco-friendly alternatives. Additionally, the region's robust manufacturing infrastructure supports the production of biodegradable materials at scale. Companies like EarthSoul India and Greenware Technologies are thriving in this environment, producing innovative biodegradable solutions.
BASF, a leading chemical company, holds a leading position in the global biodegradable packaging materials market owing to its extensive expertise in sustainable materials. BASF offers a range of innovative solutions including its ‘ecovio’ line, which combines biodegradable polymers like PLA with traditional plastics to create compostable packaging. This versatile material finds applications in food packaging, agricultural films, and more. Additionally, BASF's commitment to research and development ensures continuous advancements in biodegradable technology, reinforcing its influence in the market. The company's dedication to eco-friendly solutions, its expertise and global footprint, places it as a key player in the global biodegradable packaging materials market, contributing to the shift towards more sustainable packaging alternatives around the world.
Huhtamäki Oyj is another prominent player in the global biodegradable packaging materials market and the company is known for its innovative and sustainable solutions. The company offers a range of eco-friendly packaging options, including molded fiber products made from renewable materials like bagasse and bamboo. For instance, their FiberPak line provides compostable foodservice packaging solutions. With a commitment to circular economy principles, Huhtamäki focuses on designing products that can be recycled or composted. Their strong emphasis on sustainability, coupled with a diverse product portfolio, positions them as a significant contributor towards the growth of the global biodegradable packaging materials market.
Recent Development by Key Players
In October 2023, DefenAge Skincare launched biodegradable packaging for its defensin-based regenerative skincare products. The packaging is currently available for the 8-in-1 BioSerum, 24/7 Barrier Balance Cream and 3D Eye Radiance Cream with products packed in a naturally biodegradable box made from ‘100% recycled materials, not from trees.’
In October 2023, UMF|PerfectCLEAN launched a new, fully compostable packaging for all of its PerfectCLEAN branded line of products, aligning with company’s commitment to deliver safer environmental hygiene with less effort, less waste, reduced carbon footprint, and less cost than traditional cleaning products and methods. The packing is already used for select PerfectCLEAN products and will be rolled out to the full suite of PerfectCLEAN products by early 2024.
Key Players Covered in the Report
NatureWorks LLC, BASF SE, Mondi Group, Novamont S.p.A., Smurfit Kappa Group, Stora Enso Oyj, Tetra Pak International S.A., Amcor Limited, Kruger Inc., Huhtamäki Oyj, International Paper Company, WestRock Company, Georgia-Pacific LLC, DS Smith Plc, Biome Bioplastics Ltd., Be Green Packaging LLC, RKW Group, Clearwater Paper Corporation, Plastic Suppliers, Inc., and Eco-Products, Inc.
The global biodegradable packaging materials market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2023–2030.
Segments Covered in the Report
Recycled Content Packaging
By Material Type
Polylactic Acid (PLA)
Paper & Paperboard
By Packaging Format
Bottles & Jars
Boxes & Cartons
Trays & Clamshells
Cups & Bowls
Pouches & Bags
Films & Wraps
Labels & Tapes
Others (Stick pack, Sachets, etc.)
By End-Use Industry
Food & Beverages
By Distribution Channel
Region Covered in the Report
Rest of Europe
Rest of Asia-Pacific
Middle East and Africa (MEA)
Rest of MEA
Rest of South America
Primary Research Interviews Breakdown