Biodegradable Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Biodegradable Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Biodegradable Packaging Market is expected to register a CAGR of 6.35 percent over the forecast period. The demand for biodegradable packaging has increased over the past decade due to the growing awareness concerning environmental conservation, especially in the post-pandemic scenario. The growth of the market is being driven by increased consumer preference toward sustainable packaging materials and expanding demand for recyclable and biodegradable products across various end-user industries.

Key Highlights

• Considering the growing demand, the manufacturers of bioplastics and other biodegradable materials are focusing on further expanding the production of these materials. For instance, according to European Bioplastics, the production capacity of bioplastics is expected to increase significantly from around 2.41 million tons in 2021 to approximately 7.59 million tons in 2026.
• With the increasing amount of packaging waste generated worldwide, governments across the globe are adapting to alternative sources, such as biodegradable packaging. United States has only 4% of the world’s population and generates 12% of global municipal solid waste (MSW). It is also stated that United States produces about 106.2 kg of plastic waste per person per year. (Source: Environmental Protection Agency (EPA) of United States).
• Various countries and organizations are trying to scrap the utilization of single-use plastic packaging, which is further creating a favorable market scenario for biodegradable packaging. In developing countries such as India, where packaging waste has become a major issue, state and central governments have begun to take steps to prohibit the use of single-use plastic.Several companies have started switching to eco-friendly alternatives. For instance, in India, a ban on select single-use plastic items came into effect on July 1, 2022. The law bans the manufacturing & stocking, import, distribution, sale, and use of identified single-use plastic items that have low utility and high littering potential.
• Similarly, to act against plastic pollution, the European Union put a ban on products such as single-use plastic plates, straws, cutlery, balloon sticks, cotton buds, etc. in July 2021. Furthermore, the European Union has placed restrictions on the use of cups, food and beverage containers made of expanded polystyrene, and all oxo-degradable plastic products.

Key Market TrendsPersonal/Homecare Packaging is Expected to be One of the Most Significant Applications

The trend toward using and seeking natural materials and additives for personal or cosmetic products has been rising as the adverse effects of synthetic materials on health and the environment became apparent. Currently, marketing trends are turning toward natural solutions for cosmetics, which promote a healthy lifestyle.

• According to CDF Corporation, the cosmetics and personal care industry embraces and contributes to the innovation of a sustainable packaging culture, pursuing packaging that reduces environmental impact by using natural materials that are reused, recycled, and reduced.
• Similarly, Pangea Organics has developed innovative packaging that combines creative design with a minimal ecological footprint. Made with WindPower 80, Pangea Organics' origami folding boxes aim for zero waste. This package is made of water-soluble PVOH plastic film. This is just one of the many attractive packaging designs that highlight the endless possibilities of sustainable packaging.

According to a survey conducted by Mondi Group in April 2022, the EU Plastics Strategy aims to transform how plastic products are designed, manufactured, used, and recycled in the EU. While this is important for the environment, it is also important for commercial success as consumers increasingly turn to brands that are taking smarter steps to tackle sustainability. Also, 64% of consumers in France, Italy, Poland, and Spain have switched to home brands that have adopted more sustainable packaging solutions in the past year alone.

United Kingdom is Expected to Show Significant Growth Rate

• United Kingdom (United Kingdom) is among the leading countries in Europe, wherein the demand for biodegradable packaging has been increasing. The higher awareness about the sustainability factors of packaging products, along with recent government initiatives, are creating a favorable market scenario for the growth of the studied market in the country.
• The ban on single-use plastics is among the primary factors that will directly impact the demand for biodegradable packaging products. For instance, in 2021, the United Kingdom government announced plans to ban single-use plastic cutlery, plates, and polystyrene cups in England to tackle plastic pollution.
• Several existing vendors, as well as startups operating in the packaging industry, are also taking the initiative to promote biodegradable packaging in the country. For instance, in June 2022, Magical Mushroom Company, a United Kingdom-based company, secured funding of EUR 3.4 million (USD 3.31 million) for its plant-based sustainable packaging.

Competitive Landscape

The biodegradable packaging market is highly fragmented. The market studied comprises Amcor Limited, Sealed Air Corporation, Mondi Group PLC, and Tetra Pak International SA. Several regional firms in countries such as India are also trying to gain market share. Barriers to entry are low, resulting in the advent of smaller players and further increasing competitive rivalry.

In June 2021, Tetra Pak tied up with the FINISH Society, a well-known solid waste management NGO, to increase collection of used carton packages in Udaipur, Rajasthan, India. As part of the collaborative effort, FINISH Society will be working with the Municipal Corporation of Udaipur to recover used packs of juice or milk from the corporation’s sorting centers, which will then be channeled to the nearest recycler. Tetra Pak and FINISH Society will also focus on raising awareness among the waste-picker community about the value of collecting used beverage cartons and selling them to a recycler.

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• The market estimate (ME) sheet in Excel format
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