Bio-Plastic Packaging Market Forecasts to 2028 – Global Analysis By Type (Biodegradable Plastics, Non-Biodegradable Plastics), Packaging Type Rigid Packaging, Flexible Packaging), Application (Agriculture and Horticulture, Consumer Goods) and By Geography

Bio-Plastic Packaging Market Forecasts to 2028 – Global Analysis By Type (Biodegradable Plastics, Non-Biodegradable Plastics), Packaging Type Rigid Packaging, Flexible Packaging), Application (Agriculture and Horticulture, Consumer Goods) and By Geography

According to Stratistics MRC, the Global Bio-Plastic Packaging Market is accounted for $20.02 billion in 2022 and is expected to reach $57.28 billion by 2028 growing at a CAGR of 16.6% during the forecast period. Bioplastics are plastic materials produced from renewable biomass sources, such as vegetable fats and oils, corn starch, straw, woodchips, sawdust. Bioplastics are biodegradable materials that come from renewable sources and can be used to reduce the problem of plastic waste that is suffocating the planet and contaminating the environment.

In 2020, The Coca-Cola Company used approximately 2.96 million metric tons of plastic packaging for its products worldwide - a slight decrease from the previous year. As one of the most popular brands worldwide, it is perhaps unsurprising that Coca-Cola generates three million metric tons of plastic packaging waste annually.

Market Dynamics:

Driver:

Growing Initiatives By The Government & Environment Friendliness

Increasing adoption of it, owing to its numerous benefits such as environment friendliness and biodegradable nature is a key factor expected to drive growth. The increasing consumer preference towards eco-friendly products instead of synthetic derived chemicals products is another factor expected to fuel growth of the target market. Furthermore, increasing research and development activities and investment by beverage manufacturers such as The Coca Cola Company and PepsiCo, which is another factor expected to boost growth.

Restraint:

High Cost

The high cost of production of bioplastics. Though bioplastics are biodegradable, they cannot be degraded as easily as naturally occurring organic matter. In order to balance the physical properties of plastics and biodegradability of organic matter, the overall cost of production of bioplastics increases significantly.

Opportunity:

Quick Development

With rapid urbanization and industrialization, demand for packaging is growing exponentially in emerging economies. The growing demand for eco-friendly, advanced, and effective packaging in countries is boosting the growth of the market. In the coming years, emerging countries are expected to undertake environment-friendly approach for packaging solutions due to strict regulations and supports by the governments. This will create opportunity for the advanced bioplastic packaging solutions in the emerging economies.

Threat:

High Complexity

The high complexity associated with the production of bioplastic packaging materials from raw materials of agricultural origin is predicted to challenge the expansion of the market. Improved crude oil and natural gas production in the Middle East and Russia by companies leading to lower oil prices is predicted to have a negative impact on the market. The high complexity associated with the production of materials from raw materials of agri-food origin is predicted to be a difficult factor for the market in the near future.

Covid-19 Impact

The COVID-19 pandemic has impacted most industries owing to the downfall of the manufacturing sector, coupled with the shutdown of factories. The sales of prominent manufacturing industries are also expected to be affected during the forecast period. The outbreak of COVID-19 has disrupted supply chain activities and caused a shortage of shipping capacity. The manufacturing sector is facing challenges such as the availability of raw materials which is increasing the lead time. Post lockdown, the market is expected to grow significantly in the Asia-Pacific region with the resumption of economic activity in countries such as Japan, China, India, and South Korea.

Food & beverage segment is expected to be the largest during the forecast period

Plastic-based products are associated with a high risk of contamination, owing to which the food & beverage industry is turning towards bioplastic packaging products. Further, growing consumer preference for organic and natural polymers in food packaging is also accelerating the adoption rate of these bioplastic packaging solutions in the food & beverage sector. Such factors are substantially contributing towards the market growth.

The flexible packaging segment is expected to have the highest CAGR during the forecast period

The segmental growth of the market is attributed to the increased demand for flexible packing options from a wide variety of industries. Flexible packaging products can also be refilled as well as can be changed into any desired shape. Flexible packaging also offers ease and convenience to the customers in their fast-paced lifestyles and enables the enhanced printing technology that allows the manufacturers to achieve a strong brand presence. Hence, owing to the several benefits offered by flexible packaging, the segment is likely to gain traction over the forecast period.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, owing to growing packaging industry in various countries such as India and China. Furthermore, China launched a policy to increase manufacturers focus on bioplastic products for packaging. Asia-Pacific province is anticipated to grow significantly, owing to the several government initiatives regarding the waste management across economies such as China, India, and Japan.

Region with highest CAGR:

Europe is projected to have the highest CAGR, due to the high adoption of eco-friendly packaging solutions, along with the strict governance framework for synthetic polymers, is predicted to drive market expansion. In Europe, supportive government policies include helping consumers give preference to buying bio-based products. Also in the EU, member states are reducing taxes on bio-based products, owing to stringent government regulations against the consumption of non-recyclable plastics and increasing awareness about sustainable packaging in manufacturing industry in various countries in this province.

Key players in the market

Some of the key players profiled in the Bio-Plastic Packaging Market include Amcor, BASF, Biotec, Braskem, Cargill, Clondalkin, Coopbox, Corbion, DowDuPont, Eastman Chemical Company, Taghleef Industries, Greendot, Huhtamaki, Koninklijke DSM N.V, NatureWorks, Novamont, Perstorp, Toray Industries, Inc., Roquette, Sealed Air, Sonoco, Sphere Tagleef Industries, Tereos.

Key developments:

In June 2020: BASF SE expands its packaging coatings production to South China. The expansion will complement the production capacities in Shanghai, which primarily serve the market in the East China region. The move will support the fast-growing packaging industry in South China and help customers reduce lead times by offering proximity between production and point of use. This also reduces energy consumption and CO2 emissions due to the shorter transportation distance.

In May 2020: Toray Industries, Inc. announced that it had created a high tensile modulus of carbon fiber and thermoplastic pellets ideal for injection molding employing that fiber. The pellets can efficiently produce complex, rigid parts that are also light, thereby lowering environmental impact. These advances could greatly enhance cost performance.

In January 2021: Taghleef Industries introduced a new range of bio-based polypropylene (PP) films to its biobased portfolio. Taghleef's bio-based PP films are biodegradable packaging options that are a bio-based alternative to films generated from fossil fuels. ISCC Plus certified Ti's biobased PP films could be used in the same packaging and labeling applications as typical grades made of fossil-based raw materials.

Types Covered:
• Biodegradable Plastics
• Non-Biodegradable Plastics

Packaging Types Covered:
• Rigid Packaging
• Flexible Packaging

Applications Covered:
• Agriculture and Horticulture
• Consumer Goods
• Cosmetic Personal Care
• Electronics
• Food and Beverages
• Medical & Healthcare
• Pharmaceuticals
• Textiles

End Users Covered
• Raw Material Suppliers/Buyers
• Product Suppliers/Buyers
• Research Institutes
• Manufacturers/Producers
• Agricultural Sector
• Research Laboratories

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements