Biodegradable Paper and Plastic Packaging Market Forecasts to 2028 – Global Analysis By Packaging Type (Plastic, Paper), Application (Food Packaging, Catering Servicewares, Personal and Home Care Packaging), and By Geography

Biodegradable Paper and Plastic Packaging Market Forecasts to 2028 – Global Analysis By Packaging Type (Plastic, Paper), Application (Food Packaging, Catering Servicewares, Personal and Home Care Packaging), and By Geography

According to Stratistics MRC, the Global Biodegradable Paper and Plastic Packaging Market is accounted for $9.43 billion in 2021 and is expected to reach $26.66 billion by 2028 growing at a CAGR of 16.0% during the forecast period. Biodegradable packaging is characterized as a means of ensuring that goods are 100% safe against natural degradation. Consumers are changing their choice from synthetic plastic to biodegradable paper & plastic packaging because it is a very eco-friendly product with a low environmental impact. In different sectors, including packaging, food and beverages and the healthcare sector, biodegradable packaging has various applications.

Market Dynamics:

Driver:

Increasing environmental concerns

The need for low carbon footprint materials is increasing that will reduce the carbon emissions in the environment decreasing the impact of plastic polymers such as thermoplastics on climatic changes acting as a driver for the biodegradable paper & plastic packaging market. The biodegradable plastics are very much used in the packaging industry, as they are eco-friendly. With the increasing crude oil prices and the issues related to petroleum-based plastics (such as disposal and efficient waste management), the use of biodegradable plastic as an alternative (in various applications, like FMCG, hospital, and manufacturing) is increasing. This aforementioned factor is driving the market's growth. The increasing environmental concerns regarding plastic usage (as plastics contain toxic pollutants that harm plants, animals, and people) are driving the use of biodegradable plastic alternatives. Floating plastic waste that survives thousands of years in water can serve as a transportation device for invasive species that disrupt habitats. This aforementioned factor is contributing to the growth of the market.

Restraint:

High cost of biodegradable packaging

One of the foremost factors impeding market growth is the high cost of biodegradable packaging. Generally, the production cost of biodegradable plastics is 20-80% higher than that of conventional plastics. This is primarily due to the high polymerization cost of biodegradable plastics as most of the processes are still in the development stage and hence, have not achieved economies of scale. For example, PHAs, which have various applications in binders, synthetic papers, medical devices, electronic parts, food packaging, and agriculture, have high production costs, low yields, and limited availability. PLAs, which have a much lower production cost than PHAs, are still more expensive than petroleum-based PE and PP.

Opportunity:

Increasing biodegradable plastics demand

Primary biodegradable materials such as PLA and PHA are expected to dominate the biodegradable plastics packaging market over the forecast period owing to their superior properties such as enhanced impact resistance and tensile strength. Increasing biodegradable plastics demand as major packaging materials in industries such as food & beverages, textiles, consumer goods, and pharmaceuticals is presumed to augment market growth over the next seven years. Corrugated board and box-board are expected to be the largest biodegradable paper packaging product segments in the next seven years. Biodegradable plastics demand is predicted to increase in emerging BRICS economies over the foreseeable future owing to increasing food & beverage and electronic packaging industries in these countries. Changing lifestyle patterns coupled with increasing demand for packaged food products is expected to drive the food and beverage industry. This in turn is anticipated to increase biodegradable paper and plastic packaging market demand.

Threat:

Performance issues

The low barrier properties to air, water, and oxygen and low resistance to heat are some of the major performance issues related to biodegradable plastics. This restricts its penetration in various industries, including electronics and automotive. Moreover, poor mechanical properties such as low impact & tensile strength and process capabilities are restricting the penetration of biodegradable plastics in various applications. These performance limitations of biodegradable plastics act as a major challenge for the growth of the market.

The food packaging segment is expected to be the largest during the forecast period

The food packaging segment is estimated to have a lucrative growth due to the significant increase in consumer demand. Competition amongst industry participants for product differentiation is expected to augment biodegradable paper and plastic packaging market growth in the food packaging application segment.

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

The paper segment is anticipated to witness the fastest CAGR growth during the forecast period. Paper is often lauded as a far more environmentally friendly alternative. Biodegradable papers have been used in flexible packaging for many applications, including confectionery, pet food and dried food. After many years of declining demand, paper-based flexible packaging is growing in popularity with the general public as end-consumers demand more sustainable packaging solutions. Consumers today widely view paper as a more environmentally friendly alternative to plastic.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period due to the rising government initiatives that are promoting the use of bioplastic packaging. Countries such as Sweden, Germany, and U.K. emerged as leading consumer markets and are expected to witness stagnant growth over the forecast period. Especially, Germany is dominating in the Europe biodegradable paper & plastic packaging market due to the increasing demand of packed food product in plastic containers in the country.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period owing to the rise in population and urbanization. In the Asia Pacific region, countries such as China, Malaysia, India, and Thailand enhance market growth due to the increase in customer awareness toward biodegradable plastic and paper packaging products. The pharmaceuticals packaging business is rising in the Asia-Pacific region that in turn is propelling the market expansion.

Key players in the market:

Some of the key players profiled in the Biodegradable Paper and Plastic Packaging Market include Amcor Plc, BagInCo International, BASF SE, Bio-Eco, DS Smith, Georgia-Pacific LLC, Holmen AB, International Paper Co., Kruger Inc., Mondi Group, Plascon Group, PMMI Media Group, Reynolds Group, Smurfit Kappa Group Plc, Stora Enso Oyj, and WestRock.

Key Developments:

In February 2020, BASF and Fabbri Group (Italy) formed a joint venture to develop a sustainable solution for cling film used in fresh-food packaging. The film will be used in wrapping meat, seafood, and fresh fruits & vegetables. It will be made by the Fabbri group with BASF's Ecovio bioplastic and will boost the demand for biodegradable plastics in packaging applications.

In July 2021, Amcor has partnered with world-leading compostable packaging producer, TIPA, to bring compostable packaging to Australia and New Zealand (ANZ). Under the new partnership, Amcor will collaborate with TIPA to locally manufacture, supply, and distribute their trademarked and certified compostable solutions in ANZ. The packaging produced by this partnership will be compostable either at home or via municipal collection.

In October 2021, Smurfit Kappa Bag-in-Box introduces a new and more sustainable version of its highly regarded Vitop® tap, the new Vitop® Renew, which is made from bio-based PP resins. This innovative development now combines an approach already taken with the bag inside the box, which is manufactured of E-recycled film EVOH, containing raw materials issued from plastic chemical recycling. This means the new bags are composed of 53% recycled and renewable content.

Packaging Types Covered:
• Plastic
• Paper

Applications Covered:
• Food Packaging
• Catering Servicewares
• Personal and Home Care Packaging
• Pharmaceuticals & Healthcare Packaging
• Beverage Packaging
• Consumer Goods & Electronic Appliances
• Logistics

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

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances