Biodegradable Packaging Market Size

Global Biodegradable Packaging Market Overview

Biodegradable Packaging Market Size was valued at USD 127733.3 million in 2023. The Biodegradable Packaging industry is projected to grow from USD 131820.8 million in 2024 to USD 197747 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2024 - 2032). The Biodegradable Packaging Market has experienced substantial growth in recent years as environmental concerns and sustainability efforts have gained prominence worldwide. Biodegradable packaging refers to materials that can naturally decompose through biological processes, reducing the environmental impact associated with traditional packaging. Several factors have contributed to the market's growth. Increasing consumer awareness and preferences for eco-friendly products, coupled with stringent government regulations on plastic waste reduction, have stimulated the demand for biodegradable packaging. The food and beverage industry has been a key driver of market growth, as manufacturers seek sustainable packaging solutions to meet consumer demands.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Biodegradable Packaging Market Trends

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  Growing Environmental Concerns

  
  

Environmental concerns are one of the primary driving factors behind the growth and adoption of the Biodegradable Packaging Market. As the world grapples with the consequences of plastic pollution and its detrimental impact on ecosystems and human health, the demand for sustainable packaging solutions has surged. Biodegradable packaging offers a promising alternative to traditional plastic packaging, addressing these environmental concerns.

Plastic pollution has become a global crisis, with vast amounts of plastic waste accumulating in landfills, oceans, and other natural environments. Traditional plastic packaging materials, such as polyethylene and polypropylene, can persist in the environment for hundreds of years without breaking down. This persistence leads to the entanglement and ingestion of plastic by marine life, the contamination of soil and water sources, and the release of harmful chemicals during the degradation process.

Biodegradable packaging, on the other hand, is designed to break down naturally and rapidly, reducing the accumulation of non-biodegradable waste. It undergoes degradation through natural processes, such as microbial activity, heat, and moisture, returning to the environment as harmless byproducts like water, carbon dioxide, and biomass. This ability to biodegrade significantly reduces the environmental impact associated with packaging waste.

Moreover, biodegradable packaging materials are often derived from renewable resources, such as plant-based polymers, which further contributes to their eco-friendliness. These materials can be sourced from agricultural crops like corn, sugarcane, or potatoes, which have a lower carbon footprint compared to petroleum-based plastics. By utilizing renewable resources, the production of biodegradable packaging reduces reliance on fossil fuels and helps mitigate greenhouse gas emissions.

The detrimental effects of plastic pollution have gained widespread attention and prompted governments, organizations, and individuals to act. Governments around the world are enacting stringent regulations and policies to address plastic waste and promote sustainable packaging alternatives. These regulations often include bans or restrictions on single-use plastics, plastic bag levies, and requirements for eco-friendly packaging options. The enforcement of such regulations has created a favorable market environment for biodegradable packaging, driving its adoption across various industries.

Figure 2: Biodegradable Packaging Market Value (USD Million)

Biodegradable Packaging Market Segment Insights

Biodegradable Packaging Based on Material Segment Insights

Based on filter Material, the global Biodegradable Packaging is segmented into paper & paper board, bioplastic, bagasse.  Paper & Paperboard segment is the largest segment of the market accounting for 53.71% of the global market in 2022. Paper and paperboard are widely used in biodegradable packaging due to their eco-friendly and renewable nature. They are derived from wood pulp and are easily recyclable, compostable, and biodegradable. Paper-based packaging materials have excellent strength and durability, making them suitable for various applications. They are commonly used for packaging food products, beverages, personal care items, pharmaceuticals, and more. Paper and paperboard packaging also offer excellent printability and branding opportunities.

Biodegradable Packaging Based on Packaging Format Segment Insights

Based on packaging format, the global Biodegradable Packaging is segmented bottles & jars, boxes & cartons cans, trays & clamshells, cups & bowls, pouches & bags, films & wraps, labels & tapes, and others (stick pack, sachets, etc.). Boxes & Cartons segment held the largest market share (23.31%) in 2022. Boxes and cartons are widely used for packaging a variety of products, ranging from food items to electronics and consumer goods. Biodegradable boxes and cartons are typically made from materials such as recycled paper, paperboard, or corrugated cardboard. These materials are renewable, recyclable, and compostable, making them an eco-friendly choice. Biodegradable boxes and cartons are suitable for packaging cereals, snacks, chocolates, electronics, household items, and many other products.

Figure 2: Biodegradable Packaging Market, by Packaging format, 2022 & 2032 (USD Million)

Biodegradable Packaging Based on End User Segment Insights

The End User segment of the Biodegradable Packaging Market size includes food & beverage, personal care & cosmetics, pharmaceuticals, homecare, and other consumer goods. The Food & Beverage segment held the largest market share (38.81%) in 2022. The food and beverage industry extensively relies on biodegradable packaging to reduce environmental impact while ensuring product safety and freshness. Biodegradable packaging materials, such as paper, bioplastics, and compostable films, are widely used in packaging fresh produce, bakery products, snacks, confectionery, and beverages. These materials offer excellent barrier properties, moisture resistance, and are suitable for a variety of food and beverage applications, providing sustainable solutions to meet consumer demands for eco-friendly packaging.

Biodegradable Packaging Based on Regional Segment Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia-Pacific Biodegradable Packaging market accounted for largest market share of 37.08% in 2022 and is expected to exhibit a significant CAGR growth of 6.63% during the study period. The Asia Pacific region, encompassing major countries such as China, India, and Japan, is witnessing a significant shift towards biodegradable packaging driven by environmental concerns and sustainability. China has emerged as a leading market for biodegradable packaging in the Asia Pacific region. The Chinese government has implemented strict regulations and policies to tackle plastic pollution, promoting the adoption of biodegradable alternatives. The country's vast population and increasing consumer awareness about environmental issues have fueled the demand for sustainable packaging. Additionally, China's growing e-commerce sector and rising middle class present lucrative opportunities for biodegradable packaging solutions. India is another major player in the Asia Pacific biodegradable packaging market. With a population of over 1.4 billion, the country faces significant challenges in waste management. As a result, the Indian government has implemented policies to curb plastic waste, including bans on single-use plastics in several states. This has stimulated the demand for biodegradable packaging solutions. Moreover, India's focus on promoting a circular economy and sustainable development provides a favorable environment for the growth of biodegradable packaging in various industries, such as food and beverages, pharmaceuticals, and personal care. Japan is known for its advanced technology and strong commitment to sustainability. The Japanese market for biodegradable packaging is driven by both government initiatives and consumer preferences. The government has set ambitious targets to reduce plastic waste and promote the use of biodegradable materials. Japanese consumers are increasingly conscious of environmental issues and actively seek eco-friendly packaging options. This trend has encouraged manufacturers to develop innovative biodegradable packaging solutions, particularly in the food and cosmetics sectors. Besides China, India, and Japan, several other countries in the Asia Pacific region are witnessing the growth of the biodegradable packaging market. South Korea, Australia, and Southeast Asian countries like Singapore and Thailand are actively adopting sustainable packaging practices. These countries face similar challenges related to waste management and environmental conservation, leading to the implementation of regulations and the promotion of biodegradable packaging alternatives.

Figure 3: Biodegradable Packaging Market, by Region, 2022 & 2032 (USD Million)

In North America, the U.S. biodegradable packaging market is expected to experience substantial growth in the forecast period, driven by the rising demand for bio-based packaging in the food and consumer goods sectors. Bio bags and bio-based plastics offer advantages such as higher tensile strength, eco-friendliness, and convenience compared to conventional plastics. This, in turn, is expected to drive the demand for biodegradable plastics. Furthermore, the expansion of composting infrastructure and increased government efforts to reduce landfilling, such as the U.S. 2030 Food Loss and Waste Reduction Goal, are anticipated to boost the demand for bio-based or compostable bags used for the collection of food waste and organic materials. Another significant factor driving the U.S. biodegradable packaging market is the increased usage of biodegradable plastics in medical applications. Plastics like PLA are being increasingly used in the production of personal protective equipment (PPE) such as masks, face shields, and other medical equipment. Manufacturers are actively involved in producing and developing safer and antibacterial biodegradable plastics to meet the growing demand for PPE following the impact of the COVID-19 pandemic.

Canada is confronting a mounting challenge of plastic waste and is urging for action to reduce it. The issue has gained significant attention in recent years. According to the International Institute for Sustainable Development, Canada's current management system for plastic waste represents a missed economic opportunity, resulting in an estimated loss of nearly CAD 8 billion. This economic loss is projected to increase to over CAD 11 billion by 2030, posing a substantial economic and environmental threat. It is estimated that the volume of plastic waste in Canada is anticipated to quadruple by 2050. However, a mere 9% of Canada's plastic waste is recycled, with approximately 86% ending up in landfills. The remaining portion is either incinerated for energy production, leading to emission issues, or becomes litter in the environment. Consequently, transitioning to biodegradable packaging presents a sustainable alternative that can drive market growth and help address these challenges.

The growth of the Mexico market is being driven by the increasing demand for sustainable packaging solutions, the growing awareness about the environmental impact of traditional plastics, and the government regulations promoting the use of biodegradable packaging. The food and beverage industry are the largest end-user segment of the Mexico biodegradable packaging market. This is due to the increasing demand for sustainable packaging solutions for food and beverage products. The growing e-commerce industry is also expected to drive the growth of the market.

Biodegradable Packaging Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Biodegradable Packaging Market is highly competitive and dominated by established, pure-play vendors. Many vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting innovative technologies and innovations to make rapid lubrication filters more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Biodegradable Packaging Market is highly competitive, with many vendors offering similar products and services. The major players in the market include Stora Enso Oyj, Smurfit Kappa Group, WestRock Company, Georgia-Pacific LLC, Smurfit Kappa Group, Amcor plc, Pactiv Evergreen Inc., Berry Global Group, Huhtamaki Oyj, Mondi Group, Tetra Pak International S. A, Swedbrand Groups, Winpak Ltd., Stora Enso Oyj,  Georgia-Pacific LLC, and Kruger Inc. The Biodegradable Packaging Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Biodegradable Packaging Market include.

• Stora Enso Oyj


• Smurfit Kappa Group


• WestRock Company


• Georgia-Pacific LLC


• Amcor plc


• Pactiv Evergreen Inc.


• Berry Global Group


• Huhtamaki Oyj


• Mondi Group


• Tetra Pak International S. A


• Swedbrand Groups


• Winpak Ltd.


• Stora Enso Oyj


• Georgia-Pacific LLC


• Kruger Inc.

Biodegradable Packaging Industry Developments

Biodegradable Packaging Market Segmentation

Biodegradable Packaging Market Material Outlook (USD Million, 2018-2032)

• Paper & Paperboard


• Bioplastic
  
  
  
  • Polylactic Acid (PLA)
  
  
  • Cellulose-based
  
  
  • Starch-based
  
  
  • Polybutylene succinate
  
  
  • Others (Protein-based plastics etc.)
  
  
  
  


• Bagasse

Biodegradable Packaging Market Packaging Format Outlook (USD Million, 2018-2032)

• Bottles & Jars


• Boxes & Cartons


• Cans


• Trays & Clamshells


• Cups & Bowls


• Pouches & Bags


• Films & Wraps


• Labels & Tapes


• Others (Stick pack, Sachets, etc.)

Biodegradable Packaging Market End User Outlook (USD Million, 2018-2032)

• Food & Beverage


• Personal Care & Cosmetics


• Pharmaceuticals


• Homecare


• Other Consumer Goods

Biodegradable Packaging Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Spain
  
  
  • Italy
  
  
  • Netherlands
  
  
  • Switzerland
  
  
  • Sweden
  
  
  • Poland
  
  
  • Belgium
  
  
  • Austria
  
  
  • Norway
  
  
  • Denmark
  
  
  • Ireland
  
  
  • Finland
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East and Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East and Africa
  
  
  
  


• South America
  
  
  
  • Argentina
  
  
  • Brazil
  
  
  • Rest of South America