Global Biodegradable Paper and Plastic Packaging Market - 2023-2030

Overview

Global Biodegradable Paper and Plastic Packaging Market reached US$ 14.5 billion in 2022 and is expected to reach US$ 23.4 billion by 2030, growing with a CAGR of 9.6% during the forecast period 2023-2030.

The omnipresence of traditional plastic packaging has precipitated a crisis of epic proportions. Such non-biodegradable plastics can take hundreds of years to decompose, polluting ecosystems and oceans and posing a significant threat to wildlife. In an era where environmental concerns are paramount, the global packaging industry is undergoing a profound transformation. Biodegradable packaging has emerged as a game-changer in the quest for sustainable packaging solutions.

While the growth of the biodegradable packaging market is promising, it's not without challenges. The cost of biodegradable materials can be higher than traditional plastics and there are still infrastructure limitations for composting and recycling these materials. Additionally, ensuring the performance and shelf-life of biodegradable packaging remains a focus for research and development.

The starch based plastic, accounts for over 1/3rd of the market share. Similarly, the Asia-Pacific dominates the biodegradable paper and plastic packaging market, capturing the largest market share of over 1/3rd. Government incentives, environmental concerns and advancements in material technology all act as major reasons behind the region's growth.

Dynamics

Growing Demand for Plastic Pollution Reduction

Plastic pollution is a global concern that has garnered significant attention from governments, environmental organizations and the public. A key driver of the biodegradable packaging market is the desire to mitigate plastic pollution by replacing non-biodegradable materials with eco-friendly alternatives. Statistics from Ocean Conservancy show that plastic bags and food wrappers are among the top ten items collected during beach cleanups.

The harmful effects of plastic pollution on marine life and ecosystems have prompted a call for action. Biodegradable packaging is seen as a promising solution to reduce plastic waste and its environmental impact. Thus, growing demand for plastic pollution reduction act as major driver for the market.

Technological Advancements in Material Science

Advancements in material science and technology have played a pivotal role in the development of biodegradable packaging solutions. Innovations in materials such as biodegradable plastics and bio-based paper have enabled manufacturers to create packaging that meets both environmental and performance criteria. One notable example is the development of bioplastics, which are derived from renewable resources such as cornstarch or sugarcane.

Such bioplastics can be used to produce a wide range of packaging materials, from bags to containers. The biodegradable nature of the above mentioned prodcuts makes them an attractive alternative to traditional plastics. Additionally, advancements in manufacturing processes have made it more cost-effective to produce biodegradable packaging, narrowing the price gap with conventional materials.

Corporate Sustainability Initiatives

Many leading corporations are embracing sustainability as a core part of their business strategy. The respective fact includes a commitment to reducing their environmental footprint by adopting biodegradable packaging. Such initiatives not only demonstrate corporate responsibility but also resonate with consumers who are increasingly making purchasing decisions based on a company's sustainability efforts.

For example, in 2020, McDonald's announced a new packaging strategy aimed at sourcing 100% of its packaging from renewable, recycled or certified sources by 2025. The aforementioned strategy includes a transition to biodegradable materials in many of its products. Thus, corporate sustainability initiatives play a vital role in ensuring the growth of the market.

Limited Durability Compared to Alternatives

Biodegradable packaging is designed to break down in the environment, which is a positive feature in terms of reducing plastic waste. However, this property can also be a limitation, especially for products that require long shelf lives or protection against moisture and other environmental factors.

For instance, in the food industry, where packaging plays a crucial role in preserving product freshness, the limited durability of biodegradable packaging can be a significant constraint. According to a report by the Food and Agriculture Organization (FAO), the shorter shelf life of some biodegradable packaging materials can lead to increased food waste, offsetting some of the environmental benefits.

High Cost of Production

One of the most significant restraints in the biodegradable packaging industry is the higher cost of production compared to traditional plastic packaging. While biodegradable materials such as PLA (Polylactic Acid) and PHA (Polyhydroxyalkanoates) are derived from renewable resources, their production processes are often more complex and energy-intensive, leading to higher manufacturing costs.

According to U.S. Department of Agriculture (US$A), the production cost of biodegradable plastics can be up to 50% higher than that of conventional plastics. The aforementioned cost differential can be a major barrier for businesses looking to transition to biodegradable packaging, especially in price-sensitive markets.

Segment Analysis

The global biodegradable paper and plastic packaging market is segmented based on material, end-user and region.

Environmental Consequences of Plastic Pollution

Plastic pollution has become a global crisis, with millions of tons of plastic waste ending up in our oceans, landfills and natural ecosystems. As the world grapples with the environmental consequences of plastic pollution, there is a growing interest in sustainable and biodegradable packaging solutions. Starch-based plastics have emerged as a promising alternative in the quest for eco-friendly packaging materials.

The market potential for starch-based plastics in the global biodegradable paper and plastic packaging sector is substantial. Consumers are increasingly demanding sustainable and environmentally responsible products and companies are responding by incorporating starch-based plastics into their packaging solutions.

Furthermore, the ongoing research and development efforts in the field of bioplastics are likely to lead to innovations that improve the performance and cost-effectiveness of starch-based plastics. As a result, these materials are expected to become even more competitive in the packaging industry. As the market for starch-based plastics continues to expand, it offers a promising solution to reduce the environmental impact of traditional plastics in the packaging industry.

Geographical Penetration

Growing Environmental Consciousness Among Consumers and Global Shift Towards Biodegradable Packaging

The global push for sustainability and eco-consciousness has led to a significant transformation in the packaging industry. One of the key trends driving this transformation is the increasing adoption of biodegradable packaging materials. Among these materials, biodegradable paper and plastic packaging have gained significant attention.

Many Asia-Pacific countries have introduced stringent regulations and policies to curb plastic pollution. For instance, India implemented a nationwide ban on single-use plastics, driving the demand for biodegradable alternatives. Similarly, China, one of the world's largest plastic consumers, has initiated measures to reduce plastic waste and promote biodegradable packaging solutions.

Moreover, growing environmental consciousness among consumers has significantly impacted the market. Consumers are increasingly demanding eco-friendly packaging options, pushing manufacturers and retailers to adopt biodegradable materials. The shift in consumer behavior has spurred innovation and investment in biodegradable packaging solutions in the Asia-Pacific.

Therefore, Asia-Pacific is likely to continue playing a pivotal role in the global shift towards biodegradable packaging. As sustainability remains a top priority for businesses and consumers alike, the demand for biodegradable packaging materials in the region is expected to persist and even accelerate in the coming years.

Competitive Landscape

major global players in the market include: Riverside Paper Co. Inc., SmartSolve Industries, Ozsoy Plastik, Ultra Green Sustainable Packaging, Hosgor Plastik, Eurocell S.r.l, Tetra Pak International SA, Kruger Inc., Amcor PLC, Mondi, International Paper Company and Smurfit Kappa.

COVID-19 Impact Analysis

Even before the pandemic, there was a growing emphasis on sustainable and eco-friendly packaging solutions. Consumers were becoming increasingly conscious of the environmental impact of traditional plastic packaging, leading to a surge in demand for biodegradable alternatives. Government sources, such as the Environmental Protection Agency (EPA), U.S., reported that in the years leading up to 2020, the demand for sustainable packaging was steadily rising.

The COVID-19 pandemic has had far-reaching effects on various industries globally and the packaging industry is no exception. While the pandemic created challenges for businesses and supply chains, it also accelerated certain trends, particularly in sustainable packaging. Lockdowns, supply chain disruptions and shifts in consumer behavior had a significant impact on packaging demand and preferences.

In the initial months of the pandemic, there was a surge in demand for essential products like food and hygiene items. The respective fact has led to an increased use of traditional plastic packaging, particularly single-use plastics, as consumers and businesses prioritized safety and hygiene over sustainability. Regulations and policies aimed at reducing plastic waste and promoting eco-friendly alternatives became more common across the world.

Nonetheless, the pandemic heightened consumer awareness of health, safety and the environment. As the situation improved and people adjusted to the new normal, there was a renewed focus on sustainability. Consumers began to favor products with eco-friendly packaging. Further, the biodegradable packaging industry responded to the challenges posed by the pandemic by introducing innovative solutions.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has disrupted global supply chains, particularly in the chemicals and plastics industries. Both Russia and Ukraine were key players in the production of petrochemicals and plastics, with Ukraine, in particular, being a significant exporter. The conflict disrupted production and exports, leading to a shortage of raw materials, including those required for biodegradable plastics.

Further, the disruption in the supply of key raw materials, such as biodegradable polymers derived from petrochemicals, has caused prices to surge. Manufacturers of biodegradable packaging materials have faced increased production costs, which in turn have affected pricing in the market. The respective fact has put pressure on businesses looking to adopt or expand their use of biodegradable packaging.

Nonetheless, while the Russia-Ukraine war has presented challenges to the biodegradable packaging market, it has also underscored the importance of diversifying supply chains and investing in sustainable materials. As the conflict continues, businesses in the packaging industry are exploring alternative sources for biodegradable materials and investing in research and development to create more sustainable packaging solutions.

The demand for biodegradable packaging is likely to continue growing as consumers and governments globally prioritize sustainability. The aforementioned fact presents opportunities for businesses to develop innovative biodegradable products that not only meet environmental goals but also cater to the evolving preferences of conscious consumers.

By Material

• Plastic
  • Starch Based plastic
  • Cellulose Based Plastics
  • Polylactic Acid (PLA)
  • Polyhydroxyalkanoates (PHA)
• Paper

By End-User

• Food and Beverage
• Catering Service wares
• Personal and Home Care
• Healthcare
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In 2021, Mondi, a major packaging and paper manufacturer launched its EcoSolutions range of biodegradable and recyclable packaging. The respective range of products are designed to reduce environmental impact while maintaining the quality and functionality that consumers expect from packaging.
• Smurfit Kappa unveiled its "Better Planet Packaging" initiative in 2020. The company is committed to creating sustainable packaging solutions using biodegradable materials. The products in the respective initiatives include innovative paper-based packaging designed to replace single-use plastics.
• In 2021, Danimer Scientific launched Nodax, a biodegradable plastic that breaks down naturally in the environment. The product has gained attention for its potential to replace traditional plastics in various packaging applications.

Why Purchase the Report?

• To visualize the global biodegradable paper and plastic packaging market segmentation based on material, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of biodegradable paper and plastic packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global biodegradable paper and plastic packaging market report would provide approximately 57 tables, 50 figures and 187 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies