PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1271163
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1271163
Global Biodegradable Films Market was valued at USD 1.25 billion in 2022 which is estimated to be valued at USD 2.13 billion in 2030 growing at a CAGR of 7.91% during the forecast period 2023-2030. The global biodegradable films market refers to the marketplace for biodegradable films or sheets that may be destroyed by natural processes such as fungus or bacteria without leaving hazardous residue in the environment.
The demand for biodegradable films has been growing steadily in the recent years, driven by increased environmental awareness and regulations regarding plastic waste reduction. Biodegradable films offer an eco-friendly alternative to traditional plastic films that takes several years to decompose and largely contributes to pollution.
Starch-based polymers such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA) are increasingly being used as raw materials to create food and beverage packaging goods due to their ease of disposal, degradability, and recyclability. As a result, companies are using green packaging labelling for branding and client acquisition, meeting a growing demand for biodegradable materials in food packaging and compostable bag applications.
For example, a SeaFilm food packaging project in European Union (EU) is aiming to create an alternative too single use plastic for the conservation of frozen fish. This film is made of seaweed and edible algae which can either be dispose doff or can also be consumed along with the fish.
In the recent years, there has been a noticeable shift in consumer preference towards eco-friendly plastic products, including biodegradable films. This trend has been driven by growing concerns about the environmental impact of traditional plastics that contribute to the pollution in landfills and oceans.
Consumers are increasingly seeking products that are made from sustainable materials and biodegradable films offering promising alternative to traditional plastics. These films are designed to break down more quickly and completely, often within a few months or years and can be made from a variety of biodegradable materials such as plant-based polymers, cellulose, starch, and proteins.
Governments around the world are becoming aware of the environmental issues associated with the traditional plastic films that have a harmful impact on the wildlife and ecosystems. As a result, many governments are now promoting the use of biodegradable films through various schemes, grants, and incentives. For example, in January 2022, the U.S. Department of Energy announced an investment if $13.4 million to reduce the plastic emissions and design new plastic solutions which are biodegradable and recyclable. The government aims to reach net zero carbon emissions in the nation by the year 2050. Also,in the U.S., the Department of Agriculture offers funding and technical assistance to support the development of biobased products, including biodegradable films made from the agricultural waste.
The pandemic had a substantial negative impact on the biodegradable films market. The industry's expansion over the previous year was limited by the interruptions in labour, transportation, and supply chains, as well as the lack of materials. During the initial phase of the pandemic, production facilities all around the world were shut down. Also, the launch of the bioplastics was delayed as result of the post-pandemic economic crisis. Supply chain interruptions frequently presented problems for market suppliers. However, the need for necessary packaging, such as e-commerce shipment had seen a tremendous increase.
The Russia-Ukraine war had an adverse impact on the global biodegradable films market due to supply chain disruptions resulting in shortage of raw materials used in the production of biodegradable films. Russia is a major supplier of raw materials such as polyethylene, which is used in the production of biodegradable films. If the war continues, this could lead to further increase in prices of raw materials and finished products, therefore adversely impacting the market.
Major producers of biodegradable films use cutting-edge, environmentally friendly technology, specialised finishing and decorative procedures, and a range of materials to provide high-quality packaging solutions. For instance, in 2020 Fabbri Group (Italy) and BASF SE collaborated to create a new cling film specifically for packaging fresh foods. In accordance with the cooperation, BASF SE's Ecovio approved recyclable and bio-based bioplastic will be used by Fabbri Group to create the stretched film, Nature Fresh.
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work