PUBLISHER: The Business Research Company | PRODUCT CODE: 1929889
PUBLISHER: The Business Research Company | PRODUCT CODE: 1929889
Biodegradable packaging materials are designed to break down naturally over time through the action of microorganisms such as bacteria, fungi, or algae. These materials serve as a more sustainable alternative to conventional plastics, helping to mitigate environmental concerns related to waste and pollution.
The main types of biodegradable packaging materials include paper and paperboard, plastic, jute, and wood. Paper and paperboard, which are made from natural fibers or recycled materials, are biodegradable, lightweight, and commonly used for food packaging, gift wrapping, and cartons. This material is used in a variety of applications such as trays, bags, boxes, clamshells, and pouches. It caters to several end-use industries, including food and beverages, cosmetics and personal care, pharmaceuticals, and consumer goods.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the biodegradable packaging materials market by increasing costs of imported biopolymers, specialty additives, processing machinery, and compostable resins. Packaging manufacturers in North America and Europe are most affected due to reliance on imported raw materials, while Asia-Pacific faces cost pressures on export-oriented packaging production. These tariffs are raising material costs and affecting price competitiveness. However, they are also encouraging domestic biopolymer production, regional material sourcing, and innovation in locally available biodegradable inputs.
The biodegradable packaging materials market research report is one of a series of new reports from The Business Research Company that provides biodegradable packaging materials market statistics, including biodegradable packaging materials industry global market size, regional shares, competitors with a biodegradable packaging materials market share, detailed biodegradable packaging materials market segments, market trends and opportunities, and any further data you may need to thrive in the biodegradable packaging materials industry. This biodegradable packaging materials market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The biodegradable packaging materials market size has grown strongly in recent years. It will grow from $121.08 billion in 2025 to $131.8 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to strengthening environmental regulations on plastics, rising consumer preference for sustainable packaging, expansion of packaged food consumption, increased availability of bio-based raw materials, early adoption of biodegradable materials.
The biodegradable packaging materials market size is expected to see strong growth in the next few years. It will grow to $184.15 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing investments in advanced biopolymer development, rising adoption of sustainable packaging by global brands, expansion of biodegradable packaging in pharmaceuticals, growing focus on circular packaging systems, increasing innovation in material compostability. Major trends in the forecast period include increasing adoption of plant-based packaging materials, rising demand for compostable plastic alternatives, growing use of paper-based biodegradable packaging, expansion of flexible biodegradable packaging formats, enhanced focus on end-of-life material performance.
The growing demand for sustainable packaging is expected to drive the growth of the biodegradable packaging materials market in the coming years. Sustainable packaging involves the use of environmentally friendly materials and design approaches that minimize environmental impact across a product's lifecycle. It emphasizes recyclability, biodegradability, and waste reduction while preserving product functionality and protection. The increasing demand for sustainable packaging is driven by heightened awareness of plastic pollution, deforestation, and landfill waste, along with rising consumer preference for eco-friendly products, corporate sustainability commitments, and long-term cost efficiencies achieved through lightweight and recyclable materials. Biodegradable packaging supports sustainable packaging goals by decomposing naturally into non-toxic components, thereby reducing landfill accumulation and environmental pollution. For instance, in April 2023, according to the 2023 Buying Green Report published by Trivium Packaging, a Netherlands-based sustainable packaging company, 82% of consumers indicated a willingness to pay a premium for sustainable packaging, representing a four-percentage-point increase compared with 2022. As a result, increasing consumer demand for environmentally friendly packaging solutions is contributing to the expansion of the biodegradable packaging materials market.
The biodegradable packaging materials market is witnessing notable progress through advancements in eco-friendly barrier coating technologies. Market participants are increasingly concentrating on the development of advanced solutions such as water-based barrier coatings that improve packaging durability while preserving environmental benefits. Water-based barrier coatings are environmentally friendly protective layers that provide resistance to moisture, oils, and grease, thereby extending shelf life and enhancing the functional performance of biodegradable packaging. For example, in March 2024, Archroma, a Switzerland-based chemicals company, introduced Cartaseal OGB F10, a PFAS-free barrier coating developed for oil and grease resistance in both food and non-food packaging applications. The coating incorporates bio-based raw materials and delivers high performance while remaining biodegradable. Cartaseal OGB F10 offers several performance advantages, including strong oil and grease barrier properties that help maintain the quality and freshness of packaged products, even in folded or complex packaging formats.
In May 2023, TIPA Compostable Packaging, an Israel-based manufacturer of compostable flexible packaging solutions, acquired Bio4Pack for an undisclosed amount. Through this acquisition, TIPA Compostable Packaging aims to strengthen its sustainable packaging portfolio and expand its market presence across Europe. Bio4Pack is a Germany-based company specializing in compostable packaging materials.
Major companies operating in the biodegradable packaging materials market are BASF SE, Mitsubishi Chemical Corporation, Braskem S.A., Smurfit Kappa Group, Tetra Pak International S.A., Corbion Purac, Green Dot Bioplastics Inc., Dunapack Packaging, Danimer Scientific Inc., Fabbri Group S.p.A., Vegware Limited, Novamont S.p.A., Paptic Ltd., Biopacktech Co. Ltd., BioGreen Packaging, Teysha Technologies, Packware GmbH, TIPA LTD., Cardia Bioplastics Ltd., Futamura Group, Avani, Biome Bioplastics Limited
North America was the largest region in the biodegradable packaging materials market in 2025. The regions covered in the biodegradable packaging materials market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the biodegradable packaging materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The biodegradable packaging materials market consists of sales of bamboo, bagasse, starch-based foams, and coconut coir. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Biodegradable Packaging Materials Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses biodegradable packaging materials market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for biodegradable packaging materials ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The biodegradable packaging materials market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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