Market Trends of Bio-based Polymers Industry
Increasing Demand from Packaging Industry
- Packaging is one of the largest markets for bio-based polymers. These polymers exhibit excellent clarity and gloss, resistance to food fats and oils, and an aroma barrier. Additionally, they also provide stiffness, twist retention, and printability to the packaging.
- Bio-based polymers are mostly used in fruit and vegetable packaging in supermarkets, for bread bags and bakery boxes, bottles, envelopes, display carton windows, and shopping or carrier bags, among others. For instance, according to the Department of Commerce (India), the export value of fresh vegetables from India amounted to about USD 802 million in the fiscal year 2022. For processed vegetables, the value stood at nearly USD 425 million in the same year, which shows an increase of 10.87% from the fresh vegetable segment and 0.21% from processed vegetables compared with 2020. Therefore, an increase in the exports of fresh and processed vegetables is expected to create demand for bio-based polymers in the country.
- The bio-based polymer market for packaging is growing rapidly in the European and North American regions. The increasing intervention of the FDA and related organizations in terms of food safety is largely promoting the usage of biodegradable and food-grade plastics for beverage and snack consumption.
- The restaurant chains and food processing industries are increasingly adapting biodegradable materials for food packaging. Consumer awareness is also rising rapidly, especially in emerging economies, in terms of food safety, as some plastics are proven carcinogenic.
- The growth in developing regions, like Asia-Pacific, South America, and the Middle East, is expected to increase in the near future due to the improving food packaging standards of various food and safety organizations.
- Moreover, the higher ease of disposing of biodegradable polymers has further added to their growing demand from the packaging industry.
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Europe Region to Dominate the Market
- Europe holds the largest share of bio-based polymers and dominates the global market.
- Public awareness and government initiatives in the region have supported the use of biodegradable polymers in carrier bags, food packaging, food services (cutlery, etc.), and organic waste caddy liners, among others.
- Various countries in the region have been focusing on offering more eco-friendly packaging. This has increased the demand for polylactic acid in the packaging sector.
- The United Kingdom (UK) is among the leading countries in Europe, where the demand for bio-based polymer packaging has been increasing. The higher awareness about the sustainability factors of packaging products, along with recent government initiatives, are creating a favorable market scenario for the growth of the studied market in the country.
- The ban on single-use plastics is among the primary factors that will directly impact the demand for bio-based polymer packaging products. For instance, in 2021, the UK government announced plans to ban single-use plastic cutlery, plates, and polystyrene cups in England to tackle plastic pollution.
- Several existing vendors, as well as startups operating in the packaging industry, are also taking the initiative to promote bio-based polymer packaging in the country. For instance, in June 2022, Magical Mushroom Company, a UK-based company, secured funding of EUR 3.4 million (USD 3.31 million) for its plant-based sustainable packaging.
- Currently, the packaging sector in the United Kingdom has annual sales of GBP 11 billion, and it employs more than 85,000 people.
- The European Union (EU) is working towards the 2050 net-zero emissions goal and tackling the increasing environmental and sustainability crises by implementing the European Green Deal. The inclination towards a more sustainable society is intertwined with the European economy's production, use, and disposal of plastic.
- The growing need for small-size packaging and the growing consumption habits associated with the change in lifestyles are anticipated to propel the demand for bio-based polymers over the forecast period.
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