Biodegradable Plastic Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.77 Billion |
| Market Size (2029) | USD 8.53 Billion |
| CAGR (2024 - 2029) | 20.70 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Biodegradable Plastic Packaging Market Analysis
The Biodegradable Plastic Packaging Market size is estimated at USD 2.77 billion in 2024, and is expected to reach USD 8.53 billion by 2029, growing at a CAGR of 20.70% during the forecast period (2024-2029).
- Driven by mounting environmental concerns and a surge in demand for sustainable alternatives, the biodegradable plastic packaging market is witnessing significant growth. With heightened awareness of plastic waste's ecological toll, consumers are pushing for change. Concurrently, governments globally are tightening regulations to combat plastic pollution. This has led industries, notably in food and beverage, retail, and e-commerce, to increasingly embrace biodegradable packaging, aligning with consumer expectations and regulatory mandates.
- Biodegradable plastics, commonly utilized in packaging derived from renewable sources like cornstarch, dominate food packaging, while PHA is carving a niche in the medical and agricultural sectors. These biodegradable materials present a greener alternative to traditional plastics, which can take centuries to decompose.
- Several factors fuel the market's growth, notably a pronounced consumer shift towards sustainable products and corporate pushes for sustainability. Companies invest in biodegradable packaging technologies and forge partnerships to enhance material performance and curtail production costs. With the relentless rise of e-commerce, there's an intensified focus on biodegradable packaging to lessen environmental footprints while ensuring product safety during transit.
- In August 2023, researchers at the University of Washington introduced an innovative bioplastic sourced from the blue-green cyanobacteria spirulina. Unlike traditional plastics, which resist biodegradation, or other bioplastics that require commercial processing, these new bioplastics decompose naturally and rapidly. Additionally, their inherent fire-resistant properties provide a significant edge, positioning spirulina-based plastics as ideal candidates for applications where conventional, flammable plastics are inadequate.
- Regulatory pressures, rising consumer demand, and breakthroughs in material science are propelling the growth of the biodegradable plastic packaging market. With mounting environmental concerns and a worldwide shift towards sustainability, the market is poised for significant expansion in the years ahead.
- Yet, the biodegradable plastic packaging market has challenges, including elevated production costs and performance issues in specific applications. The nascent recycling infrastructure for biodegradable plastics further complicates matters, potentially undermining the material's environmental benefits.
- Despite these hurdles, the market's trajectory remains upward, with North America and Europe at the forefront and Asia Pacific emerging as a region of growing promise, bolstered by rising awareness and governmental backing for sustainable packaging.
Biodegradable Plastic Packaging Market Trends
Food Segment to Hold Significant Market Share
- Implementing biodegradable plastics in food packaging is gaining momentum due to the growing emphasis on sustainability and reducing plastic waste. Traditional plastic packaging has become a significant environmental issue, particularly in the food industry, which generates substantial amounts of single-use plastic waste. Food packaging can reduce the ecological footprint by transitioning to biodegradable alternatives from renewable resources like cornstarch, sugarcane, and algae. These materials are designed to break down more rapidly in the environment, offering a more sustainable solution than conventional plastics.
- Biodegradable plastics such as PLA (polylactic acid) and PHA (polyhydroxyalkanoates) are increasingly used in food packaging because they maintain the essential properties required for food preservation. These materials can offer excellent moisture resistance, barrier properties to protect food from light and oxygen, and durability during transportation and handling. As a result, many food manufacturers are adopting biodegradable plastics to meet consumer demand for eco-friendly packaging while ensuring food safety and quality.
- Government regulations and consumer preferences have played a crucial role in the growing adoption of biodegradable plastics in food packaging. As rules on single-use plastics become more stringent in regions such as the European Union and North America, food companies are increasingly compelled to find sustainable alternatives. At the same time, consumers are becoming more environmentally conscious, and their preference for products with eco-friendly packaging has driven companies to invest in biodegradable solutions. This trend aligns with global sustainability efforts aimed at reducing plastic pollution.
- Investing in improved waste management systems is essential to fully realizing the potential of biodegradable plastics in food packaging. Proper composting or recycling infrastructure ensures that biodegradable materials can break down effectively and not contribute to landfill waste. As consumer demand and regulatory pressure for sustainable packaging increase, the industry is expected to continue innovating in biodegradable plastic technologies, making them more accessible and scalable for food manufacturers worldwide.
- From 2022 to 2028, global bioplastic production capacity is steeply rising, underscoring a worldwide pivot towards sustainable materials. This surge is closely tied to the mounting demand for bioplastics across various sectors, notably food packaging. In 2022, global bioplastic production stood at 864,000 metric tons. By 2023, this figure jumped to 1,136,000 metric tons, highlighting a burgeoning interest and investment in biodegradable materials, especially in food packaging. Projections indicate a leap to 1,575,000 metric tons in 2024, with further escalations to 2,598,000 metric tons by 2025 and a staggering 4,605,000 metric tons by 2028 as per European Bioplastics. This surge in production capacity is in tandem with the rising demand for bioplastics in food packaging, spurred by regulatory mandates, consumer preferences for sustainability, and advancements in biodegradable plastic technologies.
- The food packaging sector, a major plastic consumer, will be directly influenced by burgeoning bioplastic products due to their biodegradable nature and compliance with food safety standards. With increased production capacity, bioplastics will become more economically viable, enhancing their accessibility for food manufacturers. By 2028, with a projected capacity of 4.6 million metric tons, bioplastics are poised for mainstream adoption in food packaging. This shift is especially timely as global regulatory pressures mount to curb plastic waste. As brands increasingly pivot to sustainable packaging, the food sector will witness a surge in bioplastic packaging, from beverages to fresh produce, echoing the global commitment to combat plastic pollution.
Asia-Pacific is Expected to Witness Significant Growth
- In Asia, the market for biodegradable plastics in packaging is gaining momentum, fueled by rising consumer demand, heightened environmental awareness, and supportive regulations. As disposable incomes grow and urbanization accelerates, consumers in nations like Japan and South Korea and bustling urban centers in India and China are increasingly attuned to the environmental repercussions of plastic waste. This evolving consumer mindset fosters a burgeoning market for biodegradable plastic solutions, particularly in food and beverage, cosmetics, and consumer goods.
- Government actions are pivotal in propelling the demand for biodegradable plastics across Asia. Nations, including India, China, and various Southeast Asian countries, have implemented initiatives to curb plastic waste, such as banning single-use plastics and tightening waste management regulations. These governmental moves are nudging industries towards sustainable choices, like biodegradable plastics. Notably, China's recent clampdown on plastics, mirrored by Thailand and Indonesia, is steering companies towards innovative packaging that meets regulatory standards and champions environmental objectives.
- Asia Pacific's robust industrial capacity for bioplastics further amplifies this market potential. With giants like China and India at the forefront, Asia boasts some of the world's largest bioplastics producers. As production costs dwindle and efficiency surges, biodegradable plastics are becoming a more viable and cost-effective choice for packaging. This bolstered production capability is especially crucial for sectors like food packaging, where the shift towards sustainable solutions is gaining traction.
- Asia Pacific's vast population and burgeoning middle class underscore the region's strong appetite for sustainable packaging, particularly in food. With increasing consumers and brands championing eco-friendly choices, biodegradable plastics are carving a niche in food packaging, especially for takeout and delivery. Their rising prominence in food, cosmetics, and pharmaceuticals signals a potential mainstream acceptance. As the clamor for sustainable packaging intensifies, Asia is poised to play a pivotal role in global bioplastics.
- India's packaged food market is projected to grow from USD 51.3 billion in 2022 to USD 67.5 billion by 2025 and USD 70.2 billion by 2026, as per Retailers Association of India, driven by rising disposable incomes, changing lifestyles, and urbanization. This growth fuels demand for biodegradable plastics in food packaging, as businesses and consumers increasingly prioritize sustainable solutions to address environmental concerns and align with government regulations phasing out single-use plastics. The rise of online food delivery services further amplifies the need for eco-friendly packaging, positioning India as a key market for biodegradable plastics in the packaged food sector, supported by the government's push for a circular economy and enhanced waste management systems.
Biodegradable Plastic Packaging Industry Overview
The biodegradable plastic packaging market is fragmented as global players pivot towards harnessing readily available natural resources for innovative plastic packaging solutions. Significant investments in research and development heighten competition, driving players to introduce new products. Notable industry players include Tetra Pak International S.A. and Kruger Inc., Amcor Group, Mondi PLC, and FKuR Kunststoff GmbH.
Biodegradable Plastic Packaging Market Leaders
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Tetra Pak International S.A.
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Kruger Inc.
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Amcor Group
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Mondi PLC
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FKuR Kunststoff GmbH
*Disclaimer: Major Players sorted in no particular order
Biodegradable Plastic Packaging Market News
- August 2024: Lidl Switzerland is spearheading a significant initiative to curtail plastic usage. Partnering with Hardegger Käse AG, the retailer is rolling out innovative packaging solutions. The newly introduced cellulose-based packaging, sourced from leftover wood of FSC-certified forestry and devoid of crude oil-based materials, is being utilized for organic Alpstein and Usserrhödler mountain cheese. This cellulose film optimally preserves taste and ensures the highest standards of product safety, departing from the retailer's previous plastic packaging approach.
- February 2024: The VTT Technical Research Centre of Finland has identified unprecedented maximum limits for its highly extensible, formable cellulose-based webs, which are being explored as alternative raw materials for rigid plastic packages. These findings pave the way for diverse, sustainable 3D packaging solutions previously deemed unattainable. Consequently, brand owners can now adopt rigid, cardboard-like packaging, catering to consumers who prefer sustainable products.
Biodegradable Plastic Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Environmental Concerns Regarding Plastic Pollution
5.1.2 Stringent Regulations by Various Government and Federal Agencies
5.2 Market Restraint
5.2.1 High Costs regarding Production Compared to Normal Plastic
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Starch Based plastic
6.1.2 Cellulose Based Plastics
6.1.3 Polylactic Acid (PLA)
6.1.4 Polyhydroxyalkanoates (PHA)
6.1.5 Other Plastic Types
6.2 By Application
6.2.1 Food
6.2.2 Beverage
6.2.3 Pharmaceutical
6.2.4 Personal and Homecare
6.2.5 Other Applications
6.3 Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Tetra Pak International S.A.
7.1.2 Kruger Inc.
7.1.3 Amcor Group
7.1.4 Mondi PLC
7.1.5 International Paper Company
7.1.6 FKuR Kunststoff GmbH
7.1.7 DS Smith PLC
7.1.8 Klabin SA
7.1.9 Rengo Co. Ltd
7.1.10 Stavian Chemical
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Biodegradable Plastic Packaging Industry Segmentation
Biodegradable plastic packaging, crafted from renewable sources like corn starch, sugarcane, and plant-based oils, is engineered to decompose naturally over time. Microorganisms, including bacteria, fungi, and algae, facilitate this breakdown. Unlike traditional plastics, which rely on petroleum-based resources, biodegradable plastics prioritize environmental sustainability. Their primary aim is to mitigate environmental harm, offering a solution that decomposes swiftly and safely, thereby curbing plastic pollution in landfills and oceans. Industries ranging from food and cosmetics to consumer goods harness these materials, reaping benefits like moisture resistance, durability, and enhanced content protection, all while championing environmental responsibility.
The biodegradable plastic packaging market is segmented by type (starch-based plastic, cellulose-based plastics, polylactic acid, polyhydroxyalkanoates, and other plastic types), by application (food, beverage, pharmaceutical, personal/homecare, and other applications), and by geography (North America, Europe, Asia, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Starch Based plastic | |
| Cellulose Based Plastics | |
| Polylactic Acid (PLA) | |
| Polyhydroxyalkanoates (PHA) | |
| Other Plastic Types |
| By Application | |
| Food | |
| Beverage | |
| Pharmaceutical | |
| Personal and Homecare | |
| Other Applications |
| Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Biodegradable Plastic Packaging Market Research Faqs
How big is the Biodegradable Plastic Packaging Market?
The Biodegradable Plastic Packaging Market size is expected to reach USD 2.77 billion in 2024 and grow at a CAGR of 20.70% to reach USD 8.53 billion by 2029.
What is the current Biodegradable Plastic Packaging Market size?
In 2024, the Biodegradable Plastic Packaging Market size is expected to reach USD 2.77 billion.
Who are the key players in Biodegradable Plastic Packaging Market?
Tetra Pak International S.A., Kruger Inc., Amcor Group, Mondi PLC and FKuR Kunststoff GmbH are the major companies operating in the Biodegradable Plastic Packaging Market.
Which is the fastest growing region in Biodegradable Plastic Packaging Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Biodegradable Plastic Packaging Market?
In 2024, the North America accounts for the largest market share in Biodegradable Plastic Packaging Market.
What years does this Biodegradable Plastic Packaging Market cover, and what was the market size in 2023?
In 2023, the Biodegradable Plastic Packaging Market size was estimated at USD 2.20 billion. The report covers the Biodegradable Plastic Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Biodegradable Plastic Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Biodegradable Plastic Packaging Industry Report
Statistics for the 2024 Biodegradable Plastic Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Biodegradable Plastic Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Biodegradable Plastic Packaging Market Report Snapshots
