Market Trends of Biodegradable Packaging Solutions Industry
Plastic is Expected to Hold a Significant Market Share
- Over the past decade, the demand for bioplastics has surged. This surge can be attributed to a heightened global emphasis on environmental conservation, a shift toward bio-based and natural resources in manufacturing, and the implementation of diverse regulations worldwide to promote sustainable resource utilization and waste management. With consumers increasingly favoring eco-friendly materials and a rising environmental consciousness, the market is poised for significant growth.
- The demand for bio-friendly plastics in the packaging industry is enormous and is expected to remain the same in the next five years. Biodegradable plastic packaging solutions are witnessing a rise in the industry owing to their low environmental impact, growing focus on recyclability and sustainability, and government focus on efficient packaging management.
- Bio-based materials have several potential benefits for greenhouse gas balances and other environmental impacts over life cycles. The use of biodegradable materials is expected to contribute to sustainability and a high reduction in the environmental effects associated with the disposal of oil-based polymers.
- Unlike its fossil fuel-based counterpart, biodegradable plastic packaging naturally decomposes in the environment through microorganisms, posing lesser risks. Industries, spanning from food & beverages to healthcare, are increasingly pivoting toward biodegradable packaging. Beyond environmental benefits, these plastics also promise cost reductions in production. Moreover, they open avenues for new markets, especially in products designed for composting.
- As per the European Bioplastics Nova-Institute, global production capacity for biodegradable plastics stood at 1,136 metric tons in 2023. This figure is expected to increase to 4,605 metric tons by 2028. This uptrend in production capacity is poised to fuel the demand for biodegradable plastics.
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Asia-Pacific is Expected to Record Significant Growth
- Government initiatives and the development of environment-friendly packaging products are the main reasons for the growing demand in the market. Consumers are increasingly aware of the environmental risks caused by plastic waste, and the development of advanced technology has prompted many Indian manufacturers to create biodegradation packaging solutions.
- The food & beverage industry was the first adopter of biodegradable packaging, followed by personal care products and cosmetics in India. Significant innovation in packaging and labeling has occurred within the food packaging industry. The market for eco-friendly food packaging is divided into material choices, applications, types, and techniques.
- Plastic waste generation in India has grown every ten years. In 2021, it was 17.5 million metric tons, which is expected to increase to 31.40 million metric tons by 2031 and 55 million metric tons by 2041. With increasing plastic waste generation in India, this region provides opportunities for manufacturers to convert and recycle the waste plastic into bioplastic packaging.
- Japan’s packaging trends have changed a lot in recent years. One of the main reasons for this is the increased awareness about environmental issues. This has led to a focus on reducing container weight and streamlining packaging materials. This eco-friendly approach has resulted in products using recyclable materials. In addition, there is a strong focus on creating high-performing products that focus on safety and convenience.
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