Biodegradable Plastic Packaging Market Size (2024 - 2029)

The biodegradable plastic packaging market is experiencing growth driven by increasing environmental concerns and stringent government regulations aimed at reducing plastic waste. The demand for biodegradable alternatives is being propelled by the need to comply with regulations related to green packaging, which is compelling many FMCG companies to adopt such solutions. Despite these positive trends, the market's expansion is somewhat hindered by the higher costs associated with biodegradable plastics, which are derived from plant starch and require specific conditions for decomposition that are not always available in typical waste disposal sites.

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Market Size of Biodegradable Plastic Packaging Industry

Biodegradable Plastic Packaging Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 20.70 %
Fastest Growing Market Europe
Largest Market North America
Market Concentration Low

Major Players

Biodegradable Plastic Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

Biodegradable Plastic Packaging Market Analysis

The biodegradable plastic packaging market was valued at USD 2.77 billion in 2020 and expected to reach USD 8.53 billion by 2026 and grow at a CAGR of 20.7% over the forecast period (2021 - 2026).

  • The increasing environmental concerns regarding plastic usage (as plastics contain toxic pollutants that harm plants, animals, and people) are driving the use of biodegradable plastic alternatives. Floating plastic waste that survives thousands of years in water can serve as a transportation device for invasive species that disrupt habitats. This aforementioned factor is contributing to the growth of the market.
  • The stringent regulations by various governments and federal agencies with an objective to reduce plastic waste and promote biodegradable plastics usage in packaging are boosting the demand of this market. The regulations related to green packaging is increasing. As a result, various FMCG companies are required to adopt biodegradable packaging to comply with the standards, which in turn, is propelling the growth of this market.
  • However, high costs (compared to normal plastic) are restraining the growth of the market, as biodegradable plastic is made from plants' starch and its decomposition needs specific conditions, like temperature, bacteria, humidity, etc. (which may not be available in most of the dump yards and landfills).

Biodegradable Plastic Packaging Industry Segmentation

The biodegradable plastics are very much used in the packaging industry, as they are eco-friendly. With the increasing crude oil prices and the issues related to petroleum-based plastics (such as disposal and efficient waste management), the use of biodegradable plastic as an alternative (in various applications, like FMCG, hospital, and manufacturing) is increasing. This aforementioned factor is driving the market's growth.  

By Type
Starch Based plastic
Cellulose Based Plastics
Polylactic Acid (PLA)
Polyhydroxyalkanoates (PHA)
Other Plastic Types
By Application
Food
Beverage
Pharmaceutical
Personal/Homecare
Other Applications
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Biodegradable Plastic Packaging Market Size Summary

The biodegradable plastic packaging market is experiencing significant growth driven by increasing environmental concerns and stringent government regulations aimed at reducing plastic waste. The shift towards biodegradable alternatives is fueled by the harmful impact of traditional plastics on ecosystems and human health, as well as the potential for invasive species transport. This has led to a rise in demand for biodegradable packaging solutions, particularly among fast-moving consumer goods companies that must comply with green packaging standards. Despite the higher costs associated with biodegradable plastics, which are derived from plant starch and require specific conditions for decomposition, the market continues to expand as businesses and consumers seek more sustainable packaging options.

In Europe, the market is further bolstered by a transition to a low-carbon economy, enhanced policy support for the bioeconomy, and growing consumer awareness of sustainable products. The European Union's initiatives to reduce plastic bag consumption have created substantial opportunities for biodegradable plastic manufacturers. The demand for bioplastics is increasing across various sectors, including packaging, agriculture, and textiles, with applications extending to niche areas like medical implants and drug delivery systems. The market is highly competitive, with global players investing in research and development to innovate and improve bioplastic technologies. Key industry players include Tetra Pak International SA, Plastic Suppliers Inc., and Kruger Inc., among others, who are actively working towards sustainable packaging solutions.

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Biodegradable Plastic Packaging Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Introduction to Market Drivers and Restraints

    3. 1.3 Market Drivers

      1. 1.3.1 Growing Environmental Concerns Regarding Plastic Pollution

      2. 1.3.2 Stringent Regulations by Various Government and Federal Agencies

    4. 1.4 Market Restraints

      1. 1.4.1 High Costs Compared to Normal Plastic

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Starch Based plastic

      2. 2.1.2 Cellulose Based Plastics

      3. 2.1.3 Polylactic Acid (PLA)

      4. 2.1.4 Polyhydroxyalkanoates (PHA)

      5. 2.1.5 Other Plastic Types

    2. 2.2 By Application

      1. 2.2.1 Food

      2. 2.2.2 Beverage

      3. 2.2.3 Pharmaceutical

      4. 2.2.4 Personal/Homecare

      5. 2.2.5 Other Applications

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East & Africa

Biodegradable Plastic Packaging Market Size FAQs

The Biodegradable Plastic Packaging Market is projected to register a CAGR of 20.70% during the forecast period (2024-2029)

Tetra Pak International SA, Plastic Suppliers Inc., Kruger Inc., Amcor Limited and Mondi PLC are the major companies operating in the Biodegradable Plastic Packaging Market.

Biodegradable Plastic Packaging Market Report Snapshots

Biodegradable Plastic Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)