Market Trends of Bioplastics Packaging Industry
This section covers the major market trends shaping the Bioplastics Packaging Market according to our research experts:
Rigid Packaging to Hold Dominant Position in the Market
- Rigid bioplastics are used for the packaging of cosmetics such as compact powders, lipsticks, creams, and beverage bottles. A broad application base increases the scope for demand. Materials such as bio-based PE, PLA, or bio-based PET are used in the section.
- According to statistics from the FEA, Germany produces almost 6.28 million tons of plastic waste each year, and globally, the figure is about 400 million tons. In general, a plastic bottle takes approximately 500 to 1,000 years to decompose. Such stats showcase the need for bioplastics in rigid packaging products, such as bottles, tubes, cups, cutlery, blister packaging, etc., which could significantly reduce the decomposition time.
- In the context of rising environmental awareness, several well-known brands, such as Vittel, Coca-Cola, Heinz, and Volvic, have started using bio-based PET for making bottles of all sizes that contain sparkling drinks and other non-gaseous fluids and solutions. A significant number of companies like Johnson & Johnson and Procter & Gamble rely on bio-based PE to package several cosmetic products.
- Because these products contain a large amount of bio-based materials and can be mixed with suitable recyclates from traditional PE and PET, resource efficiency has increased and carbon dioxide emissions have gone down.
Given the growing popularity of bio-plastics, numerous bioplastics application technologies are being discovered in developed countries with significant research and development funding. For instance, in July 2021, Brown University students developed a bioplastic "Fette" cup to replace solo cups. The solo cups are made from number six plastic, which is chemically identical to Styrofoam and toxic for the environment.
Europe Holds a Significant Market Share
- 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.
- Europe strengthened its position as a central hub for the entire bioplastics industry and ranked foremost in the field of research and development, having this industry's largest market worldwide. By now, nearly one-fourth of the overall bioplastics production capacity is located in Europe.
- Furthermore, consumers in the region are increasingly becoming aware of the effects of plastic and non-biodegradable packaging on the environment. The demand for green packaging, including bioplastic packaging, is on the rise in the region.
- Governments and other regulatory bodies in the region are coming up with more and more ways to promote and incentivize the use of bioplastics for packaging.
Aside from its contributions to a more sustainable future, the emerging bioplastics industry has the potential to have a massive economic impact in Europe over the next few decades. According to a market analysis conducted by EuropaBio, the European bioplastics industry could realize steep employment growth, most of which will positively affect the development of rural areas.
