Biodegradable Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 105.26 Billion |
| Market Size (2029) | USD 140.66 Billion |
| CAGR (2024 - 2029) | 5.97 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players.webp "Biodegradable Packaging Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
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Biodegradable Packaging Market Analysis
The Biodegradable Packaging Market size is estimated at USD 105.26 billion in 2024, and is expected to reach USD 140.66 billion by 2029, growing at a CAGR of 5.97% during the forecast period (2024-2029).
- The market for biodegradable packaging has grown over the past few years due to the growing awareness about environmental conservation, especially in the post-pandemic scenario. The market's growth is driven by the increased consumer preference for sustainable packaging materials and the growing demand for recyclable and biodegradable products across various end-user industries.
- Biodegradable packaging solutions are the materials reprocessed from a recovered material using a manufacturing process and then included in a final product or component. Recycled material is any material that has already served the use that it was initially intended for and is being used for packaging. Recycled content is promoted as it significantly reduces organizational waste footprints while optimizing the manufacturing process. With recycled products, recycled content will improve a company's sustainability, and due to the efficiency of the process, it is also associated with increased cost benefits.
- Technological advancements are leading to the development of innovative recyclable packaging solutions. Manufacturers’ focus is on creating packaging materials that are environmentally friendly and offer the required protection and functionality for the products being packaged. As a result, the recycled packaging market is witnessing the introduction of new materials, designs, and manufacturing processes that cater to diverse industry needs.
- Various countries and organizations are avoiding the utilization of single-use plastic packaging, which is expected to create a favorable market scenario for biodegradable packaging. In countries like India, where packaging waste has become a major issue, state and central governments are taking steps to prohibit the use of single-use plastic.
- Biodegradable plastics break down naturally in the environment through microorganisms such as bacteria and fungi. This means that biodegradable plastics can be composted and returned to the environment, unlike conventional plastics, which decompose for years.
- However, the material sourced does not necessarily mean it will break into the natural environment, and biodegradable plastics, for instance, biodegradable plastics might only break down in industrial composting plants where they can be heated to a high enough temperature that microbes can break them down at a noticeable rate.
- According to Thermogard, biodegradable plastics require a particular environment to break down entirely. If left to do so in landfills or seas, biodegradable plastics break into tiny microplastics, impacting the environment. However, biodegradable plastics are more environmentally friendly than traditional plastics as they decompose faster in landfills.
Biodegradable Packaging Market Trends
Plastic will Hold a Significant Market Share
- The demand for bioplastics has increased since the last decade, driven by the growing awareness of environmental protection, the use of bio-based or natural resources in manufacturing materials, and the formulation of different regulations across countries to effectively use natural resources and manage waste. The growing consumer preference towards bio-friendly materials, in combination with the increasing environmental concern, is expected to drive the overall growth in the bio-friendly packaging market.
- 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. It is anticipated that the use of biodegradable materials shall contribute to sustainability and a high reduction in the environmental effects associated with the disposal of oil-based polymers.
- Biodegradable plastic packaging offers exceptional benefits as compared to fossil fuel-based plastic. It decomposes naturally in the environment through microorganisms and is less harmful than conventional manufactured plastics. Various applications such as food & beverages, healthcare, and others are expected to adapt to biodegradable packaging. Biodegradable plastics can help reduce the cost of plastic production. Biodegradable plastics can be used to make various products designed to be composted, which can develop new markets for these products.
- According to European Bioplastics Nova-Institute, the production capacity of biodegradable plastics in 2023 was 1,136 metric tons globally, and it is expected to reach 4,605 metric tons by 2028. Such an increase in the production capacity of biodegradable plastics is expected to drive their demand.
Asia-Pacific is Expected to Show Significant Growth Rate
- Government initiatives and the development of environmentally friendly packaging products are the main reasons for the growing demand for the Biodegradable Packaging Market in India. 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. As a result, the biodegradation packaging market in India is multiplying.
- The food & beverage sector is the first adopter of biodegradable packaging, followed by personal care products and cosmetics among India's most important sectors. Significant innovation in packaging and labeling has occurred within the food packaging sector. The market for eco-friendly food packaging is divided into material choices, applications, types, and techniques.
- Plastic waste generation in India is growing every ten years. In 2021, it was 17.5 million metric tons, which will increase to 31.40 million metric tons by 2031, and it is forecasted to reach 55 million metric tons by 2041. With increasing plastic waste generation in India, this region is proving an opportunity for manufacturers to convert and recycle the waste plastic into bioplastic packaging and cater to Asia-Pacific.
- Japan’s packaging trends have changed a lot in recent years. One of the main reasons for this is the increased awareness of 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.
Biodegradable Packaging Industry Overview
The biodegradable packaging market is highly fragmented. The market studied comprises Amcor Limited, Sealed Air Corporation, Mondi Group PLC, and Tetra Pak International SA. Several regional firms in developing countries like India are also trying to gain market share. Barriers to entry are low, resulting in the advent of smaller players and further increasing competitive rivalry.
• February 2024: As part of SEE’s ongoing mission to create packaging materials that meet our customers’ sustainability objectives, the global packaging solutions provider has developed the world’s first biobased industrial compostable tray for protein packaging that has been rigorously tested to meet the needs of modern-day food processing facilities. See’s new compostable overwrap CRYOVAC brand is made from a biobased food-contact-grade resinous material that has been USDA-certified, with a biobased content of 54% based on chemically derived renewable wood cellulose.
• September 2023: Mondi, in collaboration with rice supplier Veetee, introduced new recyclable paper-based dry rice packaging. The packaging offers protection against moisture and has been customized to remain stable on shop shelves.
Biodegradable Packaging Market Leaders
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Mondi Group
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Tetra Pak International SA
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Sealed Air Corporation
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International Paper Company
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Amcor Group GmbH
*Disclaimer: Major Players sorted in no particular order
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Biodegradable Packaging Market News
- February 2024: With the same durability, shelf life, barrier, transparency, and clarity as virgin plastic packaging, TIPA launches compostable packaging, offering an alternative to plastic packaging. Certified to biodegrade in domestic or industrial compost bins, they leave no trace in the environment and provide maximum convenience to consumers. The product range comprises coffee capsules, zipper bags, mesh packaging, and resealable plastic containers. At the same time, TIPA launched a fully compostable and recyclable rice straw container line.
- February 2024: Print & Pack announces its official launch to provide sustainable packaging solutions to North America’s small businesses and eco-friendly brands. Print & Pack’s portfolio features cutting-edge technologies such as BDP for Biodegradable Packaging and GREENGUARD Gold Certified inks, including INVISIBLEBAG, a compostable and water-soluble solution.
Biodegradable Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions & 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
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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
- 4.4 Technology Snapshot
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Demand For Sustainable Products By Consumers And Brands
- 5.1.2 Stringent Government Regulations
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5.2 Market Restraints
- 5.2.1 Lack of Supply of Bio-plastics and Related Materials
6. MARKET SEGMENTATION
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6.1 By Material Type
- 6.1.1 Plastic
- 6.1.1.1 Starch-Based Plastics
- 6.1.1.2 Cellulose-Based Plastics
- 6.1.1.3 Polylactic Acid (PLA)
- 6.1.1.4 Poly-3-Hydroxybutyrate (PHB)
- 6.1.1.5 Polyhydroxyalkanoates (PHA)
- 6.1.2 Paper
- 6.1.2.1 Kraft Paper
- 6.1.2.2 Flexible Paper
- 6.1.2.3 Corrugated Fiberboard
- 6.1.2.4 Boxboard
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6.2 By Application
- 6.2.1 Food Packaging
- 6.2.2 Beverage Packaging
- 6.2.3 Pharmaceutical Packaging
- 6.2.4 Personal/Homecare Packaging
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6.3 By Geography***
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 United Kingdom
- 6.3.2.2 Germany
- 6.3.2.3 France
- 6.3.3 Asia-Pacific
- 6.3.3.1 China
- 6.3.3.2 India
- 6.3.3.3 Japan
- 6.3.3.4 Australia and New Zealand
- 6.4 Rest of the World
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Tetra Pak International SA
- 7.1.2 Amcor Group Gmbh
- 7.1.3 Mondi Group
- 7.1.4 Sealed Air Corporation
- 7.1.5 Elevate Packaging Inc.
- 7.1.6 Kruger Inc.
- 7.1.7 Biopak PTY Ltd (Duni Group)
- 7.1.8 Smurfit Kappa Group PLC
- 7.1.9 Berkley International Packaging Limited
- 7.1.10 Greenpack Limited
- 7.1.11 International Paper Company
- 7.1.12 Ranpak Holding Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Biodegradable Packaging Industry Segmentation
Biodegradability refers to the ability of materials to break down and return to nature. To qualify as biodegradable, packaging products or materials must completely break down and decompose into natural elements within a short time after disposal, typically in a year or less.
The biodegradable packaging solutions market is segmented by material type (plastic [starch-based plastics, cellulose-based plastics, polylactic acid (PLA), poly-3-hydroxybutyrate (PHB), polyhydroxyalkanoates (PHA), and others ] and paper[ kraft paper, flexible paper, corrugated fiberboard, boxboard, and others]), application (food & beverage, pharmaceutical, personal/homecare, and others), and geography (North America [United States and Canada], Europe [United Kingdom, Germany, France, and Rest of Europe], Asia-Pacific [China, India, Japan, and Rest of Asia-Pacific], and Rest of the World [Latin America and Middle East and Africa]. The market sizes and forecasts are in terms of value (USD) for the above-mentioned segments.
| By Material Type | Plastic | Starch-Based Plastics |
| Cellulose-Based Plastics | ||
| Polylactic Acid (PLA) | ||
| Poly-3-Hydroxybutyrate (PHB) | ||
| Polyhydroxyalkanoates (PHA) | ||
| By Material Type | Paper | Kraft Paper |
| Flexible Paper | ||
| Corrugated Fiberboard | ||
| Boxboard | ||
| By Application | Food Packaging | |
| Beverage Packaging | ||
| Pharmaceutical Packaging | ||
| Personal/Homecare Packaging | ||
| By Geography*** | North America | United States |
| Canada | ||
| By Geography*** | Europe | United Kingdom |
| Germany | ||
| France | ||
| By Geography*** | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia and New Zealand |
Biodegradable Packaging Market Research FAQs
How big is the Biodegradable Packaging Market?
The Biodegradable Packaging Market size is expected to reach USD 105.26 billion in 2024 and grow at a CAGR of 5.97% to reach USD 140.66 billion by 2029.
What is the current Biodegradable Packaging Market size?
In 2024, the Biodegradable Packaging Market size is expected to reach USD 105.26 billion.
Who are the key players in Biodegradable Packaging Market?
Mondi Group, Tetra Pak International SA, Sealed Air Corporation, International Paper Company and Amcor Group GmbH are the major companies operating in the Biodegradable Packaging Market.
Which is the fastest growing region in Biodegradable Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Biodegradable Packaging Market?
In 2024, the Europe accounts for the largest market share in Biodegradable Packaging Market.
What years does this Biodegradable Packaging Market cover, and what was the market size in 2023?
In 2023, the Biodegradable Packaging Market size was estimated at USD 98.98 billion. The report covers the Biodegradable Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Biodegradable Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What challenges does the Biodegradable Packaging Market face?
The key challenges faced by the Biodegradable Packaging Market include higher costs of biodegradable materials compared to conventional packaging and limited recycling facilities.
What are the key drivers of the Biodegradable Packaging Market?
Key factors driving the Biodegradable Packaging Market are: a) Increasing environmental concerns b) Stringent government regulations on plastic use c) Growing consumer preference for sustainable packaging
Compostable Packaging Solutions Industry Report
The global biodegradable packaging market is witnessing significant growth, fueled by a surge in consumer preference for sustainable packaging and an increase in demand across various industries. This expansion is supported by government and non-government initiatives promoting eco-friendly packaging solutions, with a notable contribution from biodegradable packaging companies and suppliers. These entities are innovating and expanding their capacities, especially in biodegradable paper packaging, to meet the rising demand. The shift towards sustainable practices is driven by legislative changes, consumer awareness, and a desire to reduce environmental footprints, making biodegradable packaging a preferred choice. This trend is evident across industries, including food, beverage, personal care, and pharmaceuticals, as they move towards more sustainable packaging solutions. Compostable Packaging Solutions market analysis by Mordor Intelligence™ highlights this growth, offering insights into market share, size, and revenue growth rates. For a deeper understanding, a free report PDF download is available, providing a forecast outlook and historical overview of the market. As the market evolves, biodegradable packaging suppliers are crucial in the transition towards sustainability, reflecting changing consumer preferences and regulatory pressures.
