Global Biodegradable Packaging Market is expected to reach ~USD 171.26 Billion by 2029 with a CAGR of +7.35% over the forecast period.
Biodegradable packaging refers to packaging materials that can be decomposed by natural processes such as microbial action, sunlight, and water. The packaging can be made from a variety of materials, including paper, cardboard, biodegradable plastics, and plant-based materials. Biodegradable packaging is gaining popularity as a sustainable packaging solution that can reduce waste and environmental pollution.
Biodegradable packaging has been in use for several decades. In the 1970s, biodegradable plastic materials were introduced, but they were not widely adopted due to their high cost and limited availability. In the early 2000s, there was renewed interest in biodegradable packaging as concerns about environmental pollution increased.
Biodegradable packaging can be used for a wide range of products, including food and beverage packaging, cosmetics packaging, and shipping materials. It can be produced in various forms, such as bags, wraps, containers, and boxes. The end-users of biodegradable packaging include food and beverage manufacturers, cosmetic companies, e-commerce retailers, and other businesses that require sustainable packaging solutions.
COVID-19 has had both positive and negative impacts on the biodegradable packaging market. On the positive side, there has been an increased focus on sustainability and reducing waste as a result of the pandemic. Consumers have become more aware of the environmental impact of their actions, including their use of single-use plastics, and are seeking more sustainable alternatives. This has led to increased demand for biodegradable packaging solutions, particularly in the food and beverage industry.
On the negative side, the pandemic has disrupted supply chains and the production of biodegradable packaging materials, leading to shortages and higher prices. Additionally, many businesses have had to cut costs and reduce their investments in sustainability initiatives, including the adoption of biodegradable packaging solutions.
Some major key players for the global Biodegradable Packaging market report cover prominent players like
The North American biodegradable packaging market is expected to see significant growth in the coming years, driven by increasing consumer awareness of environmental issues, government initiatives promoting sustainable packaging solutions, and a growing demand for eco-friendly products.
However, In 2020, the Canadian government announced a ban on single-use plastics, including plastic bags, straws, and cutlery, by the end of 2021. And the Sustainable Packaging Coalition reports that the percentage of municipalities in North America that have access to recycling programs for cartons, such as those used for milk and juice, has increased from 18% in 2009 to 61% in 2021.
Europe is a key market for biodegradable packaging due to the increasing demand for sustainable packaging solutions and the growing emphasis on environmental regulations. The European Union has set ambitious targets for reducing plastic waste and promoting a circular economy, which has led to increased investment in biodegradable packaging technologies. The European Bioplastics Association states that the production capacity of bioplastics in Europe has increased from 1.7 million tonnes in 2019 to 2.1 million tonnes in 2020. And in France, a law was passed in 2020 requiring that all plastic packaging be made from at least 50% recycled material by 2025.
The revenue generation model for biodegradable packaging can include the sale of packaging materials to manufacturers, as well as the provision of packaging services to businesses.
The supply chain for biodegradable packaging typically involves manufacturers of packaging materials, distributors, and businesses that use the packaging. The supply chain may also include recycling and composting facilities for the disposal of biodegradable packaging.
The value chain for biodegradable packaging includes the production of raw materials, manufacturing of packaging materials, design and development of packaging solutions, and distribution and use of the packaging.
Increasing consumer awareness about environmental issues and sustainability:
Consumer awareness about environmental issues and sustainability has been a major driver of the biodegradable packaging market. By Nielsen, a global measurement and data analytics company, in 2019, 73% of global consumers say they would definitely or probably change their consumption habits to reduce their environmental impact. The survey also found that 81% of respondents felt strongly that companies should help improve the environment.
Additionally, Sustainable Packaging Coalition found that 75% of consumers are interested in purchasing products with sustainable packaging, while 60% are willing to pay more for products that are sustainably packaged.
Government initiatives and regulations promoting sustainable packaging solutions:
Government initiatives and regulations promoting sustainable packaging solutions are aimed at reducing the environmental impact of packaging materials. Examples of such initiatives include plastic bag bans and taxes, extended producer responsibility programs, government procurement policies, and funding for research and development.
For example, many countries and cities around the world have implemented plastic bag bans and taxes to reduce the amount of plastic waste. For example, as of 2021, over 30 countries have banned single-use plastic bags, and several others have implemented taxes or fees on their use. In the European Union, where a ban on single-use plastic items will come into effect in July 2021, it is estimated that this will save consumers around €6.5 billion per year in environmental damage costs.
Higher cost compared to traditional packaging solutions:
One of the main restraints for the adoption of biodegradable packaging solutions is their higher cost compared to traditional packaging solutions. A study conducted by the Sustainable Packaging Coalition found that the cost of biodegradable packaging can be up to two to three times higher than traditional packaging materials.
However, Flexible Packaging Association found that 48% of respondents cited cost as a barrier, compared to 27% who cited performance issues and 25% who cited consumer acceptance.
Lack of infrastructure for the disposal and recycling of biodegradable packaging:
The lack of infrastructure for the disposal and recycling of biodegradable packaging is a major challenge facing the industry. Biodegradable materials may require special handling and disposal procedures that are not widely available and may require additional testing and evaluation to ensure their safety and suitability for their intended use.
However, US Environmental Protection Agency (EPA), only a small percentage of biodegradable packaging materials are currently recycled in the United States. For example, only 6.6% of plastic packaging was recycled, and it is unclear how much of this was biodegradable.
The growth of the biodegradable packaging market is driven by several factors, including increasing consumer demand for sustainable packaging solutions, government regulations on plastic waste reduction, and the growing awareness of the environmental impact of plastic packaging.
Product And Technology Development: One of the main trends in the biodegradable packaging market is the development of new biodegradable materials that can provide better performance and durability compared to traditional materials. This includes the development of biodegradable plastics that can be recycled and reused, as well as the use of plant-based materials such as bamboo and sugarcane.
Customer Trend: Customers are increasingly demanding sustainable packaging solutions, particularly in the food and beverage industry. Businesses that can offer biodegradable packaging solutions can attract environmentally-conscious customers and gain a competitive advantage in the market.
Market Competition Nature:
The biodegradable packaging market is highly competitive, with numerous players operating on both global and regional levels. Key players in the market are constantly investing in research and development to develop new and innovative biodegradable packaging solutions. Some of the major players in the market include Amcor Limited, Berry Global Inc., Huhtamaki Oyj, International Paper Company, Mondi Group, and Stora Enso Oyj.
Past/Future Strategies by Key Market Players:
Key market players have implemented various strategies to stay competitive and expand their market share. Some of the past strategies include mergers and acquisitions, partnerships and collaborations, and product launches. For example, in 2018, Amcor Limited acquired US-based plastic packaging solutions provider Bemis Company, Inc. to expand its product portfolio and customer base. In 2019, Huhtamaki Oyj partnered with International Paper Company to develop a new biodegradable cup solution for the food service industry.
Future strategies by key market players may include expanding their production capacity, investing in research and development of new biodegradable packaging solutions, and expanding their presence in emerging markets with high growth potential. Additionally, players may focus on developing biodegradable packaging solutions for specific applications or industries to differentiate themselves from competitors.
Key Benefits of Global Biodegradable Packaging Market Report–
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