What Has Been the Growth of the Biodegradable Packaging Materials Market So Far?
The biodegradable packaging materials market has seen considerable growth due to a variety of factors.
• The market size of biodegradable packaging materials has seen a significant increase lately. This market is projected to expand from $111.65 billion in 2024 to $122.26 billion in 2025, growing at a compound annual growth rate (CAGR) of 9.5%.
The growth seen in the historic period can be credited to the rising demand from environmentally aware customers, the expansion of recyclable packaging, the surge in online food delivery services, the amplified use of recycled materials, and the increasing growth of e-commerce.
What Is the Forecasted Market Size and Growth Rate for The Biodegradable Packaging Materials Market?
The biodegradable packaging materials market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for a substantial rise in the market size of biodegradable packaging materials in the coming years, with projections of it reaching $173.45 billion by 2029, expanding at a compound annual growth rate (CAGR) of 9.1%.
The anticipated growth is driven by several factors such as the mounting demand for bio-based materials, a surge in consumer demand for environmentally-friendly goods, growing concerns over the environment, increased adoption of biodegradable packaging and the rising trend of plant-based packaging. Foreseen trends for the prediction period encompass the adoption of biodegradable packaging, innovation in packaging aesthetic, advancements in paper and cardboard technologies, embracing eco-labels, as well as technological progress in recycling methods.
What Are The Primary Growth Drivers In The Biodegradable Packaging Materials Market?
Expectations for the biodegradable packaging materials market to grow are fueled by an uptick in demand for sustainable packaging. Defined as environmentally friendly materials and design methods that lessen the environmental impact throughout the lifespan of a product, sustainable packaging focuses on recyclability, biodegradability, and minimizing waste, all while ensuring the product remains functional and well-protected. Factors such as increasing awareness about plastic pollution, deforestation, landfill waste, the consumer inclination towards eco-friendly products, corporate sustainability plans, and potential for long-term savings through lightweight, recyclable materials are fuelling this ongoing demand. Biodegradable packaging aligns with these principles by naturally degenerating into non-toxic elements, consequently reducing waste in landfills and pollution. As reported by the US-based company Trivium Packaging, who specializes in eco-friendly metal packaging, in April 2022 approximately 86% of customers would pay a higher price for sustainable packaging. Hence, the escalating consumer requirement for eco-conscious packaging solutions is contributing to the expansion of the biodegradable packaging materials market.
What Are The Main Segments Of The Global Biodegradable Packaging Materials Market?
The biodegradable packaging materials market covered in this report is segmented –
1) By Material Type: Paper And Paperboards, Plastic, Jute, Wood
2) By Application: Trays, Bags, Boxes, Clamshells, Pouches
3) By End-Use Industries: Food And Beverages Industry, Cosmetics And Personal Care Products Industry, Pharmaceuticals Industry, Consumer Goods Industry
Subsegments:
1) By Paper and Paperboards: Kraft Paper, Corrugated Board, Boxboard And Carton Board
2) By Plastic: Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch-Based Plastics, Cellulose-Based Plastics
3) By Jute: Hessian Jute Bags, Sacking Jute Bags, Jute Pouches
4) By Wood: Wooden Crates, Wooden Pallets, Bamboo Packaging
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What Emerging Trends Are Influencing The Growth Of The Biodegradable Packaging Materials Market?
Major companies operating in the biodegradable packaging materials market are focusing on developing advanced solutions, such as a water-based barrier coating designed to enhance the durability of packaging while maintaining its eco-friendly properties. Water-based barrier coatings refer to eco-friendly coatings that protect against moisture, oils, and grease, prolonging shelf life and improving the functionality of biodegradable packaging. For instance, in March 2024, Archroma, a Switzerland-based chemicals company, launched Cartaseal OGB F10, a per- and poly-fluoroalkyl substances (PFAS)-free barrier coating designed for oil and grease resistance in food and non-food packaging. It contains bio-based raw materials that offer superior performance, maintaining their protective qualities even in folded applications while being biodegradable. Cartaseal OGB F10 provides several unique features that enhance its suitability for packaging applications. Firstly, it provides a superior barrier against oil and grease, ensuring the integrity and freshness of food and non-food products.
Who Are the Key Players In The Biodegradable Packaging Materials Market?
Major companies operating in the biodegradable packaging materials market are:
• BASF SE
• Mitsubishi Chemical Corporation
• Braskem S.A.
• Smurfit Kappa Group
• Tetra Pak International S.A.
• Corbion Purac
• Green Dot Bioplastics Inc.
• Dunapack Packaging
• Danimer Scientific Inc.
• Fabbri Group S.p.A.
• Vegware Limited
• Novamont S.p.A.
• Paptic Ltd.
• Biopacktech Co. Ltd.
• BioGreen Packaging
• Teysha Technologies
• Packware GmbH
• TIPA LTD.
• Cardia Bioplastics Ltd.
• Futamura Group
• Avani
• Biome Bioplastics Limited
What Is The Most Dominant Region In The Biodegradable Packaging Materials Market?
North America was the largest region in the biodegradable packaging materials market in 2024. The regions covered in the biodegradable packaging materials market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
