Global Biodegradable Packaging Market By Type (Recycled Content Packaging, and Reusable Packaging), By Material (Plastic & Paper & Paperboard), By Application (Food & Beverages, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Biodegradable Packaging Market size is expected to be worth around USD 157 Billion by 2032 from USD 89.8 Billion in 2022, growing at a CAGR of 5.90% during the forecast period from 2023 to 2032.

Biodegradable packaging deals with the use of recyclable materials and eco-friendly materials for the packaging of goods. It is made from a material that is easy to decompose and disintegrate by micro-organisms, like fungi, algae, and multiple bacteria.

It consists of bioplastics, organic fibers, bubble wrap, recycled cardboard, cornstarch, seaweed, mushroom packaging, and other plant-based materials. It helps to support ecological and human health by producing less carbon footprint as compared to ordinarily used synthetic packaging products.

In addition, it also helps reduce plastic usage, which supports environmental health. This market report provides a detailed analysis of the biodegradable packaging market size, share, growth, key trends, and other key factors.

Driving Factors

Increasing Demand for Sustainable Food Packaging Will Drive Market Growth

The eco-friendly materials are used in biodegradable packaging materials such as recyclable paper & plastic, plant-based material, bioplastics, organic fabrics, and refurbished products. These products are simple to use and biodegradable in the environment, which can replace traditional plastic material with environment-friendly material and have less effect on the environment. This is driving the growth in the biodegradable packaging market during the forecast period.

The increasing demand for sustainable food packaging in the consumer packaged goods industry is expected to propel the market for food products. Biodegradable packaging provides various pros like lesser use of natural resources, less reliability on fossil fuels, increased use of recyclable products, better efficient energy manufacturing methods, and increasing use of renewable resources.

Restraining Factors

High Cost of Recycling

The recycling process in involves infrastructural facilities that rely on high investments with personal and technological expertise. Recycling packaging products can be more efficient in terms of energy and other resources, with the help of a designed program and well-established program, along with effective technology.

Growing Opportunities

Better Packaging Options Result from Consumer Awareness of Eco-Friendly Packaging.

The developing innovations in packaging offer an opportunity for market expansion. Creative and eco-friendly solutions can be developed by using biodegradable plastic packaging material. Combined film packaging’s cutting-edge trend and developments toward environment-friendly packaging will drive the market. This innovation provides a wide range of packaging options, including biodegradable packaging, edible packaging, nanocomposites, and numerous design options for packaging.

Latest Trends

Increasing Demand from Paper Packaging Industry is a Vital Trend

Paper is commonly proposed as a plastic packaging alternative rather than bioplastics. Consumer demands for paper-based alternatives have shifted due to environmental concern over the use of plastic material in packaging; as a consequence, the emission of carbon footprint and net environmental effect of paper appears to be greater. Organizations and governments are playing a crucial role in changing the industry by imposing strict rules and regulations to protect the environment and encourage recyclable paper-based solutions.

By Type Analysis

The recycled content packaging type dominated the market in 2022, following the reusable packaging segment. The growing processing capacity and collection operation, combined with the developed use of recycled content packaging by industries targeting to distinguish their product and environmental sustainability, would drive the recycled content packaging segment during the forecast period.

Efforts by brand owners, packaging companies, industry groups, and others to promote sustainability and increase the recycling of packaging materials will drive market growth.

In addition, recycled plastic packaging consists of bins, intermediate bulk containers (IBCs), pallets, reusable plastic containers (RPCs), and different handheld containers and trays, totes, and dunnage containers which transport goods easily and supply chains securely.

The reusable transport packaging items are expected for B2B uses, but growing applications for e-commerce and home delivery options open up due to the effective utilization of reusable transport packaging for domestic goods transport.

By Material Analysis

By material, plastic is expected to grow at a significant market growth in 2022. Bags, pouches, plastic bottles & cans, containers, films, and wraps are known as packaging material, which is either recyclable, reusable, or degradable.

The use of plastic products in the Asia Pacific region for food packaging is higher than in the other regions, which consists of the use of & throws plastic products as well. However, for degradable plastics, the Europe region dominates the market due to strict government regulations and imposed ban on single-use plastic materials.

The consumers in this region are aware of the threats of plastic to the environment, which drives the market of the degradable food packaging industry in the Europe region. Asia Pacific is expected to grow the fastest-growing CAGR due to developing countries such as India, China, Japan, South Korea, and other countries.

By Application Analysis

The food & beverages segment dominates in global biodegradable packaging market. The fast food segment is driving the demand for the packaging of food & beverages due to longer shelf life, easy manufacturing, and easy probability.

Fast food items include snacks, frozen foods, finger foods, beverages, and other types. The food products need less making time and are served in ready-to-go containers. The growing demand due to the busy lifestyle of customers along with the older population has shown a high use of fast food.

Key Market Segments

Based on Type

• Recycled Content Packaging
• Reusable Packaging
• Degradable Packaging

Based on Material

• Plastic
• Starch-Based Plastics
• Cellulose-Based Plastics
• Polylactic Acid (PLA)
• Poly-3-Hydroxybutyrate (PHB)
• Polyhydroxyalkanoates (PHA)
• Other Plastics
• Paper & Paperboard
• Kraft Paper
• Flexible Paper
• Corrugated Fiberboard
• Boxboard
• Other Materials

Based on Application

• Food & Beverages
• Consumer Product
• Shipping
• Chemicals
• Pharmaceuticals
• Cosmetics & Personal Care
• Other Applications

COVID-19 Impact Analysis

The COVID-19 pandemic has affected multiple operations in the food and beverages industry. Restaurants, food service outlets, supermarkets, and hypermarkets were shut during the pandemic, which hampered the food packaging market and reduced the demand for bio-degradable packaging products.

Other industries, such as consumer products, the shipping industry, cosmetic & personal care industry, were hampered during the pandemic. The supply and demand have stopped due to COVID-19 restrictions.

Regional Analysis

Asia Pacific region is expected to lead the market and hold the major share during the forecast period. Increased population density is one of the factors that were consumed for convenient meals and drinks.

In addition, the regional market is expected to increase biodegradable packaging in developing countries such as India, China, Japan, and South Korea due to the increasing industrial approach and growing population, which will create demand for packaging material.

With the strict rules and regulations promoting degradable and sustainable packaging, the North American region is expected to have significant growth during the forecasted period, 2023-2032.

Europe region is one the prominent regions in the market. The growing demand for degradable packaging material and cost-efficient & eco-friendly approaches is driving the market. The R&D helping the use and development of bioplastic by the Europe government shall propel the market growth.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

The market players are aiming at R&D of plant-based material that decreases the properties of plastic materials. Amcor Limited, Ardagh Group SA, Ball Corporation, Braskem SA, Cargill Incorporated, Caraustar Industries Incorporated, BASF SE, Mondi Group PLC, Reynolds Group Holding Limited, and Tetra Pak International SA are some of the major key players in the market.

The key players are increasingly investing in R&D and innovative packaging designs with degradable and recyclable materials that can have infinite strength.

Market Key Players:

Listed below are some of the most prominent biodegradable packaging industry players.

• Amcor Limited
• Ardagh Group SA
• Ball Corporation
• Braskem SA
• Cargill Incorporated
• Caraustar Industries Incorporated
• BASF SE
• Mondi Group PLC
• Reynolds Group Holding Limited
• Tetra Pak International SA
• Other Key Players

Recent Developments:

• In June 2021, Amcor launched an eco-friendly chocolate pack in Latin America. The company designed and manufactured the recyclable packaging material for powdered chocolate. It reduced carbon footprint by 53% more than traditional packaging.
• Proctor & Gamble introduced Microban 24, an antimicrobial household sanitizing solution, in February 2021. This product is offered in a variety of formats, including multi-purpose cleaners, bathroom cleaners, and sanitizing sprays.

Report Scope: