Biodegradable Plastic Packaging Market Size, Share, and Industry Analysis By Material (Bio-Polyethylene, Polybutyrate Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polylactic Acid (PLA), Bio-Polypropylene, and Others), By Product Type (Bottles & Jars, Bags & Pouches, Films & Wraps, Trays & Clamshells, Tapes & Labels, and Others), By End-use Industry (Food & Beverage, Pharmaceutical, Personal Care & Cosmetics, Homecare, and Others), and Regional Forecast, 2024-2032

Biodegradable plastics can decay naturally in the environment and their structure allows their easy breakdown by natural microorganisms. The packaging produced from such materials is less harmful to the environment, contributing to the growth of the biodegradable plastic packaging market. Packaging made from biodegradable plastic takes less time to decompose when discarded and can be easily recycled. The growing demand for packaging that is easily recycled with the machinery and equipment already presented is driving the growth of this market.

• According to the European Bioplastics Organization, the global production capacities of bioplastics are predicted to grow from around 2.2 million tons in 2022 to approx. 6.3 million tons by 2027. Thus, the growing demand for sustainable products, along with the augmenting production of bioplastic, will help the growth of the biodegradable plastic packaging market during the forecasted period.

Biodegradable plastic materials are manufactured using plant-based materials and are compostable, which helps reduce carbon emissions during the manufacturing and recycling process. Furthermore, these products can be recycled more than the packaging products manufactured from traditional plastic. Thus, the growing demand for sustainable and eco-friendly products to minimize packaging waste and lessen carbon footprints is bolstering the growth of the biodegradable plastic packaging market.

A disadvantage of biodegradable plastic is that there is a requirement for costly industrial processors and composters, specifically those that need high industrial-scale temperatures to be broken down. Besides cost, there is a need for upgraded technology and equipment availability, which could restrict the growth of global biodegradable plastic packaging. Furthermore, the packaging products manufacturers using these types of plastics cannot be decomposed in the ocean weather as it is too cold. Hence, these plastics will either create microplastics that pose health hazards to marine life or float on water. Thus, the use of such plastics cannot solve all pollution problems, slowing down the growth of this market during the forecast period.

The COVID-19 pandemic brought several challenges to the economy and businesses across the globe. Lockdowns have intensely impacted the industrial transformation processes due to the shutdown of the manufacturing units. The decreased investments and negative demand for biodegradable plastic packaging products due to their higher cost have led to a declining demand during the pandemic.

SEGMENTATION

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Biodegradable Plastic Packaging Market


• Key Industry Trends


• Regulatory Landscape for the Biodegradable Plastic Packaging Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Biodegradable Plastic Packaging Market

ANALYSIS BY MATERIAL

Based on material, the market is segmented into bio-polyethylene, polybutyrate adipate terephthalate (PBAT), polybutylene succinate (PBS), polylactic acid (PLA), bio-polypropylene, and others.

The bio-polyethylene segment dominates the global biodegradable plastic packaging market. Bio-based polyethylene reduces carbon emissions and contains renewable carbon elements. The benefits of traditional polyethylene combined with sustainability are attracting manufacturers toward the use of these materials, driving the growth of this segment.

ANALYSIS BY PRODUCT TYPE

Based on product type, the market is segmented into bottles & jars, bags & pouches, films & wraps, trays & clamshells, tapes & labels, and others.

The bags & pouches segment dominates the biodegradable plastic packaging market. The growing demand for single-portion food, along with the augmenting sales of ready-to-eat food, is driving the expansion of this segment.

ANALYSIS BY END-USE INDUSTRY

Based on end-use industry, the market is segmented into food & beverage, pharmaceutical, personal care & cosmetics, homecare, and others.

The food & beverage segment is the largest end-use industry in the biodegradable plastic packaging market. The growing population across the globe has increased the demand for food and beverage products. Furthermore, the growing innovation of packaging, such as films, to improve the shelf life of products to reduce food wastage is driving the growth of this segment.

REGIONAL ANALYSIS

The biodegradable plastic packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is the dominating region in the global biodegradable plastic packaging market. The increasing urbanization and the awareness of using sustainable products among people to lessen the environmental impacts are enhancing the regional growth.

Europe is experiencing significant growth due to the strict laws and regulations on non-biodegradable plastic packaging. North America is experiencing lucrative growth due to the presence of key players and their aim to innovate biodegradable packaging continuously.

Latin America is witnessing moderate growth due to the growing investment and spending on sustainable food, beverage, and personal care products. The Middle East & African region will witness steady growth during the forecast period due to growing awareness of sustainable products.

KEY PLAYERS COVERED

The report includes the profiles of key players such as Berry Global, Amcor plc, Sealed Air, Amerplast, Packman Packaging Private Limited, POLIFILM, Avery Dennison Corporation, Polyplex, Bolloré Packaging Films, and Bio Futura.

KEY INDUSTRY DEVELOPMENTS

• In September 2022, KM Packaging introduced C-Cling, a cling film made from bio-based renewable sources for compostable trays. C-Cling is stretchy, clear, and sticky and performs the same as traditional cling film. The new compostable lidding film is ideal for the high-volume industrial packaging of vegetables, fruits, and other fresh produce on trays. It is also suitable for catering and restaurants.


• In March 2022, Faca Packaging, a packaging manufacturer based in Spain, launched a new line of jars made entirely of plant-based materials. The jars are made of polyethylene derived from sugar cane and other materials, which helps customers and business partners to fulfill their sustainability goals.


• In March 2021, Trioworld launched the first certified bio-allocated FFS flat film made from up to 98% bio-allocated polyethylene, Bio® FFS film. The film minimizes environmental impact by up to 100% compared to fossil-based material, making it carbon dioxide-neutral.


• In October 2020, SABIC, one of the leaders in the chemicals industry, invested in a pilot project with Europe’s largest retail store operator, Schwarz Group, for the use of transparent film bags made from certified circular polyethylene (PE) in vegetable packaging. The project includes several different PE technologies from SABIC’s TRUCIRCLE™ portfolio based on materials manufactured via feedstock recycling of mixed and used plastic.