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Biodegradable plastic packaging is an eco-friendly and biodegradable packaging solution developed from plant parts such as sugarcane, corn, cassava, and others. The rapidly increasing consumption of renewable & bio-based products, augmenting demand for bio-based trays, films, and other packaging formats from the flexible packaging industry, and the faster decomposition nature of the packaging are the major factors boosting the market growth. Moreover, the rapidly expanding composting infrastructure, coupled with the growing government efforts to eliminate landfilling through various initiatives, generates lucrative growth opportunities.
Biodegradable plastic packaging is in high demand owing to the rapidly increasing e-commerce sector and rising concerns about reducing plastic waste. Bio-bags and bio-based plastics offer excellent tensile strength and are highly recyclable and eco-friendly, owing to which it has gained huge traction among various end-use industries worldwide. Such factors are studied to drive the global biodegradable plastic packaging market over the forecast years.
The high costs associated with biodegradable plastics compared to traditional plastic materials are the prime factor hindering the global biodegradable plastic packaging market. Extraction and refining of regular fossil fuels for conventional plastic packaging is cheaper than that of corn starch, sugarcane, or other bio-based material. These factors impede the global market growth.
The COVID-19 pandemic had a critical impact on varied end-use industries. The shutdown of businesses and imposed lockdown slowed down the manufacturing process of the packaging industry. The unavailability of raw materials and labor for the production of biodegradable plastic packaging products impacted the market growth. However, the growing food and beverage sectors, as well as the e-commerce sales, are expected to boost the market growth.
The report covers the following key insights:
By Material | By Application | By Geography |
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Based on material, the market is segmented into starch-based plastic, cellulose-based plastic, polylactic acid (PLA), polyhydroxyalkanoates (PHA), and others. The polylactic acid segment dominates the global biodegradable plastic packaging market. The material is versatile and biodegradable thermoplastic developed from lactic acid, corn, and sugar beets and can easily break down into non-toxic substances during degradation. Owing to the easy degradability of the material, it is the dominating material segment.
Based on application, the market is segmented into food & beverages, consumer goods, personal care & cosmetics, healthcare, and others. The food & beverages segment dominates the market and is set to witness striking growth over the forecasted timeframe. Growing environmental concerns among consumers regarding the hazardous effects of plastic material and the rising demand for eco-friendly packaging solutions drive the segmental growth.
The biodegradable plastic packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe is the dominating region of the global biodegradable plastic packaging market. The rising environmental concerns among manufacturers and consumers in the region, along with regulations on plastic usage, are the major factors driving regional growth.
Asia Pacific is the second-leading region and is poised to grow exponentially over the upcoming years. The growing e-commerce and food & beverage sectors in the region highly utilize biodegradable plastic products for packaging, which in turn boosts regional growth. North America is the fastest-growing region. The region’s well-established food, beverages, and healthcare sectors drive the demand for sustainable packaging solutions, impelling market growth.
The Middle East & African region will growth due to the rising demand for biodegradable plastic packaging products from the pharmaceutical and home care industries. The Latin America market is set to grow moderately due to the increasing traction of food delivery and e-commerce sectors in the region.
The report includes the profiles of key players such as Amcor Plc, Coveris, Sealed Air, Constantia Flexibles Group GmbH, Stora Enso, Pactiv LLC, Stavian Chemical, Promateris, Zhejiang Sanle Plastic Co., Ltd, and Plastic Suppliers Inc.