The biodegradable lids market size is estimated to be worth USD 1,096.6 million in 2024 and is anticipated to reach a value of USD 1,569.9 million by 2034. Sales are projected to rise at a CAGR of 3.7% over the forecast period between 2024 and 2034. The revenue generated by biodegradable lids in 2023 was USD 1,049.3 million.
Biodegradable lids made up of paper are used to a large extent in the food and beverage industry, capturing 77.6% of the total market share in the biodegradable lids market in 2024. This is due to its use for coffee cups, take-out food containers, disposable drinking cups, ice cream cups and many more purposes in the food and beverage industry.
Biodegradable Lids Industry Forecast
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1,049.3 million |
| Estimated Size, 2024 | USD 1,096.6 million |
| Projected Size, 2034 | USD 1,569.9 million |
| Value-based CAGR (2024 to 2034) | 3.7% |
Among applications biodegradable lids are used most often for cups as compared to other applications, the cups segment is set to capture more than 34% of the total market share in the assessment period. This rise is amid its ability to prevent spills and leaks and retain the temperature of the beverage by minimizing heat loss.
Biodegradable lids are used most often for cups due to sustainability concerns and changing consumer preference for eco-friendly products and the secured convenience it offers during handling or transport of beverages whether walking, driving, or using public transport.
Food service outlets among other end users are expected to account for high market share in the upcoming years. This is due to its portability and convenience for on-to-go and take-out food and beverages and to prevent the spillage and leaking of various drinks or liquids. The biodegradable lids market is set to experience profitable growth during the forecast period. It is projected to create an incremental opportunity of USD 520.6 million and is predicted to rise 1.5 times the current value through 2034.
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The below table presents the expected CAGR for the global biodegradable lids market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 3.6%, followed by a slightly higher growth rate of 3.8% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 3.6% (2023 to 2033) |
| H2 | 3.8% (2023 to 2033) |
| H1 | 3.4% (2024 to 2034) |
| H2 | 4.0% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 3.4% in the first half and remain relatively moderate at 4.0% in the second half. In the first half (H1) the market witnessed a decrease of 20 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Expansion of Global Food Chains and Restaurants to Drive Market Growth Significantly
Factors such as the rising population all over the globe and high demand for a variety of food products have led to the expansion of food chains and restaurants at a worldwide level.
According to the National Restaurant Association, the food service and restaurant industry valued for USD 966 billion in 2022 and USD 1,049 billion in 2023. As there has been a surge in demand for food products, the need for effective packaging solutions has also increased.
Lids are very important for covering the food and beverages in restaurants and food service chains to prevent the spillage of the products and also known for maintaining their temperature, thus preserving the taste and quality of the beverage or food product.
The most crucial role played by lids is the prevention of bacterial and microbial contamination of food products from external agents such as flies and dirt because consuming products that have been contaminated can lead to serious food-borne illness.
Also with rising concerns about sustainability and impact on the environment, biodegradable lids are preferred more often to curb the damage caused by plastic lids to the environment as plastic is not easily degradable and takes thousands of years for its disposal.
Thus, the expansion of food service chains and restaurants and the need for environmentally packaging lids in the market is expected to propel over the forecast period.
Increasing Demand for Biodegradable Lids Due to Safety for Direct Food Contact
There has been a rise in the consumption of packaged foods across all age groups worldwide. At the same time, the consumption of spoiled, contaminated and damaged foods leads to various types of food-borne diseases. As per the reports of the Centers for Disease Control and Prevention (CDC) in August 2023, 48 million people were sick, 128,000 people had to be hospitalized and 3,000 people died due to food-borne illness.
Thus, there is an increasing demand for biodegradable lids as they ensure safety in food contact with lids for cups, tubs, bowls and many others to reach the customers pure in quality and safe. Biodegradable lids are very crucial for ensuring the product’s integrity.
These biodegradable lids offer protection from any type of contamination and also comply with the regulations or guidelines aimed at reducing plastic waste, making them the most suitable lids for covering foods and beverages. Biodegradable lids are mostly made from materials that have been certified by regulatory bodies to meet food safety standards and sourced from renewable sources such as bagasse, paperboard, polylactic acid (PLA) and other compostable and bioplastic materials.
As these biodegradable lids are made from the above-mentioned materials are authorized by regulatory bodies and are regarded as safe for direct food contact, their demand will be boosted in the upcoming years to prevent the health issues caused due to consuming contaminated food.
Availability and Accessibility of Necessary Composting Infrastructure
With several benefits of biodegradable lids in the food and beverage industry, is also has certain complications towards its disposal. These biodegradable lids often require special composting facilities for the breakdown of their organic waste.
For this purpose, there is a need for special composting infrastructure having specific facilities such as regulated temperature and moisture, proper ventilation and aeration to promote the activity of the micro-organisms to cause timely and systematic breakdown of organic waste.
Some developing nations don’t have access to such composting units and this leads to improper disposal of the waste, causing additional damage to the environment. Thus, underdeveloped regions are local infrastructure may not have access to such composting units, and this might hamper the biodegradable lids market.
Fluctuating Raw Material Availability for Biodegradable Lids
Biodegradable lids are made from materials such as cornstarch or sugarcane-based plastics. These are renewable sources that depend on agricultural activity and conditions such as weather patterns, soil quality, and pest management, variation among any of these factors leads to uncertainty of raw materials for biodegradable lids.
Most agricultural activities work on seasonal cycles, and these seasonal variations can affect the stability of raw material supply chains. Also, the demand for these biodegradable lids is dependent on multiple factors which consist of consumer demand, regulatory standards and corporate sustainability initiatives.
Constantly changing demands can affect the pricing stability of raw materials. Thus, above mention factors might cause fluctuation in the availability of raw materials which can hinder the biodegradable lids market.
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The global biodegradable lids market recorded a CAGR of 3.1% during the historical period between 2019 and 2023. Market growth of biodegradable lids was positive as it reached a value of USD 1,049.3 million in 2023 from USD 899.2 million in 2019.
The biodegradable lids market is experiencing growth due to the increased usage of lids for hospitality and catering purposes for both dine-in and takeaway purposes. Hotels, cafes and catering services use biodegradable lids for serving food and drinks in containers and cups.
The hospitality and catering industry encompasses vast applications where lids are used which include lids for hot beverages like tea and coffee, cold beverages like juice and smoothies and also for salads, desserts, and other takeaway meals Biodegradable lids are known for their versatility and high functionality have helped to reduce the dependency over traditional plastic lids due to its effects on the environment.
Biodegradable lids are used to raise awareness about the need to follow sustainable approaches and also as a promotional tool by printing logos and sustainability messages. This leads to a dominant brand image of the cafes, restaurants and catering services for highlighting their environmental stewardship and corporate social responsibility and ultimately catching the attention of environmentally conscious customers and increasing their loyalty towards those brands.
These beneficial characteristics are encouraging companies to manufacture biodegradable lids made from renewable materials. The rise in demand for sustainable and eco-friendly lids for cups, containers, trays, tubs, etc. from several end users is expected to create opportunities in the biodegradable lids market.
Tier 1 companies comprise market leaders with a market revenue of above USD 30 million capturing significant market share of 20% to 25% in global market. These market leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Huhtamäki Oyj, Dart Container Corporation, Graphic Packaging International, LLC, Dispo International and Bender Limited.
Tier 2 companies include mid-size players with revenue of USD 5 to 30 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include Michael Procos S.A., Medac S.r.l., Get Bio Pak Co., Ltd, Sunkea, Green Olive Environmental Technology Co., Ltd., SEDA International Packaging Group S.p.A., Packnwood., FULING PLASTIC USA, INC, Stanpac Inc and Visstun Cups & Containers.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 5 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the future forecast for biodegradable lids market in terms of countries. Information on key countries in several parts of the globe, including North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and MEA is provided.
USA is anticipated to remain at the forefront in North America, with a CAGR of 2.1% through 2034. In East Asia, China is projected to witness a CAGR of 4.9% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.1% |
| Germany | 1.6% |
| China | 4.9% |
| UK | 1.7% |
| Spain | 2.6% |
| India | 5.8% |
| Canada | 1.3% |
The biodegradable lids industry in the USA is projected to grow at a CAGR of 2.1% compared to other countries in the North American region in 2034.
With rising awareness regarding sustainability companies across several sectors in the USA and major packaging manufacturers are focusing on producing biodegradable and eco-friendly products. This is due to strict regulations and policies by environmental agencies in the USA over the ban on the materials and products that lead to excessive waste generation and are detrimental towards nature.
For instance, the USA Department of the Interior in 2022 issued an order for the ban of single-use plastic products by the end of 2032 to reduce the procurement and sale of plastic products and plastic packaging solutions.
Due to serious orders and actions taken by government agencies in many states across the USA, there has been a shift among manufacturers and consumers towards biodegradable packaging solutions such as biodegradable lids, cups, tubs, containers, bowls and other packaging solutions.
India's biodegradable lids industry offers a lot of opportunities for the market. The country is anticipated to record a CAGR of 5.8% during the evaluation period.
With escalating disposable income and busy schedules among the population in India, many of them prefer to order food at home instead of physically visiting a restaurant for a dine-in experience. This is due to the extra comfort zone offered by food delivery services, which allows people to sit at home and order food online or from local hotels and restaurants.
As per the data of Open Network for Digital Commerce (ONDC), the number of food deliveries jumped to 5 lakhs in the past few months of February and March across 200 countries.
As food delivery services are on the rise, there has been a need for efficient packaging solutions that offer safety for food contact and ensure that the food products are delivered with utmost care with no chance of spillage, leakage and contamination. Thus, the demand for biodegradable lids is expected to increase in India over the forecast period, due to its safety with direct food contact and excellent securing and sealing capabilities.
Germany is projected to showcase a CAGR OF 1.6% in the assessment period. The growing food and beverage industry in the country is projected to play a significant role in pushing demand for biodegradable lids. The food and beverage sector stands fourth in Germany among other industries comprising 6,000 companies generating a value of around USD 244.9 million in 2022 as reported by Germany Trade & Invest
Efficient packaging is a key factor in the food and beverage industry. Biodegradable lids allow for the necessary equipment required for packaging various food products such as salads, desserts and many beverages. These lids offer secured covering to cups, bowls and other types of containers and guarantee safe serving of on-the-go food and takeaway beverages.
As these lids are made from biodegradable and compostable materials, they also align with rules and regulations related to food safety and the environment. Due to its eco-friendly nature and superior security for food and beverages, with the rising food and beverage industry in Germany, the market for biodegradable lids will experience huge demand in the upcoming years.
The section contains information about the leading segments in the industry. In terms of material of the biodegradable lids, paper is estimated to account for a share of 77.6% by 2034. By application, the cups segment is projected to dominate by holding a share of 34.7% by the end 2034.
| Material | Paper |
|---|---|
| Value CAGR (2034) | 3.5% |
Paper among other biodegradable lid materials is expected to lead the biodegradable lids market during the forecast period. Cloth is anticipated to rise at a CAGR of 3.5% and hold for 77.6% of the total market share till the end of 2034.
Paper is one of the major materials used for making different types of packaging solutions across several industries. Biodegradable paper is now being used more often owing to the rising environmental and sustainability concerns.
Biodegradable lids made from paper degrade quickly as compared to conventional plastics and other materials, thus helping to reduce their impact on the environment. Biodegradable paper is sourced from wood pulp, agricultural residues like bagasse and wheat straw, bamboo, hemp, etc. as they are made from renewable sources they eliminate the dependency on fossil fuels.
Paper lids have the same level of functionality as compared to other traditional plastics at same contributing more to lowering the carbon footprint. Also with the rise in consumer preferences for eco-friendly and biodegradable packaging solutions, lids made from biodegradable paper are facing high demand all over the world and most prominently from the regions that have banned the usage of traditional plastic.
Due to the major role played by biodegradable paper lids in curbing greenhouse emissions and their overall impact on the environment, the market is expected to experience burgeoning demand in the upcoming years.
| Application | Cups |
|---|---|
| Value CAGR (2034) | 3.2% |
The cups segment among other applications such as tubs, containers, tumblers, bowls, trays and bowls is estimated to lead the biodegradable lids industry. It is anticipated to hold around 3.2% CAGR value share in 2034.
Cups are used widely in the food and beverages industry as single-use items for various cafes, restaurants and food service outlets for serving both hot and cold beverages like tea, coffee, juices, milkshakes, etc. and to protect the products, lids are used on a large scale.
Many such food companies are using biodegradable lids because of their better composting ability and better recyclability. Many regions have stringent regulations and standards for using biodegradable materials, which have forced the packaging manufacturing companies to make cups accompanied with biodegradable lids.
Using biodegradable lids for cups also raises the brand image by highlighting its efforts towards environmental responsibility and sustainability, which ultimately seeks the attention of environment-conscious consumers. Many cup and lid manufacturers are focusing on innovation to bring improved biodegradable cups and lids due to the huge demand from the food and beverage industry and to assist in curbing the impact caused by non-compostable packaging solutions on nature.
Key players of biodegradable lids industry are developing and launching new products in the market. They are integrating with different firms and extending their geographical presence. Few of them are also collaborating and partnering with local brands and start-up companies for new product development.
Key Developments in Biodegradable Lids Market
In terms of material, the biodegradable lids market is divided into plastic, poly lactic acid (PLA) and others (PHA, Starch blends, etc.)
Few of the application of biodegradable lids include cups, trays, containers, tumblers, buckets and tubs and bowls.
Some of end users related to biodegradable lids market include online food retail, household, institutional and food service outlets.
Key countries of North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe, Middle East and Africa are covered.
The biodegradable lids industry is projected to witness CAGR of 3.7% between 2024 and 2034.
The global biodegradable lids industry stood at USD 1,049.3 million in 2023.
Global biodegradable lids industry is anticipated to reach USD 1,569.9 million by 2034 end.
South Asia is set to record a CAGR of 5.3% in assessment period.
The key players operating in the biodegradable lids industry are Huhtamäki Oyj, Dart Container Corporation, Graphic Packaging International, LLC, Dispo International and Bender Limited.
1. Executive Summary 2. Industry Introduction 2.1. Market Taxonomy 2.2. Market Definition 3. Market Trends and Success Factors 4. Market Background 4.1. Macro-economic and Industry Outlook 4.2. Market Dynamics 4.3. Value Chain Analysis 4.4. List of Key Market Participants (Manufacturers/Channel Partners) 4.5. Analysis of Key Industry Matrices 4.6. Industry Development Roadmap 5. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034 5.1. Historical Market Volume Analysis 5.2. Future Market Volume Projections 6. Pricing Analysis 7. Global Market Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034 7.1. Historical Sales Analysis 7.2. Future Market Size and Growth Projections 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Material 8.1. Plastic 8.2. Poly Lactic Acid (PLA) 8.3. Others (PHA, Starch blends, etc.) 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application 9.1. Cups 9.2. Trays 9.3. Containers 9.4. Tumblers 9.5. Buckets and Tubs 9.6. Bowls 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use 10.1. Online Food Retail 10.2. Household 10.3. Institutional 10.4. Food Service Outlets 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 11.1. North America 11.2. Latin America 11.3. Eastern Europe 11.4. Western Europe 11.5. South Asia and Pacific 11.6. East Asia 11.7. Middle East and Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market and Country 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 15. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 17. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 18. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Market Segments and Country 19. Sales Analysis 2024 & 2034 by Key Market Segments for 30 Countries 20. Competition Outlook including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Huhtamäki Oyj 21.2. Dart Container Corporation 21.3. Michael Procos S.A. 21.4. Graphic Packaging International, LLC 21.5. Medac S.r.l. 21.6. Get Bio Pak Co., Ltd 21.7. Sunkea 21.8. Green Olive Environmental Technology Co., Ltd. 21.9. SEDA International Packaging Group S.p.A. 21.10. Packnwood 21.11. FULING PLASTIC USA, INC 21.12. Stanpac Inc 21.13. Visstun Cups & Containers 21.14. Dispo International 21.15. Bender Limited
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Biodegradable Lids Market
