The global biodegradable packaging market size is likely to reach USD 218.13 billion in 2024. Sales are expected to exhibit growth at a CAGR of 4.9% during the forecast period, reaching USD 352.73 billion by 2034.
With the rise in environmental concerns, the need for sustainable packaging solutions is growing. These sustainable packaging solutions, such as biodegradable packaging solutions, are made from plant-based polymers, starch, and recycled paper, among others. These materials aid in reducing adverse environmental impacts compared to plastic. As inclination toward eco-friendly packaging is increasing among consumers, key companies are introducing biodegradable packaging options.
This helps in establishing their brand image as well as curbs the environmental pollution. Moreover, with stringent regulations established by governments across the globe, the preference for sustainable packaging is propelling biodegradable packaging demand.
| Attributes | Description |
|---|---|
| Estimated Global Biodegradable Packaging Market Size (2024E) | USD 218.13 billion |
| Projected Global Biodegradable Packaging Market Value (2034F) | USD 352.73 billion |
| Value-based CAGR (2024 to 2034) | 4.9% |
Developing regions like Asia Pacific and Latin America are witnessing incredible growth with growing investments in sustainable solutions and technologies. India is considered one of the hot pockets for key manufacturers due to the growing adoption of biodegradable packaging solutions.
Additionally, awareness among millennials and Gen-Z toward eco-friendly solutions is increasing the desire to opt for sustainable purchases. With social media penetration and increasing number of drives by influencers for environment change are improving the preference for biodegradable packaging.
Furthermore, smart packaging is the latest trend in sustainable packaging solutions. Leading packaging manufacturers and start-ups are integrating novel technologies to improve packaging solutions. Artificial Intelligence (AI) giants like Google are investing in sustainable packaging to cater to the growing demand.
For instance, in October 2024, S.Lab, an upcoming start-up focusing on sustainable packaging, received around USD 100,000 from Google in equity-free funding as part of the Google for Startups Ukraine Support Fund. S.Lab focuses on creating reliable and sustainable solutions to replace plastic.
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The biodegradable packaging market shows promising growth potential. From 2024 to 2034, the market is slated to grow variably. The first half of 2023 to 2033 expects a CAGR of 4.5%. The second half of this period projects a CAGR of 4.8%. This slight decrease indicates a steady fall in demand.
| Particular | Value CAGR |
|---|---|
| H1 | 4.5% (2023 to 2033) |
| H2 | 4.8% (2023 to 2033) |
| H1 | 4.9% (2024 to 2034) |
| H2 | 5.1% (2024 to 2034) |
In the next decade though, the first half maintains a steady CAGR of 4.9%. The second half of 2024 to 2034, however, sees a CAGR of 5.1%.
Go Green: Packaging Manufacturers to Swear by Sustainability Solutions
Even though the bulk of the packaging manufacturers are concentrating on the use of conventional sustainable alternatives, the prices of raw materials like hemp or sugarcane are going up. Companies that are ‘green’ oriented and which want to extend the other alternatives, breaking the limits of current bio composites, are focused on the search and investments into new green materials.
For instance, in October 2024, the Scottish start-up HUID intends to introduce a sustainable packaging solution developed in 2025 from onion skins and peels. This will provide a substitute for plastics sourced from fossil fuels. HUID is also in the process of prototyping materials; Pyber and Cellofil have been developed already.
Such innovations are believed to expand the scope of the use of green packaging in various sectors of activity, especially food and beverages.
Encouraging Environmental Accountability through Reusable Packaging
The concept of reusability is essential to sustainability and efficiency. Companies using reusable packaging minimize the consumption of raw materials, energy, and even labor. This reduces the necessity to manufacture products, saves costs, and mitigates the effects of producing and discarding single-use packaging.
The primary component of reusable packaging materials is enhanced strength and durability compared to disposable ones. This contributes to the minimization of product loss and increases the efficacy of the entire supply chain. The shift towards re-use of the packages is in harmony with the approaches adopted for caring for the environment and encourages healthy practices among consumers and businesses.
With the positive impact of costs and environmental hindrances visualized by the companies over some time, consumption of reusable egg containers will likely become a common norm resulting in more sustainable practices for the sectors and these societies.
Favorable Government Schemes to Drive Biodegradable Packaging Demand
Governments across the world are implementing various schemes to reduce carbon emissions by promoting eco-friendly packaging.
For instance, Ireland's government launched a deposit return scheme in February 2024, aiming to collect 77% of plastic beverage bottles by 2025, with an extra fee for empty containers.
Additionally, India's CSIR launched the National Mission on Sustainable Packaging in APAC in July 2024, aiming to achieve a net-zero future through innovative domestic and integrated solutions. Government initiatives are expected to increase the demand for biodegradable packaging across various regions.
Principal Consultant
The biodegradable packaging market went through many fluctuations in the past few years. When the first wave of the pandemic came, the demand for these types of packaging surged as consumers focused on sustainability and eco-friendly options. A multitude of companies also shifted to biodegradable packaging so that they can enhance their brand image.
Supply chain disruptions and the deterioration of e-commerce also worsened the situation, as manufacturers had to find other ways to ship their products internationally. Despite these issues, the market still showed signs of improvement due to the consumers’ awareness of plastic waste.
In the second phase, though the market began to pick some pace. With governments easing the restrictions, manufacturing companies resumed their production lines with full sway. Online shopping, too, started gaining momentum. These conditions were proving to be good signs for companies involved in the biodegradable packaging market.
By 2023, the market gained back all its lost traction. With sustainability remaining a top priority for companies, it was observed that companies pour billions of dollars into developing materials that cause less to no harm to the environment. This way, they were able to cater to the demands of eco-conscious consumers and businesses.
Tier 1 companies include Amcor Plc, Smurfit WestRock, Sonoco Products Company, Mondi Group, Sealed Air Corporation, and others. These manufacturers are market leaders in bio-degradable packaging within the global industry having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 15% to 25% of the global market share in the packaging industry.
Tier 2 of the global market incorporates companies like Huhtamaki Oyj., International Paper Company, Dart Container Corporation, DS Smith Plc, Duni AB, and Tetra Pak with 25% to 35% of the market share. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology.
Tier 3 category in the global market includes the small-scale players of the region with market share of 50% to 60%. These companies fulfill the local market demand. They have a country-level presence, limited manufacturing facilities, and expertise in local market needs.
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The section summarizes the leading countries expanding in the global biodegradable packaging market. The table describes the CAGRs of specific countries and company contributions to position the country in the global landscape. This data helps the investor to keenly observe and go through the recent trends and examine them in an ordered manner.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 6.3% |
| China | 5.8% |
| Spain | 4.3% |
| Japan | 5.7% |
| United States | 4.2% |
The India biodegradable packaging market is anticipated to register a CAGR of 6.3% over the forecast period. Biodegradable packaging is going from strength to strength in India due to the introduction of new materials and methods of production.
For instance, the Defence Research and Development Organisation (DRDO) developed biodegradable packaging using PBAT. The organization subsequently shared its knowledge with 40 companies. Hence, the Indian market is a fast-moving one, affording a plethora of opportunities to investors.
The market in China is expected to advance at a CAGR of 5.8% over the next ten years. Biodegradable packaging in China is moving ahead with the support of the government. China has introduced various legislations and schemes to curb single-use plastic. There has also been a concentrated focus on the manufacture of bioplastics in the country. Thus, biodegradable packaging has a wide scope in the country.
China’s emphasis on building eco-cities for the future is also helping the market and could provide more opportunities in the future. Some examples of eco-cities being planned for the future in China include Chengdu Tianfu New Area and Nanhui New City.
The move towards making cities greener is set to help the green packaging, including the biodegradable segment.
Demand in Spain is estimated to register a CAGR of 4.3% from 2024 to 2034. Biodegradable packaging is advancing in Spain and the food and beverage industry is playing a prominent part.
For instance, in 2021, local company Patatas Lázaro introduced plant-based biodegradable packaging for potatoes. As government schemes for biodegradable packaging take shape, Spain is set to be one of the premier countries in Europe for the market.
The section describes the leading segments in the biodegradable packaging market with their respective share value.
| Segment | Paper (Material) |
|---|---|
| Value Share (2024) | 65.6% |
As a natural material, paper decomposes easily and poses minimal environmental impact compared to plastic alternatives. Its versatility allows for various applications, from food packaging to retail paper bags, making it an attractive choice for manufacturers aiming to meet sustainability goals. Additionally, advancements in coating technologies have enhanced paper's barrier, allowing it to compete effectively with traditional packaging materials while maintaining its eco-friendly profile.
With global emphasis on reducing plastic waste and the implementation of stricter regulations regarding single-use plastics, the demand for paper packaging solutions is expected to surge. Companies innovating in this space, particularly those developing high-performance, recyclable paper products, are drawing significant interest from investors.
| Segment | Food (End Use) |
|---|---|
| Value Share (2024) | 34.9% |
Food is leading the end-use segment in the biodegradable packaging market primarily due to the increasing demand for sustainable packaging solutions. As awareness of environmental issues rises, consumers are actively seeking eco-friendly alternatives to traditional plastic packaging.
On the other hand, biodegradable materials, such as PLA (polylactic acid) and paper-based packaging, are gaining traction in the food industry because they reduce waste and minimize the carbon footprint. Additionally, stringent regulations imposed by governments across Europe and North America are encouraging food manufacturers to adopt sustainable practices.
The global biodegradable packaging market is expected to reach substantial figures fueled by the food industry's shift toward sustainability. Investors are particularly interested in companies that innovate in material science and production processes to enhance the performance and cost-effectiveness of biodegradable options. With major food brands committing to sustainability goals, the potential for long-term returns in this sector is compelling.
Prominent brands commit to sustainable practices and seek alternatives to plastic, the paper packaging sector is poised for robust growth, making it an appealing investment avenue for those looking to capitalize on the eco-conscious consumer trend.
Industry Updates:
The segment includes bioplastic, paper, and biodegradable materials. Bioplastic material has PBAT, PBS, PLA, PHA, and starch blends.
Paper material includes corrugated boards, specialty papers, boxboard or carton board, kraft papers, and molded pulp fiber.
Biodegradable material is subdivided into hemp-based pulp, mushroom-based, alginate-based, and sugarcane pulp-based.
The biodegradable packaging market categorizes rigid packaging and flexible packaging. Rigid packaging is further categorized into corrugated boxes, folding cartons, bottles and jars, cans, trays and clamshells, and cutlery.
Flexible packaging is segmented into bags and sacks, films and wraps, pouches, sachets and stick packs, and collapsible tubes.
Food, beverages, cosmetics and personal care, pharmaceuticals, nutraceuticals, home care and hygiene, consumer goods, and other industrial end-use segments are mentioned in this market.
Information about the leading countries of North America, Latin America, Western Europe, South Asia and Pacific, East Asia, and the Middle East and Africa is given.
In 2021, the value of the global biodegradable packaging market reached over USD 440 Billion.
During the forecast period, the global biodegradable packaging market is estimated to expand at a CAGR of 6.1% during 2022 to 2032.
The global biodegradable packaging market is projected to reach USD 809.9 Billion by the end of 2032.
The increasing demand for eco-friendly packaging in various end use industries is driving the demand for biodegradable packaging.
The key players operating in the biodegradable packaging market are Berry Global Group, Huhtamaki Oyj, Amcor plc, WestRock Company, Mondi Group, International Paper Company, Smurfit Kappa Group, and others.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Material 6.2. Packaging Format 6.3. End Use 6.4. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material 7.1. PBAT 7.2. PBS 7.3. PLA 7.4. PHA 7.5. Starch Blends 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging Format 8.1. Rigid Packaging 8.2. Flexible Packaging 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging Type 9.1. Corrugated Boxes 9.2. Folding Cartons 9.3. Bottles and Jars 9.4. Cans 9.5. Trays 9.6. Clamshells 9.7. Cutlery 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 10.1. Food 10.2. Beverages 10.3. Cosmetics 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. South Asia and Pacific 11.5. East Asia 11.6. Middle East and Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Material, Packaging Format, End Use, and End Use for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Amcor Plc 20.2. Smurfit WestRock 20.3. Sonoco Products Company 20.4. Mondi Group 20.5. Sealed Air Corporation 20.6. Huhtamaki Oyj. 20.7. International Paper Company 20.8. Dart Container Corporation 20.9. DS Smith Plc 20.10. Duni AB 20.11. Shako Plastick 20.12. Tetra Pak 20.13. Bio Futura B.V. 20.14. Nupik-flo UK Ltd. 20.15. Klabin S.A. 20.16. Gascogne Papier SAS 20.17. Segezha Group 20.18. Empresas Cmpc S.A. 20.19. Vegware Ltd. 20.20. BillerudKorsnäs AB
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Biodegradable Packaging Market
