The oxo biodegradable bag market is slated to register a CAGR of 4.6% from 2024 to 2034. Demand is estimated to be worth USD 921.5 million in 2024. By 2034, sales are anticipated to have reached USD 1.4 billion.
The primary factor improving the demand for oxo-biodegradable bags (also known as oxo-degradable bags) is the concern for the environment. End users are conscious of the harm caused by shopping bags, tote bags, garbage bags, and more that contain harmful plastic. Hence, alternatives to standard environment-harming plastic bags are being sought and oxo-biodegradable bags have emerged as one prominent alternative.
While the primary function of oxo-degradable bags remains their eco-friendliness, end users are also using the bag for branding and customization purposes. The print on these bags often explains the breaking down process of the bag, further creating awareness about the product’s viability and environmental consciousness. Hence, manufacturers are producing bags that are suitable for printing, featuring ink adhesion.
Being cognizant of the rough conditions in which these bags are used, manufacturers are designing more durable and strong bags. Producers are fashioning bags to be moisture-resistant and free from tampering. For instance, Pee Safe manufactures oxo-biodegradable bags that are tampering and tear-proof.
Another way manufacturers are making the bags more secure is with the help of star seal packaging. Star seal packaging is becoming more common in the overall garbage bag sector, owing to its leak-free nature and ability to carry heavy as well as wet stuff. Star seal packaging is also prominent in oxo-biodegradable garbage bags.
In the quest to increase customer convenience, oxo-biodegradable bags are being sold in bulk in roll form. This is another trend that is carrying over from the larger overall garbage bag sector. Shalimar Group and Eliza are some of the companies that are selling oxo-biodegradable bags in roll form.
| Attributes | Description |
|---|---|
| Estimated Global Oxo Biodegradable Bag Market Size (2024E) | USD 921.5 million |
| Projected Global Oxo Biodegradable Bag Market Value (2034F) | USD 1.4 billion |
| Value-based CAGR (2024 to 2034) | 4.6% |
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The table below highlights the CAGRs for the oxo biodegradable bag market for the periods from 2023 to 2033 and 2024 to 2034. The periods are broken down into two semi-annual periods, the first half (H1) comprising January to June, while the second half (H2) comprises July to December. This section highlights the changes that take place in the demand with the time period changing.
For the 2023 to 2033 period, the CAGR for H1 is predicted to be 4.8%. A substantial decrease is predicted for H2 however, with the CAGR coming down to 4.4%.
| Particular | Value CAGR |
|---|---|
| H1 | 4.8% (2023 to 2033) |
| H2 | 4.4% (2023 to 2033) |
| H1 | 4.3% (2024 to 2034) |
| H2 | 4.5% (2024 to 2034) |
The CAGR for H1 is set to be 4.3% in the 2024 to 2034 period. Unlike the 2023 to 2033 period, H2 of the 2024 to 2034 period is set to see an increase in CAGR, projected to be 4.5%.
Oxo-biodegradable Bags’ Manufacturers to Use Aesthetics as their Marketing Strategy
While the standard image of oxo-biodegradable bags is plain white or black bags that serve their purpose, manufacturers are also designing more visually appealing bags. Bags in different colors, such as red or blue, are becoming more accessible to customers. Green is especially a popular color, highlighting the eco-friendliness of the bags. This trend is complementary to the enhanced printability offered by manufacturers, enhancing the look of the bags.
Beyond Garbage: Oxo-biodegradable Bags Come Handy for Shopping
While the dominant use of oxo-biodegradable bags remains for garbage disposal, these bags are also being used for shopping. The lightweight but firm nature of these bags sees customers use them as carry bags for light shopping, useful for small consumer products, groceries, beverages, and others. The use of the bags for shopping also gives them a reusable nature. Their tear-free quality sees customers use oxo-biodegradable bags again and again for small purchases.
Skepticism about Biodegradability and Mounting Regulations Hinder Market Progress
Though oxo-biodegradable bags are purported to be eco-friendly, doubts have been raised in the scientific community about their true nature. There is continued skepticism about whether the bags truly do break down into harmless materials. Environmentalists contend that instead of disintegrating into harmless material, these bags instead break down into microplastics, which are harmful to the environment.
A study carried out by researchers from the University of Plymouth found that oxo-biodegradable bags remained intact in marine and solid environments even after three years. Hence, environmentally-conscious customers are hesitant about using oxo-biodegradable bags.
These doubts about the sustainability of the bags have led to increasing regulations targeting them. Falling under the umbrella of single-use plastic, oxo-degradable packaging has also to contend with the various bans on single-use plastic worldwide. For instance, in 2024, the Court of Justice of the European Union (CURIA) upheld the ban on oxo-degradable plastics in Europe. Thus, players have to be conscious of the various laws in place and operate within the tight rules established by various regulatory bodies.
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The market registered a CAGR of 2.4% during the historical period, ending up at USD 799.9 million by 2023.
During the historical period, the market gained momentum as awareness of the environment and plastic waste regulation increased. Demand for these bags grew since consumers and governments looked for environmentally friendly alternatives to regular plastic bags in restrictions-driven plastic regulations areas. Innovations in materials helped enhance their performance and biodegradability and made such bags even more attractive to manufacturers and consumers.
Concurrently, the rising awareness of environment-friendly packaging solutions being used in vertical industries ranging from retail to food service and agriculture further boosted the market. The outlook for the oxo-biodegradable bag market remains positive in the direction of further growth as sustainability trends continue to take center stage globally.
Tier 1 companies are multinational giants that have a strong presence in the overall packaging sector. These companies look to replicate that success in the oxo biodegradable bag market as well. The production capabilities of these companies are superior to those of companies in other tiers, allowing them to keep pumping out new products. Some notable examples include Amcor plc and ProAmpac.
Tier 2 companies do not possess the same reputation as tier 1 companies but improve demand through specialized focus. These companies often provide bags that are readymade for branding and customization purposes. Some notable tier 2 companies include BioBag International and EPI Environmental Products.
The focus becomes even narrower when it comes to tier 3 companies. These companies generally serve only specific geographical areas. Their customers are also small-scale, marketers and retailers who provide the local area.
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The material most evident in oxo-biodegradable bags is polyethylene. Food and beverage is the industry where oxo-degradable bags are ubiquitous.
| Segment | Polyethylene (Material) |
|---|---|
| Value Share (2024) | 35% |
Polyethylene is estimated to account for 35% of the market share in 2024. Polyethylene has become a popular material for producers seeking to adopt oxo-biodegradable technology because it is easily altered. The making of oxo-biodegradable involves the addition of additives to the plastic. Polyethylene provides for easy addition of these additives.
Polyethylene is also a coveted material due to its cost-effectiveness. The primary attraction of polyethylene is its strength and flexibility. As a result, the application of the material is wide, ranging from food and beverage to pharmaceuticals. Hence, polyethylene remains the dominant material in the market.
| Segment | Food and Beverage (End Use) |
|---|---|
| Value Share (2024) | 40% |
The food and beverage industry is estimated to take up 40% of the market share in 2024. The food and beverage segment is dominating the oxo-biodegradable market mainly due to a growing demand for environmentally friendly packaging solutions that address concerns over traditional plastics.
With growing environmental awareness among customers, food and beverage companies are encouraged to adopt eco-friendly practices. This is a prime factor inducing them towards oxo-biodegradable materials for packaging products such as bags, containers, and wraps. These materials enable the convenience and functionality required for food storage. They also provide a greener alternative that contributes to the reduction of plastics in the environment. The branding and customization opportunities provided by these bags are also taken advantage of by food sector players.
Governments in the Asia Pacific are intent on reducing the environmental footprint of industries in their countries. The packaging sector has received support from the government in Asian countries, but along with it, there has also been encouragement to develop sustainable alternatives to conventional plastic. Countries like India and China are at the forefront when it comes to developing conventional plastic alternatives in Asia.
| Countries | CAGR (2024 to 2034) |
|---|---|
| India | 5.1% |
| United States | 2.4% |
| China | 4.8% |
| Thailand | 3.8% |
| Japan | 3.1% |
The oxo biodegradable bag market in India is estimated to register a CAGR of 5.1% over the forecast period. The fragmented nature of the market is evident in India. Big-name giants and foreign companies tussle it out with small-scale players for a share of the sales.
The diversity of companies in India sees customers have a myriad of options available. From big store chains to street vendors, oxo-degradable bags are commonplace in India. The overall rise of the biodegradable packaging sector, highlighted by the success of companies like GreenBio Products, also creates a conducive environment in India for these bags.
The United States market is anticipated to advance at a CAGR of 2.4% over the projected period. The market is growing in the United States due to a growing consciousness of environmental issues and demand for sustainable alternatives for packaging.
Additionally, the cost-effectiveness of oxo-biodegradable technology has significantly enhanced the acceptance level of these bags among manufacturers and retailers. Other market growth factors also include corporate sustainability and responsible sourcing practices among companies. In a nutshell, it is demand from consumers, support from regulations, and advancements in technology that push the oxo biodegradable bag market in the United States toward progress.
The China oxo biodegradable bag market is set to register a CAGR of 4.8% over the period from 2024 to 2034. The oxo-biodegradable bag market is developing in China due to the country's rapid industrialization and urbanization, which have led to major environmental challenges, particularly related to plastic waste management. The Chinese government has implemented stiff policies aimed at reducing plastic usage, including helping to popularize biodegradable substitutes.
With the rapid growth of the e-commerce industry in China, there is also a rise in the need for sustainable packaging. This is where oxo-biodegradable bags provide an easy solution for logistics and retail. Awareness campaigns on protecting the environment and the need to bring down waste are also prompting consumer acceptance of oxo-biodegradable products.
The oxo biodegradable bag market is fairly fragmented. Established players in the market have to contend with the threat of regular new entrants. With the packaging sector moving towards sustainability at a rapid pace, more players are manufacturing oxo-biodegradable bags.
Players in the market are taking part in strategic collaborations. By fusing the strengths of two competitors, players aim to strengthen distribution systems and reach more customers. Acquisitions are also a frequent sight.
A substantial amount of resources are being invested in research and development activities. Manufacturers are looking to improve the printability, ink adhesion, heat seal strength, and more of their products. Both private and public funding is hence being sought.
Key Industrial Developments
Based on the bag type, the market is divided into shopping bag, tote bag, garbage bag, produce bag, and mailing bag.
Based on the material, the oxo biodegradable bag market can be divided into polyethylene, polypropylene, polystyrene, and polyethylene terephthalate.
Based on the end use, the oxo biodegradable bag market is divided into food & beverage, personal care & cosmetics, electronics & home appliance, pharmaceutical, and shipping & logistics.
Based on the distribution channel, the oxo biodegradable bag market is divided into direct sales, retail, e-commerce, and distributors.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The market was valued at USD 799.9 million in 2023.
The market is set to reach USD 921.5 million in 2024.
Global demand is anticipated to rise at 4.6% CAGR over the period from 2024 to 2034.
The industry is projected to reach USD 1.4 billion by 2034.
The market is slated to progress at 5.1% CAGR in India over the forecast period.
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Oxo Biodegradable Bag Market
