Biodegradable Packaging Market Report 2024 (Global Edition)

Current Scenario of the Biodegradable Packaging Market

DRIVING FACTORS OF THE BIODEGERADABLE PACkAGING MARKET

• Increasing demand from retailers from various end-use sectors is driving the market for biodegradable packaging

Biodegradable packaging finds extensive application across various industries, making significant contributions to reducing food waste and environmental harm. Bioplastic packaging is used for the packing of cosmetics, pharmaceutical products, food and beverages, and others due to its environmental nature.

•    In the food and beverage sector, it serves as a valuable solution for wrapping and preserving perishable items, thereby curbing food waste and lessening ecological pollution. Customers are seeking more sanitary and clean packaging that they can reuse and recycle easily as a result of the global epidemic of COVID-19, which is causing the market for biodegradable food packaging to expand. The manufactures are highly consuming bioplastics for food packaging as it provides hygienic food for a long period to the consumers. 

For instance, Coca-Cola and PepsiCo in 2021 announced to adopt 100% biodegradable, recyclable and compostable materials in packaging by the end of 2025. 
(Source: https://pepsico.com/our-impact/esg-topics-a-z/packaging)
Coca-Cola in 2021 launched bottled made up of 100% recycled plastic and even pledged to integrate 50% recycled materials across its worldwide packaging by the end of 2030. 
(Source:https://www.coca-colacompany.com/sustainability/packaging-sustainability)

•    The healthcare sector also benefits from biodegradable packaging, which is utilized for packaging medical devices, pharmaceuticals, and related products. This application aids in waste reduction and promotes sustainable practices within the industry. 
India’s domestic pharmaceutical market is estimated at US$ 41 billion in 2021 and is expected to reach US$ 65 billion by 2024 and around US$ 120-130 billion by 2030.
(Source:https://www.investindia.gov.in/sector/pharmaceuticals#:~:text=The%20pharmaceutical%20industry%20in%20India,served%20by%20Indian%20pharma%20exports.)

•    Moreover, biodegradable packaging is a preferred choice in the retail industry for packaging consumer goods such as clothing, electronics, and personal care items. This adoption aligns with sustainability goals and environmental consciousness.

For instance, Fast-fashion giant Zara now delivers its online orders in 100%-recycled cardboard boxes made from boxes previously used in stores. Their goal is zero waste in their stores, offices and logistics centres by 2025. They’ve also changed their bags they give to customers in stores and are now made of 100%-recycled paper.
(Source:https://www.zara.com/uk/en/sustainability-our-stores-mkt1454.html)

•   Growing Environmental concerns is pushing the market for Biodegradable Packaging Ahead 

People are being forced to give up non-biodegradable and throwaway packaging due to environmental concerns including pollution and global warming. The marine ecology is harmed by the waste of plastics and other toxic packing materials, and aquatic species die from ingesting or being entangled in the waste. 

•    Plastic waste makes up 80% of all marine pollution and around 8 to 10 million metric tons of plastic end up in the ocean each year. Currently, there are about 50-75 trillion pieces of plastic and microplastics in the ocean. (https://oceanliteracy.unesco.org/plastic-pollution-ocean/)

The urgency to mitigate the impacts of climate change stands as a foundational driving factor in the global market for biodegradable packaging. Climate change poses existential threats that are compelling policymakers, activists, and citizens alike to seek alternatives that reduce carbon footprint and waste. Traditional packaging solutions, especially those made from petroleum-based plastics, have come under scrutiny for their long-lasting negative effects on the environment.

Many packing materials include BPA and benzene, which are harmful to human health as well and can sometimes lead to cancer, blood pressure problems, and issues with the respiratory system. Consumers now choose biodegradable packaging materials over other unsustainable packaging materials since they are aware of all the negative consequences of packaging.

•    According to ILO, Bisphenol A (BPA) interacts with the oestrogen receptors and is a possible risk factor for breast cancer and that its exposure can lead to increased susceptibility to prostate cancer.
(Source: https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---lab_admin/documents/publication/wcms_791876.pdf)

The market for biodegradable food packaging is anticipated to grow even more due to changing customer tastes and an expanding global population. New packaging materials including cellulose, bamboo, corn starch, and seaweed have entered the market as a result of research and inventions in the biodegradable food packaging sector. The market's demand for biodegradable food packaging is expected to increase as a result of further research in this area.

Companies, aiming to align their business practices with global sustainability goals, are increasingly leaning towards biodegradable packaging solutions as a tangible step towards achieving those objectives. In this context, biodegradable packaging becomes more than a choice; it signifies a commitment to a global cause. This level of commitment not only positions companies as socially responsible but also resonates with a growing consumer base that is increasingly aware and concerned about the environmental impacts of their purchasing decisions.

•    For instance, Unilever in 2020, announced to reduce its usage of virgin plastic packaging by more than 100,000 tonnes and augment the use of recycled plastic and go for complete biodegradable packaging materials by 2025.
(Source: https://www.unilever.com/planet-and-society/waste-free-world/strategy-and-goals/)

•    Likewise, in October 2022, ‘HuhtamäkiOyj’, a Finland-based consumer packaging company, introduced an innovative, recyclable ice cream packaging solution which was based on paper-based technology. This packaging solution is made up of 95% renewable biobased material thanks to a water-based barrier coating and paperboard which has received SFI certification. This innovation helps to cut packaging costs, waste, and environmental pollution, thereby boosting the product demand.
(Source: https://www.huhtamaki.com/en/highlights/sustainability/icon-packaging-a-recyclable-ice-cream-packaging-alternative-redesigned-for-north-america//)

KEY FACTORS AFFECTING THE MARKET GROWTH

• Increasing demand for recycled plastics may hamper the market growth. 

There is Growing demand for 100% Recyclable Packaging Solutions .
PLA, PHA, and other biodegradable materials are ideal in packaging due to being eco-friendly but these are not 100% recycled. Thus, increasing demand for recycled plastics may hamper the market growth. Recycled packaging is helping to reach the sustainability goals of the manufacturer. 

In 2023, the global market value of PHA was estimated to be 57.8 million U.S. dollars. This is expected to grow to 98.5 million U.S. dollars by 2028 due to the increased global demand for biodegradable plastics. This is being fueled by government policies and regulations against single use plastics, among other concerns about plastic waste.
(Source: https://www.statista.com/statistics/1010383/global-polyhydroxyalkanoate-market-size/)

For instance, Amcor is pledging to develop all of its packaging’s to be recyclable by 2025. Furthermore, according to the Environmental Protection Agency (EPA), 70 % of plastic is destroyed or recycled in landfills in the United States. 
(Source: https://www.amcor.com/sustainability/2025-pledge)

Nonetheless, the ban on plastics has inclined consumers towards the adoption of biodegradable packaging alternatives but high recycling and manufacturing costs of biodegradable packaging materials are poised to hinder the market growth. Market players in end-use industries are facing huge challenges due to the unavailability of cost-effective biodegradable packaging materials.

This is because of limited biodegradability. Not all biodegradable materials break down quickly or completely in all environments. The effectiveness of biodegradation can vary depending on factors such as temperature, humidity, and microbial activity. Inconsistent biodegradability can lead to doubts about the environmental benefits of such materials. Also, Biodegradable packaging materials can often be more expensive to produce than traditional non-biodegradable alternatives.

Thus, increasing demand for recycled packaging may hamper the demand for biodegradable packaging. 

OPPURTINITIES

• Personal/Homecare Packaging is Expected to be One of the Most Significant Applications 

The trend toward using and seeking natural materials and additives for personal or cosmetic products has been rising as the adverse effects of synthetic materials on health and the environment became apparent. Currently, marketing trends are turning toward natural solutions for cosmetics, which promote a healthy lifestyle. 

•    According to CDF Corporation, the cosmetics and personal care industry embraces and contributes to the innovation of a sustainable packaging culture, pursuing packaging that reduces environmental impact by using natural materials that are reused, recycled, and reduced.
(Source: https://info.cdf1.com/cdf-blog/sustainable-packaging-in-the-cosmetic-and-personal-care-industry)

•    Similarly, Pangea Organics has developed innovative packaging that combines creative design with a minimal ecological footprint. Made with WindPower 80, Pangea Organics' origami folding boxes aim for zero waste. This package is made of water-soluble PVOH plastic film. This is just one of the many attractive packaging designs that highlight the endless possibilities of sustainable packaging. 
(Source: https://pangeaorganics.com/pages/sustainability)

According to a survey conducted by Mondi Group in April 2022, the EU Plastics Strategy aims to transform how plastic products are designed, manufactured, used, and recycled in the EU. 
(https://environment.ec.europa.eu/strategy/plastics-strategy_en)

While this is important for the environment, it is also important for commercial success as consumers increasingly turn to brands that are taking smarter steps to tackle sustainability. 
Also, 64% of consumers in France, Italy, Poland, and Spain have switched to home brands that have adopted more sustainable packaging solutions in the past year alone.
(Source: https://spnews.com/sustainable-homecare/)

How did COVID–19 Impact the Biodegradable Packaging Market?

The tragedy of COVID-19, which is declared as a pandemic by the World Health Organization, is having a noticeable impact on global economic growth. This has affected the demand and supply chain activities, thereby limiting the growth in 2020. Thus, all activities were on hold due to this pandemic which, in turn, limiting the demand for packaging products and hamper the market the market growth during the era. The global COVID-19 lockdown halted new installations as well as the production process. The global shutdown also caused disruptions in the supply chain for medical equipment.

But another side of this was that the COVID-19 pandemic also had a positive impact on the food & beverage and pharmaceutical industries. As a result, it fueled the growth of the global biodegradable packaging market. During the pandemic, people started adopting ready-to-eat packed food items and products in order to avoid human contact. In addition, the pharmaceutical industry witnessed significant growth during the pandemic. During the pandemic, demand for efficient, biodegradable packaging surged due to the growing need for sustainable packaging in the pharmaceutical business.

Post pandemic - Mondi, a global leader in packaging and paper, has highlighted the power of packaging in creating a more sustainable homecare industry. This was an opportunity to share insights with the global homecare market, which grew at an unprecedented rate in 2020 as a result of the COVID-19 pandemic and is expected to grow at a faster rate than pre-pandemic levels over the coming years. This increased demand means more products are being produced, with more waste to be dealt with responsibly.

(Source:https://www.mondigroup.com/news-and-insight/2022/packaging-can-make-homecare-more-sustainable/)
 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Biodegradable Packaging Market is witnessing significant growth in the near future.

In 2023, the Paper and Paperboards segment accounted for noticeable share of global Biodegradable Packaging Market and is projected to experience significant growth in the near future.

The Food & Beverage Industry segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Amcor plc , Sealed Air and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions