Global Market Analysis: Biodegradable Packaging Across Regions
The biodegradable packaging market offers environment-friendly alternatives to traditional plastic packaging through products made from renewable plant-based materials like paper, pulp and bioplastics. Biodegradable packaging helps reduce waste and is compatible with industrial and home composting as they decompose without leaving harmful residues. They are used across food and beverage, pharmaceutical, industrial and consumer goods packaging.
The Global Biodegradable Packaging Market is estimated to be valued at US$ 37,919.7 Mn in 2024 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the biodegradable packaging are BASF SE, Smurfit Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation, Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited, and International Corp. Key players are focusing on developing innovative and sustainable packaging solutions to replace fossil-fuel based plastics due to growing consumer demand for eco-friendly products.
The growing demand for sustainable packaging across industries is one of the major factors driving the biodegradable packaging market. Various regulations banning single-use plastics are further boosting the adoption of biodegradable packaging globally. Consumers are also inclined towards brands emphasizing on sustainability, which is positively impacting the sales of biodegradable flexible and rigid packaging materials.
Major players in the biodegradable packaging market are expanding their production facilities globally, especially in Asia Pacific and Latin America, to tap the opportunities in developing nations. Rapid urbanization and rising disposable incomes in emerging countries are attracting huge investments for scaling up the biodegradable packaging manufacturing sector. Regional governments are also supporting biodegradable alternatives to curb plastic pollution.
Market Key Trends
One of the key trends gaining momentum in the biodegradable packaging market is the growing popularity of bio-based and biodegradable flexible packaging materials like bio-plastic films, pouches and bags. Their light weight and compatibility with high-speed production lines is triggering their adoption over rigid containers. Leading packaging manufacturers are focused on developing innovative bio-plastic formulations suitable for flexible packaging formats used across various end-use industries globally.
Porter’s Analysis
Threat of new entrants: Low capital requirements for setting up a packaging manufacturing plant are lowering the barriers for new players to enter the market.
Bargaining power of buyers: There exists a fair amount of fragmentation in terms of buyers in the biodegradable packaging market, diminishing their bargaining power.
Bargaining power of suppliers: Major raw material suppliers include corn, wheat, sugarcane, and vegetable oils producers who hold considerable power over market players.
Threat of new substitutes: Alternative sustainable materials like industrial starch, polylactic acid, cellulose, and paper can potentially replace biodegradable plastics.
Competitive rivalry: Strong competition exists among the top players to gain market share through constant innovations.
Geographical Regions
North America currently dominates the biodegradable packaging market in terms of value owing to strong government support and growing awareness. Strict regulations have pushed food chains and retailers to opt for sustainable options.
Asia Pacific is emerging as the fastest growing regional market propelled by growing environmental consciousness. Rapid economic development and population growth have increased plastic waste tremendously, driving the need for biodegradable alternatives. China, India, Japan, and South Korea are major contributors to the Asia Pacific market.
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