The biodegradable packaging market comprises materials such as paper, paperboard, plastic, and jute that breakdown completely when in contact with microorganisms such as bacteria and fungus. These sustainable packaging solutions have properties similar to conventional plastics while ensuring no harm to the environment after usage. Biodegradable packaging is widely being utilized for food packaging, beverage packaging, pharmaceutical packaging and personal care/home care packaging due to its eco-friendly properties.

The Global Biodegradable Packaging Market is estimated to be valued at US$ 111.55 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.

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, International Corp., Solenis, DuPont, Ball Corp, Novamont, Tetra Pak International SA, Biopak PTY, Imex Packaging, and Elevate Packaging Inc. These players are focusing on expanding their production facilities and shifting towards biodegradable materials to cater to the growing customer demand for sustainable packaging solutions.

The growing demand for biodegradable packaging from the food industry is one of the major factors driving the market. Food packaging accounts for over 40% of plastic waste generated globally. Thus, biodegradable and compostable food packaging is helping companies reduce plastic footprint and appeal to environmentally conscious consumers.

North America currently dominates the global Biodegradable Packaging Market Demand. However, Asia Pacific is expected to witness the highest growth during the forecast period owing to rapid industrialization and growing population in countries such as China and India. Stringent government regulations regarding single-use plastic and favorable policies promoting circular economy will further propel the biodegradable packaging market in the region.

Market key trends
Biodegradable plastic known as Polyhydroxyalkanoate (PHA) is emerging as a promising sustainable alternative to conventional plastic. PHA can replace fossil fuel-based plastics across various applications without compromising on functionality. It has barrier properties similar to polyethylene and can completely biodegrade within 6 months of disposal. Leading companies are investing in commercialization of PHA to tap into the growing demand for compostable plastic packaging solutions.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderately high as the capital requirements for entering into the biodegradable packaging market are moderately high. However, new players face pressure from existing established brands.

Bargaining power of buyers: The bargaining power of buyers is moderately high as they have a good option of substitutable products available in the market. Buyers can choose from a variety of suppliers and price points.

Bargaining power of suppliers: The bargaining power of suppliers is moderately low as raw materials required for biodegradable packaging are easily available. Suppliers do not have a significant influence on pricing.

Threat of new substitutes: The threat of new substitutes is high as alternative sustainable packaging materials like paper, glass, can be used in place of biodegradable plastics.

Competitive rivalry: The competitive rivalry is high owing to the presence of many global players operating in the market.

Geographical Regions

North America accounts for the largest share in the global biodegradable packaging market in terms of value. Strict environmental regulations regarding the use of plastics for packaging are driving the demand for biodegradable packaging in the region.

Asia Pacific is expected to witness the fastest growth during the forecast period due to growing environmental concerns and expansion of end-use industries like food and beverages in countries like China and India. Increasing consumer awareness about sustainability is further propelling the growth of biodegradable packaging market in Asia Pacific.

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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)