The global biodegradable packaging materials market is estimated at USD 88 Billion in 2022 and is forecast to surpass USD 169 Billion by 2032, growing at a CAGR of 6.8% from 2022 to 2032.
The global biodegradable packaging materials market accounts for ~9% of global packaging market in 2022 and is expected to expand due to augmented consumer spending on sustainable biodegradable packaging materials because of enhanced environment-consciousness. The global biodegradable packaging materials market is projected to have an absolute $ opportunity of USD 81 Billion during the assessment period of 2022-2032.
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A majority of regulatory bodies and international environmental organizations have proposed a ban on single-use packaging materials to mitigate the perilous effects of non-degradable solid waste on the environment. Increasing environmental awareness and consumer inclination towards making sustainable purchases is providing a major boost to the growth of the biodegradable packaging material market.
Positive effects of the ban on single-use packaging on the biodegradable packaging material market are offset by stringent labeling regulations and certification procedures to control false claims about the biodegradability of packaging materials. The biodegradable packaging material market is characterized by the needs to comply with strict quality standards established in various regional markets, which may complicate it for market players to maintain competitive prices of biodegradable packaging solutions.
“Increasing growth of the e-commerce sector and popular trends of online grocery shopping is opening new avenues of growth for players in the biodegradable packaging material market. Purchasing decisions of environment-conscious consumers are greatly influenced by sustainable packaging materials, which may create high demand for biodegradable packaging solutions in the coming future. Stakeholders in the biodegradable packaging material market are shifting their focus on the dynamic trends in the e-commerce sector while adopting their future business strategies,“ says a lead analyst at Fact.MR.
The Fact.MR report further states that, among all the leading end-user industries in the biodegradable packaging material market, food & beverage industry is expected to account for more than 30% of the total market share throughout the forecast period. Increasing demand for packaged food products, convenience foods, and ready-to-eat meals is reflected in supermarket shelves. Leading players in the biodegradable packaging material market are introducing biodegradable packaging films, trays, and bags to further improve the fresh food experience for consumers while offering numerous environmental benefits.
The European Union and the Bio-based Industries Consortium have established a €3.7 billion partnership, which is known as Bio-based industries Joint Undertaking (BBI JU) to boost adoption of biodegradable packaging as a part of its Horizon 2020 project. The BBI JU recently offered around € 5.6 million to fund The FRESH project by Huhtamaki Group in the Netherlands for testing and developing ready-meal biodegradable packaging trays.
Sensing the extraordinary growth opportunities in the biodegradable packaging material market for the F&B industry, another market player – the Mondi Group recently developed an innovative, paper-based, biodegradable packaging bag for food – Sustainex®, in collaboration with a Polish converter, SILBO. Multifold opportunities for biodegradable packaging in the F&B industry are boosting market players to develop innovative technologies, biodegradable packaging materials, and designs, which is expected to influence the dynamics of the biodegradable packaging material market in the upcoming years.
Competitive Landscape: Top Companies of Biodegradable Packaging Materials Market
The global biodegradable packaging materials market is highly fragmented and competitive owing to the existence of many domestic and regional players. Various marketing strategies are adopted by key players such as mergers and acquisitions, expansions, collaborations and partnerships.
Also, new product development as a strategic approach is adopted by the leading companies to upscale their market presence among consumers. These strategies have resulted in the incorporation of eye-catching biodegradable packaging materials comprising of better functionalities and variants.
Fact.MR has provided detailed information about price points of top manufacturers of biodegradable packaging materials positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.
For instance:
- Smurfit Kappa in 2021 launched a new range of eBottle packaging solutions for the growing online beverage market. This range is more sustainable made from recyclable raw material and is customizable according to bottle shapes and sizes. The company also offers a range of automated solutions that helps in the optimization of packaging processes.
- Amcor Limited in 2021, announced that its team has created more sustainable packaging solutions for butter and margarine, which is made entirely from paper. The paper wrapper is 38% lighter than aluminium and paper packaging and reduces carbon footprint by 81%, thus, helping consumers meet sustainability goals.
Key Companies Profiled
- Amcor plc
- Smurfit Kappa
- Sealed Air
- International Paper
- Mondi Group PLC
- WestRock Company
- Tetra Pak International S.A
- DS Smith
- Kruger Inc.
- Toray Plastics (America), Inc.