by Biodegradable foams have gained prominence as an alternative to petroleum-based foams owing to their ability to completely breakdown into water, carbon dioxide and biomass without leaving any toxic residues. Made from renewable starch, biodegradable foams are used in various packaging applications such as protective packaging for fragile items, cushioning in shipping boxes and floatation devices. These foams effectively protect products during transportation while ensuring safety of the environment after use. The global biodegradable foam market relies upon innovation in foam formulations to deliver materials with improved compaction and shock-absorption properties comparable to conventional foams.
The global biodegradable Foam Market is estimated to be valued at US$ 1 Billion in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
With growing environmental awareness, companies across various industries are targeting reductions in plastic waste and opting for eco-friendly alternatives. Biodegradable foams completely break down after use without any toxic residue, allowing for improved sustainability of packaging. Growing regulations against single-use plastics along with bans on specific plastic items have further augmented demand for biodegradable foams. Continuous technological advancements to enhance performance of biodegradable foams while reducing costs will also support consumption over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established brand names pose a challenge for new players.
Bargaining power of buyers: Large buyers can negotiate lower prices, while small buyers have limited influence.
Bargaining power of suppliers: A few major players supply the raw materials, giving them negotiating leverage over buyers.
Threat of new substitutes: Some alternatives like recycled papers offer substitutes but lack properties of biodegradable foam.
Competitive rivalry: The market has large players continuously investing in R&D and product differentiation to sustain competition.
Key Takeaways
The global biodegradable foam market is expected to witness high growth.
Regional analysis North America region dominates and is expected to grow further owing to FDA approvals for use of biodegradable foam and compliance with Environmental Protection Agency (EPA) regulations. Europe is anticipated to grow significantly during forecast years supported by policies banning single-use plastics.
Key players operating in the biodegradable foam market are BASF SE, Recticel NV, Sealed Air Corporation, Toray Industries, Inc., Zotefoams PLC, Woodbridge, Inoac Corporation, Ecovative Design, Vita (Cellulose Xylan Hydrogel) and KTM Industries. Key players are investing in manufacturing facilities expansion, R&D capabilities, and new product launches to strengthen market position.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
