February 25, 2024

The Global Biodegradable Foam Market Is Driven By Increasing Demand For Sustainable Packaging Materials

Biodegradable foam refers to foam material that decomposes completely and safely without harming the environment. It is widely used in packaging solutions for perishable goods, medical applications, and insulation. Biodegradable foams have similar physical properties to traditional petroleum-based foams but offer significant environmental advantages as they can break down at the end of their use life. The global biodegradable foam market offers a recyclable and compostable alternative to polystyrene and polyethylene foams.

The global Biodegradable Foam Market is estimated to be valued at US$ 906.1 Mn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Food packaging manufacturers are increasingly adopting biodegradable foams to package fruits and vegetables, ready-to-eat meals, snacks, and bakery products. This is attributed to stringent regulations regarding the use of conventional plastics and regulatory pushes for sustainable packaging alternatives. Furthermore, growing environmental consciousness among consumers has also driven food brands to switch to earth-friendly foam packaging made from natural materials like starch or cellulose that degrade without polluting the ecosystem.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the biodegradable foam market due to established brands, high capital requirements for R&D and manufacturing, and regulations.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of substitutes and many established brands in the market.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute raw materials and intensity of competition in the market.
Threat of new substitutes: The threat of new substitutes is moderate as foam manufacturers are developing new bio-based and recyclable materials as alternatives.
Competitive rivalry: The competitive rivalry is high due to many established brands in the market competing on product quality, pricing, and marketing.

Key Takeaways
The Global Biodegradable Foam Market Size is expected to witness high growth. The global Biodegradable Foam Market is estimated to be valued at US$ 906.1 Mn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2030.

Regional analysis
North America currently dominates the biodegradable foam market accounting for over 35% share in 2023. This is attributed to stringent environmental regulations regarding single-use plastics across countries like the U.S and Canada. Asia Pacific is expected to be the fastest growing market during the forecast period supported by rapid industrialization and growing environmental concerns in countries like India and China.

Key players
Key players operating in the biodegradable foam market are BASF SE, Arkema SA, Dow Chemical Company, Synbra Technology BV, and Sekisui Alveo AG. BASF SE offers biodegradable foams under the Elastollan brand for various applications. Arkema SA provides biodegradable foams for automotive and packaging industries.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it