by Market Overview:
Bioplastic packaging products are manufactured using renewable biomass sources such as corn starch, sugarcane, and vegetable fats as raw materials. These bioplastics help reduce plastic pollution and carbon footprint as they are biodegradable and compostable. Bioplastic packaging is used extensively in food packaging, pharmaceutical packaging and consumer goods packaging. The key advantages of bioplastic packaging materials are that they require less petroleum-based plastic inputs and can degrade in landfills and industrial composting facilities without harming the environment. With the rising awareness regarding environmental protection, bioplastic packaging is gaining more acceptance as an eco-friendly alternative to conventional plastic packaging.
Market key trends:
The bioplastic packaging market is expected to be driven by the expanding food and beverage industry. Bioplastic materials provide similar protective functions as conventional plastics while also ensuring food safety. There is a growing demand for bioplastic packaging products especially for perishable food items with increased shelf life. Another key trend in the market is the development of new bioplastic polymers formulations such as PLA (Polylactic acid), Bio-PE (Bio polyethene) and PHA (Polyhydroxyalkanoates) which help address the issue of high cost for bioplastics production. Major players are focusing on research & development activities to offer advanced bioplastic materials with enhanced properties. Furthermore, strict government regulations banning single-use plastics and policies promoting use of eco-friendly alternatives will foster market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low startup costs and technology advancement have increased the threat of new entrants in the bioplastic packaging market. However, established players have strong brand image and economies of scale which create barriers.
Bargaining power of buyers: Large retailers have significant influence on packaging producers and can squeeze pricing and demand high quality. However, lack of substitutes keeps buyer power in check.
Bargaining power of suppliers: Suppliers of bio-based plastic materials have moderate to high bargaining power due to limited alternatives and intimacy with large buyers. Supply chain integration has reduced supplier power.
Threat of new substitutes: Strong sustainability awareness and innovating technologies are driving numerous substitutes. However, performance limitations and high costs restrict widespread adoption of new substitutes currently.
Competitive rivalry: Intense competition exists among existing players to cater increasing demand. Companies compete based on product differentiation, portfolio expansion and geographical reach.
Key Takeaways
The Global Bioplastic Packaging Market Size is expected to witness high growth, exhibiting CAGR of 29% over the forecast period, due to increasing environmental concerns and stringent regulations against single use plastics.
Regionally, Europe dominates currently due to favorable regulatory environment. However, Asia Pacific is anticipated to emerge as the fastest growing market led by countries like China, India and Indonesia on account of rising sustainability awareness and large packaging industry.
Key players operating in the bioplastic packaging market are BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company. These players compete based on expanding their product portfolio through strategic collaborations with technology companies.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
