May 25, 2024

The Global Biodegradable Packaging Market driven by Rising Consumer Preference for Sustainable Packaging

Biodegradable packaging such as cartons, bags, and containers are manufactured using materials derived from plant and animal sources that decompose naturally under composting conditions. These packaging solutions are safe, sustainable, and environment-friendly alternatives to conventional plastic packaging that ends up in landfills. Biodegradable packaging is used across various end-use industries like food and beverages, pharmaceuticals, and personal care products among others. The growing demand forpacked ready-to-eat and convenience foods has led to significant usage of biodegradable packaging materials.

The global Biodegradable Packaging Market is estimated to be valued at US$ 30 Billion in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends
One of the major trends driving growth in the biodegradable packaging market is the rising preference for eco-friendly packaging solutions among consumers and stringent government regulations regarding plastic waste disposal. Consumers are increasingly focusing on sustainable consumption and are willing to pay more for packaged products that use renewable and compostable materials. Stringent plastic waste management rules implemented by regulatory bodies are compelling companies to adopt biodegradable alternatives in their packaging portfolios. For instance, the European Union has imposed bans on certain single-use plastic items like straws, cotton buds, plates, cutlery, and expanded polystyrene cups by 2021 to curb plastic pollution. This is expected to create huge opportunities for biodegradable packaging manufacturers.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established distribution channels lower barriers to entry in the biodegradable packaging market.

Bargaining power of buyers: Large retailers have significant influence over packaging providers and can demand higher quality and more sustainable products.

Bargaining power of suppliers: Few dominant players control global production capacity for biodegradable materials giving them stronger negotiating power over packaging producers.

Threat of new substitutes: Bio-based and compostable alternatives continue to emerge, increasing competition and pressuring companies to innovate and reduce costs.

Competitive rivalry: Intense competition exists amongst numerous packaging manufacturers driving greater differentiation through novel materials, designs, and marketing of sustainability benefits.

Key Takeaways

The global biodegradable packaging market is expected to witness high growth over the forecast period of 2023 to 2030. The global Biodegradable Packaging Market is estimated to be valued at US$ 30 Billion in 2023 and is expected to exhibit a CAGR of 20% over the forecast period 2023 to 2030.

Regional analysis shows Europe currently dominating due to stringent regulations and high environmental awareness. However, Asia Pacific is anticipated to experience the fastest gains with a growing middle class demanding sustainable options combined with strong government support of bio-economy programs in countries such as India and China.

Key players operating in the biodegradable packaging market are Huhtamaki, Mondi, Smurfit Kappa, DS Smith, Stora Enso, Amcor, Tetra Pak, Natureworks, Eco-Products, Kruger and basf SE. Most major companies pursue acquisitions and partnerships to secure competitively priced raw materials and access differentiated technologies accelerating their transition to sustainable business models aligned with evolving consumer and regulatory demands.

*Note:

1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it