According to recent research from Future Market Insights (FMI), the global biodegradable packaging market is poised for significant growth, projected to reach a valuation of USD 448.2 billion in 2022. This market is anticipated to expand at a CAGR of 6.1% from 2022 to 2032, driven by an increasing demand for sustainable and eco-friendly packaging solutions across various industries.
In 2021, the global biodegradable packaging market accounted for approximately 45% of the total global packaging market, which was valued at USD 980 billion. FMI’s analysis indicates that the biodegradable packaging market surpassed USD 440 billion in 2021, highlighting the growing consumer preference for environmentally friendly options.
Key findings from the report reveal that the top three countries are expected to command around 25-30% of the biodegradable packaging market by the end of 2022. Additionally, the biodegradable paper packaging segment is projected to witness a surge in demand, with the top five key players anticipated to hold between 20-25% of the market share by the close of the year.
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The growth of the biodegradable packaging market is closely linked to the rising emphasis on sustainability and eco-consciousness among consumers and businesses alike. As industries increasingly prioritize environmental responsibility, the demand for biodegradable packaging solutions is expected to continue its upward trajectory, creating a growth opportunity valued at USD 1.8 billion between 2022 and 2032.
Prominent Drivers of the Biodegradable Packaging Market:
- Environmental Concerns: Growing awareness of environmental issues, such as plastic pollution and its impact on ecosystems, is driving demand for biodegradable packaging solutions. Consumers and businesses are increasingly seeking sustainable alternatives to traditional plastic packaging.
- Regulatory Support: Governments worldwide are implementing stricter regulations and bans on single-use plastics. Initiatives promoting biodegradable and compostable materials encourage manufacturers to adopt biodegradable packaging options to comply with environmental standards.
- Consumer Preference for Sustainability: There is a noticeable shift in consumer behavior towards sustainable products. Consumers are willing to pay a premium for biodegradable packaging as they prioritize eco-friendly options that align with their values, driving brands to innovate and adopt biodegradable materials.
- Advancements in Technology: Innovations in material science have led to the development of new biodegradable materials that are both effective and cost-competitive. Improved manufacturing processes and technologies are enabling the production of high-quality biodegradable packaging solutions that meet various industry standards.
- Corporate Sustainability Initiatives: Many companies are adopting corporate social responsibility (CSR) strategies that include sustainable packaging solutions. As businesses aim to reduce their carbon footprint and enhance their brand image, they are increasingly investing in biodegradable packaging to meet sustainability goals and consumer expectations.
Competitive Landscape
The leading players in the biodegradable packaging market are focusing on expanding their capacities and resources to fulfill the growing demand for sustainable packaging, including biodegradable packaging, by creating a new facility. Furthermore, prominent firms are pursuing collaboration and joint venture methods to expand their presence and resources.
Key Players
Winpak Ltd.; Berry Global Group; Swedbrand Groups; Huhtamaki Oyj; Evergreen packaging; Amcor plc; Smurfit Kappa Group; Sealed Air Corporation; International Paper Company; Mondi Group; WestRock Company; Tetra Pak International S.A; Stora Enso Oyj; Georgia-Pacific LLC; Kruger Inc.; Pactiv LLC; Karat Packaging Inc.
Market Developments
- In April 2022, Karat Packaging Inc. announced a joint venture agreement with Happiness Moon, Co. Ltd. (Happiness Moon) to build a new factory in Taiwan for manufacturing compostable foodservice products from bagasse.
- In March 2022, Mondi made an investment of USD 285 Million in corrugated packaging to accelerate the sustainable growth plans of the company.
- In January 2022, Smurfit Kappa announced the investment of USD 33 Million in its Fortaleza plant, Brazil, to expand its capacity to meet the growing demand for innovative and sustainable packaging.
Biodegradable Packaging Market by Category
By Material, Biodegradable Packaging Market is segmented as:
- Paper & Paperboard
- Bio-plastic
- Polylactic Acid (PLA)
- Cellulose-based
- Starch-based
- Polybutylene succinate
- Others (Protein-based plastics etc.)
- Bagasse
By Packaging Format, Biodegradable Packaging Market is segmented as:
- Bottles & Jars
- Boxes & Cartons
- Cans
- Trays & Clamshells
- Cups & Bowls
- Pouches & Bags
- Films & Wraps
- Labels & Tapes
- Others (Stick pack, Sachets, etc.)
By End Use, Biodegradable Packaging Market is segmented as:
- Food & Beverage
- Personal Care & Cosmetics
- Pharmaceuticals
- Homecare
- Other Consumer Goods
By Region, Biodegradable Packaging Market is segmented as:
- North America
- Latin America
- Europe
- South Asia
- East Asia
- Middle East & Africa
- Oceania
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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