Biodegradable Packaging Market Size, Share, Trends, Growth and Forecast 2032

Biodegradable Packaging Industry Prospective:

The global biodegradable packaging market size was worth around USD 15.96 billion in 2023 and is predicted to grow to around USD 39.85 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.70% between 2024 and 2032.

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Biodegradable Packaging Market: Overview

Biodegradable packaging refers to a novel range of packaging solutions that will disintegrate naturally over time. Biodegradable packaging is a form of sustainable packaging solution and has gained extreme popularity in the last few years. However, one of the crucial factors that distinguishes biodegradable packaging from other forms of sustainable packaging solutions is the time frame and conditions under which the packaging solution will decompose on its own.

For instance, wood-based packaging offerings are considered biodegradable. However, they may take years to disintegrate. During this time, wooden packaging will continue to negatively affect environmental conditions. Hence, consumer awareness around selecting the right type of biodegradable packaging is critical for improving the overall revenue in the industry. Biodegradable packaging can either be made using plant-based raw materials or they may be bio-based.

Some of the most common types of biodegradable packaging include paper, hemp, seaweed, cellulose, and Polylactic Acid (PLA). The demand for biodegradable plastic is projected to increase in the coming years due to a rise in public awareness and changing government policies. The high cost of novel packaging solutions along with scalability-related complexities will further dilute overall revenue in the industry.

Key Insights:

• As per the analysis shared by our research analyst, the global biodegradable packaging market is estimated to grow annually at a CAGR of around 10.70% over the forecast period (2024-2032)
• In terms of revenue, the global biodegradable packaging market size was valued at around USD 15.96 billion in 2023 and is projected to reach USD 39.85 billion by 2032.
• The market is projected to grow at a significant rate due to increasing consumer awareness and favorable government policies.
• Based on the material type, the paper & paperboard segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the packaging format, the pouches & bags segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Biodegradable Packaging Market: Growth Drivers

Increasing consumer awareness and favorable government policies to drive market demand rate

The global biodegradable packaging market is projected to grow due to a rise in consumer awareness about the negative impacts of traditional packaging on the environment. In addition to this, governments across the world have undertaken new awareness projects and initiatives focused on improving knowledge around the long-term use of non-biodegradable packaging solutions.

Research indicates that traditional packaging solutions, especially the ones derived from plastic, have negatively impacted the environment. They are the root cause of the growing rate of global warming, environmental pollution, waste generation, and degrading quality of life around the globe. These factors have led to increased government-aided projects to promote the development and application of sustainable packaging across industries.

Rising use of biodegradable packaging in food industry to generate extensive revenue

According to market analysis, the global food & beverages (F&B) industry is at the forefront of incorporating biodegradable packaging solutions. Food manufacturing companies are constantly investing in new packaging solutions that not only offer superior performance but also cater to environmental needs. In addition to this, traditionally used plastic packaging for food can impact the overall integrity and nutritional value of the packaged food. Biodegradable alternatives for packaging are considered safer alternatives.

In November 2024, Lactips and Walki announced the beginning of a new strategic partnership. The former is a company specializing in water-soluble and biodegradable thermoplastic materials using casein while Walki offers sustainable packaging and engineered materials. The companies have partnered to develop fully biodegradable, plastics-free primarily targeting the food industry. The global biodegradable packaging market can benefit from such initiatives.

Biodegradable Packaging Market: Restraints

High expenses associated with the research & development of novel packaging solutions may impact overall revenue

The global biodegradable packaging industry is expected to be restricted due to the high cost associated with the research & development of new packaging solutions. Biodegradable alternatives to traditionally used packaging items are expensive to develop due to the use of specialized raw materials and production techniques.

In addition to this, scaling the production of biodegradable packaging to meet the current global demand can be difficult due to the higher dependency on raw materials such as cellulose, plant-based starch materials, plant-based polymers, seaweed, and others.

Biodegradable Packaging Market: Opportunities

Consistent launch of new solutions to generate growth opportunities for the industry players

The global biodegradable packaging market is expected to generate growth opportunities due to the consistent launch of new solutions in the industry. The increase in the number of options available in the market will help trigger improved consumer access further encouraging product adoption rate.

In November 2024, Eastman, a global specialty materials company, partnered with UPM Specialty Papers to develop novel packaging with food-based applications. The companies have developed new packaging for food companies that require oxygen and grease barriers with biopolymer and compostable coating. The solution is made using Eastman’s biobased and compostable Solus performance additives.

Furthermore, UPM’s compostable and recyclable barrier base papers are coated using Biodegradable Polybutylene Succinate (BioPBS) polymer thus enhancing the overall performance of the offering. In October 2024, KYSU, another leading innovator in the industry, announced the launch of a new range of innovative packaging made using recycled materials.

The novel offering is not only recyclable but also reusable and airtight thus helping the company provide environmentally friendly containers. Increased investments toward the development of new sustainable raw materials and improving the overall performance of the packaging will further help the industry thrive in the coming years.

Biodegradable Packaging Market: Challenges

Competition from plastic packaging and unclear labeling guidelines will challenge market expansion

The global industry for biodegradable packaging is projected to be challenged by the competition the sector faces from conventionally used plastic-based packaging. In addition to this, the absence of clear and transparent guidelines concerning the correct labeling of packaging solutions will further affect the final growth rate in the industry.

Additionally, experts argue that the production of biodegradable packaging is also associated with a certain degree of environmental harm impacting the industry’s growth trends.

Biodegradable Packaging Market: Report Scope

Biodegradable Packaging Market: Segmentation

The global biodegradable packaging market is segmented based on material type, type, packaging format, application, and region.

Based on the material type, the global market segments are paper & paperboard, plastics, and bagasse. According to market research, the highest revenue was generated in the paper & paperboard segment. One of the key reasons for higher segmental growth is the easy availability of raw materials required for producing paper-based packaging solutions. Additionally, paperboards can be reused. They also provide higher versatility and overall improved performance. In 2023, the global paper packaging industry was valued at over USD 396 billion.

Based on type, the global biodegradable packaging industry is divided into degradable packaging, reusable packaging, and recycled content packaging.

Based on the packaging format, the global market divisions are pouches & bags, trays & clamshells, bottles & jars, labels & tapes, films & wraps, and others. In 2023, the highest demand was listed in the pouches & bags segment. Governments across the globe are restricting the use of single-use plastics leading to greater demand for biodegradable bags and pouches that can be used for storing all types of items. According to Plastics Oceans International, around 380 million tons of plastic are produced every year.

Based on application, the global market divisions are healthcare, personal care, food & beverages, and others.

Biodegradable Packaging Market: Regional Analysis

Europe to lead with the highest revenue during the forecast period

The global biodegradable packaging market will be led by Europe during the forecast period. Countries such as Germany, Spain, France, and others will act as the major regional market revenue generators. European nations have been taking the lead in terms of mitigating the environmental damage caused by business operations including the packaging industry.

The presence of a strict framework against the use of single-use plastics aiming to gradually eliminate the environmentally damaging packaging solutions from across industries will help promote regional adoption of biodegradable counterparts. Furthermore, consumer awareness around the benefits and sustainable packaging solutions is significantly high driving the adoption of biodegradable packages.

In September 2024, Power Adhesives, a leading provider of high-quality industrial adhesives, announced the launch of a biodegradable hot melt adhesive. It is a first-of-its-kind product on the global platform and is designed to be used with carton packaging, point-of-sale (POS) converters, and corrugated packaging.

In addition to this, the region is investing heavily in deploying new solutions that can improve the production of biodegradable packaging. In October 2024, the European Union kicked off the ReBioCycle project which focuses on developing up-cycling and recycling solutions for bioplastics.

Biodegradable Packaging Market: Competitive Analysis

The global biodegradable packaging market is led by players like:

• Tetra Pak International SA
• Amcor PLC
• Berry Global Group Inc.
• Pactiv Evergreen Inc.
• Smurfit Kappa Group PLC
• Crown Holdings Inc.
• Mondi PLC
• International Paper Company
• DS Smith PLC
• Constantia Flexibles
• Huhtamaki Oyj
• NatureWorks LLC
• Plastic Suppliers Inc.
• Kruger Inc.
• Sealed Air Corporation

The global biodegradable packaging market is segmented as follows:

By Material Type

• Paper & Paperboard
• Plastics
• Bagasse

By Type

• Degradable Packaging
• Reusable Packaging
• Recycled Content Packaging

By Packaging Format

• Pouches & Bags
• Tray & Clamshells
• Bottles & Jars
• Label & Tapes
• Films & Wraps
• Others

By Application

• Healthcare
• Personal Care
• Food & Beverages
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa