Global Biodegradable Packaging Market Report and Forecast 2024-2032

Global Biodegradable Packaging Market Size

The global biodegradable packaging market reached approximately USD 103.88 billion in 2023. The market is projected to grow at a CAGR of 5.60% between 2024 and 2032, reaching a value of around USD 169.38 billion by 2032.

Global Biodegradable Packaging Market Outlook

• As per the industry report, around 40 per cent of the Indian population will live in urban regions, which will fuel the demand for packaged food products and fast-moving consumer goods, creating growth opportunities for biodegradable packaging.

• As per California's Senate Bill 54 (SB 54), 100 per cent of single-use packaging and plastic should be recyclable or biodegradable by 2032 in California, the United States, promoting market growth.

• Around 95 per cent of plastic utilised in packaging is disposed of after single-use, contributing to plastic pollution, which necessitates the requirement of compostable packaging.

Global Biodegradable Packaging Market Growth

Rising environmental concerns, increased shift of customers towards eco-friendly packaging, and favourable government regulations are some of the prominent drivers of market growth. The rising impact of plastic pollution on marine life and other natural habitats has fuelled the demand for alternatives. Every single day oceans, rivers, and other water bodies receive plastic waste equivalent to 2000 garbage trucks. Several enterprises are readily adopting sustainable packaging materials to reduce their carbon footprint and promote a green economy. Moreover, a large segment of consumers are gaining environmental awareness and are willing to pay extra price for biodegradable packaging.

Favourable government policies to ban the usage of single-use plastics and reduce plastic waste are also contributing to the market expansion. For instance, the single-use plastics derivative (SUP Directive) by the European Union aims to limit the consumption of single-use plastics and promote the usage of recyclable and compostable alternatives. Furthermore, research and developmental efforts in material science are leading to the development of materials that are cost-effective, biodegradable, and possess superior durability. Advancements in the material production processes such as extrusion and injection molding also make it economical and scalable to produce biodegradable packaging.

Market players are readily introducing innovative biodegradable packaging solutions to enhance their market reach. Pakka Limited, a provider of compostable packaging, collaborated with Brawny Bear in October 2023 for the introduction of India’s first compostable packaging. Additionally, Bio Plast Pom collaborated with GdaÅ„sk University of Technology and other scientific institutes in March 2024 for the development of biodegradable material made from potato starch.

Global Biodegradable Packaging Industry Segmentation

“Biodegradable Packaging Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Material Type

• Plastic 
  • Starch-Based Plastics 
  • Cellulose-Based Plastics 
  • Polylactic Acid (PLA) 
  • Poly-3-Hydroxybutyrate (PHB) 
  • Polyhydroxyalkanoates (PHA) 
  • Others 
• Paper 
  • Kraft Paper 
  • Flexible Paper 
  • Corrugated Fiberboard 
  • Boxboard

Market Breakup by Application

• Food Packaging 

• Beverage Packaging 

• Pharmaceutical Packaging 

• Personal/Homecare Packaging 

• Others 

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Global Biodegradable Packaging Market Share

It is projected that Asia Pacific will witness significant growth in the market in the forecast period. Convenient meals and beverages are being consumed more frequently as a result of the rising population density. Furthermore, the regional market is anticipated to grow as a result of South Korea, Japan, China, and India's green packaging manufacturers emphasizing more eco-friendly packaging alternatives in response to growing consumer environmental concerns.

Leading Companies in Global Biodegradable Packaging Market

The market players are increasing their collaboration and research and development activities to gain a competitive edge in the market.

• Tetra Laval International S.A.  

• Mondi Plc 

• Amcor Plc  

• Smurfit Kappa Group Plc  

• Elevate Packaging, Inc.  

• Westrock Co.  

• DS Smith Plc  

• Oji Holdings Corp.  

• Duni AB (BioPak) 

• Others

Key Highlights of the Report