Global Bioplastic Packaging Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Bioplastic Packaging Market Growth

Bioplastic packaging solutions are made from natural or fossil materials that can be biodegraded by microorganisms. They are a sustainable alternative to conventional packaging solutions. They are typically obtained from cellulose, corn starch waste, cellulose, and textile and agriculture waste, among others. Such solutions find wide usage in different end-use sectors, including automotive, industrial goods, and construction, among others.

One of the significant factors boosting the growth of the bioplastic packaging market is the growing trend of sustainability and the rising concerns regarding rapid climate change. Bioplastics emit fewer greenhouse gases than their conventional counterparts and are compostable, recyclable, and biodegradable, which makes them an eco-friendly option for packaging.

Bioplastic Packaging Market Trends

Innovations in packaging technologies for improving the functionality and longevity of the product are likely to fuel the bioplastic packaging market growth. Key players are also increasingly investing in high-performance biodegradable polymer blends to enhance the functionality of bioplastic packaging.

The bioplastic packaging demand is expected to be fuelled by the increasing usage of raw materials like biodegradable materials such as sugar, sawdust, industrial and agricultural waste, vegetable oil, and corn, among others, in the manufacturing of bioplastics.

Recent Developments

Researchers at the University of Copenhagen announced the launch of an alternative to conventional plastics. This 'biocomposite' material, which is made from barley and other natural resources, has the potential to transform industries that currently depend on plastic, which can contribute to the bioplastic packaging demand growth. The biocomposite is composed of amylose and cellulose, which are plentiful in numerous plant species, including corn, potatoes, wheat, and barley. Additionally, cellulose obtained from by-products of the local sugar sector contributes to its environmental sustainability by making use of waste materials.

Industry Outlook

Asia remains the largest producer of bioplastics, accounting for about 46% of production capacity, followed by Europe at 25%. As per the bioplastic packaging industry analysis, with Europe’s emphasis on environmental standards, the region is expected to increase its production share to 28% by 2025. Countries like Germany and Italy are focusing on compostable packaging for waste collection and food transportation, which is gaining traction among eco-conscious consumers.

As per the article published in Law360 on December 21, 2023, the consumer packaged goods (CPG) sector is undergoing a transformation led by digital platforms and personalised nutrition, which can contribute to the bioplastic packaging industry revenue. The sector, valued at about USD 11.49 trillion in early 2022, is projected to grow at 5% annually, reaching USD 18.94 trillion by 2031. There is an ongoing trend towards healthier, more functional products, such as superfoods, adaptogens, and personalised dietary options driven by AI tools. These factors can boost the demand for bioplastic packaging which supports the growing consumer goods market by offering sustainable packaging options.

The construction sector remains influenced by sustainability goals and the push towards eco-friendly building materials. Growth of the bioplastic packaging industry continues in urban regions with a surge in office spaces and infrastructure, particularly in cities like Arlington, Virginia, fuelled by projects such as Amazon’s HQ2, which is also expected to boost the growth of bioplastic packaging. 

Renewable resources and growing consumer awareness are strengthening the market dynamics in the bioplastics packaging market.

• Bioplastic packaging offers significant environmental benefits by reducing plastic waste.
• Bioplastics are derived from renewable resources, making them sustainable alternatives.
• Growing consumer awareness about environmental issues boosts demand for bioplastic packaging.
• Government regulations and policies support the adoption of bioplastic materials and boost the demand of bioplastic packaging market.
• Technological advancements in bioplastic production improve product quality and cost-efficiency.

High production costs and limited performance compared to conventional plastics are some of the prominent challenges of the market.

• High production costs of bioplastics compared to traditional plastics hinder market growth.
• Bioplastics may have limited performance characteristics compared to conventional plastics.
• Recycling challenges and lack of infrastructure for bioplastic waste management affect market expansion.
• Availability and supply of feedstock materials can impact bioplastic production as well as bioplastic packaging demand forecast.
• Market penetration is limited by competition from conventional plastics and lack of awareness.

Development of new bioplastic materials and partnerships with packaging companies may offer new growth opportunities in the market.

• Development of new bioplastic materials with improved properties opens new market segments.
• Partnerships with packaging companies can accelerate the adoption of bioplastic packaging, enhancing bioplastic packaging market value. 
• Increasing demand for sustainable packaging solutions drives market growth.
• Regulatory support for reducing plastic waste and promoting sustainability boosts the bioplastic market.

Bioplastic Packaging Industry Segmentations

Based on material, the market is segmented into polyethylene (PE), polylactic acid (PLA), polyamides (PA), polytrimethylene terephthalate (PTT), starch blends, cellulose films, polypropylene (PP), and polyhydroxyalkanoates (PHA). On the basis of product type, the bioplastic packaging market segmentation includes rigid plastic packaging and flexible packaging.

By source, the market is bifurcated into GMO and non-GMO. On the basis of end uses, the market is categorised into packaging, fibres, automotive and transportation, consumer goods, agricultural goods, industrial goods (including electrical and electronics), and building and construction, among others. The major regional markets for bioplastic packaging include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Bioplastic Packaging Market Share by Material

Starch blends are widely used as raw materials in bioplastic packaging solutions. Starch blend bioplastics have excellent tensile strength and heat tolerance and are cost-effective and biodegradable, which can increase bioplastic packaging market opportunities. Due to their properties like low toxicity and biocompatibility, such solutions find wide usage in the medical and food and beverage sectors.

In the forecast period, polyhydroxyalkanoates (PHA) bioplastics are expected to witness an increased demand as they are made from microorganisms such as fungi, algae, and bacteria. Such plastics can be moulded in diverse forms and shapes, which is likely to surge their utilisation in the consumer goods and packaging sectors.

Bioplastic Packaging Market Regional Analysis

Europe represents a substantial bioplastic packaging market share due to the increasing focus by various governments to reduce greenhouse gas emissions. France and Italy are expected to exhibit CAGR of 12.6% and 11.3% in the forecast period. With growing energy costs and the surging attempts to reduce reliance on fossil fuels, the production of bioplastic packaging solutions is significantly expanding in the region. Increasing research and development activities by key players aimed at developing bioplastic packaging solutions from innovative raw materials are likely to further aid the market in the forecast period.

The introduction of stringent government policies aimed at eliminating the usage of single-use plastics and combating growing landfill waste issues in the Asia Pacific and North America is anticipated to fuel the bioplastic packaging market expansion in upcoming years. The Asia Pacific region is expected to have a CAGR of 18.6% in the forecast period. Countries like India, China, and Australia are expected to exhibit CAGRs of 19.8%, 17.8%, and 12.6% between 2024 and 2032.

Competitive Landscape

Arkema S.A is a prominent manufacturer of speciality materials, including coating and adhesive solutions, advanced materials, and intermediates. Established in 2004, the company aims to develop sustainable and innovative materials required by advanced applications. Its products and solutions are widely utilised in several sectors, including mining, paints and coatings, and oil and gas, among others.

Eastman Chemical Co., headquartered in Tennessee, the United States, is a prominent speciality materials company. Since its establishment in 1920, the company has focused on providing innovative, safe, and sustainable solutions to customers. Its products are used in the consumer durables, transportation, and construction sectors, among others.

Corbion N.V. is a leading provider of lactic acid and its derivatives, functional enzyme blends, algae ingredients, and minerals, among others. The company also offers its advanced preservation and fermentation technologies to support customers in the personal care, food and beverages, bioplastics, and medical devices sectors.

Other bioplastic packaging market players include NatureWorks LLC, Novamont S.p.A., BASF SE, Mitsubishi Chemical Corporation, Braskem S.A., Danimer Scientific, Inc., and SECOS Group Limited, among others.

Key factors impacting the price of bioplastic packaging.

Raw Material Costs

The price of feedstock used to produce bioplastics, such as corn, sugarcane, or potato starch, significantly influences the overall cost. Any fluctuations in agricultural production, climate conditions, or competition for these crops (especially for food or fuel) can affect raw material prices and, in turn, the cost of bioplastic packaging.

Production and Processing Costs

Bioplastics typically involve more complex manufacturing processes compared to traditional plastics. As technology improves and economies of scale are achieved, production costs may decrease, but currently, these costs play a large role in price determination, impacting bioplastic packaging market revenue.

Crude Oil Prices

Although bioplastics are derived from renewable resources, the market is indirectly affected by crude oil prices. Traditional plastics are oil-based, so when crude oil prices drop, conventional plastic packaging becomes cheaper, affecting the competitive pricing of bioplastics.

Supply Chain and Logistics

The global supply chain plays a crucial role in pricing. Disruptions in the supply chain, like delays, shipping costs, or logistical issues, can increase the cost of bioplastic packaging.

Government Policies and Subsidies

Government incentives, such as subsidies for sustainable packaging solutions, tax benefits, or carbon credits, can reduce costs for manufacturers, influencing the overall price of bioplastic packaging. Conversely, the absence of such policies can drive up prices in certain regions.

Market Demand and Economies of Scale

Higher demand for bioplastics can lead to greater production volumes, which helps in achieving economies of scale and reducing costs. However, in periods of low demand, prices in the bioplastic packaging market may remain high due to the relatively lower scale of bioplastic production compared to conventional plastics.