Biodegradable Paper and Plastic Packaging Market size value is anticipated to exceed USD 5.5 billion by 2030, as per a new research report announced by Global Market Insights Inc.
Growing environmental concerns about plastic pollution will drive the industry growth in the coming years. The demand for sustainable alternatives for product packaging across various industries has increased significantly in recent years. This is due to the rising production of disposable and single-use plastic products, particularly in underdeveloped countries of Asia and Africa, with ineffective or nonexistent garbage collection systems. Many companies are shifting to sustainable biodegradable plastic and paper alternatives for their product packaging since they are cost-effective and improve the brand image.
Lack of adequate technologies for product development may hinder market expansion
Even though there are constant innovations in the field, package designers are still lacking 100% sustainable alternatives. The lack of sufficient technologies is restricting the progress of the biodegradable paper and plastic packaging industry. Although, it is highly expected that in the coming years, the market participants will be driven to develop cutting-edge products and technology as a result of growing consumer awareness about environmentally friendly initiatives.
Wide usage of cellulose-based plastic for food packaging
In terms of type, cellulose-based plastics segment is estimated to register a CAGR of over 11.5% over the next eight years and is expected to amass over USD 350 Million by 2030. Due to the beneficial characteristics of cellulose-based plastics, such as low permeability to air, oils, greases, germs, and water, it is widely used for food packaging application. This helps in preventing contamination and extend the lifespan of food products. Focus on producing biodegradable goods that can replace petroleum-based plastics and lessen their environmental effects is impelling the segment share.
Replacement of single-use plastic with biodegradable plastic to augment market outlook
Based on material, the plastic category accounted for over 60% share in biodegradable paper and plastic packaging market in 2021 and will maintain a sizable share in the industry through 2030. Food and drinks are frequently packaged in single-use plastic which is now being replaced by biodegradable plastic. The usage of biodegradable polymers for packing fruits and vegetables as well as other food products to maintain their freshness, flavor, and natural essence is powering the industry expansion.
Browse key industry insights spread across 350 pages with 402 market data tables & 31 figures & charts from the report, “Biodegradable Paper and Plastic Packaging Market Size By Type (Starch Based Plastic, Cellulose Based Plastic, Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA)), By Material (Paper, Plastic), By End-user (Food and Beverage, Catering Service Wares, Personal and Home Care, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022–2030”, in detail along with the table of contents:
Growing demand for personal and home care products to supplement business landscape
With regards to end-user, biodegradable paper and plastic packaging market from personal and home care segment contributed over USD 250 million in 2021 and is likely to hold over 11.5% revenue share by 2030. Concerns over naturally non-degradable packaging materials have increased among consumers as well as manufacturers in the personal and home care sector. Effective solutions are required for the well-known companies to maintain their market position while being ecologically friendly. The developing personal & home care industry will increase the requirement for packaging, which will boost the demand for biodegradable paper & plastic packaging solutions.
MEA to surface as a promising ground for the market trends
The biodegradable paper and plastic packaging market in the MEA is predicted to grow at a CAGR exceeding 9.5% through 2030, owing to the expanding applications of biodegradable packaging materials in the personal care and consumer goods verticals. The number of environmentally conscious consumers turning away from plastic packaging has been increasing substantially. Growing number of CPG (consumer packaged goods) packaging design companies moving towards sustainable practices will positively transform the industry dynamics in the MEA.
Strategic partnerships and product launches to define competitive landscape of the market
WestRock Company, Bemis Manufacturing Company, Rocktenn, BASF SE, Clearwater Paper Corporation, Mondi, International Paper Company, Tetra Pak International SA, Riverside Paper Co. Inc., SmartSolve Industries, DS Smith, and others are the top contenders in global biodegradable paper and plastic packaging market. These companies are expanding their operations through joint ventures and acquisitions, introducing new products, and using cutting-edge techniques to emerge as prominent competitors. For instance, in June 2022, industrial adhesives expert BASF, along with packaging equipment OEM Bobst, barrier films expert Evertis, and a European recycling company called Sulayr, collaborated to introduce a close-loop recycling model for multilayer packaging based on polyethylene terephthalate (PET) intending to make a significant contribution to the future of the packaging industry.