Biodegradable Packaging Market Report

In the current scenario, bagasse is getting noticed due to its manufacturing process and aftereffects on the environment. Thus, bagasse can be considered the leading segment for biodegradable products. Bagasse is nothing but the pulpy, dry remnant of crushed sorghum or sugarcane. The use of bagasse is commonly done in the manufacturing of serving elements and food packages. Also, the prime reason for its attraction is that it is 100% biodegradable and has zero negative effects on the environment. After continuous research, bagasse can also be used for microwaved and frozen products.

Also, the demand for bagasse has been increasing due to the various governments, such as India, the United States, the United Kingdom, and France, which have banned the use of single-use plastic, which has greatly impacted the market for biodegradable packaging. Also, the demand is driven by the rising awareness of landfills due to packaging waste. With the help of sustainable packaging, the rising number of landfills can be reduced. Compostable packaging is designed in such a way that it gets biodegraded naturally, which shows a signal of an eco-friendly solution. Thus, the market for biodegradable packaging has enough potential to reduce landfills and attract customers to a sustainable option.

The key concern regarding biodegradable packaging is that the market for biodegradable packaging may get hampered due to the increasing consumption of recycled packaging due to sustainability concerns. The problem that can be faced by biodegradable packaging is that not all biodegradable materials are fully recycled; this acts as a restraining factor for the market. Also, the move to ban single-use plastic and encourage customers to choose biodegradable packaging alternatives is undoubtedly a unique one, but due to this, the overall market potential will be hampered due to the high cost associated with the making and recycling of biodegradable packaging materials. Thus, due to the affordability of biodegradable packaging options, various end-users face significant difficulty. Also, the problem faced by various manufacturers is a lack of technology for producing biodegradable packaging. Thus, limited manufacturing advances and technologies limit the growth of the biodegradable packaging solution.

In March 2022, Mondi accelerated sustainable growth plans with a €280 million investment in Corrugated Packaging. The investment was made across four countries to boost production and serve customers more efficiently. This included approximately €185 million across its central and eastern European Corrugated Solutions plant network and €95 million at Mondi Świecie’s containerboard mill in Poland. These investments demonstrated Mondi's commitment to its customers, its people, and responsible and sustainable production. In January 2022, Smurfit Kappa announced a $33 million investment in Fortaleza, Brazil. The investment aimed to expand the capacity of its plant in Fortaleza to meet the growing demand for innovative and sustainable packaging. The expansion, which included the installation of a new corrugator, significantly extended the plant's Shelf Ready Packaging capability for FMCG customers in various sectors, including fresh fruit, home appliances, and pharmaceuticals. 

North America, especially the United States, can be considered a lucrative option due to rising packaging waste and municipal solid waste. According to the data of the United States Environmental Protection Agency, 80 million metric tons of packaging waste is generated every year, which is recognized by various companies and has integrated the option of biodegradable packaging. Thus, due to rising packaging waste, biodegradable packaging may expect a boom in the United States. Also, according to the data of Environment America, a total of 12% of global municipal solid waste (MSW) is generated by the United States, despite having 4% of the global population.

Thus, due to all these factors, North America can be considered a lucrative market. Also, the Asia Pacific market is considered a promising market as the plastic waste generation in India is forecasted to grow in the coming 10 years. As of 2021, the plastic waste generation was 17.5 million metric tons, which is forecast to increase to 31.40 million metric tons by 2031, furthermore, it is projected to reach the mark of 55 million tons by 2041. Thus, the increasing plastic waste generation in India is providing an opportunity for various manufacturers to recycle the waste into bioplastic packaging. Further, according to Invest India, the food and beverage packaging industry in India is forecasted to reach US$86 billion by 2029, which also proves Asia Pacific a promising market.