Download Sample, As a Result of The Growing Use of Plastic, Several Governments Are Looking into The Use of Biodegradable Packaging Materials
The reason behind the growth in the biodegradable packaging materials market is seen as the rising concerns of consumers regarding the environment and the actions taken by retaliatory authorities regarding the use of plastic packaging. According to Plastic Ocean International, the production of plastic has touched over 380 million tons per year, of which 50% is categorized as single-use plastic, which creates an alarming situation. Countries like the United States focus on reducing the use of single-use plastic products and aim to phase out all single-use plastic products by 2023. The aim set by the European Union is to ban single-use plastic by the end of 2030. Also, they plan to cut the use of packaging by 15% by the end of 2040. Various consumers are looking for a better and more sustainable option to reduce the use of plastic packaging and save the environment. According to World Wide Life, the demand and search for sustainable packaging have risen by 71%, and it is termed ‘Eco-Wakening’. Hence, awareness of sustainable packaging is growing among consumers, which will directly fuel the growth of the biodegradable packaging materials market.
Big Companies Opting for Biodegradable Packaging Materials Instead of Plastic Packaging
There are numerous opportunities in the biodegradable packaging materials market, according to the National Library of Medicine, there is a fall in the sale of plastic goods due to the reality that globally only 2% of packaging material is recycled, and the remaining is either burned up or ends up in water bodies or landfills, which affect the environment. Also, from above 2%, sometimes due to the complexity or due to a too-small feature, 30% of the plastic-based packaging remains unrecycled, which creates an opportunity for the biodegradable packaging materials industry due to its recyclable feature. Companies like Hindustan Unilever Limited and Coca-Cola are adopting the option of biodegradable packaging materials to meet customer expectations. Also, government initiatives to support biodegradable packaging are being put into place, which is speeding up market expansion. The trend of eco-conscious consumerism is a key factor driving the expansion of the global market for biodegradable packaging materials.
Recent Trends in the Biodegradable Packaging Materials Industry
- A growth in the adoption of compostable packaging is been analyzed.
- Innovations are been carried out to ensure product freshness and increase the shelf life of products.
- Strategic partnership and collaboration are been carried out to overcome the cost challenge.
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The Market for Biodegradable Packaging Materials Is Restricted Greatly by The Cost and Availability of Raw Materials
The challenge that is faced by various companies in the biodegradable packaging materials industry is related to the cost factor. The investment that is needed to start using biodegradable packaging materials is quite high. Also, the cost of raw materials to produce biodegradable packaging is quite high compared to the cost needed in plastic packaging. Additional issues that arise in this industry are regarding the availability of raw materials for preparing the product. The raw materials available in the market are costly due to the low demand, and due to this, the problem of constant supply of raw materials arises.
The limited availability of supply puts a hold on the whole production process and overall affects the growth of the company. Another challenge faced in the biodegradable packaging materials industry is to maintain the quality and performance of the product. Due to market expansion, maintaining uniformity in product features like durability, strength, and decomposition rate plays a crucial role. The reliability of biodegradable materials might be impacted by variations resulting from sourcing and production process variability. Additionally, different biodegradability standards and certifications confuse industries and consumers. To ensure the efficacy and dependability of biodegradable packaging materials, it is necessary to create strong industry-wide standards, standardized testing procedures, and strong quality control systems.
The limited availability of supply puts a hold on the whole production process and overall affects the growth of the company. Another challenge faced in the biodegradable packaging materials industry is to maintain the quality and performance of the product. Due to market expansion, maintaining uniformity in product features like durability, strength, and decomposition rate plays a crucial role. The reliability of biodegradable materials might be impacted by variations resulting from sourcing and production process variability. Additionally, different biodegradability standards and certifications confuse industries and consumers. To ensure the efficacy and dependability of biodegradable packaging materials, it is necessary to create strong industry-wide standards, standardized testing procedures, and strong quality control systems.
Novel Innovation in Biodegradable Packaging Materials Market Fuels the Market Expansion
In October 2023, Smurfit Kappa’s Design2Market Factory expanded across Europe after a successful first year in operation. The innovative facility, which enabled customers to test and adapt their packaging on a small scale before market launch, was replicated across Germany, Italy, Poland, and the UK. Smurfit Kappa’s multi-disciplinary team took a packaging challenge and designed a new solution that was ready to be tested in the market in just two weeks. In addition to reducing risk and turnaround time, Design2Market Factory provided customers with a sustainable packaging solution that reduced their carbon footprint and supported their recycling targets.
In October 2023, DefenAge Skincare committed to “the highest clean beauty standards,” and unveiled biodegradable packaging for its defensin-based regenerative skincare products. The use of this package from The Paper Tube Co. also supported planting new trees via the One Tree Planted non-profit project. UMF Corp. announced in October 2023 a new, fully compostable packaging for all of its PerfectCLEAN® product line. Derived from corn, the sustainable packaging was being rolled out in select products and would accompany all PerfectCLEAN products by early 2024. According to a press release, the new packaging aligned with the company’s infection prevention commitment to deliver safer environmental hygiene with less effort, less waste, a reduced carbon footprint, and less cost than traditional cleaning products and methods.
A list of companies operating in the Biodegradable Packaging Materials Market include Eco-Products, Inc., Plastic Suppliers, Inc., Amcor Limited, Kruger Inc., Smurfit Kappa Group, Biome Bioplastics Ltd., International Paper Company, Georgia-Pacific LLC, Clearwater Paper Corporation, RKW Group, Mondi Group, and NatureWorks LLC,
In October 2023, DefenAge Skincare committed to “the highest clean beauty standards,” and unveiled biodegradable packaging for its defensin-based regenerative skincare products. The use of this package from The Paper Tube Co. also supported planting new trees via the One Tree Planted non-profit project. UMF Corp. announced in October 2023 a new, fully compostable packaging for all of its PerfectCLEAN® product line. Derived from corn, the sustainable packaging was being rolled out in select products and would accompany all PerfectCLEAN products by early 2024. According to a press release, the new packaging aligned with the company’s infection prevention commitment to deliver safer environmental hygiene with less effort, less waste, a reduced carbon footprint, and less cost than traditional cleaning products and methods.
A list of companies operating in the Biodegradable Packaging Materials Market include Eco-Products, Inc., Plastic Suppliers, Inc., Amcor Limited, Kruger Inc., Smurfit Kappa Group, Biome Bioplastics Ltd., International Paper Company, Georgia-Pacific LLC, Clearwater Paper Corporation, RKW Group, Mondi Group, and NatureWorks LLC,
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India And Canada Remain Lucrative Markets Due to The Expanding Opportunities in The Biodegradable Packaging Materials Market
North America can be considered a potential market due to the new laws introduced by the U.S. Food and Drug Administration regulating plastic, paper, etc. to ensure the safety of citizens as well as promote biodegradable packaging materials or eco-friendly packaging. Also, Canada has implemented various schemes to reduce plastic waste, where Canada proposes to provide US$ 183.1 million for five years starting from 2022–23 to reduce plastic waste and promote biodegradable packaging materials. This creates a lucrative opportunity as a package of US$ 183.1 million has been announced for 5 years, which will consist of various schemes and subsidies that will support biodegradable packaging.
In the Asia-Pacific region, India can be considered a potential market, as the prediction done by Invest India shows that the packaging market in India will reach the target of US$ 204.81 billion, marking a growth of 26.7% CAGR during the period of 2020-2025. Also, in India, the packaging industry is listed as the 5th largest sector of the Indian economy; hence, the Indian market needs to be considered. According to Nekki Asia China, it is expected that the food delivery market will explode to US$ 208 Billion, which creates an opportunity for the biodegradable packaging materials market. If China integrates biodegradable packaging material in this sector, it will alone generate huge demand in the biodegradable packaging material market. In Latin America, countries like Brazil and Mexico have implemented various plastic waste reduction programs to support biodegradable packaging materials. Though the programs are run locally, they can still become a potential market.
In the Asia-Pacific region, India can be considered a potential market, as the prediction done by Invest India shows that the packaging market in India will reach the target of US$ 204.81 billion, marking a growth of 26.7% CAGR during the period of 2020-2025. Also, in India, the packaging industry is listed as the 5th largest sector of the Indian economy; hence, the Indian market needs to be considered. According to Nekki Asia China, it is expected that the food delivery market will explode to US$ 208 Billion, which creates an opportunity for the biodegradable packaging materials market. If China integrates biodegradable packaging material in this sector, it will alone generate huge demand in the biodegradable packaging material market. In Latin America, countries like Brazil and Mexico have implemented various plastic waste reduction programs to support biodegradable packaging materials. Though the programs are run locally, they can still become a potential market.
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The report provides a detailed overview of the biodegradable packaging materials market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, the Middle East, and Africa. The country-specific assessment for the biodegradable packaging materials market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the biodegradable packaging materials market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the biodegradable packaging materials market. Some key countries and regions included in the biodegradable packaging materials market report are as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Thailand, Vietnam, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Algeria, Israel, Iran, Iraq, Kenya, Ethiopia, Rest of MEA |
Biodegradable Packaging Materials Market Research Report Covers In-depth Analysis on:
- Biodegradable packaging materials market detailed segments and segment-wise market breakdown
- Biodegradable packaging materials market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in biodegradable packaging materials industry)
- Current, historical, and forthcoming 10 years market valuation in terms of biodegradable packaging materials market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Biodegradable packaging materials market demand analysis
- Biodegradable packaging materials market pricing analysis over the forecast period (by key segment and by region)
- Biodegradable packaging materials market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the biodegradable packaging materials market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the biodegradable packaging materials market
- Biodegradable packaging materials market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the biodegradable packaging materials market forecast by countries
- Mergers and acquisitions in the biodegradable packaging materials market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
Why is there a growing demand for biodegradable packaging materials?
The demand for biodegradable packaging materials is driven by increasing environmental concerns, consumer preference for sustainable products, and stricter government regulations on plastic waste management.
What challenges does the biodegradable packaging materials market face?
The challenges include higher production costs, limited raw material availability, consumer awareness, and the need for improved performance in certain applications compared to conventional packaging solutions.
What is the future outlook for biodegradable packaging materials?
The market for biodegradable packaging materials is expected to grow as environmental awareness increases, governments enforce stricter regulations on plastic use, and consumers demand more sustainable alternatives.
