Bioplastic Packaging Market

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The Global Bioplastic Packaging Market is valued at in 2021 and is projected to reach a value of by 2028 at a CAGR (Compound Annual Growth Rate) of 17.55% over the forecast period.

Bioplastics are a biodegradable group of polymers that are produced using renewable-based sources. They are being deemed sturdy materials that will soon replace conventional petroleum-based plastics. The global Bioplastic Packaging market is expected to grow significantly during the forecast period owing to increasing renewable and bio-based consumption and demand from the flexible packaging industry. Additionally, bioplastics have incredible properties, such as contributing a smaller carbon footprint, and they also degrade faster than conventional plastics. Increasing demand from the consumer goods sector and increasing government initiatives will add to sustainable market growth.

Studies have indicated that bio-bags and bio-based plastics have a higher tensile strength and are eco-friendly. They do not cause harm to the environment during their degradation process. Expanding compositing infrastructure that leads to reducing landfill is expected to increase the footprint of the global Bioplastic Packaging market during the forecast period. For instance, the U.S. 2030 Food Loss and Waste Reduction Goal were set up to increase the collection of food leftover and other organic wastes for producing packaging solutions. Increasing consumer desire for organic and natural polymers within the food packaging industry is expected to drive the adoption rate of Bioplastic Packaging toward a higher value.

The prominent food and drinks sector is expected to give rise to the global Bioplastic Packaging market during the forecast period. Sustainability is being touted as the new focal point among consumers, increasing bioplastics' popularity. Prominent players in the market are catching on the trend and expanding their production capabilities to meet a wide range of demands. In July 2021, ALPLA, a worldwide leader in packaging solutions, announced that they were acquiring a significant investment in Panara A.S. of Slovakia, a research and development firm dedicated to generating 100% renewable bioplastic compounds. These factors are expected to widen the global Bioplastic Packaging markets scope.

Increased focus on sustainability and recycling activities and rising consumer awareness are expected to widen the global markets footprint. Expanding utilization of bioplastics within various end-use industries and economies will further increase the global market growth. A significant challenge in manufacturing bioplastics from agricultural raw materials is expected to cause hindrances to the growth trajectory of the global bioplastics packaging market. Aside from various health issues, the complex techniques required for separating bioplastic components from disposal sites will further limit the market growth.

Economic Insights

In 2023, a global recession is predicted to occur due to several simultaneous rate increases. To combat inflation, central banks worldwide are raising interest rates. It is anticipated that a spate of financial crises in emerging and developing nations will be the leading cause of poor economic health. When Russia took Crimea from Ukraine in February 2014, the current conflict between Russia and Ukraine erupted. For the first time in eight years, fighting broke out in 2014; it subsided after naval incidents, cyber warfare, and increased political tensions. Many academics and international governing bodies had long anticipated that Russia would invade Ukraine in the style of a postmodern war described by the 21st century.

Top Market Trends

1. Rising Government Support: Various government bodies are increasing their support towards banning single-use plastics products. Government bodies are recognizing the integration of bioplastics as a viable solution for traditional and petrochemical-based plastic products. Studies have indicated a significant increase in revenue where Bioplastic Packaging is considered. Increasing awareness among the global population is further expected to increase support for these policies, which is expected to propel the growth of the global Bioplastic Packaging market among the developing economies.

2. Increased Adoption of Packaging Within F&B Applications: The food and beverage sector is expected to be a vital promotor of Bioplastic Packaging solutions. Prominent manufacturers of food and beverages are increasing owing to a rising aversion to plastic packaging, leading to a higher risk of contamination. Consumers positively embrace the rising adoption of sustainable packaging options due to increasing consumer awareness. F&B manufacturers are placing an increased emphasis on packaging solutions, leading to increased product sales.

3. Overarching Issue of Climate Change: The global population is dealing with worsening climate change and its effects. Studies have indicated a scarcity of fossil resources in the future, which is expected to drive the growth of the global Bioplastic Packaging market. Stringent government regulations against conventional plastics are propelling the growth of the Bioplastic Packaging market.

4. Increased Adoption of Bioplastics Within Emerging Economies: Emerging economies are widely choosing Bioplastic Packaging solutions due to their benefits and supportive consumer base. For instance, the environment ministry of India announced in August 2021 that single-use plastics would be banned completely from the country beginning in July 2022. According to the European Bioplastics (Association of Bioplastics), the global bioplastics capacity will increase from 2.11 million metric tons in 2020 to 2.7 million metric tons in 2025.

Market Segmentation

The global Bioplastic Packaging market can be categorized on the following: Material, Type, Application, and Regions. Based on material, the market can be categorized into biodegradable and non-biodegradable. By type, the market can be segmented across flexible and rigid. In terms of application, the market can be fragmented across food & beverages, consumer goods, cosmetic & personal care, pharmaceuticals, and others. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Material

Biodegradable Materials to Register Largest Market Share While Non-Biodegradable Materials to Grow with the Fastest CAGR

Biodegradable materials are expected to occupy the largest market share in the global Bioplastic Packaging market during the forecast period. Factors include rising demand for bio-based plastics within various end-use industries and adding availability of various bio-plastics, including polylactic acid, starch blends, PBAT, PBS, PHA, polycaprolactone, and cellulose acetate will add to the sustainable segmental growth. The rising popularity of starch-based plastics is often produced from naturally derived resources such as potato, tapioca, wheat, rice, and corn. The abundant availability of these resources is expected to contribute to the segments value. Non-biodegradable materials will grow with the fastest growing CAGR during the forecast period owing to various applications in packaging within transportation, agriculture, electronics, and textiles.

Based on Type

Flexible Packaging Materials to Dominate Market Owing to Increasing Developments in Bioplastic Technologies

The segment about flexible packaging is expected to drive the largest market revenue in the segmental growth. Factors such as increased developments of bioplastic technologies, rising use cases for case-ready packaging, and improved packaging practices are expected to contribute to the flexible packaging segment. Additionally, increased demand for flexible packaging from the food and beverage sector, especially for snacks and beverages, is expected to add a higher value for the segment. Lifestyle changes of consumers and increasing modern retail trade practices will increase the footprint of flexible packaging. Rigid packaging is expected to grow with the fastest growing CAGR during the forecast period owing to rising consumption of consumer electronic products such as televisions, laptops, and monitors.

Based on Application

Food & Beverage to Capture Largest Revenue Owing to Rising Popularity of Quick-Service Restaurants

Demand from the F&B sectors due to the rising popularity of QSRs and increased demand from prominent manufacturers for increasing production capacity will add to the segmental value. Additionally, the increased presence of nutritional food combined with various government initiatives for regulating the integration of polymers in food packaging applications will propel the growth of the F&B segment. Studies have indicated that Bioplastic Packaging practices are gaining immense popularity for manufacturing bottles, jars, and containers. They are extremely durable, disposable, and have higher transparency and gloss. These factors are expected to add to the segmental value. Cosmetics and personal care products are expected to grow at the fastest growing CAGR during the forecast period owing to rising awareness among consumers towards paying attention to their appearances.

Based on Region

Europe to Hold Largest Market Value Owing to Increasing Presence of Stringent Environmentally Friendly Laws

The global Bioplastic Packaging market is expected to be dominated by the European region owing to the rising number of laws regulating environmentally friendly measures and rising concerns among the general population. Various government initiatives, including the UEs decision to minimize the overall consumption of single-use plastic products, are expected to increase the value of the European Bioplastic Packaging market. For instance, in 2019, most of the EU parliament voted to ban single-use plastic products such as cutlery and straw to avoid spoiling beaches and polluting oceans. Studies have further indicated that a growing consensus of consumers is favoring bioplastics within everyday applications, including refuge bags, shopping bags, loose packaging, agricultural mulch films, and bottles.

Asia Pacific to grow with the fastest growing CAGR during the forecast period owing to increased utilization of bioplastic for industrial packaging of automobile parts, dust covers, and commercial applications. Additionally, the region is expected to be the breeding ground for consumers who are increasingly aware of the environment, which will fuel the markets size.

Competitive Landscape

The global Bioplastic Packaging industry is expected to grow at a competitive pace due to the presence of numerous players. The dominance of certain players in the industry is expected to grow due to continuous innovations and an expanding product portfolio. Additionally, rapid investments within their R&D departments are expected to create rapid product developments and opportunities for the global Bioplastic Packaging market to flourish.

The key players in the global Bioplastic Packaging market include - Amcor PLC (Australia) among others.

Recent Market Developments:

· July 2022: Taghleef Industries announced they collaborated with the Emirates Environmental Group to protect the environment and develop a sustainable community within the Middle East. The EEE Group is a group of professionals that work together to protect the environment through various educational and action programs in the community.

· July 2022: Various applications were added to the Terratek BD portfolio by GreenDot Bioplastics, a market leader in developing and producing bioplastic materials. The increased selection of film extrusion, thermoforming, and injection molding is in line with GreenDots values for addressing the rising sustainability of brand owners.

Segmentation of the Global Bioplastic Packaging Market