BIODEGRADABLE PACKAGING MARKET ANALYSIS

Biodegradable Packaging Market Size and Trends

The biodegradable packaging market is estimated to be valued at USD 111.55 Bn in 2024 and is expected to reach USD 167.52 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6% from 2024 to 2031.

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The market trend in biodegradable packaging is positive driven by rising environmental concerns and regulations against single-use plastics. There is growing consumer demand for eco-friendly packaging which has encouraged brands and retailers to shift towards sustainable materials. Governments across regions have implemented bans or taxes on plastic packaging to reduce waste. Manufacturers are continuously innovating and developing new biodegradable alternatives made from plant-based sources like paper, starch, and cellulose. Increased R&D investment is expected to make biodegradable options more affordable and accessible to the mass market.

Rising Concerns about Plastic Pollution

 With growing awareness about the negative impact of plastics on the environment, there is increasing concern among citizens and governments worldwide about plastic pollution. The growing plastic pollution is expected to drive the market growth. For instance, according to data published by the UN Environment Programme in 2023, every year 19-23 million tons of plastic waste leaks into aquatic ecosystems, polluting lakes, rivers, and seas. Tons of plastic end up in landfills or streams and make their way to oceans each year. Various studies have highlighted how plastics have contaminated water bodies and are negatively impacting wildlife as well. Animals like fish, birds, and turtles often mistake plastic for food which leads to their death. Images of whales and fish with stomach full of plastic have brought global attention to this issue.  The concerns are further aggravated by the fact that most conventional plastics are not biodegradable and can persist in the environment for hundreds of years. They continue breaking down into micro plastics but never fully decompose. This means the plastic pollution problem will continue worsening for generations to come unless urgent action is taken. Many countries and local governments have now imposed bans on single-use plastic items like straws, cutlery and grocery bags. Major recycling and waste management initiatives are also being implemented with a target to boost plastic recycling and ensure plastic waste is properly disposed and does not end up in the environment. 

The food processing and food service industries extensively utilize various forms of plastic and plastic-based packaging materials like bottles, containers, lids, straws, cutlery, and wrappers for their diverse product range. However, conventional plastic packaging poses serious waste management issues as most of it is not recyclable and ends up in landfills. There is also growing unease about toxic chemicals from plastic food packaging leaching into food and beverages which can pose health risks on consumption.