EUROPE BIODEGRADABLE FOODSERVICE DISPOSABLE MARKET ANALYSIS

Europe biodegradable foodservice disposable market was valued at US$ 1,426.5 Million in 2022, and is expected to exhibit a CAGR of 6.7%, in terms of revenue, over the forecast period (2023-2030), to reach US$ 2,389.2 Million by 2030.

According to the European study group, Europe biodegradable foodservice disposable market   is expected to witness growth, owing to  rising consumer demand for environmentally friendly products and increasing adoption of sustainable initiatives by food service providers.   Rising landfill collection taxes along increasing fossil fuel prices are expected to drive the market growth over the forecast period. The U.K. market is expected to witness growth, due to consumers' growing preference for environmentally friendly goods.

Europe Biodegradable Foodservice Disposable Market- Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic had negative effects on the global market for biodegradable foodservice disposable. Rising takeout and delivery services due to COVID-19 pandemic has led to increasing demand for biodegradable foodservice disposable such as to-go containers and cups. The COVID-19 pandemic  led to increased public awareness regarding sanitation and hygiene that rose demand for biodegradable foodservice disposable items, as these are more hygienic alternative to reusable items.

There was decrease in demand for biodegradable foodservice disposable due to the COVID-19 pandemic Disposable for the foodservice industry were not produced or distributed due to the COVID-19 pandemic. The COVID-19 pandemic decreased consumer spending as due to the obvious of the loss of jobs and the current state of the economy, people are becoming more conscientious with their money.

Europe Biodegradable Foodservice Disposable Market: Growth Drivers

Rising Usage of Various Online Platforms for Food Delivery Services

Food delivery services via various online and offline platforms has emerged as one of the largest e-commerce services. The availability of various online applications and tools has developed a new food industry platform. The availability of cash on delivery, and several payment options such as net banking and digital wallets led to increased consumer appeal.

Rapid consumer awareness to Western lifestyles is contributing to Europe's spectacular growth in food delivery segments. The digital food industries provide a wide range of services such as on-demand delivery, cloud-kitchen, thin layer, full stack, restaurant and food discovery, concierge, market place, and home cooked food models. Growing consumer demand for online food delivery services leads to rising demand for food service disposals such as trays, glass, cartoons made of paper, or even aluminum foils. For instance, in January 2020, Lavazza Professional, launched the KLIX Eco Cup, a new recyclable and biodegradable product that is made from paper sourced from sustainably managed forests. Lavazza Professional is a manufacturer and supplier of package drinks. The product was developed in collaboration with Kotkamills, and is available in KLIX vending machines since February 2020. The water-based dispersion barrier board, which is a patented feature of the new KLIX Eco Cup, allows the cups to be recycled with other types of paper waste, just like office paper. Such innovations along with increased collaboration are expected to drive the market growth during the forecast period. The Kotkamills company's range of sustainable products includes food-safe consumer boards, ecological wood products, fully recyclable boards, water-based dispersion barriers and other related products that can replace plastics used in packaging and food service applications and are environmentally friendly, recyclable and safe to use.

Growing Travel and Tourism Industry Increases Demand for Disposable Goods

The travel and tourism industry is growing to be a huge social, economic, and cultural activity in both the residential and commercial sectors globally. Travel and tourism promotes and expands intercultural understanding, as well as economic, cultural, and social cooperation.

Rising demand for tour and travel disposables is expected to drive the market growth, as these products are the most sophisticated means of transporting food safely. Most travelers prefer ready-to-eat food as it is light and does not cause any inconvenience during long journeys. In residential areas, as well as during family outings and picnics, people bring their own food, but uses disposable containers.

Europe Biodegradable Foodservice Disposable Market: Market Restraints

Strict Government Regulations Prohibiting  Usage of Single-use Plastic Products

Plastic products have numerous advantages including easy to use, affordability, and more economical.  Majority of plastics are single-use, and thus, cannot be recycled. Plastic packaging accounts for nearly half of all plastic waste produced globally. According to Organisations for Economic Co-operation and Development a survey, 9 Mn tons of plastic are produced annually in Europe, 19% of that plastic is recycled, and the rest is dumped in landfills and the open air. Furthermore, single-use foam plastic is used in the production of food service disposables. Single-use foam plastic is used in the production of food containers, plates, bottles, and other products. The foam plastic is composed of polyurethane and polystyrene. Polyurethane and polystyrene are toxic in nature, and can cause serious health problems if consumed in large quantities.

The stringent government regulation regarding the ban of single-use plastic products impacted the manufacturer of biodegradable foodservice disposable, as the manufacturer should completely shut down their current plastic machines and business or can switch to different alternatives. This impacted all FMCG companies, as well as e-commerce, and food companies.

Europe Biodegradable Foodservice Disposable Market: Segmentation

On the basis of product type, cups & bowls segment dominated the Europe biodegradable foodservice disposable market in 2022 with around 40% of the market share, in terms of revenue, followed by plates, trays & containers, clamshells, and cutleries, respectively.

Europe dominates the market due to higher landfill disposal costs (calculated by adding landfill taxes plus landfill gate fees) along with increased awareness and plastic bans. Due to the general of the exceptional characteristics and benefits of biodegradable plastic packaging, the opportunity for new entrants is rapidly expanding. For instance, according to European bio plastics, biodegradable plastics including (Poly (lactic acid)) PLA, (polyhydroxyalkanoates) PHA, starch blends, and others, accounted for 55.5% (more than one million tons) of global bio plastics production. The production of biodegradable plastics is expected to reach 1.33 million by 2024, owing to PHA's rapid growth rates.

Figure 1. Europe Biodegradable Foodservice Disposable Market, By Product Type, 2022

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Europe Biodegradable Foodservice Disposable Market: Regional Analysis

In Europe, the U.K. dominated the Europe biodegradable foodservice disposables market in 2022, accounting for 39% market share, in terms of revenue, followed by France and Spain, respectively.

The U.K. dominated the European region, owing to mass production of foodservice disposables, rising demand from emerging markets, and the expansion of food industries. The report's country section also includes individual market impacting factors and changes in market regulation that affect current and future market trends. New sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major indicators used to forecast the market scenario for individual countries. While providing forecast analysis of country data, the presence and availability of European brands, as well as the challenges they face due to strong or weak competition from local and domestic brands, are also considered.

Instant food is popular in the U.K. as a result of growing takeaway and street food establishments. Companies like GM Packaging Ltd., in the U.K. launched products made from bamboo and sugarcane (Bagasse) that satisfies consumer demands for dependable and stable goods with compostable cutlery such as knives, forks, spoons, and cups. Consumer awareness is expected to drive the market growth in the country. Earlier, consumers were not aware that common paper cups have a Polyethylene (PE) lining that makes it  difficult to recycle and leads to its regular disposal in landfills

Europe Biodegradable Foodservice Disposable Market: Recent Developments

• In April 2021, Pinup, launched its palatable paper cups, in Poland. These 100% biodegradable cups of tea or coffee have seeds that, when consumed, will grow a tree at the bottom of the filter.

• In May 2021, Researchers in Denmark developed a technique for using grass fibers, which they claim is "100% biodegradable," in place of the plastic to deliver food.
• In December 2020, in the U.K., Britain's, a new takeaway cup was launched that is completely plastic-free and recyclable. The cup was named ButterflyCup that does not require a separate lid, and was on display at WWT (Wildfowl & Wetlands Trust) centers throughout the U.K. The cup decomposes naturally and can be composted. It can also be recycled in the same paper recycling bin as cardboard and regular paper.
• In March 2021, Luxembourg-based Capsul'in, launched the zero impact nespresso-compatible coffee capsule that is 100% biobased, certified home compostable, and has a high oxygen barrier to preserve the coffee's flavor and aroma. The materials in the zero impact capsule are entirely plant-based. After use, the capsule can be disposed of with organic waste or put in a home compost bin.
• In November 2020, Just Peel Ltd, an East Yorkshire-based printing and marketing company, launched a line of standard-sized disposable paper cups for the beverage industry, with funding from HSBC U.K. The business acquired specialized equipment to manufacture fully branded, PE and PLA plastic-free, CE-marked pint and half-pint paper cups by using a six-figure funding package from the bank.

Figure 2. Europe Biodegradable Foodservice Disposable Market, By Country, 2022

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Europe Biodegradable Foodservice Disposable Market: Key Companies

Major Players active in the market are Biopac (U.K.) Ltd, Huhtamaki Group, Bionatic GmbH & Co. KG, I.L.P.A. S.p.A. Group, The Jim Pattison Group, GreenGood USA, Gold Plast S.p.A, Vegware, Eco Guardian, and Bunzl plc

*Definition: Biodegradable foodservice disposable is used for packaging of the food products. These products are biodegradable that degrade under a certain period of time after disposal in the environment. Foodservice disposable products serve greater ease of packaging the food with hygiene and cleanliness. These product are developed in response to the rising awareness regarding the negative impact of conventional plastics in the environment. Biodegradable foodservice disposable products can be classified into plates, trays & containers, clamshells, cups & bowls, and cutleries.