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Packaging has an important role to play in the supply chain of various products, it tends to provide protection and extend the life of any product. The conventional method of plastic packaging has many negative impacts on the environment as well as on the quality of sensitive products like food items. Moreover, such packaging materials take too long to decompose creating huge quantities of waste and subsequent soil pollution. Thus, biodegradable packaging which is eco-friendly in nature is considered an ideal solution to combat these issues.
Biodegradable, by definition, means any material which can be easily decomposed within a short time duration due to the enzymatic action of the microorganisms. The increasing applications of Biodegradable Packaging solutions can be owed to their low environmental impact. Also, the rising consumer determination to prefer environment-friendly options for sustainability along with government initiatives like a ban on plastic and emphasis on recyclability has greatly expanded the market.
The global biodegradable packaging market is rising with advanced manufacturing processes and technology used in the production of such packaging material. This aimed to improve the quality of the environment. Another factor supporting market growth is the rapid spread of awareness of consumers towards eco-friendly products and the rising consumer demand for healthy and safe food products. In recent times, the industry is gaining popularity due to the intensifying demand for recyclable materials from the various end-use industries such as pharmaceuticals, personal and home care, and food and beverages. Recently, Danone started using polylactic acid, one of the bio-polymer targeted by many industries, for the manufacturing of its yogurt cups. The Coca-Cola Company uses bio-based plastics for its Plant Bottle. The biodegradable packaging market is projected to grow at a compound annual growth rate of more than 5% by the end of the forecast period. The market can be segmented on the basis of the following segments.
The aforementioned drivers along with initiatives from various governments to prioritize the usage of biodegradable packaging have led to high market value. For instance, in April 2015, the European government decided to take action to lessen the consumption and use of plastic bags of thickness less than 50 microns. Various governments like Denmark, Germany have imposed heavy taxes on plastic packaging while others like Italy have completely banned its distribution. However, the lack of availability and supply of bio-plastic and other related raw materials for the production of biodegradable packaging somewhat hampers the growth of the market.
Paper packaging holds the maximum share among the various materials owing to rising adoption and excessive use of corrugated, and flexible materials for personal/homecare packaging applications. Based on applications, Food packaging accounted for approximately 70% share of the market in 2019 and is expected to dominate the market during the forecast period. The surge in demand from consumer ends due to improved features, cost-effectiveness, and convenience in the products has greatly impacted the market size. Moreover, food packaging industries are targeting bio-plastics made of starch or PLA for their packaging material as a healthier and better alternative.
The leading contributor to the revenues of the global biodegradable packaging market in North America. This can be attributed to rising awareness among consumers and favorable government regulations. Moreover, there is huge demand from international food chains like McDonald’s and many others which are planning to use 100% sustainable packaging by the end of the forecast period.
Developing a prominent product for the sustainability of environment requires the minimal chances of uncertainty and maximum production which can help this industry to flourish. Several key players are indulged in the development of products including Amcor, BASF SE, Clearwater Paper Corporation, International Corp., Kruger Inc., Mondi Group, Novamont S.P.A., Reynolds Group Holding Limited, Rocktenn, Sealed Air Corporation, Smurfit Kappa Group, and Tetra Pak International SA among others.
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