by The Biodegradable Packaging Market is estimated to be valued at US$ 12,109.2 Mn in 2023 and is expected to exhibit a CAGR of 20.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biodegradable packaging includes packaging materials that can be decomposed by microorganisms within a short span. These materials are derived from renewable sources such as plants and animals. Advantages of biodegradable packaging include lower environmental impact, reduction of landfill waste, and use of renewable resources. With growing concerns regarding environmental sustainability, biodegradable packaging provides a viable alternative to conventional plastic packaging.
Market key trends:
One of the major trends driving the biodegradable packaging market is the shift toward eco-friendly packaging owing to rising environmental concerns. Stringent government regulations aimed at curbing plastic usage and promoting sustainable packaging is also fueling market growth. Many brands and retailers are adopting biodegradable packaging to appeal to environmentally conscious consumers. Technological advancements facilitating mass production of biodegradable materials at affordable costs is another factor augmenting the market expansion. Additionally, biodegradable packaging finds increased usage in food and beverage industry due to its moisture barrier properties and shelf life extension of products.
Porter’s Analysis
Threat of new entrants: The Biodegradable Packaging Market Growth requires high initial capital investment and technical expertise which creates high entry barriers for new players.
Bargaining power of buyers: Buyers have high bargaining power due to availability of various product alternatives. They can negotiate on price and demand better services from existing players.
Bargaining power of suppliers: A few companies dominate the supply market which provides them power to influence prices. However, availability of substitutes balances their power.
Threat of new substitutes: Growing focus on sustainability fosters innovations in alternative materials which can replace conventional plastics over time.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through quality products, pricing strategies and expansion.
SWOT Analysis
Strengths: Biodegradable materials have less environmental impact. They assist companies in achieving sustainability targets.
Weaknesses: Higher costs than conventional plastics. Limited applications and processing capabilities.
Opportunities: Growing consumer demand for eco-friendly options. Stringent regulations against single-use plastics boost sales.
Threats: Changes in waste management infrastructure hamper large-scale adoption. Alternative biopolymers challenge market position.
Key Takeaways
The global biodegradable packaging market is expected to witness high growth, exhibiting CAGR of 20.8% over the forecast period, due to increasing regulations against single-use plastics. Government bans and levies in countries like India promote the shift towards sustainable options.
Regional analysis – Europe dominates currently due to early adoption of biodegradability standards. However, the Asia Pacific region is likely to emerge as the fastest growing market owing to rising environmental concerns and strict policies in India and China. Growing food and pharmaceutical industries also drive the regional demand.
Key players operating in the biodegradable packaging market are BASF SE, Smurfit Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation, Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited, and International Corp. Major players are investing in R&D to incorporate waste paper, plant-based materials and biopolymers for a wider range of applications. Partnerships with local companies help expand their geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
