July 15, 2024
Botanical Packaging Market

Botanical Packaging Market is Estimated To Witness High Growth Owing Trends Toward Eco-Friendly Packaging

The botanical packaging market is estimated to be valued at US$ 120.0 Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Botanical packaging refers to packaging materials that are created from plant-based compostable materials and decompose naturally without harming the environment. It includes packaging made from materials such as bagasse, bamboo, leaves, wood, paper and fibers. Botanical packaging offers advantages such as reducing environmental pollution, sustainability, biodegradability and carbon footprint. Its growing demand can be attributed to rising environmental concerns among consumers regarding conventional plastic packaging.

Market key trends:
One of the major trends driving the botanical packaging market growth is increasing consumer preference for eco-friendly packaging materials. Growing environmental awareness and stringent regulations regarding plastic waste disposal are compelling brand owners to adopt sustainable packaging solutions. Botanical packaging is a renewable and natural alternative to plastic packaging. As it decomposes without harming the environment, its adoption is gaining significant traction across industries like food and beverages, pharmaceuticals and personal care. Moreover, initiatives by governments and international organizations to curb plastic pollution are further propelling the demand for compostable botanical packaging worldwide.

Porter’s Analysis
Threat of new entrants: The Global Botanical Packaging Market  requires high capital investment setting up new manufacturing units, hence threat of new entrants is moderate.

Bargaining power of buyers: The bargaining power of buyers is high as there are numerous established players operating in the market providing substitutable products.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for botanical packaging such as paper, glass, plastic are abundantly available.

Threat of new substitutes: Threat of new substitutes is low as no direct substitutes are available for botanical packaging used in food and beverage industry.

Competitive rivalry: High due to presence of numerous international and domestic players.

SWOT Analysis
Strength: Botanical packaging provides sustainability benefits over conventional packaging and better brand positioning. Wide applications in food and beverage industry.

Weakness: High initial investment requirements. Requirement of technically skilled labor.

Opportunity: Increasing consumer awareness towards eco-friendly packaging. Growth in organic and natural food products market.

Threats: Fluctuations in prices of raw materials. Stringent government regulations pertaining to food contact materials.

Key Takeaways
The global botanical packaging market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing demand for sustainable packaging solutions from food and beverage industry.

Regionally, North America dominated the botanical packaging market in 2023 with over 30% market share owing to presence of major F&B players and high consumer awareness. Asia Pacific is projected to be the fastest growing market during the forecast period supported by expanding middle class population and their willingness to pay premium for innovative packaging solutions.

Key players operating in the botanical packaging market are Amcor Limited, Ball Corporation, Smurfit Kappa Group, Ardagh Group, Gerresheimer AG, DS Smith Plc, Constantia Flexibles Group, WestRock Company, Uflex Ltd., Mondi Group. These players are focusing on new product launches, partnerships and mergers to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it