Market Overview
Global
Biodegradable Packaging Market is forecasted to reach
USD 533.5 billion by the end of 2024 and grow to
USD 927.3 billion in 2033, with a
CAGR of 6.3%.
Biodegradable packaging refers to materials designed to break down naturally through the action of living organisms, primarily microbes. These materials are recyclable and eco-friendly which is sustainable for packaging purposes. This type of packaging is crafted from substances that microorganisms, like fungi, algae, and various bacteria, can easily decompose and disintegrate.
The materials used in biodegradable packaging include bioplastics, organic fibers, bubble wrap, recycled cardboard, cornstarch, seaweed, mushroom-based packaging, and other plant-derived substances. By generating a lower carbon footprint compared to conventional synthetic packaging products, biodegradable packaging contributes to the growth of the biodegradable packaging market.
The US Biodegradable Packaging Market
The US Biodegradable Packaging Market is projected to reach USD 126.1 billion by the end of 2024 and grow substantially to an expected USD 211.5 billion market by 2033 at an anticipated CAGR of 5.9 percent.
In the U.S., growing consumer awareness and supportive government regulations are expected to boost the demand for biodegradable packaging over the forecast period. It is estimated that US is anticipated to account for nearly 80% of the biodegradable packaging market in North America.
The United States Environmental Protection Agency (EPA) reports that the country produces close to 80 million metric tons of packaging waste annually.
The adoption of innovative materials like bioplastics and recycled content, regulatory support promoting eco-friendly practices, and rising demand across sectors such as food and beverage, personal care, and pharmaceuticals, are some of the key trend in the US biodegradable market.
Key Takeaways
- Market Growth: The global biodegradable packaging market is projected to grow by USD 363.8 billion, with a CAGR of 6.3%.
- Market Definition: Biodegradable Packaging is a type of packaging material that can decompose naturally in the environment through the action of living organisms, particularly microorganisms like bacteria and fungi.
- Material Analysis: Paper & Paperboard are expected to account for the largest revenue share of 60.3% based on material, by 2024.
- Packaging Format Analysis: Boxes and cartons are likely to lead the market with the highest revenue share of 27.1% based on packaging format by 2024.
- Application Analysis: Food & Beverages are predicted to dominate the market in terms of application with a significant revenue share in 2024.
- Regional Analysis: Asia-Pacific is expected to lead the global biodegradable packaging market with a market share of 33.5% by 2024.
Use Cases
- Food Packaging: Biodegradable packaging is used in the food industry to package items like fruits, vegetables, baked goods, & takeout meals. Materials like plant-based bioplastics or compostable paper are favored as they reduce environmental impact while maintaining food safety & freshness.
- E-commerce Shipping: With the rise of online shopping, biodegradable packaging materials are increasingly used for shipping products. Companies are adopting biodegradable mailers & packing peanuts made from corn starch or recycled paper to minimize plastic waste and enhance their sustainability efforts.
- Personal Care Products: Biodegradable packaging is becoming popular in the cosmetics & personal care sector. Brands are using compostable containers for products like shampoos, conditioners, & lotions, catering to environmentally conscious consumers.
- Pharmaceutical Packaging: Biodegradable packaging is used for items like over-the-counter medications and health supplements in the pharmaceutical industry.
Market Dynamic
Drivers
Growing Environmental Problems and Plastic Waste The biodegradable packaging market is influenced by increasing awareness of environmental issues related to plastic waste. Both consumers and businesses are adopting an environmentally friendly alternative as pollution, landfills, and plastic disposed into marine and terrestrial ecosystems become of increasing concern. A shift in direction toward biodegradable packaging options is desired based on a reduction in environmental marks and a standing in support of eco-friendly practices that fuel the growth in this market.
Increasing Demand from the Food and Beverage Segment
The dynamics of the biodegradable packaging market are changing with immense demand from the food and beverage sectors. Food and beverage manufacturers are in strong demand for sustainable packaging solutions due to the preferences for such options by consumers and consumer packaged goods owing to convenience and sustainability attributes. Increased applications have also been seen in biodegradable packaging for food products, takeaway containers, and beverages because it can give them shorter shelf life without quality compromise.
Restraints
Higher Costs & Quality Issues
Biodegradable packaging are not as durable as traditional plastics; thus, they are not as effective in protecting products during transport and storage which limits the growth of this market. They also tend to be more expensive to produce than regular plastic packaging. Consumers are not always willing to pay higher costs for biodegradable options, which restricts growth.
Limited Infrastructure for Recycling and Composting
Another challenge is the lack of widespread infrastructure for the proper disposal, recycling, or composting of biodegradable packaging. Many regions do not have the necessary facilities to manage biodegradable waste efficiently, reducing the environmental benefits of these materials and limiting their overall market penetration.
Opportunities
Increased Need to Protect Food Products
More and more companies turn to sustainable, recyclable paper and plastics, plant and biodegradable plastics, certified organic fabrics and materials, recycled products, and so on. These are easy to implement, and it is also biodegradable, making it a suitable solution for the replacing the use of plastics for packaging. These materials are helping to lower the ecological footprint through the use of eco-friendly substitutes for standard plastics that form the basis for the biodegradable packaging market.
Regulative Support and Government Stimulation
Some legislation and measures for biodegradable packaging are being adopted by many governments and enterprises across the world and encourage the development of biodegradable packaging. This regulatory encouragement further establishes an enabling market climate towards the establishment of the biodegradable packaging market. Organizations should access incentives, subsidies, and grants from the government to promote eco-friendly operations to increase their manufacturing and market share.
Trends
Increased Use of Plant-Based Materials
A growing trend in the biodegradable packaging market is the rising use of plant-based materials, such as cornstarch, sugarcane, and cellulose, to create sustainable packaging solutions. These materials reduce reliance on fossil fuels and offer a renewable alternative to traditional plastics, appealing to environmentally conscious consumers and businesses.
Technological Advancements in Bioplastics
The development of new and advanced bioplastics, such as Polyhydroxyalkanoates (PHA) and Polylactic Acid (PLA), is another key trend. These innovative materials are improving the functionality and durability of biodegradable packaging, making them more competitive with traditional plastic packaging while retaining their eco-friendly characteristics.
Research Scope and Analysis
By Material
Paper & paperboard are expected to lead the biodegradable packaging market with the largest market size of 60.3% in 2024 because of their renewable origin coupled with easy availability and existing cardboard supply channels. There it is for several reasons linked to sustainability such as they are biodegradable and can be recycled severally. These materials are widely used in the biodegradable packaging industry due to their qualities, which are referred to as post-industrial waste from wood pulp origin, which are recyclable, compostable, & biodegradable.
Owing to these factors, the paper material finds uses in the packaging of foods, beverages, body products, & pharmaceuticals among other products. Moreover, paper-based product manufacturing is highly developed and is much cheaper than bio-plastics – another advantage for companies wishing to switch to environmentally friendly packaging materials. There is a higher use of paperboard packaging because modern technology makes paperboard packaging more moisture-resistant and more durable than it was before.
On the other hand, global consumption of bioplastics is expected to rise at the fastest CAGR throughout the coming years since the material offers classic plastic benefits with enhancements of being environmentally friendly. It is steadily increasing its market potential due to its usability & composting prospects places it well for competition within food packaging markets and disposables.
By Packaging Format
Boxes and cartons are anticipated to dominate the biodegradable packaging market with a revenue share of 27.1% in 2024. These packaging formats are leading due to their popularity in various industries for packaging food and beverages, retail products or any other products sold on online platforms. The largest portion of them is produced from paper and paperboard, which are fully renewable, eco-friendly substances that can be recycled.
This segment is advancing because environmental problems are becoming prominent in society while applying green concepts in business and purchasing change the behavior of consumers. Since the boxes and cartons are tightly built, they offer great protection to the goods and this makes them to be useful when transporting goods over long distances without spoiling. These are in various sizes, shape and design to suit brand needs hence used by many companies as product packaging.
This is widely adopted for printing and branding which is another significant factor contributing to the dominance of boxes and cartons. These boxes have large surface areas, allowing companies to create visually appealing packaging that boosts product visibility and communicates important information. Pouches & Bags are the second most dominating segment in the market with the highest CAGR, due to their lightweight, flexible nature, and material efficiency. These are often made from paper or bio-plastics, offer convenience, and are increasingly used in sectors like food packaging, personal care, and consumer goods.
By Application
Food & Beverage as the application is expected to dominate the biodegradable packaging market with the highest revenue share in 2024, due to the growing demand for sustainable packaging solutions in response to environmental concerns and consumer preferences. Packaging materials used in this market require eco-friendly alternatives that can reduce plastic waste, and carbon footprints as food products are often consumed in large quantities.
Material like paper, paperboard, and bioplastics, are ideal for packaging food and beverages because they maintain product freshness, offer necessary durability, and comply with food safety standards. This biodegradable packaging is adopted also due to regulatory pressures on single-use plastics and rising awareness of food safety which further drives the growth of the market. The rising consumption of fast food requires biodegradable packaging due to factors like extended shelf life, ease of production, and convenience.
Fast food items including snacks, frozen meals, finger foods, drinks, and more require minimal preparation time and are typically served in ready-to-go packaging. Increasing global population, rising per capita income, and growing older people contributes to the growth of this market. On the other hand, the Personal Care & Cosmetics sector is expected to lead with high CAGR due to the increasing consumer demand for sustainable, eco-conscious products, especially in an industry known for using plastic-heavy packaging.
These biodegradable materials maintain product protection and aesthetic appeal while offering a green alternative to traditional plastic packaging.
The Biodegradable Packaging Market Report is segmented on the basis of the following
By Material
- Paper & Paperboard
- Bio-plastic
- Polylactic Acid (PLA)
- Cellulose-based
- Starch-based
- Polybutylene succinate
- Others
- Bagasse
By Packaging Format
- Boxes & Cartons
- Pouches & Bags
- Bottles & Jars
- Cans
- Trays & Clamshells
- Cups & Bowls
- Others
By Application
- Food & Beverage
- Personal Care & Cosmetics
- Pharmaceuticals
- Homecare
- Others
Regional Analysis
With high population density driving the consumption for convenient meals and beverages, the Asia Pacific region is expected to drive growth in the biodegradable packaging market
with 33.5% revenue share by 2024. Driven by growing industrialization and an increasing population, developing nations like India, China, Japan, and South Korea are likely to further expand and create demand for more biodegradable packaging materials.
This region is also prominent due to factors like rapid urbanization, rising awareness related to the environment, and strongly supportive government policies toward sustainability. Packaging plays a significant role in industries like food & beverage, personal care, & consumer goods in this region. With the expansion of these industries, there is also a rising demand for green packaging solutions that would accomplish global goals of sustainability & lessen the environmental impact of packaging materials.
Also, the fact that the population is continuously increasing while disposable incomes are gaining more and more prominence within the region speaks volumes for sustainable and eco-sensitive merchandise. All these put together alter consumer behavior and have resulted in an upward trajectory of demand within high-growth industries such as food and beverage and e-commerce, where packaging waste is a major concern.
Manufacturers in China, India, Japan, and South Korea would be more poised towards eco-friendly packaging solutions as the consumers in these regions are becoming quite conscious about the environment, which would immensely contribute towards growing the regional marketplace.
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
Key players in the biodegradable packaging market are actively working to expand their production capacities and resources to meet the increasing global demand for sustainable packaging solutions, particularly biodegradable options. This expansion is being achieved through the establishment of new manufacturing plants and facilities, enabling these companies to scale their operations and enhance their ability to serve a growing market.
In addition to capacity expansion, leading companies are adopting collaboration and joint venture strategies to strengthen their market presence and access to innovative technologies. By partnering with other firms, including suppliers, research organizations, and technology providers, these key players can enhance their product offerings and optimize their manufacturing processes. Some of the major key players in the Global Biodegradable Packaging Market are Amcor Limited, Tetra Pak International SA, BASF SE, and many others.
Some of the prominent players in the global biodegradable packaging market are
- Amcor Limited
- Ardagh Group SA
- Ball Corporation
- Braskem SA
- Cargill Incorporated
- Caraustar Industries Incorporated
- BASF SE
- Mondi Group PLC
- Reynolds Group Holding Limited
- Tetra Pak International SA
- Other Key Players
Recent Development
- In April 2024, Bpacks announced the launch of the ‘world’s first’ bark-based packaging technology, set to integrate into existing production equipment for rigid plastics and offer an alternative, low-carbon, biodegradable material.
- In January 2024, American Airlines Cargo introduced a new biodegradable packaging solution that reduces plastic waste. They did this through replacing the plastic products used during air cargo operations with biodegradable plastic products. So far, they have managed to reduce their plastic waste by more than 68 million tons, which is equal to 8.6 million water bottles.
- In October 2023, Pakka introduced India's first compostable flexible packaging, marking a significant milestone in sustainable packaging solutions. This innovative product aligns with the growing global trend towards eco-friendly alternatives to traditional packaging materials.
- In April 2022, Karat Packaging Inc. announced a joint venture agreement with Happiness Moon, Co. Ltd. (Happiness Moon) to build a new factory in Taiwan for manufacturing compostable food service products from bagasse.
- In March 2022, Mondi made an investment of US$ 285 Million in corrugated packaging to accelerate the sustainable growth plans of the company.
- In January 2022, Smurfit Kappa announced the investment of USD 33 Million in its Fortaleza plant, in Brazil, to expand its capacity to meet the growing demand for innovative and sustainable packaging.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 533.5 Bn |
| Forecast Value (2033) |
USD 927.3 Bn |
| CAGR (2024-2033) |
6.3% |
| Historical Data |
2018 – 2023 |
| The US Market Size (2024) |
USD 126.1 Bn |
| Forecast Data |
2025 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Material (Paper & Paperboard, Bio-plastic, and Bagasse), By Packaging Format (Boxes & Cartons, Pouches & Bags, Bottles & Jars, Cans, Trays & Clamshells, Cups & Bowls, and Others), By Application (Food & Beverage, Personal Care & Cosmetics, Pharmaceuticals, Homecare, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Amcor Limited, Ardagh Group SA, Ball Corporation, Braskem SA, Cargill Incorporated, Caraustar Industries Incorporated, BASF SE, Mondi Group PLC, Reynolds Group Holding Limited, Tetra Pak International SA,and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users) and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Biodegradable Packaging Market size is estimated to have a value of USD 533.5 billion in 2024 and is expected to reach USD 927.3 billion by the end of 2033.
Asia Pacific is expected to be the largest market share for the Global Biodegradable Packaging Market with a share of about 33.5 % in 2024.
Some of the major key players in the Global Biodegradable Packaging Market are Amcor Limited, Tetra Pak International SA, BASF SE, and many others.
The market is growing at a CAGR of 6.3 percent over the forecasted period.
The Global US Market size is estimated to have a value of USD 126.1 billion in 2024 and is expected to reach USD 211.5 billion by the end of 2033.