The biodegradable packaging market is estimated to be valued at USD 118.48 Bn in 2025 and is expected to reach USD 180.63 Bn by 2032, growing at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2032.
The biodegradable packaging market demand is expanding quickly as consumers demand sustainable solutions and environmental concerns rise. Governments are enforcing stricter regulations on plastic use, while companies actively commit to eco-friendly practices, driving widespread adoption. Innovations in bioplastic materials improve product performance, positioning biodegradable packaging as a practical alternative to traditional plastics. Increasing awareness about plastic waste reduction and the push for responsible packaging solutions are accelerating market growth worldwide, especially in regions that prioritize sustainability and green initiatives.
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Plastic holds the largest market share of 62.1% in 2025. Growing environmental concerns and the need to reduce plastic pollution are driving demand for plastic alternatives in the biodegradable packaging market. Governments enforce strict regulations on single-use packaging, motivating manufacturers to adopt sustainable options. Consumers increasingly prefer eco-friendly packaging, which pushes brands to develop innovative biodegradable materials. Technological advancements enhance the quality and affordability of bioplastics, boosting their appeal. These combined factors actively drive the market to replace conventional plastics with biodegradable solutions.
For instance, in July 2025, Karnataka Milk Federation (KMF) introduced eco-friendly, biodegradable sachets for its Nandini milk brand in Bengaluru. These new packs resemble traditional plastic but are much more environmentally friendly.
Food expected to hold largest market share of 42.1% in 2025. The food sector actively drives the biodegradable packaging market as companies respond to growing consumer demand for eco-friendly options. Food producers address health and safety concerns by adopting packaging that maintains freshness while protecting the environment. Regulatory pressures motivate the shift toward sustainable materials. Innovations improve the durability and functionality of biodegradable packaging, making it suitable for various food products. These factors collectively accelerate the transition from traditional packaging to environmentally conscious alternatives within the food industry.
In July 2025, Preferred Packaging launched GreenStream multi-compartment fibre trays for packaged meals. Designed for microwave, freezer, and oven use, the trays feature a peelable liner that makes composting or recycling easier by minimizing food residue.
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North America dominates the overall market with an estimated share of 36.0% in 2025. Increasing environmental regulations and strong consumer demand for sustainable products are shaping North America’s biodegradable packaging market. Companies in the region prioritize eco-friendly packaging to comply with regulations and meet changing market needs. Technological advancements improve the performance and cost-effectiveness of biodegradable materials, promoting broader adoption. Industry players actively collaborate with government initiatives to support innovation and certification. Together, these trends drive the growth and evolution of the biodegradable packaging industry throughout North America. For instance, in December 2024, Earthrings launched in Elgin, Illinois, aiming to revolutionize beverage packaging with a sustainable alternative to traditional plastic. The company is now actively shipping its product to breweries across the US, Canada, and the Caribbean.
Increasing environmental awareness and government initiatives promoting sustainability are driving rapid growth in the Asia Pacific biodegradable packaging market. Rising urbanization and the expansion of food and beverage industries boost demand for eco-friendly packaging solutions. Manufacturers actively invest in advanced biodegradable materials to improve product quality and comply with regulations. Consumers’ growing preference for green products motivates companies to adopt biodegradable packaging. Together, these factors are actively transforming the packaging industry throughout the Asia Pacific region.
Heightened environmental concerns and strict regulations aimed at reducing plastic waste are driving growth in the United States biodegradable packaging market. Businesses are actively adopting sustainable packaging to satisfy consumer demands and adhere to government policies. Innovations in biodegradable materials enhance packaging durability and functionality, positioning them as effective alternatives to conventional plastics. Additionally, increasing awareness of corporate responsibility motivates companies to implement eco-friendly solutions. Together, these factors actively accelerate the transition to biodegradable packaging across the U.S. market. For instance, in February 2024, US packaging provider SEE (formerly Sealed Air) has launched a compostable protein packaging tray, marking a major shift in fresh meat packaging. The company unveiled the tray last month at the IPPE event in Atlanta as manufacturers seek alternatives to Expanded Polystyrene (EPS).
Government policies and environmental initiatives actively push India’s biodegradable packaging market share to evolve by reducing plastic usage. Consumers increasingly demand eco-friendly packaging across sectors like food and retail due to rising sustainability awareness. Local manufacturers develop cost-effective biodegradable materials that meet quality standards. Businesses collaborate with regulatory bodies to promote innovation and support green packaging solutions. Together, these trends drive the growth and wider adoption of biodegradable packaging throughout India. For instance, Global beer brand Corona has launched a 100% biodegradable and compostable six-pack made entirely from barley straw in India. This new circular packaging supports Corona’s commitment to protecting and preserving nature.
The market is increasingly shifting towards plant-derived polymers such as PLA and starch blends. These materials offer renewable alternatives to petrochemical plastics and appeal to eco-conscious consumers. Innovations focus on enhancing their mechanical properties and biodegradation speed, making them suitable for diverse packaging needs while aligning with sustainability goals.
Biodegradable packaging is evolving beyond basic containment to include smart functionalities like freshness indicators and antimicrobial coatings. This trend addresses consumer demand for safer, longer-lasting products while maintaining eco-friendly credentials. The convergence of biodegradability with intelligent features is opening new avenues for product differentiation.
The healthcare sector offers significant potential for biodegradable packaging, particularly for single-use medical devices and pharmaceutical products. There is a growing need for sterile, eco-friendly materials that reduce medical waste without compromising safety or functionality. Innovating in this space addresses both environmental concerns and stringent regulatory requirements, paving the way for sustainable healthcare packaging solutions.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 118.48 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.2% | 2032 Value Projection: | USD 180.63 Bn |
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BASF SE, Smurfit Kappa Group, Mondi Group, Rocktenn, Stora Enso, Clearwater Paper Corporation, Amcor, Novamont S.P.A., Kruger Inc., Reynolds Group Holding Limited, International Corp., Solenis, DuPont, Ball Corp, Novamont, Tetra Pak International SA, Biopak PTY, Imex Packaging, and Elevate Packaging Inc |
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About Author
Pankaj Poddar is a seasoned market research consultant with over 12 years of extensive experience in the fast-moving consumer goods (FMCG) and plastics material industries. He holds a Master’s degree in Business Administration with specialization in Marketing from Nirma University, one of India’s reputed institutions, which has equipped him with a solid foundation in strategic marketing and consumer behavior.
As a Senior Consultant at CMI for the past three years, he has been instrumental in harnessing his comprehensive understanding of market dynamics to provide our clients with actionable insights and strategic guidance. Throughout his career, He has developed a robust expertise in several key areas, including market estimation, competitive analysis, and the identification of emerging industry trends. His approach is grounded in a commitment to understanding client needs thoroughly and fostering collaborative relationships. His dedication to excellence and innovation solidifies his role as a trusted advisor in the ever-evolving landscape of not only FMCG but also chemicals and materials markets.
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