BIOPLASTIC PACKAGING MARKET ANALYSIS

A bioplastic is a biodegradable group of polymers that are manufactured using renewable-based sources. Conventional plastics is hazardous due to the impact on the environment and their heavy reliance on the oil and gas industry for raw materials such as naphtha. Conventional plastic is widely used for packaging of casings, electronics, and food products, amongst others. This, in turn, is negatively impacting the environment, leading to increasing land and marine pollution.

Global bioplastic packaging market was valued at US$ 10.60 Bn in 2021 in terms of revenue, exhibiting a CAGR of 29.34 % during the forecast period (2022 to 2030).

Drivers

The increasing support offered by the governments across the world for utilizing sustainable packaging solutions, such as bioplastics, as an alternative for traditional and petrochemical based plastic products is generating significant revenue generation opportunities in the global bioplastic packaging market. Furthermore, the rising awareness amongst the global population pertaining to the environmental impact of the conventional and single use plastic packaging solutions, is also triggering an increased demand for the novel and sustainable solutions from the global bioplastic packaging market. Additionally, the increasing ban of several governments across the world on using single use plastic products for packaging is also bolstering the rising usage of the products and solutions offered by the leaders in the global bioplastic packaging market.

The flexible plastic packaging industry’s growth was significantly impacted by the COVID-19 pandemic. In the pandemic scenario, various countries went under lockdown, to curb the escalating cases. Owing to this, the demand and supply chain have been disrupted, which has affected the worldwide market. The infrastructural projects, manufacturing units, industries, and various operations had to be put on hold owing to the pandemic situation.

 The unpredictable costs of the key raw materials that are used for developing packaging alongside the pandemic restricted the market’s development rate. On the bright side, the situation is getting back to normal, which can translate into a swift market recovery in the future.

Figure 1. Global Bioplastic Packaging Market Value Share (%), By Region, 2021

Market Restraints

The recycling process of plastic packaging waste can be extremely tedious, requiring state-of-the-art technologies and infrastructural facilities. This time-consuming procedure requires personnel expertise, which can mean slowed-down growth of the worldwide market.

Market Trends

In the recycled material packaging segment, paper packaging is the largest market, followed by metal, glass and plastic. While the demand for recycled plastics remains strong, the material faces several challenges, including lack of affordable cost infrastructure for collection and sorting, international market competition for existing recovered materials and compliance with requirements related to food and drug content.

Driven by demand for sustainable packaging in countries like China and India, the biggest growth comes from the Asian market. The demand for sustainable practices is driving the market for greener packaging, which is boosted by a growing affluent and health-conscious middle-class population. Smithers Pira forecasts that Asia will be the largest market for sustainable packaging in 2018, accounting for 32 percent of the overall market.

Figure 2. Global Bioplastic Packaging Market value Share (%), By End-use Industry, 2021

Recent Developments

• In May 2019, the Japanese government introduced a new policy to increase the use of plant-based bioplastics to tackle marine plastic waste. This move would see the nation recycle 100% of newly manufactured plastics and enable the use of bioplastics from plant-based sources by 2035. Initiatives taken by the players in the field of innovation or adoption strategies related to bioplastic packaging are expected to drive the growth of the global bio-plastic packaging market
• in May 2019, scientists at Kaunas University of Technology (KTU) created a bioplastic for food packaging that decomposes in a compost bin in a couple of years. According to European Bioplastics.org, in 2019, global production capacities of bioplastics amounted to around 2.11 million tons, with over 53% of the volume destined for the packaging market.

Competitive Section

Major players operating in the global bioplastic packaging market include BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company., among others.