Global biodegradable loose fill packaging market was valued at US$ 158.9 million in 2016, according to Global Biodegradable Loose Fill Packaging Market report, by Material (Starch, Recycled Paper, and Others), by Application (Consumer Goods Packaging, Pharmaceutical Packaging, Cosmetics & Personal Care Products Packaging, and Others).
The biodegradable loose fill packaging market is expected to register a CAGR of 13.0% over the forecast period (2018-2025), reaching US$ 673.4 million by 2025. Rising awareness regarding harmful effects of plastic pollution is propelling demand for biodegradable packaging solutions, which will in turn support growth of the biodegradable loose fill packaging market. According to data provided by Ocean Crusaders, a plastic bag can kill numerous animals as plastics take extended period of time to disintegrate. Thus, plastic pollution has become a major environmental concern globally. Furthermore, growing demand for protective packaging is another key factor for the market growth, as loose fill packaging is a type of protective packaging. According to the study of , in 2017, protective packaging accounted for the 33.23% market share in the global e-commerce packaging market.
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Key Trends and Analysis of the Global Biodegradable Loose Fill Packaging Market:
- Based on application, the pharmaceutical packaging segment is anticipated to record the fastest growth, with a CAGR of 15.5 % during the forecast period. Increasing demand for pharmaceutical products is majorly driven by steadily growing geriatric population. According to the World Bank, in 2010, over 211 million residents were recorded under the category of geriatric population in East Asia, out of which, China accounted for 130 million geriatric residents. Growing pharmaceutical industry is anticipated to fuel demand for biodegradable loose fill packaging in the pharmaceutical sector.
Key Takeaways of the Market:
- Asia Pacific region is anticipated to witness a CAGR of 6.8% during the forecast period in the global biodegradable loose fill packaging market. The major factor propelling growth of this market include rising environmental concerns such as increasing rate of plastic packaging waste and steadily growing packaging industry in the region. According to Central Government of India, the packaging industry was pegged at US$ 25 billion in 2016 and is expected to reach US$ 30 billion by 2020, at a growth rate of 15% per annum.
- Moreover, China's consumer goods market witnessed a 4.3% growth in 2017 from 3.6% in 2016. This further enhances growth of the overall packaging industry in China and thereby, supports growth of the biodegradable loose fill packaging market.
- Increasing number of e-commerce sites in emerging economies such as India and China is supporting growth of the biodegradable loose fill packaging market as well. For instance, according to Associated Chambers of Commerce and Industry of India (ASSOCHAM) in 2016, around 69 million consumers in India purchased commodities online. Also, according to ASSOCHAM, revenue of e-retail sector increased from US$ 3.59 billion in 2013 to US$ 5.30 billion in 2014 in India.
- Major players operating in the global biodegradable loose fill packaging market include Alsamex Products Ltd., Nefab Group, XPAC Technologies Pte Ltd., Salazar Packaging Inc., Storopack Inc., Free-Flow Packaging International Inc., Imperial Dade, Samuel Grant Group Ltd., and Styro Tech Ltd.