Bioplastic packaging market is estimated to be valued at USD 19.91 Bn in 2024, growing at a CAGR of 17.1% over the forecast period (2024-2031). The market is witnessing high growth due to increasing environmental concerns and the need for sustainable solutions for packaging. Furthermore, supportive regulatory policies promoting the use of bioplastics for packaging are fueling the market growth.
Rising environmental concerns
Growing awareness about plastic pollution and its impact on environment have increased the focus on alternatives. Bioplastic offers a biodegradable and sustainable solution for packaging needs. This is a key factor driving its demand.
Strict regulations
Stringent regulations imposed by governments worldwide on the usage of single-use plastics are further propelling the bioplastic packaging market growth. Various countries have either banned or on plastic bags and containers. This is encouraging manufacturers to shift towards bio-based materials.
Increasing awareness about environmental sustainability is driving the demand for bioplastic packaging
One of the major drivers for the growth of the global bioplastic packaging market is the increasing awareness among consumers about the need for environmental sustainability. Plastic packaging made from fossil fuels like petroleum is non-biodegradable and creates a huge amount of plastic waste that ends up in landfills and oceans. This is severely damaging the environment. More and more consumers are now consciously choosing packaging made from renewable and sustainable materials like bioplastics which easily degrade and have less negative impact. Companies are also promoting their products in bioplastic packaging to appeal to these environmentally conscious customers.
Growth of the food packaging industry is boosting the market for bioplastic food packaging
The global food packaging industry has been growing rapidly driven by increasing population, urbanization, and demand for convenience food. The on-the-go lifestyle has increased the demand for packaged foods. Bioplastics are increasingly being used to make various types of food packaging like containers, boxes, bottles, and wraps. They help preserve and protect the food while being non-toxic and fully biodegradable. This offers advantages over traditional plastics. Thus, the growth of the food industry has created opportunities for the bioplastic food packaging segment within the overall bioplastic packaging market.
High production costs of bioplastics limit their widespread adoption
One of the key restraints for the bioplastic packaging market currently is the relatively high production costs of bioplastics compared to traditional plastics. Producing bioplastics involves using renewable feedstock and a multi-step fermentation and industrial synthesis process which makes it more expensive than petroleum-based plastics. While advanced technologies are helping reduce costs, they are still not low enough for bioplastics to replace all fossil fuel-based plastics in price-sensitive mass market consumer products. This slows down potential growth until production processes become more optimized and economies of scale further decrease unit costs.
Competition from subsidized petroleum-based plastics
Another major challenge is the competition from cheaper and heavily subsidized petroleum-based plastics. Traditional plastics enjoy advantages due to continued subsidies for petroleum production across many countries. This artificially suppresses plastic resin prices and makes bioplastics less competitive. While policies are gradually tilting towards renewables, conventional plastics still get preferential treatment through direct and indirect forms of government support. This market distortion protection of fossil fuels restrains quicker adoption of bioplastics even in applications where they perform better technically and environmentally.
Growing regulations against single-use plastic packaging
With the plastic pollution crisis worsening globally, more and more governments are implementing regulations targeting single-use plastics. Restrictions on thin plastic bags, straws and Styrofoam containers are being imposed across Europe, North America and other regions. Such measures generate opportunities for bioplastics to replace the banned conventional plastic products. Compostable bioplastic bags, food packaging films and clamshell containers see higher demand as viable eco-friendly alternatives. Similarly, regulations mandating the use of minimum post-consumer recycled content also motivate the switch to bioplastics that can be commercial composted or integrated into existing recycling streams.
Rising collaborations for development of advanced bioplastic materials
Companies are collaborating with academic institutions to develop new advanced bioplastics with superior performance properties. Areas of focus include next-gen biopolymers producing higher strength, heat resistance, and moisture barrier. Partnerships between biotech and material firms explore novel sources of biomass, engineered enzymes and other processes innovation. This helps address existing technical limitations and expand the applications scope of bioplastics into products like textiles, automotive and electronics. Successful commercialization of such advanced bioplastics in future could significantly boost the market potential by stimulating demand across diverse industries currently reliant on fossil-fuel based plastics.
*Link: https://www.coherentmarketinsights.com/market-insight/bioplastic-packaging-market-1256
Key Developments
- In 2023, Sulzer launched new a biodegradable polymer for bioplastics
- In 2023, Roberts Mart launched its first overseas office and new compostable packaging film
- In June 2023, LUMENE, a Finnish company, announced a new bioplastic jar made from side streams of Finnish forest industry
- In 2022, Green Dot Bioplastics launched an expanded line of compostable resins for packaging and single-use applications
- In January 2022, Vikas Ecotech Limited announced its plans to invest in the environment-friendly BioPlastics (PHA) technology and is in the advanced stage of finalizing a technology tie-up or joint venture with Aurapha Private Ltd. to produce biodegradable plastics
Key Players
Amcor Plc., Novamont S.p.A, NatureWorks, LLC., Coveris, Sealed Air, Alpha Packaging, Constantia Flexibles , Mondi, Transcontinental Inc., ALPLA, Nature's Bio Plastic, Raepak Ltd., Biogreen Packaging Pvt. Ltd., Tetra Pak International SA, Tipa-corp Ltd., Treemera GmbH, Element Packaging Ltd, and Alpagro Packaging
