The biodegradable packaging market is expected to grow from USD 405.464 billion in 2025 to USD 599.617 billion in 2030, at a CAGR of 8.14%.
Environmental problems such as pollution and global warming are compelling people to abandon non-biodegradable and throwaway packaging. Plastic and other toxic packaging material waste harm the marine ecosystem and kill aquatic species by ingestion of the waste. Biodegradable packaging can disintegrate fully with the assistance of microorganisms found in the environment.
Furthermore, biodegradable food packaging reduces carbon impact and is easy to dispose of. It is simpler to recycle and uses less energy to produce. Customers are gradually migrating to biodegradable food packaging as a result of these advantages. Moreover, according to the European Bioplastics Association, worldwide bioplastics production capacity will expand from roughly 2.11 million tonnes in 2019 to over 2.43 million metric tonnes in 2024.
The dangers of plastic trash creation have compelled governments and organizations to prohibit the use of mono-use plastic packaging materials. To prevent fraudulent claims regarding sustainable packaging, certification processes and labeling standards are in place. The government's goal, according to the US Plastic Waste Reduction and Recycling Act, is to minimize plastic waste, support research into and technology for recycling infrastructure, and assure US leadership in national and worldwide standards development.
With the act doing further study on microplastics, it is possible that US-based packaging businesses could face harsher plastic manufacturing laws in the future. Therefore, several governments all around the world have taken the initiative to launch biodegradable packaging solutions to incorporate sustainable solutions and reduce the use of plastic.
For instance, in June 2021, Tetra Pak collaborated with FINISH Society, a solid waste management NGO, to enhance used carton box collecting in Udaipur, Rajasthan, India. FINISH Society collaborated with the Municipal Corporation of Udaipur to recover unwanted beverage packets from the corporation's sorting centers, which subsequently were sent to the nearest recycler as part of the joint effort.
Additionally, researchers from the Institute of Advanced Study in Science and Technology (IASST), an autonomous institute of the Department of Science and Technology, developed a biodegradable, biopolymer nanocomposite that can detect relative humidity in August 2022, which can find application as smart packaging materials, particularly in the food industry.
Moreover, in July 2021, the Defence Research and Development Organization (DRDO) of India produced ecologically friendly packaging items made from biodegradable natural and plant-based food-grade ingredients. The Ministry of Defence agency collaborated with Acharya Nagarjuna University and Ecolastic to develop biodegradable packaging items to reduce single-use plastic.
Several companies in diverse industrial segments have introduced and taken the initiative to promote sustainable packaging solutions, which have primarily benefited the biodegradable packaging market for the upcoming years. For instance, in July 2020, PepsiCo joined a partnership with major consumer products businesses, including Unilever, to further develop and expand the world's first recyclable paper bottle, first created by Diageo and Pilot Lite.
Furthermore, in 2021, Smurfit Kappa introduced a new line of eBottle packaging solutions for the expanding online beverage sector. This series is more environmentally friendly because it is created from recyclable raw materials and may be customized based on bottle shapes and sizes. In addition, the firm provides a variety of process automation that aids in the optimization of packaging operations.
With the growing amount of packaging trash produced worldwide, governments throughout the world are turning to alternative resources such as biodegradable packaging. The United States has only 4% of the world's population, yet produces 12% of municipal solid waste. According to the Environmental Protection Agency of the United States, the US generates around 106.2 kg of plastic garbage per person each year. The United States is the dominant country in North America, accounting for around 18.9% of the total market.
Furthermore, the U.S. Food and Drug Administration (FDA) regulations governing materials such as plastics, papers, and so on, to guarantee they are safe to use, together with increased consumer awareness of eco-friendly packaging, are expected to boost the biodegradable packaging market. Due to all these factors, the market in this region is anticipated to flourish.
Biodegradable Packaging Market Segmentation: