Biodegradable Bags Market Overview
Biodegradable Bags Market size is estimated to reach US$3.1 million by 2027 after growing at a CAGR of 6.5% during the forecast period 2022-2027. Biodegradable Bags are made of biodegradable polymers such as polylactic acid, polyhydroxyalkanoates, polybutylene succinate and aliphatic polyester. Such polymers have a high decomposition rate in comparison with polystyrene and polyethylene, on account of which they are highly used in making a biodegradable bags. Growing application of biodegradable bags for packaging in various industries like food & beverage, medical & healthcare, personal care & cosmetics, agriculture and electrical & electronics is creating a drive for the Biodegradable Bags Market. Factors such as stringent regulation by various governments on the use of non-biodegradable plastic, companies shift to the use of sustainable packaging material and growing concern regarding packaging material would influence the growth of biodegradable bags industry. However, the availability of other substitutes for biodegradable bags could pose a challenge to the market growth during the forecast period thereby negatively impacting the Biodegradable Bags Market size. COVID-19 pandemic disrupted the growth of the biodegradable bags industry as the lockdown restrictions led to the closure of various manufacturing facilities in industries such as food & beverage and personal care & cosmetics which are biodegradable bags users. However, with steady recovery seen in these sectors, post-pandemic the demand for biodegradable bags are anticipated to rise in the forecasted period which will positively impact the biodegradable bags industry outlook.
Biodegradable Bags Market Report Coverage
The “Biodegradable Bags Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Biodegradable Bags Market.
By Polymer Type – Natural
(Starch, Cellulose, Polylactic Acid (PLA), Polycaprolactone (PCL),
Polyhydroxyalkanoates (PHA) and Others) and Synthetic (Aliphatic Polyesters,
Polyvinyl Alcohol (PVOH), Polyvinyl Acetate (PVA) and Others)
By Thickness – < 50 Microns, <51-99.9 Micron and <100 Micron
By End-Use Industry – Food & Beverage (Fruits & Vegetable, Bakery, Dairy, Confectionary, Poultry and Others), Medical & Healthcare (Pharmacy, Sterilization, Transfer and Others), Personal Care & Cosmetics (Body Care, Face Care, Eye Care, Nail Care and Others), Electrical and Electronics (Laptops, Computers, Mobile Phones, Television and Others), Agriculture (Fertilizers, Pesticides and Others), Chemicals (Powder and Liquids) and Others
By Geography - North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and Rest of the World (the Middle East and Africa)
- Asia-Pacific dominates the Biodegradable Bags industry owning to the flourishing demand for sustainable and eco-friendly packaging bags from the food & beverage, medical & healthcare and personal care & cosmetics sector, along with the growing initiative of governments to promote biodegradable packaging.
- Growing environmental concerns regarding pollution created by petroleum-based plastic has significantly increased Biodegradable Bags preferability over conventional plastic due to its environment-friendly and cost-effective features, thereby positively affecting the biodegradable bags industry outlook.
- The emergence of economical substitutes for Biodegradable Bags creates a major challenge in the growth of the Biodegradable Bags Market, thereby negatively impacting the Biodegradable Bags Market size during the forecast period.
Biodegradable Bags Market Segment Analysis – by Polymer Type
Natural held the largest share in the Biodegradable Bags Market share in 2021 and is forecasted to grow at a CAGR of 6.7% during the forecast period 2022-2027. A natural biodegradable polymer such as polylactic acid, polybutylene succinate and polyhydroxyalkanoates has low manufacturing cost and waste creation in comparison with conventional plastics. Furthermore, the hazardous impact of conventional plastic shopping bags such as soil and water contamination has become another factor contributing to the high preferability of natural biodegradable polymers. The environment-friendly nature of natural biodegradable polymers coupled with a growing shift in sectors, especially in food & beverage and personal care & cosmetics to use eco-friendly packaging items has accelerated the demand for such polymers. Such a growing preference for natural biodegradable polymers will boost their growth opportunities for them in the coming years.
Biodegradable Bags Market Segment Analysis – by End-Use Industries
Food & Beverage held the largest share in the Biodegradable Bags Market share in 2021 and is forecasted to grow at a CAGR of 6.9% during the forecast period 2022-2027. Petroleum-based polymers that are traditionally used in the food & beverage sector as packaging bags are considered an environmental waste. Biodegradable Bags made from natural biodegradable polymers like polylactic acid is easily recyclable and provide better preservation of food account of which it has become a better alternative to be used as packaging bags. The food & beverage sector is flourishing on account of the growing consumption of various food items like fruits, vegetables and dairy items which have increased the retail sales of food items. For instance, according to the Ministry of Industry and Information Technology, in 2021, retail sales of dairy products and frozen meats increased by 9% in China while fruits and vegetable sales increased by 7%. Furthermore, according to Brazilian Supermarket Association, in July 2021, the retail sales of food items in Brazilian supermarkets increased by 21% in comparison with 2019 sales. With the growing sale of food items, the demand for biodegradable bags for packaging purposes is anticipated to rise which is projected to boost the market growth in the food & beverage sector.
Biodegradable Bags Market Segment Analysis – by Geography
Asia-Pacific held the largest share in the Biodegradable Bags Market share in 2021 up to 44%. The fueling demand for the Biodegradable Bags in this region is influenced by the flourishing demand from major industries like food & beverage, personal care and others. Furthermore, rapid urbanization and a rise in disposable income in major economies like China, India and Japan have increased the consumption scale in such countries for food and cosmetic products. For illustration, according to the National Bureau of Statistics, in the first four months of 2022, groceries sales in China supermarkets increased by 2.4%. According to the survey conducted by the Retailers Association of India in 2021, the sales of food & grocery items increased by 28% in the country. Furthermore, according to the annual report of Japanese skincare and beauty product company Shiseido, in 2021, the sales of its skincare and other cosmetics products increased by 6% in the Asia-Pacific region with China showing maximum consumption. With robust growth in the food & beverage and cosmetic sector, the demand for the biodegradable bags for packaging applications will also flourish, resulting in a positive growth of the biodegradable bags industry in the Asia-Pacific region in the forecasted period.
Biodegradable Bags Market Drivers
Government Regulation on Use of Conventional Plastic:
Conventional plastic is made from toxic chemicals like styrene and bisphenol-A whose chemical filtration can cause food contamination. Furthermore, due to high carbon bonds conventional plastic is harder to get properly decompose and incinerating it creates toxic fumes which cause air pollution. Governing bodies to prevent hazardous impacts have taken regulatory steps to restrict the usage of conventional plastic such as single-use plastics. For instance, according to Plastic Waste Management Amendment Rules, 2021 implemented by the Ministry of Environment, Forest and Climate Change, single-use plastic will be prohibited in India by 2022. According to the National Conference of State Legislature, in 2019, the Senate Bill 1508 passed in New York exempts the use of single-use plastic bags provided by groceries stores. Biodegradable bags made from natural biodegradable polymers like polylactic acid, polyhydroxyalkanoates and polybutylene succinate has a high recycling rate. Such regulation will accelerate the usage of the biodegradable bags as a packaging bag in major sectors like food & beverage, medical & healthcare and personal care thereby driving the growth of the Biodegradable Bags Market.
Growing Consumption of Pharmaceutical and Skincare Products:
Biodegradable Bags beside the food & beverage sector also has high applicability in the pharmaceutical and cosmetics sector where it is mainly used as packaging bags for the products. The rise in focus on healthcare needs coupled with low prices of medicines has increased the sales volume of the pharmaceutical sector, whereas the growing shift of millennials towards skin nourishment has increased the consumption of skincare cosmetics. According to Statistics Canada, in 2021, pharmaceutical sales stood at US$23.5 billion with 86.7% sold to retail drug stores and 13.3% sold to hospitals. Furthermore, according to the Personal Care Association of Europe, in 2020, skincare products with a valuation of US$23.74 billion, held the maximum sales share of the European cosmetics market in major countries like Germany, France, the UK, Spain and Italy. With such growing consumption of pharmaceuticals and skincare cosmetics, the demand for the biodegradable bags for packaging applications is also anticipated to rise, thereby boosting the growth of the Biodegradable Bags Market during the forecast period.
Biodegradable Bags Market Challenge
Using Paper Bags as Substitutes:
Alternative to Biodegradable Bags such as paper bags could pose a challenge in its market growth. The Biodegradable Bags though made from a natural biodegradable polymer and is decomposable, but it is designed to decay at a temperature higher than 50°C. Furthermore, polylactic acid used in the biodegradable bags in comparison with other natural biodegradable polymers has higher permeability. This easily allows moisture and oxygen to go through a biodegradable bags which can result in faster food spoilage. Paper bags on other hand is much more easily decomposable and is less likely to form a source of environmental waste. The presence of such cheaper and more effective substitutes for biodegradable bags could negatively impact its usage in major sectors like food & beverage, personal care & cosmetics and medical & healthcare which could slow down biodegradable bags industry growth during the forecast period.
Biodegradable Bags Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Biodegradable Bags Market. The top 10 companies in Biodegradable Bags are:
- Biopac India Corporation Ltd.
- Smurfit Kappa Group
- Mondi Group
- BASF SE
- WestRock Company
- Metabolix Inc.
- Cereplast Inc.
- Abbey Polythene Ltd.
- In July 2021, DRDO in collaboration with Acharya Nagarjuna University and Ecolastic Private Limited launched biodegradable packaging bags made from natural and plant-based food-grade materials.
- In March 2021, New Zealand-based zero-waste packaging manufacturer Compostic introduced its product line of home compostable cling wrap and biodegradable bags in the US and the product is an alternative to kitchen plastics.
- In July 2021, global packaging specialist ALPLA Group acquired a minority stake in Slovak company Panara which is focusing on developing fully bio-based and biodegradable packaging products including bags.
Report Code – CMR 0308
Report Code – CMR 0116
Report Code – CMR 0846
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