Biodegradable Paper & Plastic Packaging Market - By Material Type (Plastic (Polyhydroxyalkanoates (PHAs), Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polycaprolactone (PCL), Others), Paper (Kraft Paper, Sulphite Paper, Greaseproof Paper, Parchment Paper, Cardboard Paper, Others), By Packaging Type (Corrugated Boxes, Boxboard or Paperboard Cartons, Paper Bags & Sacks, Plastic Boxes, Plastic Bags, Bubble Wraps, Others, By End-Use Industry (Cosmetics & Personal Care (Skin Care, Hair Care, Fragrances), Electrical & Electronics (Semiconductor, Appliances, Others), Automotive (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicles), Food & Beverage, Pharmaceuticals, Shipping & Logistics, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027
Biodegradable Paper & Plastic Packaging Market Overview
The Biodegradable Paper & Plastic Packaging Market size is forecasted to grow at a CAGR of 10.5% during the forecast period 2022-2027 and reach US$ 18.2 billion by 2027. Biodegradable plastics and paper are made from renewable sources such as corn starch, vegetable fats and oil, sugarcane and other similar sources. Biodegradable plastics and paper such as polyhydroxyalkanoates (PHAs), polylactic acid (PLA), kraft paper, sulfite paper and cardboard paper are available in various packaging types which include corrugated boxes, paper bags and sacks, plastic boxes, bubble wraps and more. They are used in a wide range of industries such as food & beverage, cosmetics & personal care, pharmaceuticals, automotive and other industries. In 2020, the surge in the COVID-19 pandemic negatively impacted the packaging industry as a result of the country-wise shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world, thus, temporarily affecting the growth of the biodegradable paper & plastic packaging industry. However, a steady recovery in the packaging industry has been witnessed since 2021, which in turn, is driving the demand for biodegradable paper & plastic packaging. For instance, recent insights from Flexible Packaging state that the food packaging industry witnessed a sharp increase in demand in 2021 due to a high number of consumers turning to online grocery shopping. By the end of 2021, U.S. online grocery sales reached up to 12.4% of the country’s overall e-commerce sales. As a result, supermarkets witnessed a huge surge in demand for packaging materials for the wrapping of food and other grocery products. An increase in pharmaceutical production along with the surging consumer preference for bio-based packaging is expected to drive the growth of the biodegradable paper & plastic packaging market size in the coming years. On the other hand, high costs associated with biodegradable plastics & paper packaging may confine the growth of the market.
Biodegradable Paper & Plastic Packaging Market Report Coverage
The "Biodegradable Paper & Plastic Packaging Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Biodegradable Paper & Plastic Packaging Market.
- Corrugated boxes segment in Biodegradable Paper & Plastic Packaging Market held a significant share in 2021. Its wide range of characteristics, along with high flexibility and adaptability made it stand out in comparison to other types of packaging in the market.
- Food & beverage industry held the largest share in Biodegradable Paper & Plastic Packaging Market in 2021, owing to the increasing demand for biodegradable paper & plastic packaging from the food & beverage sector across the world. Biodegradable plastic and paper are made from a natural renewable resource and are easily recyclable in nature & quite versatile in terms of capabilities, design and flexibility. All of these properties make them ideal for use in the packaging of food & beverage products.
- Asia-Pacific dominated the Biodegradable Paper & Plastic Packaging Market in 2021, owing to its increasing demand from the food & beverage sector of the region.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Biodegradable Paper & Plastic Packaging Market Report.
Figure: Asia-Pacific Biodegradable Paper & Plastic Packaging Market Revenue, 2021-2027 (US$ Billion)
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Biodegradable Paper & Plastic Packaging Market Segment Analysis – by Packaging Type
The corrugated boxes segment held a significant Biodegradable Paper & Plastic Packaging Market share in 2021, owing to the range of characteristics and benefits it offers over other types of biodegradable paper & plastic packaging. For instance, corrugated boxes are highly flexible and adaptable and can be easily cut to any shape or size as per the requirements in comparison to other packaging types. They can store a wide variety of products from bakery products to dairy products and even fruits, vegetables, pharmaceutical products and more. Moreover, corrugated boxes are designed with high-quality and sturdy materials, which makes them capable to withstand any form of abrasion or pressure. Thus, it provides better protection of the packed products and ensures convenient and safe delivery of such products from one destination to another. Furthermore, they are lightweight, durable and readily available in comparison to other types of packaging, which in turn, is expected to boost the growth of the market during the forecast period.
Biodegradable Paper & Plastic Packaging Market Segment Analysis – by End-use Industry
The Food & Beverage industry held the largest Biodegradable Paper & Plastic Packaging Market share of over 25% in 2021, owing to its increasing demand from food & beverages across the world. For instance, according to PMMI (The Association for Packaging and Processing), the North American beverage industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom state that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$ 15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors including the food & beverages sector of the region.
Biodegradable plastic & paper such as polyhydroxyalkanoates, polylactic acid, greaseproof paper, cardboard paper and more are primarily used for packaging in the food and beverage sectors, owing to their wide range of properties such as biodegradability, recyclability, versatility, wide availability, light-weight and sustainability. Thus, an increase in demand for food and beverage packaging is expected to expand the biodegradable paper & plastic packaging market size during the forecast period.
Biodegradable Paper & Plastic Packaging Market Segment Analysis – by Geography
Asia-Pacific held a dominant Biodegradable Paper & Plastic Packaging Market share of around 34% in the year 2021. The consumption of biodegradable paper & plastic packaging is particularly high in this region due to its increasing demand from the food & beverage sector. For instance, according to a recent study published on Interpack, China holds the largest market share around the world when it comes to food packaging. The consumption of food packaging in China is expected to increase to 447,066 million in 2023. Likewise, it further states that the Chinese packaging companies such as 3D, SIP and WLCSP alone achieved a revenue of around US$ 5.88 billion with end packaging. Moreover, according to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$ 50.5 billion in 2019 and is expected to increase up to US$ 204.81 billion by the end of 2025. It further states that food packaging is considered to be one of the industries with high growth in India and is rising at 22%-25% per year.
In this way, such surging developments associated with the food packaging sector in multiple countries across the region are expected to increase the demand for biodegradable paper & plastic packaging, owing to its biodegradability, recyclability, versatility, light-weight, sustainability and other properties. This is expected to drive the growth of the market during the forecast period.
Biodegradable Paper & Plastic Packaging Market Drivers
An increase in pharmaceutical production
Biodegradable plastics such as polyhydroxyalkanoates, polylactic acid and more are primarily in the pharmaceutical industry for packaging various capsules, tablets, powder and other pharmaceutical products. Its properties such as excellent resistance to moisture, abrasion, durability, flexibility and sustainability make them ideal for use in the packaging of such pharmaceutical products. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the total production of pharmaceuticals including capsules, tablets and other products in Europe was valued at EUR 310,000 million (approx. US$ 354,080.76 million) in 2020. Moreover, according to the Brazilian Chemical Industry Association, the production of the pharmaceutical industry in Brazil was valued at US$16.1 billion in 2021, an increase of 2.6% from US$ 15.7 billion in 2020. Hence, such an increase in pharmaceutical production is expected to increase the demand for biodegradable plastics for the packaging of pharmaceutical products, owing to its above-mentioned properties. This is anticipated to drive the growth of the market in the upcoming years.
Surging consumer preference toward bio-based packaging
Bio-based packaging is made from renewable resources that are less toxic to the environment. It causes less pollution by emitting very fewer carbon emissions that can be harmful to the environment as opposed to standard petroleum-based packaging. Moreover, bio-based packaging can be produced from a wide range of materials and also perform very well in most conditions. Bio-based packaging is biodegradable in nature and reduces the possibility of contamination of soil or underground water during its transportation, storage, or use. Owing to these benefits, the demand for bio-based packaging including biodegradable plastics and paper such as polyhydroxyalkanoates, polylactic acid, kraft paper, cardboard paper and more is increasing over the past few years. For instance, according to the European Bioplastics Association, the global production capacity of bioplastics is expected to increase significantly from around 2.41 million tons in 2021 to around 7.59 million tons in 2026. Furthermore, according to the Beijing Technology and Business University, China is expected to increase its production of bioplastics from 400,000 tons in 2020 to approx. 8 million tons by 2025. Thus, such developments associated with bio-based plastics, owing to the surging consumer preference for bio-based packaging, are expected to accelerate the market growth in the upcoming years.
Biodegradable Paper & Plastic Packaging Market Challenges
High costs associated with Biodegradable plastics & paper packaging
The rise in costs of raw materials such as pulp has made it difficult to access paper for various packaging purposes. According to the U.S Bureau of Labor Statistics, the PPI and pulp cost and raw materials for corrugated boxes in 2021 have increased by more than 25% in the past 12 months. Likewise, according to Sparkoncept, a bio-based product manufacturer, the average price of bioplastic usually ranges from US$ 2,000 to US$ 7,000 per ton, depending on the type of bioplastic. Furthermore, another major factor that is causing the increase in packaging costs is transportation. Prices of crude oil have increased up to 40% since the beginning of the year 2021 and its prices are expected to increase up to US$ 80 per barrel in the upcoming years. This, in turn, has increased the overall costs of transporting the raw materials required for the production of biodegradable plastic and paper packaging, thus, leading to increased packaging costs. Thus, such high costs associated with biodegradable plastics & paper packaging may limit the growth of the biodegradable paper & plastic packaging industry during the forecast period.
Biodegradable Paper & Plastic Packaging Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Biodegradable Paper & Plastic Packaging Market. The top 10 companies in the Biodegradable Paper & Plastic Packaging Market are:
- Smurfit Kappa
- BASF SE
- Riverside Paper Co. Inc.
- Clearwater Paper Corporation
- Ultra Green Sustainable Packaging
- Eurocell S.r.l
- Tetra Pak International SA
- Kruger Inc.
- Mondi Group
- Amcor PLC
- In June 2022, Corona, the global beer brand, launched its new biodegradable and compostable six-pack packaging in India. The newly launched product is made from a completely renewable source such as barley straw and is as durable as regular packaging.
- In December 2021, SK Geo Centric collaborated with Kolon Industries to launch an eco-friendly biodegradable plastic PBAT (Polybutylene Adipate Terephthalate). PBAT is an eco-friendly plastic that degrades easily in nature due to heat, oxygen, light and enzyme reactions. It has excellent printability and workability, which makes them ideal for use in various packaging purposes.
- In August 2021, NatureWorks LLC invested around US$ 600 million to build a new bioplastics plant in Thailand in order to meet the growing demand for sustainable materials for packaging in the country. The development of the plant is scheduled to be completed by 2024.
Report Code: CMR 53040
Report Code: CMR 0210
Report Code: CMR 88916
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