(MENAFN- Comserve) Shibuya-ku, Tokyo, Japan, Japan, Oct 14, 2021, 09:20 /Comserve / -- Biodegradable Packaging Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast
The biodegradable packaging market was valued at USD 89.57 billion in 2019 and is expected to reach a value of USD 121.38 billion by 2025 at a CAGR of 5.3% over the forecast period (2020-2025). The Biodegradable Packaging solutions are finding increasing application in packaging owing to its low environmental impact, growing focus on recyclability and sustainability, government emphasis on efficient packaging management, and rising consumer awareness coupled with an increasing ban on plastic.
- The bio-based materials have several potential benefits for greenhouse gas balances and other environmental impacts over whole life cycles and in the use of renewable, rather than finite resources. It is intended that the use of biodegradable materials will contribute to sustainability and reduction in the environmental impact associated with the disposal of oil-based polymers.
- According to European bioplastics, Biodegradable plastics altogether, including PLA, PHA, starch blends, and others, account for over 55.5% (over one million tonnes) of the global bioplastics production capacities. The production of biodegradable plastics is expected to increase to 1.33 million in 2024, especially due to PHA's significant growth rates. Also, the Asia-Pacific region is expected to be a major hub for the bioplastics industry, with 45% of bioplastics were produced in the Asia-pacific region in 2019.
- The US-based Kroger Co. (which orders about 6 billion bags each year and is one of the largest grocery chains in the country) announced in 2018 that it will go plastic-bag free at all of its nearly 2,800 stores by 2025. The company serves almost 9 million people daily through two dozen different grocery chains. This is expected to drive the demand for biodegradable packaging (non-plastic).
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Key Market Trends
Beverage Packaging is Expected to be One of the Most Significant Applications
- The market for biodegradable packaging in the Beverage sector is anticipated to witness growth with the never-ending demand for bottled water and non-alcoholic beverages. The demand for bottled-water is credited to consumers' propensity for specifically demanding high-quality drinking water, the fear of diseases as an aftermath of drinking polluted tap water, and the ease of portability and convenience provided by bottled water.
- An estimated number of 700,000 bottles are being littered every day in the United Kingdom alone, according to the Environmental Audit Committee. Such statistics indicate the serious need for biodegradable packaging solutions for beverages.
- Due to the emerging demand for eco-friendly packaging in the beverage industry across Europe, US-based Crown Holdings Inc. has opened a new facility in Jakarta, Indonesia. Considering the country's robust economic growth and sizable population, such eco-friendly initiatives offer significant potential for biodegradable beverage packaging.
- However, the lightweight and ease of manufacturing of plastic bottles compared to carton-based packages has been a major restraining factor of the bio-degradable packaging in the beverage packaging industry.
United States is Expected to Hold Major Market Share in North America
- In the United States, the rising awareness among consumers and favorable regulations from the government is expected to drive the demand for biodegradable packaging over the forecast period.
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- According to the United States Environmental Protection Agency, the United States generates almost 80 million tons of packaging waste each year. About half of the packaging waste in the US comes from food and beverage products. And the agency mentions that large food corporations like Nestle and Unilever generate the majority of plastic waste.
- With an increasing demand for biodegradable packaging from food chains, such as McDonald's, who are planning to use 100% sustainable packaging by 2025, manufacturers are choosing to use these opportunities to build consumer trust by proactively addressing the environmental issues rather than resisting change. Furthermore, it also creates an immense opportunity for biodegradable packaging manufacturers to penetrate the market and garner a higher market share.
The biodegradable packaging market is highly fragmented. The market studied comprises of Amcor Limited, Sealed Air Corporation, Mondi Group PLC, and Tetra Pak International SA, among others. Several regional firms in countries, such as India, are also trying to gain market share. Barriers to entry are low, which is resulting in the advent of smaller players, further increasing competitive rivalry.
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand For Sustainable Products By Consumers And Brands
4.2.2 Stringent Government Regulations
4.3 Market Restraints
4.3.1 Growing investments for Recyclable Packaging Solutions
4.3.2 Lack of Supply of Bio-plastics and Related Materials
4.4 Value Chain Analysis
4.5 Industry Attractiveness Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Technology Snapshot
4.7 Assessment of Impact of Covid-19 on the Industry
5 MARKET SEGMENTATION
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