The Global Biodegradable Plastic Packaging Market is expected to grow at a CAGR of 15.1% during the forecasting period (2022-2029). The predominant challenge of climate change and the probable upcoming unavailability of fossil fuels have augmented the quest for improved ideas for plastic packaging solutions. Biodegradable plastic packaging exhibits identical features to conventional plastic packaging. Moreover, it offers more generous sustenance to the environment.
There is a huge requirement for biodegradable plastics for packaging organic food and exceptional and branded merchandise with explicit requirements. A blend of reusable materials from conservative plastics, such as rPET with biodegradable plastic (bio-based PET), provides a high-performance treatment of bioplastics packaging.
Biodegradable plastic usage is expected to grow in the cosmetics packaging segment, specifically for compact powders, creams, lipsticks, as well as beverage bottles. Biodegradable materials, such as PLA, bio-based PE, or bio-based PET, are utilized in the above-mentioned products. The high proportion of bio-based components in these products and their capability to mix with recyclers from conservative PE and PET gave rise to a significant increase in material effectiveness and a decrease in CO2 emissions. These aspects are anticipated to drive the market's growth in the forthcoming years.
The growing ecological apprehensions regarding plastic practice are boosting the use of biodegradable plastic substitutes. Moving plastic left-over that endures thousands of years in water can help transport stratagem for aggressive species that interrupt habitations. This above-mentioned factor is attributed to the market growth.
Several governments and concerned authorities' severe guidelines to diminish plastic remains and stimulate biodegradable plastics custom in packaging drive the demand for the biodegradable plastic packaging market.
These biodegradable plastics are specifically designed for advanced packaging and other End Users to make it more thermally conducive using traditional methods such as extrusion, film blowing and casting, lamination, sheet casting, thermoforming, injection-molding, blow-molding, and foaming, both for monolithic and multilayer systems.
By material type, the market is segmented into Starch-Based Plastic, Cellulose-Based Plastics, Polylactic Acid (PLA), and Polyhydroxyalkanoates (PHA). Biodegradable packaging materials such as PLA and PHA are estimated to lead the biodegradable plastics packaging market by material type over the projection period backed by their exceptional properties such as superior impact resistance and greater flexibility. Polylactic acid is denoted as ‘bioplastic’ because of its ecological nature.
PLA is considered a renewable thermoplastic as well as a polymer. It is engineered with plant starch such as corn, sugar cane, and sugar beet, making it ecologically friendly and viable. Fermentation of the sugars from these plants produces lactic acid, and after further reactions, lactide is created. Further processing and polymerization, on lactide, a Polylactide resin is formed. The resultant resin can be injected and molded to form single-use products such as plastic cups, bottles, and food containers.
Polylactide is biodegradable, as it degenerates as an effect of contact with the ultraviolet rays of sunlight and oxygen. It decays to form carbon dioxide and water, which are harmless to the environmental surroundings. These factors drive the growth of PLA in the biodegradable plastic packaging market's material segment during the forecast time frame. The utilization of PLA and PHA types of materials in the manufacturing of plastic cups, bottles, and food containers has influenced the growth of the food and beverage industry globally during the forecast period.
In the End-User industry, biodegradable plastic packaging is segmented into Food, Beverage, Pharmaceutical, and Personal/Homecare. Food packaging solutions are finding strong growth in the biodegradable plastic packaging market. The packaging aspects of the foodstuffs are extremely crucial considering the freshness of the material. The ecological packaging will enhance the freshness due to the no or low presence of synthetic material in packaging.
The changeover to a low-carbon and circular economy, robust policy support for the bio-economy, and amplified customer attentiveness for ecological products and packaging drive the development of the market in Europe. The EU verdict to reduce the inclusive consumption of thin plastic bags in the region by about 80% by 2019, equated to its usage levels in 2010, is expected to generate substantial growth prospects for biodegradable plastic manufacturers forecast period.
Additionally, the demand for biodegradable plastics is witnessing significant growth in traditional end-user industries of packaging, agriculture, textile, and the niche industries of medical implants and drug delivery systems in European countries.
Furthermore, the vendors in Europe, such as Rossmann, Aldi, Coop, and Carrefour, use single or multi-use carrier bags made from biodegradable plastics, with the add-on bonus of biodegradability. The specialized disposable cups are also used at significant events or in major football stadiums throughout Europe.
The key players in the market include Tetra Pak International SA, Plastic Suppliers Inc., and Kruger Inc. The biodegradable plastic packaging market is incredibly fragmented, as the international players are shifting towards developing new technologies to fabricate plastic packaging material from numerous easily obtainable natural raw materials. The players' primary spending in research and development to create innovative products produces high competition. Additionally, key market players adopt several growth strategies such as new product development, mergers & acquisitions, joint ventures, and partnerships to expand globally.
Key developments encouraging the expansion of the global biodegradable plastic packaging market include:
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