The global biodegradable plastic packaging market is expected to witness significant growth over the forecast period. Rising environmental concerns about plastic usage that comprise of toxic pollutants that are harming people, animals, and plants are driving the use of biodegradable plastic substitutes. Furthermore stringent regulatory standards coupled with growing environmental concerns has driven plastic producers to improve biodegradable plastic.
In addition to this, growing demand for sustainable packaging solutions across various application industries including pharmaceuticals and food and beverage is surging the demand for industry, thus strengthening the growth of global biodegradable plastic packaging market.
Biodegradable packaging offers natural degradable protection when used majorly for the packaging and presentation of the products from the time the manufacturing procedure begins till the product is administered or consumed. Moreover, biodegradable packaging considerably varies from the traditional non-biodegradable packaging. It degrades simply and rapidly and as a result, biodegradable packaging generally does not require the support of an external catalyst for degradation.
Most of the key packaging players are now changing their focus towards biodegradable packaging to attain more customer satisfaction. Additionally, to distinguish their products from that of the competitors many producers are now altering towards biodegradable packaging. The industry is anticipated to exhibit the fastest growth than that associated to the plastics packaging market. The biodegradable plastic packaging market is a comparatively a novel market however; it is projected to capture the existing market share of the non-biodegradable plastic packaging market.
Technological innovation, increased integration, and advanced manufacturing processes has resulted in fastest growth of the industry. This in turn has boost up the growth of the biodegradable plastic packaging market globally. This progress is likely to be the highest in the established economies of North America and Europe, particularly owing to rising consumer awareness and hence volumes produced and consumed. Favorable demographics and huge population of these regions are key drivers behind this growth.
Even though biodegradable plastics packaging is gaining popularity all over the world. However, the road of biodegradable plastics is not free from hindrances. The main restraint of the biodegradable plastic packaging market is the high cost to the end user compared to conventional plastics. The biodegradable plastics is around 20% to 100% more expensive than conventional plastics. Moreover, currently low prices making biodegradable plastics difficult to achieve competitive pricing when compared to conventional plastics.
Consumers in the market are demanding for cost effectiveness, convenience, and better features in the products. Biodegradable plastic packaging is in great demand worldwide. Besides, growing requirement for convenience among consumers, new packaging material development, increasing awareness of environmental issues, and the adoption of new regulatory requirements are going to be the key growth drivers for the future of the business.
On the basis of type, market is segmented into starch based, PLA, PBS, PBAT, PHA and others Starch-based emerged as the biggest and fastest growing type over the forecast period. The increasing use of biodegradable plastics in food packaging is the major driver for this segment.
Furthermore, the PHA segment second fastest growing segment owing to the primarily usage for medical applications like drug encapsulations and medical implant. Other medical use include meshes, tissue, surgical films and surgical sutures. Other than medical, PHA is also used in production of compost bags, agriculture, packaging, consumer goods and products for marine environment.
Based on application, biodegradable plastic packaging market is segmented into food, beverage, pharmaceutical, personal/homecare, and others. Increasing packaged food products coupled with changing lifestyle pattern demand is expected to drive food & beverages industry. This in turn is anticipated to increase biodegradable paper and plastics packaging demand in Asia Pacific region in near future.
The industry is anticipated to show the double-digit growth rate by 2019. This market is stimulated by the huge populations of China, India, North America and Europe, that undergoing proactive switching from traditional non degradable packaging to biodegradable packaging materials, rising contract manufacturing activities, and augmented government interest in supporting the use of these products by offering certain incentives for the use of the same in certain regions.
The biodegradable plastic packaging market is fragmented as the global players are moving towards developing new technologies to manufacture plastic packaging material from various easily available natural resources. Huge investments in research and development by the players in order to develop an innovative product is giving a high competition in the market. Key players are Tetra Pak International, Plastic Suppliers, Kruger, etc.
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The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries. The report will account for Covid19 as a key market contributor.