Biodegradable Packaging Market To Reach $876.05 Billion By 2033

Biodegradable Packaging Market Growth & Trends

The global biodegradable packaging market size is anticipated to reach USD 876.05 billion by 2033, growing at a CAGR of 6.5% from 2025 to 2033, according to a new report by Grand View Research, Inc. The market is experiencing significant growth, primarily driven by a confluence of rising environmental awareness and stringent government regulations. Consumers today are more conscious than ever of their ecological footprint and are actively seeking products with a minimal environmental impact. This shift in consumer behavior is particularly pronounced among younger demographics, such as Millennials and Gen Z, who are willing to pay a premium for eco-friendly packaging. Businesses, in turn, are responding to this demand to enhance brand reputation, foster customer loyalty, and gain a competitive edge. The food and beverage industry, for example, is a major application area where the demand for sustainable, single-use alternatives to plastic trays, cups, and films is surging.

The global regulatory push to curb plastic pollution is also triggering market growth. Governments worldwide are implementing and enforcing bans and restrictions on single-use plastics. The EU's Single-Use Plastics Directive, effective since July 2021, targets a 50% reduction in single-use plastics by 2025, focusing on items such as plates, straws, cutlery, and cotton buds. Key 2025 targets include collecting 77% of plastic bottles and ensuring plastic beverage bottles have at least 25% recycled content to enhance recycling and circular economy efforts. These regulatory measures create a favorable market environment for biodegradable packaging solutions by making traditional, non-biodegradable options less viable. They compel businesses to transition to greener alternatives to ensure compliance, avoid penalties, and meet national sustainability targets.

Technological advancements are also a key driver, enabling the development of new and improved biodegradable materials that can compete with conventional plastics on performance and cost. Innovations in biopolymers such as Polylactic Acid (PLA) and Polyhydroxyalkanoates (PHA) are leading to packaging with enhanced durability, moisture resistance, and barrier properties. Economies of scale, achieved through increased production and a growing availability of raw materials, are helping to reduce the cost disparity between biodegradable and traditional plastics, making them more economically attractive for a wider range of businesses.

 Request a free sample copy or view report summary: Biodegradable Packaging Market Report

Biodegradable Packaging Market Report Highlights

• Based on material, the bio-plastic segment accounted for the largest revenue share, exceeding 51.0% in 2024, while the paper & paperboard segment is anticipated to register the fastest CAGR of 7.3% during the forecast period.

• Based on product formats, pouches & bags held the largest market revenue share of over 26.0% in 2024, whereas films & wraps are expected to achieve the highest CAGR of 7.1% over the forecast period.

• Based on end use, the food & beverages sector dominated with a market share surpassing 42.0% in 2024 and is projected to grow at the fastest CAGR of 6.9% during the forecast period.

• North America led the market in 2024, contributing over 34.0% of total revenue, while Asia Pacific is forecasted to experience the fastest growth with a CAGR of 7.2% over the coming years.

Biodegradable Packaging Market Segmentation

Grand View Research has segmented the global biodegradable packaging market based on material, product format, end-use, and region:

Biodegradable Packaging Material Outlook (Revenue, USD Million, 2021 - 2033)

• Paper & Paperboard

• Bio-plastic

• Bagasse

Biodegradable Packaging Product Format Outlook (Revenue, USD Million, 2021 - 2033)

• Bottles & Jars

• Boxes & Cartons

• Cans

• Trays & Clamshells

• Cups & Bowls

• Pouches & Bags

• Films & Wraps

• Labels & Tapes

• Others

Biodegradable Packaging End-use Outlook (Revenue, USD Million, 2021 - 2033)

• Food & Beverages

• Personal Care & Cosmetics

• Pharmaceuticals

• Homecare

• Others

Biodegradable Packaging Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • Saudi Arabia

  • UAE

List of Key Players in the Biodegradable Packaging Market

• Mondi

• Smurfit Westrock

• DS Smith

• Stora Enso

• Sonoco Products Company

• Tetra Pak

• Amcor plc

• Elevate Packaging

• Notpla Limited

• Greenhope

• CarePac

• EcoPackables

• Taghleef Industries

• TIPA LTD