The global biodegradable food packaging market is anticipated to accumulate a market value of US$ 216.35 billion in 2023 and is expected to garner a valuation of US$ 355 billion by exhibiting a CAGR of 5.08% in the forecast period 2023 to 2033. The biodegradable food packaging market reflected a 4% CAGR in the historical period 2018 to 2022.
The market for biodegradable packaging in the beverage sector is anticipated to witness growth with the never-ending need for bottled water and non-alcoholic beverages. Consumer’s proclivity toward demanding high-quality drinking water, the fear of illness as a result of drinking polluted tap water, and the ease of transport and convenience are factors further contributing toward the demand for eco-friendly bottled water.
Future Market Insights says, the food sector has grown rapidly as a result of technological innovations and increased integration. As a result, the industry’s global expansion has been bolstered. This will positively benefit the market growth. Developed economies like North America and Europe are expected to grow with significant pace. Increasing consumer awareness is shaping the product demand in these regions. Also, consumers in the eco-friendly packaging market are looking for products with extra features like cost-effectiveness, and are convenient.
Increasing consumer demand for convenience, development of innovative packaging materials, awareness toward environment, and the adoption of new regulatory requirements are expected to drive market growth in the forecast period.
Consumers are also opting for biodegradable spoons (wooden spoons) and straws (paper straws) which come with food packaging. Single-use plastic straws, closures, lids, caps, cups, and food trays are being replaced by paper or biodegradable substitutes in the food service sector.
Due to this, the demand for green food packaging market will continue to grow because of increasing customer preferences for convenience and packaged meals.
Along with this, technological advancements in the food packaging industry are proving new growth opportunities. Major market players are channelizing their efforts on developing innovative technologies to shift towards environmentally friendly food packaging solutions to reduce impact on environment and keep plastic out of landfills and the ocean.
For instance, in October 2022, ‘HuhtamäkiOyj’, a Finland-based consumer packaging company, introduced an innovative, recyclable ice cream packaging solution which was based on paper-based technology. These kind of developments by other manufacturers will further augment the market growth. This packaging solution is made up of 95% renewable biobased material thanks to a water-based barrier coating and paperboard which has received SFI certification. This innovation helps to cut packaging costs, waste, and environmental pollution, thereby boosting the product demand.
- Region-wise, the market in Europe accounted for maximum revenue share in 2020. It is expected to retain its dominance by garnering around 38% market share by end of the forecast period.
- Due to stringent government regulations in European Union against the use of single-use plastics which are hazardous to the environment, the market is expected to grow.
- The European Directive developed the framework of a circular economy and established sustainability goals and guidelines. By adopting recyclable, recycled, and biodegradable materials, European businesses have begun to follow the circular economy agenda. This practice will contribute to region’s market growth over the forecast period.
- Similarly, the market in Asia Pacific is expected to grow with fastest CAGR of 5% during the assessment period. It is also expected that increasing urbanization, busy lifestyles, growing ready-to-eat meal consumption, and rising disposable income, will propel the product demand in this region throughout the forecast period.
Biodegradable Food Packaging Market- Regional Outlook
The biodegradable food packaging market has been analysed based on sales growth and value across different regions that include Asia Pacific, Latin, and North America, Oceania, Europe, and the Middle East and Africa. North America and Europe will dominate the biodegradable food packaging market due to the presence of an environmentally aware and high-spending population in the areas. However, due to the presence of matured markets, the growth of biodegradable food packaging in these areas is normal. Europe and the Asia Pacific hold high potential for growth in the biodegradable food packaging market. However, the Middle East and African markets are expected to observe low growth compared to other regions.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing biodegradable food & beverages packaging solutions are expected to create lucrative opportunities for market growth during the forecast period.
- In May 2022, Amcor Rigid Packaging (ARP) informed about the creation and launch of PowerPostTM. This technology produces nearly one-third lighter bottles with 30% less energy and 30% less carbon than most 20 oz. bottles by actively dislodging the vacuum in the container after filling.
- In January 2022, Amcor PLC launched AmFiberTM, a new platform for paper-based packaging products. AmFiber’s innovations aim to redefine the functionality of conventional paper packaging, offering an extensive range of functional benefits to cater to the changing needs of consumers. This new platform’s product is an innovative solution tailored to provide snacks and confectionery products to European customers with recyclable packaging that provides a high barrier to oxygen and moisture.
Food packaging has always been a challenging task since decades and petroleum-based products have been the first choice of manufacturers since they’re very flexible and leak-proof. However, all these petroleum-based products are harmful to the environment and take years to degrade.
They not only increase the wastage but also release greenhouse gases when burned or chemically processed. Hence, manufacturers are slowly shifting towards a more eco-friendly and biodegradable packaging material for food packaging.
Biodegradable packaging has the capability to degrade completely with the help of microorganisms present in the environment. Biodegradable food packaging materials usually consist of paper, metal, glass, wood, bagasse, and eco-friendly plastic among a few others.
Biodegradable food packaging helps in the reduction of carbon footprint and is easy dispose of. It is easier to recycle and requires less energy to manufacture. Due to these benefits, customers are also slowly shifting towards biodegradable food packaging.
These insights are based on a report Biodegradable Food Packaging Market by Future Market Insights.