Market Trends of Biopolymer Packaging Industry
This section covers the major market trends shaping the Biopolymer Packaging Market according to our research experts:
Food and Beverages Industry is Expected to Witness a Significant Growth during the Forecast Period
- Innovations in the field of biopolymers are expected to drive the market during the forecast period. According to the Indian Science Journal, scientists have made biopolymer films from potato peel and fruit pomace, which can be used to store perishable food products, such as bread. The biopolymer films made from potato peels and fruit pomace waste are 0.3 millimeters thin and can withstand temperatures as high as 200 degrees Celsius. They have good breakage strength and elongation capacity.
- The impending government regulations regarding single-use plastic packaging in China are causing the companies to ramp up biodegradable plastics production. For instance, the founder and chairman of Saton Daily Necessities would be spending USD 15 million to produce biodegradable straws made from polylactide acid (PLA - a type of bioplastic or biopolymer) by doubling the size of the factory.
- The European Union (EU) and the American Chemical Council’s Plastics Division recently announced the target to use 100% recyclable, reusable and compostable plastics by 2025 and 2040. These regulations are expected to influence the plastic packaging industry in the future profoundly.
- This is expected to drive the demand for mono-material plastics and biodegradable polymers in multiple sectors. The concern for both forms of packaging as of now is their high production costs. The regulations are expected to increase demand, and the prices are expected to go down through economies of scale.
- Moreover, in Oct 2019, Swiss food giant Nestlé inaugurated its new research facility, focusing on tackling the problem of packaging waste. It is taking a 5-step approach to this challenge. The company aims to push the envelope with its research into biopolymers as they are biodegradable and can degrade in the composting environment
- Furthermore, in Jan 2020, in a joint research project, the Fraunhofer Institute for Microstructure of Materials and Systems and the technical film producer Polifilm Extrusion GmbH are working on engineering biopolymer-based films for food packaging. In this project, the specialists are relying on chitosan coatings to increase the resistance of food to microbiological impacts.
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Asia-Pacific is expected to Register the Fastest Growth Rate during the Forecast Period
- The Asia-Pacific region is considered to be one largest consumer and producer of biopolymers globally. The growing concerns regarding food wastage, due to the expiry of the products, has enabled the companies in the region to opt for innovative solutions. Moreover, the government regulations regarding food wastage have also contributed to the adoption of sustainable packaging solutions, which, in turn, is estimated to boost the market for biopolymer packaging.
- With Chinese consumers inclined toward products containing fish, meat, and vegetables, which are mainly retort-packed to keep them shelf-stable, the readymade meals have gained increased popularity among the consumers in China. The increasing trend of online purchasing has further buoyed them
- Owing to the rising environmental regulations and multiple government programs to increase awareness, customers are gradually switching towards bio-based plastics. Also, the increasing number of bans on conventional plastics are acting as one of the primary drivers of the growth of the market.
- Further, India is one of the largest manufacturers of food and beverages in the world. The Indian food and grocery market are sixth largest globally, with retail contributing around 70% of the sales. Moreover, food and food products are also one of the most significant segments in the country’s retail sector, valued at USD 490 billion in 2013 and is expected to reach INR 61 lakh crore (USD 894.98 billion) by 2020. With a considerable increase in organized retail, owing to the rapid growth in supermarkets and modern shopping centers, the demand for sustainable, innovative packaging solutions is expected to increase.
- Multiple companies are likely to invest more in the Asia-Pacific region as the consumer awareness in the region is ascending and emerging economies, such as India, are also offering favorable tax benefits toward environment-friendly solutions, which is likely to encourage the new and existing industry players; thus propelling the market growth over the market studied.
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