Biodegradable Packaging Market Size

Biodegradable Packaging Market Analysis

The Biodegradable Packaging Market size is estimated at USD 105.26 billion in 2024, and is expected to reach USD 140.66 billion by 2029, growing at a CAGR of 5.97% during the forecast period (2024-2029).

The demand for biodegradable packaging has increased over the past decade due to the growing awareness concerning environmental conservation, especially in the post-pandemic scenario. The growth of the market is being driven by increased consumer preference toward sustainable packaging materials and expanding demand for recyclable and biodegradable products across various end-user industries.

• Considering the growing demand, the manufacturers of bioplastics and other biodegradable materials are focusing on further expanding the production of these materials. For instance, according to European Bioplastics, the production capacity of bioplastics is expected to increase significantly from around 2.41 million tons in 2021 to approximately 7.59 million tons in 2026.
• With the increasing amount of packaging waste generated worldwide, governments across the globe are adapting to alternative sources, such as biodegradable packaging. The United States has only 4% of the world's population and generates 12% of global municipal solid waste (MSW). It is also stated that the United States produces about 106.2 kg of plastic waste per person per year. (Source: Environmental Protection Agency (EPA) of the United States).
• Various countries and organizations are trying to scrap the utilization of single-use plastic packaging, which is further creating a favorable market scenario for biodegradable packaging. In developing countries such as India, where packaging waste has become a major issue, state and central governments have begun to take steps to prohibit the use of single-use plastic.Several companies have started switching to eco-friendly alternatives. For instance, in India, a ban on select single-use plastic items came into effect on July 1, 2022. The law bans the manufacturing & stocking, import, distribution, sale, and use of identified single-use plastic items that have low utility and high littering potential.
• Similarly, to act against plastic pollution, the European Union put a ban on products such as single-use plastic plates, straws, cutlery, balloon sticks, cotton buds, etc. in July 2021. Furthermore, the European Union has placed restrictions on the use of cups, food and beverage containers made of expanded polystyrene, and all oxo-degradable plastic products.