Bioplastic packaging majorly includes packaging products made from renewable biomass resources such as corn starch, sugarcane, vegetable fats and oils, and cellulose. Such packaging products offer advantages such as renewability and biodegradability over conventional plastics. Rising consumer awareness about negative impacts of conventional plastics has propelled the demand for eco-friendly bioplastic packaging solutions.
The global bioplastic packaging market is estimated to be valued at US$ 10.60 Bn or Billion in 2023 and is expected to exhibit a CAGR of 29% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends fueling growth in the bioplastic packaging market is the shift towards sustainable packaging solutions across various industries. Growing environmental concerns regarding usage of conventional plastics have prompted manufacturers to focus on replacing plastics with biodegradable and sustainable alternatives. Moreover, favorable government regulations supporting use of bio-based packaging further support the market growth. For instance, European Union has set targets to increase usage of bio-based plastics in packaging to 10% by 2025.
SWOT Analysis
Strength: Bioplastic packaging is biodegradable and environment friendly. It reduces emissions of greenhouse gases as compared to conventional plastics.
Weakness: Bioplastic is still more expensive than conventional plastics. There are limited raw materials available for production of bioplastics.
Opportunity: Increasing awareness about environmental pollution and sustainability is creating growth opportunities for bioplastic packaging. Support from governments worldwide in the form of regulations is driving the demand.
Threats: Established players in conventional plastic packaging are resisting shifts to bioplastics due to investments in existing infrastructure. Volatility in raw material prices poses challenge.
Key Takeaways
The global bioplastic packaging market is expected to witness high growth, exhibiting CAGR of 29.% over the forecast period, due to increasing awareness about sustainability and environmental protection. Support from governments in the form of regulations banning certain conventional plastics is also fueling demand.
Regional analysis: North America dominates the global bioplastic packaging market currently due to stringent regulations and presence of key market players. Asia Pacific is expected to witness fastest growth on account of large population, growing middle class, and rising disposable incomes in the region which is likely to propel demand for packaged food and beverages.
Key players operating in the bioplastic packaging are BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company. These players are focusing on capacity expansion and new product launches to strengthen their market position. Partnerships and collaborations within supply chain are one of their key strategies.
