By Infinium Global Research Aug, 2020
The Global Biodegradable Plastic Packaging Market is expected to grow at a CAGR of 16.83% between 2020 and 2026 in terms of value. Food packaging holds a huge share of the total packaging market. The increasing need for sustainability in food packaging is the primary growth factor for the biodegradable plastic packaging market. The increasing amount of food packaging waste possesses a huge threat to the environment. In addition to environmental pollution, the packaging production process also utilizes a huge amount of natural resources. Thus, even a small reduction in the use of environmentally harmful materials for food packaging would result in a significant decrease in the greenhouse gas emission and contamination of air and groundwater. Furthermore, enforcement of environmental protection rules to boost the growth of the biodegradable plastic packaging market. The growing environmental concerns due to the increasing waste accumulation and plastic pollution has led to the implementation of rules and regulation to protect the environment. However, the high cost of biodegradable plastic packaging as compared to traditional plastic packaging products hampering the market growth. The price of the raw materials and production methods required for the biodegradable plastic packaging is high. Moreover, global corporations switching to eco-friendly packaging which generates superior growth opportunities for the emerging and existing market players.
Geographically, Europe holds a maximum share in the global biodegradable plastic packaging market due to the advanced government policies encouraging the growth of the biodegradable plastic packaging products. The transition to a low-carbon and circular economy and stronger policy support for the bio-economy are driving the expansion of the biodegradable plastic the packaging market in Europe. Furthermore, North America is the second-largest market for biodegradable plastic packaging owing to the increasing environmental concerns regarding plastic usage. The presence of several major market players in the North America region holds a huge share in the market favors the growth of the biodegradable plastic packaging market. The Asia Pacific region acquires a considerable share of the biodegradable plastic packaging market owing to rapid growth in markets such as China, India, Japan, South Korea, Indonesia, Thailand, Malaysia, Singapore, Australia, and New Zealand.