A recent report published by Infinium Global Research on
biodegradable packaging market provides an in-depth analysis of segments and
sub-segments in the global as well as regional biodegradable packaging market.
The study also highlights the impact of drivers, restraints, and macro
indicators on the global and regional biodegradable packaging market over the
short term as well as long term. The report is a comprehensive presentation of
trends, forecasts, and dollar values of the global biodegradable packaging market.
According to the report, the global biodegradable packaging market is projected
to grow at a CAGR of 5.7% over the forecast period of 2020-2026.
The packaging industry has undergone a number of changes as
innovative materials and packaging processes have been developed for the past
couple of decades. Moreover, the changing requirements from different end-use
industries have also influenced the packaging companies to develop novel
solutions to fulfill such requirements. Thus, the players in the packaging
industry have come up with biodegradable packaging, keeping in mind the growing
demand for eco-friendly packaging solutions. The biodegradable packaging is
made up of materials that are not harmful to the environment and can be
decomposed using micro-organisms such as bacteria and fungi. The raw materials
used in such packaging are mostly plant or animal-based, which are easily
available. The ability of such packaging materials to be decomposed and
recycled make them eco-friendly than most of the other packaging materials such
as plastic, metal, and glass.
The growing demand for recyclable materials from several end-use
industries are the major factor driving the growth of the biodegradable
packaging market. Biodegradable materials are primarily plant-based. They are
decomposed by bacteria and fungi and the decomposed material is used as
fertilizers for plants. Many end-use industries such as food and beverage,
pharmaceutical, and agriculture have increased their demand for biodegradable
packaging for their products mainly due to the efforts of companies to position
and market their brand as eco-friendly. Moreover, increasing consumer awareness
regarding environmental protection is anticipated to further boost the growth
of the market. As the pollution levels increase people are starting to notice
its effect on their life. Pollution has degraded the quality of food, water,
and air, which eventually has adverse effects on human health. Due to this many
people are proactively shifting their preference towards eco-friendly products.
This, in turn, boosts the demand for Biodegradable Packaging around the world.
However, the cost associated with the production of biodegradable packaging is
higher as compared to conventional plastic packaging. This is majorly hampering
market growth. Nevertheless, efforts from several market players and research institutes
to develop cost-effective production of biodegradable packaging are anticipated
to pose numerous business opportunities in the future. However, the current
concerns over the outbreak of coronavirus are expected to have a negative
impact on the sale of biodegradable packaging in the short term. The COVID 19
outbreak has led to lockdowns in several countries across the world. Due to
such lockdowns, the food and beverage industry as well as the restaurant
industry is expected to incur losses in their sales. The demand for packaged
food during COVID-19 has increased manifold. However, due to the current
situations, f&b manufacturers aren’t focusing on incorporating biodegradable
packaging. This has affected the on the sales of the biodegradable packaging
for food and beverage companies and restaurants or fast food industries.
Moreover, the production facilities of food and beverage companies are also
shut down due to the spread of coronavirus. The production of food and beverage
products has stopped, reducing the demand for all sorts of raw material
required for production including the packaging. On the other hand, the demand
for medicines and pharmaceuticals haven’t changed during this period of
outbreak, which offers favorable business opportunities for the biodegradable
packaging market.
Among the geographies, North America region is expected to hold
the largest share in the global biodegradable packaging market. Factors
including growing food and beverage industry and higher awareness among the
people regarding biodegradable products are majorly driving the market in North
America. The US food and beverage industry generated about USD 11 billion in
2019 and is expected to reach up to USD 14 billion in 2024. The growth of this
industry is anticipated to have a positive impact on the related industries as
well. Packaging being one of the related industries, it is expected to benefit
from the growth of the food and beverage industry in North America.
Furthermore, the population in the region is aware of the biodegradable
products and their effect on the environment. People in North America are more
exposed to products such as biodegradable packaging due to the availability of
products. This, in turn, has boosted the demand for biodegradable packaging in North
America.
The report on the global biodegradable packaging market covers
segments such as material type, and application. On the basis of material type,
the sub-markets include plastic, and paper. On the basis of application, the
sub-markets include food, beverage, pharmaceutical, personalcare/homecare, and
other applications.
The report provides profiles of the companies in the market such
as The International Paper Company, Kruger Inc., Tetra Pak International SA,
Clearwater Paper Corporation, Smurfit Kappa Group plc, Mondi Group, Natureworks
LLC, Amcor Plc, BASF SE, and Novamont S.p.A.
The report provides deep insights into the demand forecasts,
market trends, and micro and macro indicators. In addition, this report
provides insights into the factors that are driving and restraining the growth
in this market. Moreover, The IGR-Growth Matrix analysis given in the report
brings an insight into the investment areas that existing or new market players
can consider. The report provides insights into the market using analytical
tools such as Porter's five forces analysis and DRO analysis of biodegradable
packaging market. Moreover, the study highlights current market trends and
provides forecast from 2020-2026. We also have highlighted future trends in the
market that will affect the demand during the forecast period. Moreover, the
competitive analysis given in each regional market brings an insight into the
market share of the leading players.
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