Global Compostable Packaging Market - 2021-2028
The global compostable packaging market size was worth US$ XX billion in 2020 and is projected to show unprecedented growth by reaching up to US$ XX billion by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).
Compostable materials are similar to biodegradable materials since both are built to return to the earth safely. However, compostable materials go one step further by supplying nutrients to the earth after the material has broken down entirely. Compost piles, designated sites with specific conditions based on wind, sunshine, drainage and other conditions, are applied to these products. Compostable materials require specific composting conditions, while biodegradable materials are designed to break down in landfills. Starch-based packing peanuts are compostable packaging materials, an alternative to Styrofoam loose fill packaging that can be dissolved in water and added to safe disposal composts. Compostable food packaging represents a sustainable, environmentally-friendly method of packaging. Against the context of growing market awareness, it has been difficult for the packaging industry to implement more sustainable solutions into its offerings, resulting in adopting biodegradable and compostable packaging solutions.
A variety of applications such as primary packaging, carrier bags, tableware (plates, cups etc.) and bags for separate biowaste collection are suitable for certified compostable products. It is necessary to ensure that wherever such products are used, they are used to benefit the entire system, i.e., those involved in collecting and recovering biowaste and the compost's end user.
The global compostable packaging market is driven by the growing consumer awareness of sustainable packaging, combined with growing government bans on single-use plastics in countries worldwide. The growing awareness among the population about the unavoidable harms caused by plastic among various end-users is more likely to trigger compostable packaging demand during the forecast period.
The growing consumer awareness of sustainable packaging, combined with growing government bans on single-use plastics in countries worldwide.
The global population has surpassed 7.2 billion, of which 2.5 billion are estimated to be youth population, and they have a strong concern for environmental problems, unlike the other generations. Packaging materials obtained from different sources (particularly plastics) constitute substantial solid waste hazardous to the environment. Strict regulations have been placed by the government and federal agencies of all the major countries to minimize waste and encourage the use of compostable materials for packaging. Therefore, the government's stringent policies are more likely to accelerate the market of compostable packaging in the near future. Apart from this, there has been a strong public response to marine plastic litter, including calls for limiting or even banning plastic packaging. Many organizations are looking to bioplastics as the solution, particularly compostable packaging, thereby creating opportunities for the market to proliferate in recent times.
For instance, In May 2016, Novamont SpA, a bio-based plastics manufacturer, introduced enhanced versions of its Mater-Bi material, compostable bioplastics that are mainly used for fruit and vegetable bags.
The growing awareness among the population about the unavoidable harms caused by plastic among various end-users is more likely to trigger compostable packaging demand during the forecast period.
The growing demand to create a new form of food packaging to replace the unsustainable designs on which modern life seems to depend: single-use plastic beverages cups, straws, lids, and bottles. Nearly 14 percent of the 78 million metric tons of plastic packaging produced globally each year is recycled. Nine million tons per year of lightweight and floatable plastic that avoids recycling flows into our oceans, much of it from developing nations that lack the infrastructure to handle it. As these nations grow wealthier and eventually tend to eat more processed goods, the problem is expected to worsen. Many others continue to buy meal kits and supermarket services in an increasingly convenience-obsessed world, creating significant packaging take-out foods.
Apart from this, many traditional plastics contain toxic chemicals, such as when the goods are scratched or exposed to heat through sunlight, dishwasher or microwave, that leach out over time. These contaminants have been related to diseases, birth defects, compromised immunity and other ailments and can be transmitted to our diet and our water supplies.
Thus growing serious environmental harms of plastic leads to the adoption of compostable plastics in recent times. This packaging processing takes less energy and produces less CO2 than traditional plastic production. Like traditional plastics, compostable packaging also does not leach out harmful chemicals over time. When properly composted, compostable packaging provides a valuable material that can be used to grow food or to grow the raw materials used to create the packaging in the first place. Thus these sustainable properties are triggering the demand for compostable packaging in the forecast period.
Compostable products are not designed for home composting systems, and lack of infrastructure is acting as the restraining factor for the growth of compostable packaging in recent times.
In large-scale industrial composting systems, compostable goods are checked for use. These are much warmer than a traditional backyard compost heap and are handled more carefully. High heat and large quantities of oxygen are required for a compostable plastic to compost. Otherwise, it will not break down. Also, many municipalities, especially smaller ones, do not have easy access to commercial composting that can handle compostable plastics, thus unavailability of enough infrastructure and no access to composting hurdling the growth of composting packaging in recent times. The high-cost requirement for compostable packaging compared to biodegradable packaging is another restraining factor for the growth of compostable packaging.
COVID-19 Impact Analysis
The global compostable packaging has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut for months. Further several countries have restricted production activities during the covid-19 pandemic. The major lockdown due to the COVID-19 outbreak leads to suddenly dropping down consumers' interest towards purchasing any goods, and halt in transportation sectors has severely hampered the business of compostable packaging market due to disruption in the product's supply chain management.
The majority of businesses are shut down, and operations across several end-users of compostable packaging products such as food & beverages packaging industries are also compromised, thus dropping the product's global demand in 2020.
The global compostable packaging market is segmented on product, material, packaging layer, end-user and region.
Rising demand from restaurants, fast food outlets, packaged food businesses, and casual dining locations are embracing compostable packaging with the growing popularity of green packaging
In terms of end-user, the global compostable packaging market is bifurcated into food & beverages, automotive, electrical & electronics, medical, agriculture, textile goods, personal & home care, and others. The food & beverages segment is expected to dominate the global market of compostable packaging in recent times as many restaurants, fast food outlets, packaged food businesses, and casual dining locations are embracing compostable packaging with the growing popularity of green packaging, which in turn is expected to drive the food and beverage market. For instance, in November 2019, Danimer Scientific, a leading developer and manufacturer of biodegradable materials, and Genpak, the leading manufacturer of quality food packaging, are partnering to create a new line of biodegradable food containers. The two companies' eco-friendly foodservice products would help reduce the environmental impacts of globally manufactured non-biodegradable packaging annually.
Expansion and distribution of band sealing machines are anticipated to increase and to increase large-scale foreign investment and is expected to fuel the Asia-Pacific market for compostable packaging materials over the forecast period.
In the United States, consumers' growing awareness and favorable government regulations are expected to boost demand for compostable packaging over the forecast period. As per the United States Environmental Protection Agency, United States produces nearly 80 million tons of packaging waste annually. Food and beverage goods account for around half of the packaging waste in the U.S. The agency reports that most plastic waste is produced by large food companies like Nestle and Unilever, thus accelerating the market of compostable packaging in the region.
However, it is estimated that the Asia Pacific region will be the fastest-growing region, followed by Europe. In the Asia Pacific region, the expansion and distribution of band sealing machines is anticipated to increase. The area is also expected to increase large-scale foreign investment and is expected to fuel the market for compostable packaging materials over the forecast period. To make them more environmentally friendly, China, the world's largest manufacturing center, changes its packaging habits and materials. This move would greatly affect consumer growth in the area due to the sheer volume of goods shipped from China. The Australian government has set a goal of introducing 100% recyclable packaging on or before 2025, which will lead to a stark upward trend in the market value over the forecast period.
The compostable packaging market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Ultra Green Sustainable Packaging, TIPA Compostable Packaging, International Paper, Be Green Packaging HQ, WestRock Company, Amcor plc, Paper Water Bottle, Wuxi Topteam Co.Ltd, NatureWorks LLC, Ecolifellc.com and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the globally profitable compostable packaging market. Global players are favoring product launches as the key growth strategy for building revenue for the firm.
Overview: The company has become the world's leading biopolymer supplier and innovator with its lnego portfolio of naturally advanced material designed from renewable, abundant feedstocks with performance and economics that compete with oil-based intermediates, plastics, and fibers. NatureWorks is jointly owned by PTT Global Chemical, Thailand's biggest chemical manufacturer, and Cargill, which supplies the world with food, agriculture, financial and industrial products and services. Today, the company represents itself in over 10 countries, including businesses in North America, Europe, Japan and the Asia Pacific.
The global compostable packaging market report would provide access to an approx.: 66 market data table, 71 figures and 215 pages.
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