Global Biodegradable Plastic Packaging Market - 2020-2027
Global Biodegradable Plastic Packaging market size was worth US$ XX billion in 2019 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX% during the forecast period.
The predominant challenge of climate change and the probable upcoming unavailability of fossil fuels have augmented the quest for improved ideas for plastics packaging solutions. Biodegradable plastic packaging exhibits the identical features as conventional plastic packaging. Moreover, it offers greater sustenance towards the environment.
There is a huge requirement for biodegradable plastics for packaging organic food, as well as exceptional and branded merchandises with explicit requirements. A blend of reusable materials from conservative plastics, such as rPET with biodegradable plastic (bio-based PET), provides high-performance treatment of bioplastics packaging.
Biodegradable plastic's usage are expected to grow for cosmetics packaging segment specifically for compact powders, creams, and lipsticks, as well as beverage bottles. The biodegradable materials, such as PLA, bio-based PE, or bio-based PET, are utilized in the above mentioned products. The high proportion of bio-based components in these products, as well as the capability of them to mix with recyclers from conservative PE and PET, gave rise in a significant increase in material effectiveness and the decrease of CO2 emissions. These aspects are anticipated to drive the market's growth in the forthcoming years.
The growing ecological apprehensions regarding plastic practise are boosting the use of biodegradable plastic substitutes. Moving plastic left-over that endures thousands of years in water can assist as a transport stratagem for aggressive species that interrupt habitations. This above-mentioned factor is attributing to the market growth.
The severe guidelines by several governments and concerned authorities as a target to diminish plastic remains and stimulate biodegradable plastics custom in packaging are driving the demand of biodegradable plastic packaging market.
These bio degradable plastics are specifically designed for advanced packaging and other End Users for making it more thermally conducive using traditional methods such as extrusion, film blowing and casting, lamination, sheet casting and thermoforming, injection-moulding, blow-moulding and foaming, both for monolithic and multilayer systems.
By material type, the market is segmented into Starch-Based Plastic, Cellulose Based Plastics, Polylactic Acid (PLA), and Polyhydroxyalkanoates (PHA). The biodegradable types of packaging materials such as PLA and PHA are estimated to lead the biodegradable plastics packaging market by material type over the projection period backed by its exceptional properties such as superior impact resistance and greater flexibility. Polylactic acid is denoted as a 'bioplastic' because of its ecological nature.
PLA is considered as a renewable thermoplastic and as well as a polymer. It is engineered with the help of plants' starch such as corn, sugar cane and sugar beet, making it ecologically friendly and viable. Fermentation of the sugars from these plants produces lactic acid, and after further reactions, lactide is created. Further processing and polymerization, on lactide, a Polylactide resin is formed. The resultant resin can be injected and moulded to form single-use products such as plastic cups, bottles, and food containers.
Polylactide is biodegradable, as it degenerates as an effect of contact with the ultraviolet rays of sunlight and oxygen. It decays to form carbon dioxide and water, which are harmless to the environmental surroundings. These factors drive the growth of PLA in the material segment of the biodegradable plastic packaging market during the forecast time-frame. The utilization of PLA and PHA types of materials in the manufacturing of plastic cups, bottles and food containers has therefore influenced the growth of food and beverage industry globally during the forecast period.
By End User industry, biodegradable plastic packaging is segmented into Food, Beverage, Pharmaceutical, and Personal/Homecare. Food packaging solutions are finding strong growth in the biodegradable plastic packaging market. The packaging aspects for the foodstuffs are extremely crucial considering the freshness of the material. The ecological packaging will enhance the freshness due to the no or low presence of synthetic material in packaging.
The changeover to a low-carbon and circular economy, robust policy support for the bio-economy, and amplified customer attentiveness for ecological products and packaging drive the development of the market in Europe. The EU verdict to reduce the inclusive consumption of thin plastic bags in the region by about 80% by 2019, equated to its usage levels in 2010, is expected to generate substantial growth prospects for biodegradable plastic manufacturers during the forecast period.
Additionally, the demand for biodegradable plastics is witnessing a significant growth in traditional end-user industries of packaging, agriculture, and textile as well as the niche industries of medical implants and drug delivery system in European countries.
Furthermore, the vendors in Europe, such as Rossmann, Aldi, Coop, and Carrefour, use single or multi-use carrier bags made from biodegradable plastics, with the add-on bonus of biodegradability. The specialised disposable cups are also used at big events, or in major football stadiums throughout Europe.
The key players in the market include Tetra Pak International SA, Plastic Suppliers Inc., and Kruger Inc. and among others. The biodegradable plastic packaging market is greatly fragmented, as the international players are shifting towards developing new technologies to fabricate plastic packaging material from numerous easily obtainable natural raw materials. The main spending in research and development by the players, so as to create innovative products, are producing high competition in the market. Additionally, key market players are adopting several growth strategies such as new product development, mergers & acquisitions, joint ventures and partnerships to expand their in the global market arena.