Global Biodegradable Plastic Packaging Market - Segmented by Type (Starch Based Plastic, Polylactic Acid (PLA), Genetically Modified Bioplastics), End User (FMCG, Hospital, Automotive), and Region - Growth, Trends, and Forecast (2018 - 2023)
The biodegradable plastic packaging market was valued at USD 3.37 billion in 2017 and is expected to reach a market value of USD 8.81 billion by 2023, registering a CAGR of 16.93% during the forecast period (2018 - 2023). The report is segmented on the basis of biodegradable plastics into starch-based plastic, cellulose-based plastics, polylactic acid (PLA), poly-3-hydroxybutyrate (PHB), polyhydroxyalkanoates (PHA), polyamide 11 (PA11), bio-derived polyethylene, and genetically modified bio-plastics. The report also consists of biodegradable plastics used by different end users and in different regions.
Growing Consumer Awareness A Major Market Driver
The world population exceeded 7.2 billion, out of which more than 2.5 billion are ‘millennials’ (of the age 15-35), and unlike the other generations they actually share a deep concern about the environmental issues. A majority of these consumers are skeptical about the corporate responsibility claims made and have brought an ethical consumer revolution demanding ethically produced goods. Advanced manufacturing processes, technological innovation, and increased integration has helped people to adopt biodegradable packaging rapidly. The government and federal agencies of all the major economies have made stringent regulations in order to reduce the wastage and promote use the biodegradable materials for packaging.
FMCG Expected to Hold Significant Market Share
With the rise in disposable income with the people, FMCG industry is growing rapidly. FMCG industry is moving towards smaller and portable packing to increase the consumer base as well as to reduce the maximum retail price of the product. This has led to the higher usage of packaging material in the industry. Due to stringent government regulations in many countries, this industry is also using biodegradable plastic packaging to comply with the rules.
Europe Expected to Dominate the Market
Europe is expected to dominate the overall biodegradable packaging market owing to the presence of mature market that consists of highly environmentally conscious consumers. In addition, due to the comparatively higher price of biodegradable plastic packaging, the presence of high-spending population is also expected to increase the overall demand for biodegradable packaging in this region. The increasing pressure on the governing organizations to decrease carbon emissions and landfills, as well as the issues relating to mounting plastic waste, have increased the consumption of biodegradable plastics in the region.
Key Developments in the Market
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook