The bioplastics for packaging market is estimated to reach US$ 11.6 billion in 2023. The market is projected to expand at 10.3% CAGR over the forecast period, to achieve US$ 30.9 billion by 2033.
The study conducted by FMI estimates that the bioplastics for packaging market are expected to expand 1.7 times of base year value during the forecast period. This is expected to generate lucrative investment opportunities for the manufacturers.
The bioplastics for packaging industry analysis shows that global consumption of overall bioplastics for packaging increased at a year-on-year (YoY) growth of 10.3% in 2022. The film segment in the global bioplastics packaging industry is expected to hold a market share of more than 40.8% by 2033.
FMI team also analysed that Italy and Germany are expected to hold a cumulative share of 48.8% of the bioplastics for packaging industry in the Western Europe region in 2023 and the China bioplastics for packaging market is expected to expand by 12.2% CAGR over the forecast period. The bioplastics for packaging industry is expected to be steered by the North American region which is expected to hold a prominent market share of more than 30.5% in 2023.
How do the Versatility, Innovation, and Sustainability of Bioplastics, Contribute to the Growth of the Global Bioplastics for Packaging Market?
Bio-based plastics are extensively employed in several markets like packaging, consumer electronics, catering products, construction, automotive, and various other sectors. The packaging from bioplastics has evolved over the past decade.
New innovative materials such as PLA, PHA, and Bio PBS create packaging solutions with new functionalities like biodegradability, breathability, an increase in material strength, etc. Other new material like PEF offers better barrier properties than traditional polymers and can be easily mechanically recycled.
As per international standards, such as ISO 17088, ASTM 6400 (USA), and EN13432 (Europe), biopolymers are certified compostable. All the aforementioned factors are instrumental in its use in the packaging industry.
There is a high demand for bioplastic packaging for wrapping organic food also premium branded products. Materials such as PLA, bio-PE, or bio-PET are used in rigid bioplastics applications such as cosmetic packaging, beverage bottles, etc. In food, packaging biodegradability is the most sought feature.
Flexible packaging solutions like films enable longer life of the products. When it comes to protecting food the performance of bioplastic packaging is comparable and sometimes better than existing conventional packaging. Thus, the growth of bioplastics for packaging market is expected to jump significantly.
Country-Wise Insights
Why is Germany Considered One of the Most Lucrative Markets for Bioplastics for Packaging Market?
According to European Bioplastics (EUBP), bioplastic is a promising global market that is projected to grow significantly in the coming years. Innovative biopolymers like bio-based PP, PLA, and others continue to show a high growth rate. Every year around 4% of the oil is used to produce plastics globally.
With the rising global environmental crisis and the cost of oil rises, the Government and manufacturers are forced to take action to switch to a natural alternative. Germany supports the use and consumption of certified bio-based and compostable bio-waste garbage bags in the bio-waste ordinance since 2015.
The increasing government initiatives and promotion of bioplastic usage are expected to boost the market. The circular economy is the top priority for environmental policy in Germany and its people are aware of the importance of reducing plastic waste by opting the bio-based plastics to minimize the reliance on inadequate fossil resources.
What is the Impact of India on the Global Bioplastics for Packaging Market?
According to Down to Earth, the Central Pollution Control Board report in 2018-19 specifies as much as 3.3 million metric tons of plastic waste generated in India. The single-use plastic packaging is on an exponential rise. So, in this pivotal time for bioplastic growth in India, the Indian Compostable Polymer Association was founded in 2018 to promote a sustainable circular economy and advocate compostable bioplastics in India.
In India, the increasing trend of supermarkets, malls, retail chains, and online shopping has created a huge demand for bags. The growing trend of outside food eating, quick-service restaurants, and food malls generated massive growth for single-serve cutlery and cups. Hence, bioplastic bags, and garbage waste bags made from renewable resources are gaining high momentum.
Bioplastic bags are also used in the industrial packaging of automobile parts, dust covers, and commercial applications in India due to the boom in the automobile sector. Thus, the increasing eco-awareness among consumers and stringent regulations imposed by the Government on single-use plastic consumption is expected to drive the Indian bioplastics for packaging market.
Competitive Dashboard
The key manufacturers operating in the bioplastics for packaging industry are focusing on partnerships, expansion, and, innovative product launches to gain the customer’s attention.
· In July 2021, Amcor Plc partnered with Syntegon to provide the coffee providers with a new mono-PE vacuum pack and it is designed to be recycled and more sustainable.
· Braskem S.A. in February 2021 invested US$ 61 million to boost its biopolymer production.
· In September 2020, Corbion N.V. and Total Corbion PLA announced to build of the first world-scale PLA plant in Europe which is expected to have a capacity of 100,000 tons per annum.
· Tetra Pak International SA and Braskem, its supplier, became the first firm in November 2019, to provide packaging with an overall traceable supply chain of bio-polymers in the food and beverage industry.
