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Biodegradable Paper & Plastic Packaging Market - By Material Type (Plastic (Polyhydroxyalkanoates (PHAs), Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polycaprolactone (PCL), Others), Paper (Kraft Paper, Sulphite Paper, Greaseproof Paper, Parchment Paper, Cardboard Paper, Others), By Packaging Type (Corrugated Boxes, Boxboard or Paperboard Cartons, Paper Bags & Sacks, Plastic Boxes, Plastic Bags, Bubble Wraps, Others, By End-Use Industry (Cosmetics & Personal Care (Skin Care, Hair Care, Fragrances), Electrical & Electronics (Semiconductor, Appliances, Others), Automotive (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicles), Food & Beverage, Pharmaceuticals, Shipping & Logistics, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027
Biodegradable Paper & Plastic Packaging Market Overview
The Biodegradable Paper
& Plastic Packaging Market size is forecasted to grow at a CAGR of 10.5%
during the forecast period 2022-2027 and reach US$ 18.2 billion by 2027. Biodegradable
plastics and paper are made from renewable sources such as corn starch,
vegetable fats and oil, sugarcane and other similar sources. Biodegradable
plastics and paper such as polyhydroxyalkanoates (PHAs), polylactic acid (PLA),
kraft paper, sulfite paper and cardboard paper are available in various
packaging types which include corrugated boxes, paper bags and sacks, plastic
boxes, bubble wraps and more. They are used in a wide range of industries such as food & beverage, cosmetics & personal care, pharmaceuticals, automotive
and other industries. In 2020, the surge in the COVID-19 pandemic negatively impacted
the packaging industry as a result of the country-wise shutdown of
manufacturing sites, shortage of labor and the decline of the supply and demand
chain all across the world, thus, temporarily affecting the growth of the biodegradable
paper & plastic packaging industry. However, a steady recovery in the
packaging industry has been witnessed since 2021, which in turn, is driving the
demand for biodegradable paper & plastic packaging. For instance, recent
insights from Flexible Packaging state that the food packaging industry
witnessed a sharp increase in demand in 2021 due to a high number of consumers
turning to online grocery shopping. By the end of 2021, U.S. online grocery
sales reached up to 12.4% of the country’s overall e-commerce sales. As a
result, supermarkets witnessed a huge surge in demand for packaging materials
for the wrapping of food and other grocery products. An increase in pharmaceutical
production along with the surging consumer preference for bio-based packaging is
expected to drive the growth of the biodegradable paper & plastic packaging
market size in the coming years. On the other hand, high costs associated with biodegradable
plastics & paper packaging may confine the growth of the market.
Biodegradable
Paper & Plastic Packaging Market Report Coverage
The
"Biodegradable Paper & Plastic Packaging Market Report–Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Biodegradable
Paper & Plastic Packaging Market.
Key Takeaways
- Corrugated boxes segment in Biodegradable Paper & Plastic Packaging Market held a
significant share in 2021. Its wide range of characteristics, along with high
flexibility and adaptability made it stand out in comparison to other types of packaging
in the market.
- Food & beverage industry held the largest share in Biodegradable Paper & Plastic Packaging Market in 2021, owing to the increasing demand for biodegradable paper & plastic packaging from the food & beverage sector across the world. Biodegradable plastic and paper are made from a natural renewable resource and are easily recyclable in nature & quite versatile in terms of capabilities, design and flexibility. All of these properties make them ideal for use in the packaging of food & beverage products.
- Asia-Pacific dominated the Biodegradable
Paper & Plastic Packaging Market in 2021, owing to its increasing demand
from the food & beverage sector of the region.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Biodegradable Paper & Plastic Packaging Market Report.
Figure: Asia-Pacific Biodegradable Paper & Plastic Packaging Market Revenue, 2021-2027 (US$ Billion)
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Biodegradable Paper & Plastic Packaging Market
Segment Analysis – by Packaging Type
The corrugated
boxes segment held a
significant Biodegradable Paper & Plastic Packaging Market share in 2021,
owing to the range of characteristics and benefits it offers over other types
of biodegradable paper & plastic packaging. For instance, corrugated boxes are highly flexible and adaptable and can
be easily cut to any shape or size as per the requirements in comparison to
other packaging types. They can store a wide variety of products from bakery
products to dairy products and even fruits, vegetables, pharmaceutical products
and more. Moreover, corrugated boxes are designed with high-quality and sturdy
materials, which makes them capable to withstand any form of abrasion or
pressure. Thus, it provides better protection of the packed products and
ensures convenient and safe delivery of such products from one destination to
another. Furthermore, they are lightweight, durable and readily available in
comparison to other types of packaging, which in turn, is expected to boost the growth of the market during
the forecast period.
Biodegradable Paper & Plastic Packaging Market Segment Analysis – by End-use Industry
The Food & Beverage industry held the largest Biodegradable Paper & Plastic Packaging
Market share of over 25% in 2021, owing
to its increasing demand from food & beverages across the world. For
instance, according to PMMI (The Association for Packaging and Processing), the
North American beverage industry is expected to increase by 4.5% from 2018 to
2028, with the United States leading the beverage packaging sector. Likewise,
recent insights from the Packaging Federation of the United Kingdom state that
the UK packaging manufacturing industry reached an annual sales of GBP 11
billion (US$ 15.2 billion) in 2020, owing to the increasing demand for
packaging from multiple sectors including the food & beverages sector of the
region.
Biodegradable
plastic & paper such as polyhydroxyalkanoates, polylactic acid, greaseproof
paper, cardboard paper and more are primarily used for packaging in the food
and beverage sectors, owing to their wide range of properties such as
biodegradability, recyclability, versatility, wide availability, light-weight
and sustainability. Thus, an increase in demand for food and beverage packaging
is expected to expand the biodegradable paper & plastic packaging market
size during the forecast period.
Biodegradable Paper & Plastic Packaging Market Segment Analysis – by Geography
Asia-Pacific
held a dominant Biodegradable Paper & Plastic Packaging Market share of
around 34% in the year 2021. The consumption of biodegradable paper &
plastic packaging is particularly high in this region due to its increasing
demand from the food & beverage sector. For instance, according to a recent
study published on Interpack, China holds the largest market share around the
world when it comes to food packaging. The consumption of food packaging in
China is expected to increase to 447,066 million in 2023. Likewise, it further
states that the Chinese packaging companies such as 3D, SIP and WLCSP alone
achieved a revenue of around US$ 5.88 billion with end packaging. Moreover,
according to the Packaging Industry Association of India, the Indian packaging
industry was valued at around US$ 50.5 billion in 2019 and is expected to
increase up to US$ 204.81 billion by the end of 2025. It further states that
food packaging is considered to be one of the industries with high growth in
India and is rising at 22%-25% per year.
In this way, such surging developments associated with the food packaging sector in multiple countries across the region are expected to increase the demand for biodegradable paper & plastic packaging, owing to its biodegradability, recyclability, versatility, light-weight, sustainability and other properties. This is expected to drive the growth of the market during the forecast period.
Biodegradable Paper & Plastic Packaging Market Drivers
An increase in pharmaceutical production
Biodegradable plastics such as polyhydroxyalkanoates,
polylactic acid and more are
primarily in the pharmaceutical industry for packaging various capsules,
tablets, powder and other pharmaceutical products. Its properties such as
excellent resistance to moisture, abrasion, durability, flexibility and
sustainability make them ideal for use in the packaging of such pharmaceutical
products. For instance, according to the European Federation of Pharmaceutical
Industries and Associations (EFPIA), the total production of pharmaceuticals
including capsules, tablets and other products in Europe was valued at EUR
310,000 million (approx. US$ 354,080.76 million) in 2020. Moreover, according
to the Brazilian Chemical Industry Association, the production of the
pharmaceutical industry in Brazil was valued at US$16.1 billion in 2021, an increase
of 2.6% from US$ 15.7 billion in 2020. Hence, such an increase in
pharmaceutical production is expected to increase the demand for biodegradable
plastics for the packaging of pharmaceutical products, owing to its
above-mentioned properties. This is
anticipated to drive the growth of the market in the upcoming years.
Surging consumer preference toward bio-based packaging
Bio-based packaging
is made from renewable resources that are less toxic to the environment. It
causes less pollution by emitting very fewer carbon emissions that can be
harmful to the environment as opposed to standard petroleum-based packaging. Moreover,
bio-based packaging can be produced from a wide range of materials and also
perform very well in most conditions. Bio-based packaging is biodegradable in
nature and reduces the possibility of contamination of soil or underground
water during its transportation, storage, or use. Owing to these benefits, the
demand for bio-based packaging including biodegradable plastics and paper such
as polyhydroxyalkanoates,
polylactic acid, kraft paper, cardboard paper and more is
increasing over the past few years. For instance, according to the European
Bioplastics Association, the global production capacity of bioplastics is
expected to increase significantly from around 2.41 million tons in 2021 to
around 7.59 million tons in 2026. Furthermore, according to the Beijing
Technology and Business University, China is expected to increase its
production of bioplastics from 400,000 tons in 2020 to approx. 8 million tons
by 2025. Thus, such developments associated with bio-based plastics, owing to
the surging consumer preference for bio-based packaging, are expected to
accelerate the market growth in the upcoming years.
Biodegradable Paper & Plastic Packaging Market Challenges
High costs associated with Biodegradable plastics & paper packaging
The rise in
costs of raw materials such as pulp has made it difficult to access paper for
various packaging purposes. According to the U.S Bureau of Labor Statistics,
the PPI and pulp cost and raw materials for corrugated boxes in 2021 have
increased by more than 25% in the past 12 months. Likewise, according to
Sparkoncept, a bio-based product manufacturer, the average price of bioplastic usually
ranges from US$ 2,000 to US$ 7,000 per ton, depending on the type of
bioplastic. Furthermore, another major factor that is causing the increase in
packaging costs is transportation. Prices of crude oil have increased up to 40%
since the beginning of the year 2021 and its prices are expected to increase up
to US$ 80 per barrel in the upcoming years. This, in turn, has increased the
overall costs of transporting the raw materials required for the production of
biodegradable plastic and paper packaging, thus, leading to increased packaging
costs. Thus, such high costs associated with biodegradable plastics & paper
packaging may limit the growth of the biodegradable paper & plastic
packaging industry during the forecast period.
Biodegradable Paper & Plastic Packaging Industry Outlook
Technology launches, acquisitions and increased R&D activities are
key strategies adopted by players in the Biodegradable
Paper & Plastic Packaging Market. The top 10 companies in the Biodegradable Paper &
Plastic Packaging Market are:
- Smurfit Kappa
- BASF SE
- Riverside Paper Co. Inc.
- Clearwater Paper Corporation
- Ultra Green Sustainable Packaging
- Eurocell S.r.l
- Tetra Pak International SA
- Kruger Inc.
- Mondi Group
- Amcor PLC
Recent Developments
- In June 2022, Corona, the global beer brand, launched its new biodegradable and compostable six-pack packaging in India. The newly launched product is made from a completely renewable source such as barley straw and is as durable as regular packaging.
- In December 2021, SK Geo Centric collaborated with Kolon Industries to launch an eco-friendly biodegradable plastic PBAT (Polybutylene Adipate Terephthalate). PBAT is an eco-friendly plastic that degrades easily in nature due to heat, oxygen, light and enzyme reactions. It has excellent printability and workability, which makes them ideal for use in various packaging purposes.
- In August 2021, NatureWorks LLC invested around US$ 600 million to build a new bioplastics plant in Thailand in order to meet the growing demand for sustainable materials for packaging in the country. The development of the plant is scheduled to be completed by 2024.
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