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Europe Food Biodegradable Packaging Market - Forecast(2023 - 2028)
Europe Food Biodegradable Packaging Market Overview
Europe Food Biodegradable Packaging Market size is forecast to reach US$1.1 billion by 2027, after growing at a CAGR of 6.6% during the forecast period 2022-2027. Food biodegradable packaging composed of starch, bioplastics and other similar materials is a highly-promising plastic substitute that helps minimize the long-term problems caused by excessive plastic use. Moreover, biodegradable packaging used in food products ensures safer contact with the food without affecting the food content when compared to plastic-based packaging. Although, in 2020, the Covid-19 pandemic impacted most of the industries in Europe, the surge in the food production activities in Europe benefited the food industry. As a result, the demand for food packaging surged, which propelled the market growth in Europe. The European food biodegradable packaging market is primarily driven by the region's growing fresh food industry. In addition, the expansion of the European bakery industry is expected to boost demand for food biodegradable packaging made of polylactic acid, polyhydroxyalkanoates and other polymers. This, in turn, would accelerate the market growth in the forecast period of 2022-2027.
Report Coverage
The “Europe Food Biodegradable Packaging Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Europe food biodegradable packaging industry.
Key Takeaways
- Germany dominated the Europe food biodegradable packaging market, owing to the growing fresh food production in the country. For instance, according to the Federal Statistical Office of Germany, in 2021, Germany's vegetable production increased by 10% over 2020.
- The surging government initiatives to aid biodegradable packaging use in the food industry are driving the Europe biodegradable packaging market growth.
- Moreover, the increasing adoption of kraft paper, corrugated fiberboard and other types of packaging, to provide superior protection to the food content; are accelerating the market growth in Europe.
- Nevertheless, the limitations such as sophisticated manufacturing technology, higher risk of contamination and other such factors would restrict the Europe food biodegradable packaging market growth in years to come.
Europe Food Biodegradable Packaging Market Segment Analysis – by Material
The biopolymer segment held the largest share in the Europe food biodegradable packaging industry in 2021 and is forecasted to grow at a CAGR of 6.8% during the forecast period 2022-2027. Food biodegradable packaging uses biopolymers such as polylactic acid (PLA), polycaprolactone (PCL) and others. Biopolymers offer one-of-a-kind options for extending product shelf life while lowering the overall carbon footprint of food packaging. Biopolymer materials provide numerous advantages over non-biodegradable polymers, including renewability, biocompatibility, biodegradability, and cost-effectiveness. As a result, its application in biodegradable food packaging ensures that the material is flexible. Thus, due to these advantages of biopolymer, the demand for food biodegradable packaging is surging, which is resulting in market growth in Europe.
Europe Food Biodegradable Packaging Market Segment Analysis – by Application
The fresh food segment held the largest share in the Europe food biodegradable packaging industry in 2021 and is forecasted to grow at a CAGR of 7.0% during the forecast period 2022-2027. The superior properties of food biodegradable packaging such as higher flexibility, convenient disposal, and more such properties make it ideal for the packaging of fresh food products such as fruits, vegetables, and more. The production of horticulture crops is increasing in Europe to encourage nutritional security, this is leading to the fresh food market growth. For instance, according to the European Union, in 2020 the production of the fruits in the European Union countries was about 36.8 million metric tons, and out of this apples and pears production was the highest at 14.3 million metric tons, which was about 38.9% of the production of the total fruit. Hence, the growth of the fresh food industry in Europe is expected to fuel the demand for food biodegradable packaging. This, in turn, will propel the market growth in upcoming years.
Europe Food Biodegradable Packaging Market Segment Analysis – by Country
Germany is the dominating country as it held the largest portion of the Europe food biodegradable packaging market share in 2021 up to 35%. The economic growth of Germany is driven by the growth of the food and beverage industry, which is vital for food security in the nation. The surging production of fruits and vegetable products is creating an opportunity for the fresh fruit market growth in Germany. For instance, Federal Statistical Office of Germany, in 2021, Germany's champignon mushroom crop climbed by 5% over the previous year. It also states that over 81,000 tonnes of champignons were produced in Germany in mushroom holdings with at least 0.1 hectares of cultivation space. Moreover, in the year 2021, bush beery production in Germany has grown by 27% in comparison with the year 2020. Moreover, according to a new survey conducted by Germany's Association of the German Confectionery Industry (BDSI) in May 2021, 89 percent of Germans continue to appreciate sweets and snacks. Therefore, the growth of the food industry in Germany is fueling the demand for food biodegradable packaging, which, in turn, is accelerating the market growth.
Europe Food Biodegradable Packaging Market Drivers
Bolstering Bakery Industry
Bakery products such as cookies, dry baked products and more need tight sealed food packaging to keep the packed bakery products fresh. Cling wraps tightly wrapped from the bottom to the top effectively seals out air that stales baked products, unwanted moisture that promotes mold growth and other noxious aroma that may be floating around your fridge. Thus, making biodegradable packaging is not ideal for bakery products. The factors such as increasing consumer preference for convenience food, nutritional values and more are resulting in the surging bakery industry. For instance, according to the Federation of Bakers Ltd., in the year 2020, the U.K. morning and snacks bakery production were 1.09 billion and in 2021, it was 1.18 billion units, an increase of 7.6%. Therefore, the expanding bakery industry is resulting in the surging demand for biodegradable packaging to maintain the packed food freshness. This iota is driving the Europe food biodegradable packaging market growth.
Surging Governmental Initiatives Related to Food Biodegradable Packaging
Due to the globalized industry's complex worldwide supply chains, transforming the current linear material system into a circular economy necessitates national and international legislation (FPF reported). The European Union (EU) has established legislation to make the transition to a more circular economy in an easier manner. For instance, a circular economy action plan was approved by the European Commission (EC) in March 2020 - (FPF reported). The European Food Safety Authority (EFSA) is currently working on a two-year study to investigate food and feed safety vulnerabilities in a circular economy as part of this larger European strategy. The strategy also encouraged food biodegradable packaging research and development. Thus, the growing European federal government initiatives for biodegradable food packaging are aiding the market growth in Europe.
Europe Food Biodegradable Packaging Market Challenges
Material Related Issues
Biodegradable materials such as bioplastic, starch, cellulose, chitosan and more have the advantage of easy dispose and regeneration. However, one disadvantage of biodegradable plastic is that it necessitates the use of expensive industrial processors and composters, particularly for those that must be broken down at high industrial temperatures. Aside from the cost, there is a requirement for equipment availability, which may be a concern. Furthermore, bioplastics should not be mixed with non-biodegradable plastic when discarded. As a result, the bioplastics may get polluted and no longer be easily recyclable. As a result, the waste volume increases. Hence, such limitations of food biodegradable packaging are creating a roadblock for the Europe food biodegradable packaging market growth.
Europe Food Biodegradable Packaging Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Europe food biodegradable packaging market. The top 10 companies of the Europe Food Biodegradable Packaging market include:
- Amcor Plc.
- Smurfit Kappa
- Sealed Air
- International Paper
- Mondi Group PLC
- WestRock Company
- Tetra Pak International S.A.
- DS Smith
- Kruger Inc.
- Toray Plastics Inc.
Recent Developments
- In November 2021, Amcor Plc, headquartered in Switzerland, launched all-paper compostable packaging for butter and margarine. The launch of such solutions in Europe is accelerating the market expansion.
- In September 2020, Mondi, a global biodegradable food packaging manufacturer, collaborated with BIOhof Kirchweidach, an organic farm in Bavaria, to build biodegradable packaging for 500g packs of tomatoes on the vine. The packaging was distributed to PENNY supermarkets, owned by the major German retailer REWE Group.
- In December 2019, Danimer Scientific, a leading inventor and manufacturer of biodegradable materials partnered with Genpak, a leading manufacturer of high-quality food packaging, to develop a new range of biodegradable food containers. Thus, such partnerships are fueling the Europe food biodegradable packaging market growth.
Report Code: CMR 0116
Report Code: CMR 24268
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