Biodegradable Paper and Plastic Packaging Market Analysis

Biodegradable Paper and Plastic Packaging Market Analysis

The cost of sustainable packaging solutions relies on the volume of production, the expenses of research and development, as well as the dynamic price of packaging materials, which is often high. This factor is anticipated to have an unfavorable effect on the biodegradable paper and plastic packaging market, limiting its growth. On the bright side, manufacturers are constantly working on the development and introduction of less expensive alternatives to overcome the drawback.

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The biodegradable paper and plastic packaging market is divided into five categories based on type such as cellulose-based plastic, starch-based plastic, polyhydroxyalkanoates (PHA), polylactic acid (PLA), and others. The polylactic acid segment held more than 22.5% market share in 2021 and is expected to be worth over USD 1 billion by 2030. PLA is a highly clear material that can be easily recycled. It is frequently used for thermoformed applications for the packaging of dairy goods, ready-to-eat food packaging, clear blister packaging, and drink cups for cold beverages.
 

The market is categorized into paper and plastic, based on materials. The paper-based packaging material segment was worth over USD 900 million in 2021, and it is anticipated to expand at over 11% CAGR during the projection timeframe. The most widely used and conventional type of environmentally sustainable packing materials are paper and paperboard. Growing consumer preference for paper-based packaging, which is considered to be more beneficial for the environment owing to qualities such as simple recycling, decomposition, and home composability, will facilitate the segmental expansion.
 

In terms of end-user, worldwide biodegradable paper and plastic packaging market is bifurcated into healthcare, personal and home care, catering service wares, food and beverages, and others. The market share from catering service wares segment was remunerated over USD 300 million in 2021 and will continue to grow at more than 11.5% CAGR through 2030, owing to the rapidly expanding catering services sector throughout the world’s largest countries, particularly in Asia Pacific. Catering services and other similar food service providers use biodegradable paper and plastic packaging for packing their products.

Asia Pacific biodegradable paper and plastic packaging market size is projected to expand at over 11% CAGR over the forecast period and surpass a valuation of USD 2 billion by 2030. Together with the region's booming population, particularly in China and India, there is rise in number of food and beverage companies. The increased demand for food products, emerging trend of online food ordering, and convenience of delivering packaged food have expedited the industry expansion in APAC.