Bioplastic Packaging Market is Estimated To Witness High Growth Owing To Growing Adoption of Sustainable Packaging Solutions

The global Bioplastic Packaging Market is estimated to be valued at US$ 17.73 Bn in 2023 and is expected to exhibit a sCAGR of 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Bioplastic packaging products help reduce environmental pollution caused by conventional plastic packaging. These packaging solutions are derived from renewable biomass sources such as corn starch, sugarcane, cellulose, and vegetable oils. Bioplastic packaging provides excellent barrier and mechanical properties and helps reduce reliance on fossil fuels. The growing demand for sustainable packaging from food & beverage and consumer goods industries is expected to drive the growth of the bioplastic packaging market.

Market key trends:
The key trend fuelling growth in the bioplastic packaging market is the growing adoption of sustainable packaging solutions by major brands. Manufacturers are increasingly investing in bioplastic research and development to offer compostable, recyclable, and reusable alternatives to conventional plastics. Additionally, the implementation of stringent regulations regarding single-use plastics by governments worldwide is compelling packaging manufacturers to shift toward bioplastics. Favourable government policies and incentives offering subsidies for bioplastic production are also influencing packaging businesses to incorporate bioplastics in their product portfolio. Improving technologies to lower bioplastic production costs and overcome limitations such as high moisture absorption are expected to boost market demand over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the bioplastic packaging market requires high initial capital investments in R&D and manufacturing facilities. There are also economies of scale in production.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many global bioplastic packaging manufacturers. Buyers can negotiate lower prices by playing one manufacturer against the other.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are many suppliers for raw materials like corn and sugarcane used for producing bioplastics. This reduces supplier control over prices.

Threat of new substitutes: The threat of new substitutes is moderate as bioplastic packaging faces competition from alternative eco-friendly materials like paper, but no direct substitutes for properties like degradability.

Competitive rivalry: Intense due to the presence of many global players.

SWOT Analysis

Strengths: Biodegradable and compostable properties, government support for eco-friendly alternatives.

Weaknesses: High production costs compared to conventional plastics, limited supply of raw materials.

Opportunities: Growing consumer preference for sustainable packaging, potential in food packaging and disposable products markets.

Threats: Poor degradation properties in certain environments, competition from alternative sustainable materials.

Key Takeaways

The Global Bioplastic Packaging Market Size is expected to witness high growth, exhibiting CAGR of 29% over the forecast period, due to increasing environmental concerns regarding conventional plastics and favorable government policies promoting bioplastics.

Regionally, Europe dominates the bioplastic packaging market currently due to stringent environmental regulations restricting single-use plastics. The Asia Pacific region is expected to grow at the fastest pace due to growth in countries like India, China and Thailand adopting sustainable alternatives.

Key players operating in the bioplastic packaging market are BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company. BASF is one of the leading players and a major supplier of biopolymers for packaging applications. DSM focuses on developing innovative bio-based materials for food packaging.

The global Bioplastic Packaging Market is estimated to be valued at US$ 17.73 Bn in 2023 and is expected to exhibit a sCAGR of 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Bioplastic packaging products help reduce environmental pollution caused by conventional plastic packaging. These packaging solutions are derived from renewable biomass sources such as corn starch, sugarcane, cellulose, and vegetable oils. Bioplastic packaging provides excellent barrier and mechanical properties and helps reduce reliance on fossil fuels. The growing demand for sustainable packaging from food & beverage and consumer goods industries is expected to drive the growth of the bioplastic packaging market.

Market key trends:
The key trend fuelling growth in the bioplastic packaging market is the growing adoption of sustainable packaging solutions by major brands. Manufacturers are increasingly investing in bioplastic research and development to offer compostable, recyclable, and reusable alternatives to conventional plastics. Additionally, the implementation of stringent regulations regarding single-use plastics by governments worldwide is compelling packaging manufacturers to shift toward bioplastics. Favourable government policies and incentives offering subsidies for bioplastic production are also influencing packaging businesses to incorporate bioplastics in their product portfolio. Improving technologies to lower bioplastic production costs and overcome limitations such as high moisture absorption are expected to boost market demand over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the bioplastic packaging market requires high initial capital investments in R&D and manufacturing facilities. There are also economies of scale in production.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many global bioplastic packaging manufacturers. Buyers can negotiate lower prices by playing one manufacturer against the other.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are many suppliers for raw materials like corn and sugarcane used for producing bioplastics. This reduces supplier control over prices.

Threat of new substitutes: The threat of new substitutes is moderate as bioplastic packaging faces competition from alternative eco-friendly materials like paper, but no direct substitutes for properties like degradability.

Competitive rivalry: Intense due to the presence of many global players.

SWOT Analysis

Strengths: Biodegradable and compostable properties, government support for eco-friendly alternatives.

Weaknesses: High production costs compared to conventional plastics, limited supply of raw materials.

Opportunities: Growing consumer preference for sustainable packaging, potential in food packaging and disposable products markets.

Threats: Poor degradation properties in certain environments, competition from alternative sustainable materials.

Key Takeaways

The Global Bioplastic Packaging Market Size is expected to witness high growth, exhibiting CAGR of 29% over the forecast period, due to increasing environmental concerns regarding conventional plastics and favorable government policies promoting bioplastics.

Regionally, Europe dominates the bioplastic packaging market currently due to stringent environmental regulations restricting single-use plastics. The Asia Pacific region is expected to grow at the fastest pace due to growth in countries like India, China and Thailand adopting sustainable alternatives.

Key players operating in the bioplastic packaging market are BASF SE, Koninklijke DSM N.V., NatureWorks, LLC, Metabolix, Inc., and The Dow Chemical Company. BASF is one of the leading players and a major supplier of biopolymers for packaging applications. DSM focuses on developing innovative bio-based materials for food packaging.