Packaging is the process of enclosing and safeguarding a variety of products for storage, distribution, sale, and use. Expanding demand for nutritious, safe, convenient food, as well as a growing industry and consumer awareness of eco-friendly products, has fueled the worldwide biodegradable packaging market expansion in recent years in the Asia Pacific, Europe, and North America. The ability of materials to break down and return to nature within a short period after disposal is referred to as biodegradability.
The global biodegradable packaging market is divided into plastic and paper segments based on product type. In 2020, plastics were the most popular product type in the worldwide biodegradable packaging market, and this trend is likely to continue throughout the forecast period. Starch, polylactic acid (PLA), polyhydroxyalkanoates (PHA), and other materials make up the plastic portion. The most common product type sub-segments are starch and PLA. Because of their great biodegradability and recyclability, they are widely employed in the food and beverage industry.
The global biodegradable packaging market is being driven by rising demand for packaged food, a growing population, and fast increasing beverage industry in Europe, North America, and Asia-Pacific.
Market Trends to Watch
One of the most important applications is expected to be beverage packaging.
With the never-ending need for bottled water and non-alcoholic beverages, the market for biodegradable packaging in the beverage sector is expected to develop. Consumers’ proclivity for particularly demanding high-quality drinking water, the fear of diseases as a result of drinking filthy tap water, and the ease of portability and convenience afforded by bottled water are all factors contributing to the demand for bottled water.
Beverage manufacturers, such as PepsiCo, have begun employing recyclable PET bottles for their products. In North America, PepsiCo’s recyclable PET bottles account for 30% of packaging volume and 7% internationally.
The market for biodegradable packaging is quite fragmented. Amcor Limited, Sealed Air Corporation, Mondi Group PLC, and Tetra Pak International SA are among the companies investigated in this industry. Several regional companies in countries like India are also competing for market share. Low entry barriers have resulted in the emergence of smaller players, which has increased competitive competition.
COVID 19 will have an impact on the use of biodegradable packaging.
Since the outbreak of the new coronavirus grew into a pandemic, disputes concerning the role of packaging in the virus’s propagation have erupted all over the world. Though regulatory agencies such as the US Food and Drug Administration (FDA) have contested the claim that plastic and cardboard used in the packaging can spread the new coronavirus, customer concerns have influenced the development of biodegradable packaging materials.