Majority of millennial shoppers are becoming highly-aware of the environmental footprint of products they use and thereby, sustainable brands are grabbing attention from environment-conscious end-users. Manufacturers across various industrial sectors are adopting strategies to use biodegradable packaging materials to incorporate a pro-environment message as a part of their marketing policies.
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The Ellen MacArthur Foundation – a British charity – declared its New Plastics Economy initiative, which united globally recognized brands, including Unilever, the Coca-Cola Company, Danone, Amcor Limited, and PepsiCo, to work towards adopting sustainable packaging materials by the year 2025. As a part of its Performance with Purpose 2025 agenda, PepsiCo announced that it will adopt 100% compostable, recyclable, or biodegradable packaging materials by 2025.
Biodegradable packaging market witnessed moderate growth during 2013 to 2027, and the status quo is envisaged to prevail over the period of forecast 2018 to 2028, according to a new Fact.MR report. Volume sales of biodegradable packaging are foreseen to record a modest 4.2% CAGR through 2028, which is anticipated to equal a market value in excess of US$ 703 billion. The report finds that tier 3 players will collectively continue to account for over three-fifth share of the biodegradable packaging market.
Biodegradable Packaging Material Market: Investment in Cutting-edge Manufacturing Technologies Growing
Leading manufacturers in the biodegradable packaging material market are adopting advanced technologies to cater to the increasing demand for highly-efficient and affordable biodegradable packaging solutions. Furthermore, next-generation technological solutions are aiding manufacturers in the biodegradable packaging material market to improve the suitability of their biodegradable packaging solutions for industry-specific applications.
Market players, such as Smurfit Kappa Group, Mondi Limited, and Amcor Limited, recently announced that they have adopted strategies to increase investments in state-of-the-art technologies, such as resin reclamation technology and extrusion coating technology, to boost speed and flexibility of manufacturing processes and deliver application-specific biodegradable packaging solutions.
Stringent Regulations against Single-Use Packaging Drive Demand for Biodegradable Packaging Materials
According to statistics declared by the World Bank, more than 2 billion tons of solid waste was generated across the globe in 2016, and with the increasing global population, annual waste generation may increase by 70% to reach 3.4 billion tons by 2050. Another report published by the World Economic Forum opined that in 2015, over 300 million tons of plastic waste was generated across the world, and only 14% of which was recycled.
Considering the perils of rising plastic waste generation, a majority of governments and institutes, such as the European Commission, have imposed a ban on the use of single-use plastic packaging materials. Players in the biodegradable packaging material market are aiming to leverage lucrative business opportunities as manufacturers are shifting towards eco-friendly packaging materials while complying with strict government regulations.
Shift from Traditional to Biodegradable: Opportunities and Challenges for Stakeholders Across Supply Chain
The surge in biodegradable packaging can be attributed, in part, to regulatory challenges pertaining to the use of traditional plastics. The institution-industry collaboration to mitigate global warming has led to adoption of sustainable materials. The growing emphasis towards ‘eco-friendly packaging’ is likely to create sustained opportunities for biodegradable packaging material manufacturers in the long-term. However, the onus is on manufacturers to scale up and offer a wide range of functional products that are compatible with the evolving needs of various industries.
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The lucrativeness of biodegradable packaging materials market has led to the foray of a large number of domestic and local players. The ambiguity over what qualifies as ‘biodegradable packaging material’ has also made it necessary for governments to have the necessary regulatory frameworks in place.
The broader impact of a shift towards biodegradable packaging is all-encompassing – from material providers to recyclers, every player in the supply chain is involved. Further, many biodegradable materials cannot be recycled, which continues to create challenges in terms of investment. The challenges are not limited to recyclability alone – ineffective waste management continues to create shortage as well as oversupply of raw materials used in the manufacture of biodegradable packaging.
Proliferation of e-Commerce Sector Creating Lucrative Opportunities for Biodegradable Packaging Manufacturers
An increasing number of consumers purchasing products on the web and companies adopting omni-channel sales strategies have changed the dynamics of biodegradable packaging industry. According to a recent report by the European Commission, the percentage of European individuals purchasing goods over the internet increased from 30% in 2007 to 57% in 2017. The growth prospects of the biodegradable packaging material market are hugely influenced by rapidly growing e-commerce sector along with growing concerns about reducing packaging waste. Needs for minimizing the environmental impact of over-packed shipped products due to consumer pressure are encouraging manufacturers in the biodegradable packaging material market to introduce biodegradable paper packaging solutions for the e-commerce sector.
To provide detailed information about the biodegradable packaging material market, the Fact.MR report divides the market into four segments, such as material types, applications types, end-use industries, and regions. Based on the types of biodegradable packaging materials, the market is segmented into paper & paperboard, and plastic. Paper & paperboards are further divided into four types, i.e., coated unbleached kraft paperboard, bleached paperboard, molded fiber pulp, and recycled paper, and plastic is further divided into poly lactic acid (PLA), polyhydroxybutyrate (PHB), starch based plastics, fossil based polymer (PCL, PBAT, PBS etc.), and polyhydroxyalkanoates (PHA). Other types of biodegradable packaging materials that are featured in this report are jute and wood.
The biodegradable packaging material market is segmented based on its applications types, such as trays, bags, boxes, clamshells, films, and pouches. Based on end-use industries, the biodegradable packaging material market is segmented into food & beverage, cosmetics & personal care products, pharmaceuticals, and consumer goods. Furthermore, the biodegradable packaging material market is divided into seven geographic regions – North America, Latin America, Europe, the Commonwealth of Independent States (CIS) & Russia, Middle East & Africa (MEA), Asia Pacific, and Japan
A holistic approach is followed by analysts at Fact.MR while conducting a thorough research about the growth of the biodegradable packaging material market during the period 2018-2028. The qualitative and quantitative conclusions about the development of the biodegradable packaging material market featured in the report are the outcome of detailed secondary and primary market research conducted by analysts at Fact.MR.
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Biodegradable Packaging Material Market: Future Forecast Indicates Impressive Growth Rate
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