Industry Insights
The global bioplastic packaging market size was estimated at USD 3.61 billion in 2016 and is expected to witness significant growth on account of rising consumer awareness regarding the harmful effects of synthetic plastics on the ecology. Moreover, presence of supporting regulations is expected to be an important factor driving the growth of the market over the forecast period.
Global bioplastic packaging market revenue, by raw materials, 2014 – 2024 (USD Million)
Increasing number of green initiatives being undertaken various regulatory bodies around the world has resulted in an increased awareness among consumers which is expected to be one of the primary drivers for the growth of the market. Moreover, growth of the global packaging market is likely to propel the growth over the projected period.
High cost of bio-based materials is expected to hinder the growth of the market. However, the costs are expected to reduce as the production volume of these materials will increase. Extensive R&D being undertaken by manufacturing companies to increase the utilization of biopolymers in mainstream applications is expected to open new opportunities for growth.
Segmentation by raw material
• Polyethylene terephthalate (PET)
• Polyethylene (PE)
• Other non-biodegradable polymers
• Polybutyrate (PBAT)
• Polybutylene succinate (PBS)
• Polylactic acid (PLA)
• Polyhydroxyalkanoates (PHA)
• Starch blends
PET accounted for the largest volume market share of 52.8% in 2016. It is being extensively used for manufacturing various products such as bottles, food containers, bags and carry-away cups as it can be used as a drop-in replacement to synthetically derived PET. Rising demand for eco-friendly bottles and containers is expected to result in the dominant share of the segment over the forecast period.
PBS is anticipated to witness the fastest growth over the next eight years at a CAGR of 32.1% in terms of revenue on account of its rising demand as a packaging material for food and cosmetics. Rising demand for packed foods and cosmetics is expected to augment the growth of the market over the next few years. In addition, ease of processing for manufacturing films, bags or boxes coupled with the ability of the polymer to decompose naturally in water and carbon dioxide is expected to result in its tremendous growth over the projected period.
Segmentation by product
• Rigid
• Flexible
Rigid bioplastic packaging accounted for 65.9% of the overall volume share in 2016 and is expected to witness growth over the projected period on account of its increasing demand for manufacturing cups, closures, and bottles. Several companies such as P&G, Coca Cola, Heinz, and Johnson & Johnson utilize bioplastics for manufacturing bottles and stand up pouches made of bio-PET or bio-PE.
Flexible bioplastic packaging is likely to witness substantial growth over the next few years. Rising demand for biodegradable films and bags, particularly for perishable goods, is expected to drive the growth of the market. This packaging is being increasingly used for chocolates, confectionary, fruits, vegetables and dry foods including tea and muesli. Growing consumption of these food products is expected to result in a substantial growth over the forecast period.
Segmentation by application
• Plastic bottles
• Food packaging
• Others
Plastic bottles accounted for 42.7% of the overall volume share in 2016. Rising demand for bio-based bottles on account of their ability to be reused and recycled is expected to augment its growth. Companies are undertaking various initiatives to reduce their carbon footprint by making available separate disposal bins to reuse and recycle these bottles. The segment is also expected to witness the fastest growth on account of an increasing consumer base for bio-PET and bio-PE including Coca-Cola, P&G, and Heinz.
The demand for bioplastic packaging for food applications was 145.9 kilo tons in 2016 and is expected to witness above average growth on account of rising consumer demand for eco-friendly solutions. Growth of the food industry is expected to augment the growth of the market over the next few years.
Segmentation by region
• North America
• U.S.
• Europe
• Germany
• UK
• Asia Pacific
• China
• Central & South America
• Brazil
• MEA
Although Central & South America and MEA together accounted for less than 20% of the volume share in 2016, these regions are anticipated to witness the highest growth over the projected period on account of numerous factors including rising consumer awareness regarding environment conservation, and rising disposable income. Brazil is expected to be a lucrative market owing to the ease of availability of raw materials such as corn.
North America and Europe together dominated the global market contributing to 59.2% of the global revenue share in 2015. High rate of adoption of green packaging solutions coupled with the presence of a stringent regulatory framework for synthetic polymers is expected to provide an impetus to the growth of the market over the forecast period.
Competitive landscape
The global market is consolidated in nature with the presence of a limited number of manufacturers primarily concentrated in North America and Europe. Key vendors with the market include BASF, Arkema, Toray, Solvay, Braskem, and Dow. Companies are focusing on R&D and product innovation to increase their presence in the global market.
