The biodegradable packaging market witnessed moderate growth 2013-2017, and the status quo is envisaged to prevail over the period of forecast 2018-2028, according to a new report released by Fact.MR, Rockville, Md. 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 $703 billion. The report finds that Tier 3 players will collectively continue to account for over three-fifth share of the biodegradable packaging market.
The report also opines that the paper and paperboard biodegradable packaging will retain its dominance in the biodegradable packaging market, as it may account for more than 95% of the total market revenue by the end of the assessment period. The global war against plastic packaging materials is opening a window of opportunities for paper packaging companies to enter the biodegradable packaging market.
A majority of regulatory bodies and international environmental organizations have proposed a ban on single-use packaging materials. Increasing environmental awareness and consumer inclination toward making sustainable purchases is providing a major boost to the growth of the biodegradable packaging market.
Positive effects of the ban on single-use packaging on the biodegradable packaging market are offset by stringent labeling regulations and certification procedures to control false claims about the biodegradability of packaging materials.Meanwhile, the report finds that leading players in the biodegradable packaging market are adopting strategies to acquire their smaller rivals to consolidate a stronger position in the packaging sector.
“Increasing growth of the e-commerce sector and popular trends of online grocery shopping is opening new avenues of growth for players in the biodegradable packaging market. Purchasing decisions of environment-conscious consumers are greatly influenced by sustainable packaging materials, which may create high demand for biodegradable packaging solutions in the coming future. Stakeholders in the biodegradable packaging market are shifting their focus on the dynamic trends in the e-commerce sector while adopting their future business strategies,” says a lead analyst.
The report further states that the food and beverage industry is expected to account for more than 30% of the total market share throughout the forecast period. Increasing demand for packaged food products, convenience foods and ready-to-eat meals is reflected in supermarket shelves. Leading players in the biodegradable packaging market are introducing biodegradable packaging films, trays and bags to further improve the fresh food experience for consumers while offering numerous environmental benefits.