Volume sales of biodegradable packaging are foreseen to record a strong 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-fifths share of thebiodegradable packaging market.
The report also explains that the paper and paperboard biodegradable packaging will retain its undisputed 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 in 2028. Negative public perceptions around plastic packaging materials, whether fair or not, are enticing traditional paper packaging companies into entering the biodegradable packaging market.
Many regulatory bodies and international environmental organizations have proposed a ban on single-use packaging materials to mitigate the effects of non-degradable solid waste on the environment. Increasing environmental awareness and consumer inclination towards 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. The biodegradable packaging market is characterized by the needs to comply with strict quality standards established in various regional markets, which may complicate it for market players to maintain competitive prices of biodegradable packaging solutions.
Meanwhile, the Fact.MR report finds that leading players in this market are adopting strategies to acquire their smaller rivals to consolidate a stronger position in the packaging sector. DS Smith plc, a British paper packaging company, recently announced its plans to acquire its Spanish rival Europac Group for over $2 billion in order to consolidate the Western European biodegradable packaging market. Another leading player in the biodegradable packaging market, Smurfit Kappa Group, recently completed the acquisition of Reparenco—a paper and recycling company in Netherlands—for €460 million [Euros] to expand its European biodegradable packaging capacities.