The global biodegradable paper packaging materials market is forecast to grow at a CAGR of close to 11% from 2017 to 2021, according to a new market study from Technavio. The study covers the present scenario and growth prospects for global biodegradable paper packaging materials and also lists bioplastic packaging materials and paper packaging materials as the two major application segments, of which bioplastic packaging materials dominated the global market in 2016, accounting for 54% of the market share in 2016.
Notes the report, conventional plastics do not degrade within a short span and are a cause of landfilling. On the contrary, Technavio says, bioplastics and paper are degraded rapidly by microbes. Retailers play a leading role in encouraging consumers to adopt bio-based packaging materials. In recent years, retailers have been actively adopting bags made of biological materials and biodegradable packaging.
The increased adoption of sustainable packaging products by retailers will increase the replacement of non-renewable packaging materials with renewable ones, says the report. Manufacturers and retailers that adopt biodegradable packaging materials will benefit through cost cuts and tax reductions.
“Increasing concerns regarding global warming, carbon emissions, environmental hazards, and the need for reducing waste are leading to the rise in adoption of environment-friendly packaging materials,” says Ajay Adikhari, a lead analyst at Technavio for bio-chemicals and bio-materials research.
Growing consumer awareness and the increasing adoption of biodegradable packaging materials in retail outlets have a favorable impact on the global biodegradable packaging materials market, the report continues. Increased consumer spending and rising consumer demand for fresh and minimally processed food and beverages are also boosting the demand for biodegradable packaging materials such as bioplastics and paper.
“Initiatives by governments of many countries, promoting the use of sustainable packaging materials are encouraging retailers and intermediaries to adopt biodegradable materials for packaging purposes,” says Ajay.
Adds the report, regulatory bodies are encouraging the use of environmentally friendly and sustainable materials for packaging. Rising environmental threats due to the landfilling of plastic waste and health hazards posed by their disposal have led to the implementation of stringent regulations regarding the use of plastics. In addition, the rising threat from global warming and ozone layer depletion are fueling the adoption of new regulatory policies that promote the use of sustainable packaging materials.