Bioplastic Packaging Market Momentum: Sustaining Growth in a Dynamic Landscape
Bioplastic packaging are plant-based and biodegradable alternatives to petroleum-based plastics which are used to package food and beverages. They help reduce carbon footprint and oil consumption.
The Bioplastic Packaging Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing environmental concerns over conventional plastic waste is fueling the demand for bioplastic packaging globally. According to the report, the bioplastic packaging market is expected to witness significant growth due to various drivers such as rising awareness about harmful effects of fossil fuel-derived plastic packaging and enforcement of stringent environmental regulations against single-use plastic products in several countries. Government initiatives to promote bio-based and biodegradable alternatives along with increasing participation of key food brands are also expected to support the market growth during the forecast period.
Bioplastic Packaging Market Drivers, Restrains, Opportunities and Trends
Growing Concerns over Plastic Waste and its Impact on Environment Drives Increased Adoption of Bioplastic Packaging
The amount of plastic waste generated globally has risen exponentially in the past few decades. Plastic does not readily biodegrade and remains in the environment for hundreds of years. Most plastics end up in landfills or oceans causing immense harm to wildlife and ecosystems. Bioplastics offer a sustainable alternative as they are derived from renewable plant-based resources like corn, sugarcane or cellulose. They also biodegrade faster than conventional plastics when disposed of properly. The eco-friendly properties of bioplastics are appealing to both consumers and brands who want to reduce their plastic footprint. Various regulations aimed at curbing single-use plastics also encourage the use of biodegradable and compostable packaging options. As environmental concerns gain prominence, the bioplastic packaging market continues to grow rapidly.
Increased Raw Material Costs Pose Challenge for Wide Adoption of Bioplastic Packaging
While bioplastics are more sustainable, their production requires agricultural crops as raw materials. Agricultural commodity prices are prone to fluctuations based on various factors like weather conditions, currency exchange rates etc. This makes the raw material costs for bioplastics unpredictable compared to oil-based plastics. The prices of bioplastics often remain higher than conventional plastics as production capacities are still catching up with the demand. Due to cost constraints, bioplastics find maximum usage in flexible packaging rather than rigid containers currently. Higher costs impact their widespread usage and replacement of fossil fuel-based plastics. Unless production capacities increase and costs come down significantly, bioplastics may have limited success in replacing all single-use plastics.
Growth of E-Commerce and Food Delivery Presents Opportunity for Compostable Packaging Adoption
The Covid-19 pandemic accelerated the growth of e-commerce and online food ordering platforms significantly. This boosted the demand for all types of packaging from boxes and mailers to food containers and bags. However, single-use plastics widely used in packaging are not eco-friendly and add to global waste. Bioplastic manufacturers have an opportunity to work with e-commerce and food delivery companies to offer compostable and biodegradable packaging alternatives. Compostable food packaging made from bioplastics can provide a more sustainable option for restaurants and foodbrandswithout compromising on product safety or appeal. E-tailers are also exploring plant-based substitutes for plastic packaging materials. The exponentially growing packaging demand from these sectors represents a lucrative market for bioplastics in the coming years.
