The global bioplastics for packaging market recorded a market valuation of more than $4 billion in 2017 and is expected to reach a value of $15.6bn by the end of 2027 while experiencing a robust CAGR of 14.4% during the projected period 2017-2027.
Bioplastics are defined as bio-based plastics that are either made up of food material including corn, sugarcane or soybeans or non-food materials such as sawdust, weeds, beans, peel and husk. They may be biodegradable or non-biodegradable in nature.
Bioplastics are being extensively preferred as they reduce the carbon footprint and address landfill issues. A new research report, Bioplastics for Packaging Market: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017 – 2027, by Future Market Insights (Valley Cottage, NY), focuses on the complete market scenario of the global bioplastics for packaging market.
More than 200 million tonnes of waste is created by plastics leading to major landfill issues. In reaction, manufacturers of packaging products are focusing on increasing the use of use of bioplastic packaging that can reduce this plastic waste.
Polylactic acid (PLA), which is a biodegradable plastic developed by NatureWorks LLC (Minnetonka, MN), is highly supported by the U.S department of energy. Government organizations across the globe are working in partnership with private sector companies that focus on manufacturing bioplastics packaging products. The government has also exempted tax on bioplastic resin manufacturing, a move anticipated to promote the growth of the packaging market across many regions. Also, the U.S government is passing new bills such as the Federal Farm Bill Energy title 9, which encourages sale of bioplastics items.
However, a lack of proper compositing grounds is expected to hinder revenue growth of the market; bioplastics do not have the required environment for their degradation anywhere, they require the presence of microorganisms at a high temperature for degradation. Microbes break down bioplastics into carbon dioxide, water and methane. Different types of decomposition are based on bioplastic composites, and include soil biodegradable, marine biodegradable, anaerobically digestible and home compostable.
- Region: North America is expected to lead the market with the highest market value and the fastest market growth of 14.6% during the forecast period. However, Asia Pacific Excluding Japan (AJEP) is also progressing and is expected to project a high CAGR during the period of assessment.
- Material: Bio-PET is expected to exhibit the highest market value of over $4.6bn by the end of 2027. However, the starch blends segment is expected to witness the fastest growth rate during the forecast period.
- Application: films are anticipated to dominate the global market with the maximum market size of more than $6bn by the end of 2027.
- End use: the food and beverage industry is projected to witness the fastest growth and highest market value during the forecast period, and will dominate the market by 2027 in holding a 80% marketshare. In an effort to offer a novel dimension to F&B packaging and promote the zero-waste sustainability initiative, manufacturers are now centering their R&D focus on edible bioplastics for packaging.
For more information, visit the report website.