Biodegradable Plastic Packaging Market Size, Share, Growth Analysis, By Material Type(Polylactic acid (PLA), polyhydroxyalkanoates (PHA)), By End-User(Food and beverage, healthcare) - Industry Forecast 2024-2031

Biodegradable Plastic Packaging Market size was valued at USD 2.5 billion in 2019 and is poised to grow from USD 5.5 billion in 2023 to USD 14.1 billion by 2031, growing at a CAGR of 20.3% in the forecast period (2024-2031).

Biodegradable plastic packaging is a type of packaging material that can break down into natural substances in the environment under certain conditions, typically within a few months to a few years. It is designed to reduce the environmental impact of plastic packaging waste by degrading and decomposing it into non-toxic compounds that can be absorbed back into the natural ecosystem without harming the environment. Biodegradable plastics can be made from a variety of materials, including plant-based polymers such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based plastics, as well as from petroleum-based polymers that have been modified to make them biodegradable. It can be used for a wide range of applications, including food packaging, bags, containers, and other consumer products. It offers several advantages over traditional plastic packaging, including reduced waste, decreased dependence on fossil fuels, and a smaller carbon footprint. However, it's important to note that not all biodegradable plastics are created equal, and some may require specific conditions or processes to fully biodegrade. In addition, biodegradable plastic packaging should still be disposed of responsibly, such as by composting or recycling, in order to minimize its environmental impact.

Environmentally friendly food packaging was in high demand in 2019. The boost in demand is mostly due to a global surge in demand for packaged goods during the coronavirus pandemic. However, because food production and related businesses were seen as essential services, they continued to operate throughout the lockdown. A number of companies have also used a range of strategies to address the issue. In response to the increased amount of packaging waste created internationally, governments all over the world are switching to alternate sources, such as biodegradable packaging.

The United States generates 12% of the world's municipal solid trash despite having only 4% of the global population (MSW). Another estimate states that each American produces around 106.2 kg of plastic waste each year. According to the US Plastic Waste Reduction and Recycling Act, the government seeks to reduce plastic waste, support infrastructure development for recycling technologies, and ensure US leadership in setting international and national standards. As a result of the act's ongoing research into micro plastics, future limits governing plastic production may be harsher for US-based packaging firms. Bio-based products may be advantageous for greenhouse gas balances because of their use of renewable resources rather than finite ones, as well as other environmental effects over the duration of their whole life cycles. Using biodegradable materials is designed to promote sustainability and reduce the environmental harm brought on by the disposal of polymers formed from oil.

US Biodegradable Plastic Packaging Market is poised to grow at a sustainable CAGR for the next forecast year.