Market Overview:
Bioplastic packaging involves the use of renewable feedstock such as cornstarch, sugarcane, vegetable fats and oils, and agricultural waste to produce a range of bio-based and biodegradable plastics for packaging applications. These bio-based plastics are primarily used for food packaging, bottled beverages, and consumer goods.
Market Dynamics:
Increasing environmental awareness among consumers regarding plastic waste disposal coupled with stringent regulations on the use of single-use plastics is expected to drive the growth of the bioplastic packaging market over the forecast period. Various governments across the globe are implementing bans on single-use plastic products such as straws, cutlery, and bags to reduce plastic pollution. For instance, the European Commission has adopted the EU Single-Use Plastics Directive to ban certain single-use plastic products by 2021. This is prompting packaging manufacturers to replace conventional plastics with eco-friendly bioplastics. Furthermore, major food and beverage players are also shifting towards bioplastic packaging to meet sustainability goals, boost their brands, and cater to ethically-conscious consumers.
Major Driver: Increasing preference for eco-friendly and sustainable packaging materials
The bioplastic packaging market is being driven by the increasing preference of consumers and manufacturers for eco-friendly and sustainable packaging materials. Plastic packaging made from fossil fuels like petroleum is non-biodegradable and creates a massive environmental burden. However, bioplastic is either biodegradable or compostable, which means it can break down into natural elements like water, carbon dioxide and biomass after disposal. This key property makes them a viable alternative to reduce the harmful effects of plastic waste. Furthermore, regulations in many countries mandate the use of biodegradable and compostable packaging for specific products and applications. Manufacturers are actively switching to bioplastics to market their products as sustainable and environment-friendly.
Second Major Driver: Favorable government policies and initiatives to support bioplastics
Governments across the world are introducing various incentives, investments and policies to boost the production and use of bioplastics. For instance, the European Union has defined favorable regulatory frameworks and provided subsidies for bioplastic production plants. Similarly, governments in countries like USA, China, India, Brazil and South Africa offer financial assistance for research and development activities. They also provide tax exemptions and lowered import duties on machinery required for bioplastic manufacturing. Such supportive initiatives are encouraging bioplastics producers to set up new facilities and expand existing ones. This growing government interest and backing is a key factor propelling the bioplastic packaging industry.
Major Restrain: Higher production costs compared to conventional plastics
Despite various advantages, bioplastics are still more expensive to produce than conventional plastics derived from petrochemicals. The raw materials used for bioplastic production like cornstarch, sugarcane and vegetable oils have higher sourcing and preprocessing costs. Extraction of polymers from natural sources is also a complex procedure requiring specialized production methods and equipment. This makes bioplastics roughly 2-3 times costlier than traditional plastics at present. However, manufacturers are constantly working on improving yield efficiency, reducing energy usage and developing optimized purification techniques to lower bioplastic prices over time. But until production costs reduce significantly, higher prices remain a major challenge restraining widespread large-scale adoption of bioplastics.
Major Opportunity: Growing flexibles and pouches packaging market
Flexible packaging such as plastic bags, pouches, wraps and films account for a substantial share of the overall packaging industry. The flexibles and pouches packaging segment is expanding rapidly globally supported by rising e-commerce activities and on-the-go food consumption trends. As flexible packages made of oil-based plastics are difficult to recycle and create environmental waste, there is a huge opportunity for bioplastics to make inroads. Leading bioplastic producers are developing high-performance biodegradable films, coatings and laminates to cater to the flexibles packaging domain. If bioplastics can effectively replace conventional plastic films and laminates used extensively in food, consumer goods and various other sectors, it will contribute hugely to the growth of the bioplastic packaging market in the coming years.
Major Trend: Increasing incorporation of bioplastics in multilayer and hybrid packaging structures
To leverage advantages of both bioplastics and traditional plastics, packaging converters are actively working on developing advanced multilayer and hybrid structures. For instance, a multilayer package may use bioplastic as an outer layer providing recyclability while inner layers can be traditional plastics delivering high barrier properties. Similarly, hybrid packages may incorporate bioplastics for specific components like lids, wrappers etc. that do not require extreme barrier functions. Such innovations are gaining popularity as they help address key limitations of bioplastics like moisture and gas permeability. The multilayer and hybrid packaging trend signifies the packaging industry’s efforts to transition to greener solutions and establish broader use cases of bioplastics. It is expected to pick up further, supported by evolving material compatibility and processing technologies.
