Biodegradable Packaging Shows A Strong Position Through 2019
By Isaac Fletcher, contributing writer, Food Online
Driven by environmental concerns, consumer preferences, and the availability of high-quality, cost-effective options, the markets for biodegradable paper and plastic packaging are expected to experience high-growth rates in the coming years
The recent report, Biodegradable Paper & Plastic Packaging Market by Applications, by Packaging Type, and by Geography — Global Trends and Forecast to 2019, indicates that the market for biodegradable-plastic packaging will be worth $8,415.20 million by 2019. Additionally, the market for biodegradable-paper packaging is expected to reach a value of $345,389.31.
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The key markets for biodegradable packaging are Western Europe and North America, with the U.S. being the country with the highest consumption of biodegradable packaging across the globe. Although the U.S. is the largest market among individual countries, it is projected to grow at a CAGR lower than the global average through 2019. In Europe, the key countries are Sweden, Switzerland, the U.K., and Germany, which comprise the majority of the European market.
Food packaging takes a dominant share of the overall market, with more than 70 percent share of the biodegradable-plastic packaging market and more than 40 percent share of the biodegradable-paper packaging market. However, the area expected to experience a high level of growth in the near future is the segment of beverage-packaging applications.
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Plastics and polymers — most commonly used raw materials in beverage packaging products — are rapidly being replaced by biodegradable substitutes. Among these substitutes are materials such as polylactide (PLA), Polyhydroxyalkanoates (PHA), and starch-based plastics. The various benefits of these plastic and polymer substitutes are ease of design, strong barrier properties, and overall cost-effectiveness.
The market for biodegradable-paper packaging is mature and predominant. It holds a higher share of the global, overall, biodegradable-packaging market than biodegradable-plastic packaging does. Since biodegradable-plastic packaging is relatively new and still in its introductory phase, it is not quite as established in the global market, but has very-high potential and is expected to grow at a double digit CAGR over the next several years.