Bio-Based Plastic Packaging Market: Introduction

A bio-plastic is a group of biodegradable polymers, which are manufactured from renewable materials. Synthetic polymers are highly hazardous to the environment, and also to the human beings. Moreover, they rely on the petroleum end-use industry for raw materials. These plastics are widely used for various applications, including packaging, electrical & electronics, and also food products, etc. As the focus on environmental conservation is increasing, this will, in turn, impact the environment negatively, thereby leading to increasing pollution levels.

Global Bio-Based Plastic Packaging Market Share by Regions

Bio-Based Plastic Packaging Market Dynamics

Global Bio-plastic Packaging Market Size will be driven by growing consumer awareness regarding the use of eco-friendly products. Changing preferences from synthetic polymer products to renewable polymers is predicted to drive the global bio-plastic packaging market. Many manufacturers increased their expenditure for developing various bio-chemicals, majorly to reduce increasing reliance on synthetic polymers, which are highly relying on petrochemical products.

Moreover, increasing support by various governments towards encouraging the use of bio-polymers in place of synthetic polymers is the major factor driving the bio-plastic packaging market over the projected period. For instance, many developing countries such as India are introducing strict norms regarding the use of synthetic polymers by banning their use. Moreover, awareness among the consumers is also increasing regarding the negative ecological impact due to the use of synthetic polymers, which will significantly drive the bio-plastic packaging market in further.

Increasing demand from various end-use industries such as food & beverage, electrical & electronics, pharmaceutical, and FMCG will act as an additional factor for the growth of bio-plastic packaging market. This is majorly attributed by the eco-friendly properties offered by these polymers, and also due to their recycling properties.

The global bio-plastic packaging market is expected to restrain due to the high complexity associated during the product manufacturing through agro-materials. The complexity is caused majorly during the incorporation of polymeric properties to the bio-based materials.

Bio-Based Plastic Packaging Market: By Product

By product, the global bio-plastic packaging market has been segmented into bio-polyethylene terephthalate, bio-polylactic acid, thermoplastic starch, bio-polypropylene, and others. Bio-polyethylene terephthalate is expected to lead the global market, owing to the product’s enhanced properties such as tensile strength, along with enhanced impact resistance. These favorable properties will trigger the product consumption in applications such as food & beverages, FMCG products, electrical & electronic products, etc.

Bio-Based Plastic Packaging Market: By End-Use Industry

Based on end-use industry, the global market has been segmented into food & beverage, electrical & electronics, pharmaceutical, FMCG, and others. The bio-plastic packaging market for food & beverage end-use industry is expected to dominate the global market, owing to increasing demand for food products packaging materials. Moreover, due to the advent of e-commerce, and online retail sectors, the online sales of food products have been increased significantly, which will significantly enhance the demand for bio-plastic packaging market over the forecast period. Bio-plastic packaging market for pharmaceutical end-use industry is expected to grow at a prime CAGR owing to increasing bio-based materials for packing complex drugs.

Bio-Based Plastic Packaging Market: Regional Analysis

Europe bio-plastic packaging market is expected to have a dominant share over the forecast period, primarily due to the stringent regulations against the use of non-recyclable polymer products. Favorable European government policies will act as a significant factor for the growth of the regional market over the projected period. For instance, Europe 2020 strategy supports the bio-economy by encouraging various public authorities to give more preference towards the use of bio-based products, thereby allowing the member states to decrease taxes on bio-based products. Moreover, the European Commission published an action plan on the bio-economy to enhance the production and consumption of various bio-based products at the domestic level in 2012. This plan aimed for the development of new and innovative processes for the production of bio-plastic materials by providing financial support to start pilot plants, and also by enhancing public private partnerships.

Asia Pacific bio-plastic packaging market is anticipated to have a potential market share over the projected period, on account of increasing packaging industry in the developing economies such as China and India. The packaging demand will majorly be observed among the end-use industries such as FMCG, food & beverage, pharmaceutical, and electrical & electronics. Several government bodies are introducing strict regulations to reduce the use of synthetic polymer materials, which will be a good opportunity for the growth of the regional market. For instance, in 2008, the Chinese government launched a policy to ban the plastic bags for packaging, and focus more on bio-plastics. Along with this, the Indian government also laid strict regulations towards the reduction of plastic bags for packaging. These kinds of policies will encourage the manufacturers in setting up manufacturing units to produce bio-plastics. The government bodies are also providing tax redemption benefits to set up of factories, and this is more likely to open new growth opportunities for bio-plastic packaging market players.

Bio-Based Plastic Packaging Market: Competitive Landscape

Some of the key players in the global bio-plastic packaging market include Koninklijke DSM N.V., BASF SE, Metabolix, Inc., The Dow Chemical Company, and NatureWorks, LLC among several others.

The global bio-plastic packaging market is highly fragmented, due to the presence of many small, and medium-scale players. Due to the benefits provided by the governing bodies, various small-scale players are starting their manufacturing units. Due to this, the production is increasing on a rapid scale. Moreover, these small-scale players are reducing their profits, which will further lead to the economies of scale in the market.