Biodegradable Packaging Market - Size, Industry Share & Forecast (2025 - 2032)

By Type :

Based on type, the market is segmented into paper and plastic.

Trends in the type:

• Rising adoption of paper packaging due to its lower environmental impact is driving the market.
• The continuous development of new biodegradable materials and their incorporation into packaging applications are expected to drive the segment development.
• Thus, based on the above analysis, these factors are driving the biodegradable packaging market demand.

The paper segment accounted for the largest revenue share in the year 2024.

• Consumers are increasingly opting for products with eco-friendly packaging, compelling manufacturers to innovate and adopt biodegradable materials. This shift in consumer behaviour is further amplified by social media campaigns and educational programs highlighting the benefits of biodegradable and sustainable packaging.
• Government regulations and policies are another significant driver for the market. Various countries have implemented stringent laws and guidelines to control plastic pollution.
• For instance, the European Union's Single-Use Plastics Directive aims to reduce the impact of certain plastic products on the environment by promoting the use of biodegradable alternatives.
• Thus, based on the above analysis, these factors are further driving the biodegradable packaging market growth.

The plastic segment is anticipated to register the fastest CAGR during the forecast period.

• Starch-based plastics are widely used due to their abundance and cost-effectiveness. These materials are easily biodegradable and are employed in various packaging applications, particularly in the food and beverage sector.
• The increasing demand for sustainable packaging solutions in the personal care and pharmaceutical sectors is driving the development of cellulose-based plastics. Their ability to provide a barrier against moisture and oxygen further enhances their appeal in these industries.
• Polylactic acid (PLA) packaging offers excellent transparency and printability, making it ideal for food packaging applications. The growing consumer preference for eco-friendly packaging and advancements in PLA technology are driving its adoption across various industries.
• Thus, based on the above analysis, these factors are expected to drive the biodegradable packaging market share during the forecast period.

By Material :

Based on the material, the biodegradable packaging market is segmented into bioplastic, cornstarch, seaweeds, mushroom, and others.

Trends in the material:

• The use of biodegradable materials in food packaging is gaining traction due to their ability to maintain product integrity while being environmentally friendly.
• Biodegradable plastic packaging is more suitable for products that require moisture resistance, such as fresh produce and frozen foods. Both materials have their unique advantages and are expected to grow simultaneously, driven by the increasing demand for sustainable packaging solutions.

The bioplastic segment accounted for the largest revenue share in the year 2024.

• Bioplastic packaging offers a sustainable alternative to conventional plastics, as it is made from renewable resources like plants, starches, or agricultural by-products. Bioplastics can naturally degrade, lessening the environmental impact of plastic waste.
• They are specifically designed to be compostable or biodegradable, presenting a more environmentally conscious choice.
• For instance, in May 2021, TerraVerdae introduced a new range of PHA-based bioplastic resins. These resins are both biodegradable and sustainable, offering a viable and eco-friendly alternative to traditional plastics. This development is further contributing to the growth of the bioplastics market.
• Thus, based on the above analysis, these factors would further supplement the biodegradable packaging market

The mushroom segment is anticipated to register the fastest CAGR during the forecast period.

• Mushroom mycelium packaging utilizes the root-like fungal threads, called mycelium, to produce sustainable packaging.
• Mycelium readily grows on agricultural waste, forming a robust and adaptable material that can be molded into various forms, serving as a replacement for conventional foam or plastic packaging.
• This environmentally friendly option is gaining traction due to its low environmental impact. Mycelium packaging is compostable and can even enrich soil as fertilizer.
• These factors are anticipated to further drive the biodegradable packaging market trends during the forecast period.

By Application :

Based on application, the market is segmented into bottles, cups, boxes and cartons, bags, wraps, and others.

Trends in the application:

• Biodegradable trays are made from materials such as molded pulp and bio-based plastics, providing a sustainable alternative to traditional plastic trays. The increasing demand for sustainable packaging solutions in various industries is driving the growth of the segment.
• The development of biodegradable bottles with improved properties, such as transparency and shelf-life, is further boosting their adoption.

The boxes and cartons segment accounted for the largest revenue in the year 2024.

• Boxes are an essential packaging type in the biodegradable packaging market. They are used to package a wide range of products, including food and beverages, personal care items, and industrial products.
• Biodegradable boxes are made from materials such as corrugated paper, recycled paper, and biodegradable plastics.
• These boxes offer excellent strength and durability, ensuring the safe transportation and storage of products.
• The increasing need for sustainable packaging solutions in e-commerce and retail is driving the growth of the biodegradable boxes segment.
• Thus, based on the above analysis, these factors are driving the biodegradable packaging market growth and trends.

The bottles segment is anticipated to register the fastest CAGR during the forecast period.

• Bottles are widely used in the packaging of beverages, personal care items, and household products.
• Moreover, biodegradable bottles are made from materials such as PLA, PHA, and other bio-based plastics.
• These bottles decompose naturally, reducing environmental impact. The need for biodegradable bottles is driven by the increasing awareness about plastic pollution and the growing preference for eco-friendly packaging solutions.
• These factors are anticipated to further drive the biodegradable packaging market trends during the forecast period.

By End-Use Industry :

Based on end use, the market is segmented into food and beverages, pharmaceuticals, personal care, and others.

Trends in the end use:

• The hospitality industry is increasingly adopting sustainable packaging for food and beverage services to meet customer preferences and reduce their environmental footprint.
• The healthcare sector is increasingly using eco-friendly packaging for medical devices and pharmaceutical products. The need for safe, sterile, and environmentally friendly packaging in the healthcare sector is driving the need for biodegradable materials.

The food and beverages companies segment accounted for the largest revenue share of 48.79% in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The food & beverage sector is the largest application segment, driven by the increasing need for sustainable and eco-friendly packaging options.
• Consumers are becoming more conscious of the environmental impact of their choices, leading to a surge in the rising need for biodegradable packaging in this sector.
• Additionally, stringent regulations regarding food safety and packaging materials are further boosting the adoption of eco-friendly packaging solutions.
• For instance, in May 2023, BASF introduced Ecovio, a biopolymer line specifically designed for paper-based packaging of various food items. This includes containers for hot and cold beverages, snacks, and food wrapping paper.
• Thus, the above developments are driving the global market trends.

By Region :

The global market has been classified by region into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.

Asia Pacific biodegradable packaging market expansion is estimated to reach over USD 45.88 billion by 2032 from a value of USD 27.72 billion in 2024 and is projected to grow by USD 29.08 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 35.74%. Rapid industrialization, urbanization, and increasing environmental regulations are driving the need for sustainable packaging solutions in the region. Further, the growing awareness of plastic pollution and government initiatives to reduce plastic waste are major factors contributing to market growth in the Asia Pacific region. Additionally, the expanding middle-class population and changing consumer preferences towards eco-friendly products are further propelling the adoption of biodegradable and sustainable packaging in the region. These factors would further drive the regional biodegradable packaging market during the forecast period.

• For instance, in December 2023, SABIC and CJ CheilJedang partnered to produce Hetbahn instant rice packaging bowls using renewable polypropylene (PP) resins. This collaboration is part of their sustainable packaging efforts in the Asia Pacific region and introduced ISCC PLUS certified food packaging, highlighting their dedication to environmentally responsible practices.

North America market is estimated to reach over USD 57.21 billion by 2032 from a value of USD 36.99 billion in 2024 and is projected to grow by USD 38.59 billion in 2025. The United States and Canada have witnessed a growing trend of sustainable packaging in response to rising environmental concerns. The food and beverage industry is a significant contributor to the need for biodegradable packaging in North America. Additionally, the presence of major biodegradable packaging manufacturers and ongoing research and development activities in the region further support the market growth. Hence, the aforementioned factors would further drive the market in North America.

According to the analysis, the biodegradable packaging industry in Europe is expected to witness significant development during the forecast period. The European Union has implemented various directives and regulations to reduce plastic waste and promote sustainable packaging solutions. As a result, many European countries have adopted biodegradable packaging across various industries, including food and beverage, pharmaceuticals, and personal care. Additionally, the Latin America region's commitment to reducing plastic waste and promoting circular economy principles is expected to drive market development. Further, government policies in the Middle East & Africa region aimed at reducing plastic pollution and promoting sustainable practices are creating a favorable environment for the adoption of biodegradable packaging.