Europe Biodegradable Packaging Market

Europe Biodegradable Packaging Market Outlook

The European biodegradable packaging materials market is estimated at USD 2.94 Billion in 2022 and is forecast to surpass USD 5.5 Billion by 2032, growing at a CAGR of 6.4% from 2022 to 2032.

Report Attributes	Details
Europe Biodegradable Packaging Market Size (2021A)	US$ 2.76 Billion
Estimated Market Value (2022E)	US$ 2.94 Billion
Forecasted Market Value (2032F)	US$ 5.5 Billion
Europe Market Growth Rate (2022-2032)	6.47% CAGR
Germany Market Share (2021)	~35%
Germany Growth Rate (2022-2032)	~6.4% CAGR
Market Share of Top 5 Companies	~37%
Key Companies Profiled	Amcor Plc. Smurfit Kappa Sealed Air International Paper Mondi Group PLC WestRock Company Tetra Pak International S.A DS Smith Kruger Inc. Toray Plastics Inc.

Growth in the European biodegradable packaging market is attributed to the rise in the use of Biodegradable Packaging for end use industries like food & Packaging, consumer goods, pharmaceuticals commercial along with the trend for the use of Biodegradable Packaging’s as Bags & boxes, propelling the market growth during the assessment years.

Europe Biodegradable Packaging Historical Market Outlook (2017-2021) vs Growth Forecast (2022-2032)

The European market demand for biodegradable packaging materials is witnessing an upsurge by 1.3x and the growth is mainly attributed to factors like the growing emphasis against harmful packaging materials made up of plastic and other harmful components and augmented demand for sustainable packaging in multiple industries of food & beverages, pharmaceuticals etc.

Enhanced focus on sustainability, less damaging impact on the environment, augmented consumer awareness coupled with government’s ban on plastic and emphasis on efficient packaging solutions is likely to trigger market growth by 1.7x during the forecast years of 2022-2032.

Biodegradable packaging materials market manufacturers are adopting marketing strategies that deliver a pro-environment message to their customers, which is poised to help them gain a larger market share. A UAE startup is turning unwanted palm fibres into compostable food packaging materials.

The country has a widely abundant local palm leaf resource. Palm Co. has developed a process through which fibre is extracted from the leaves of palm trees. Water and latex are mixed into the fibres where it is then dried and moulded and coated with latex into shape.

Elsewhere, Estonian start-up Woola produces compostable bubble wrap from leftover sheep wool – an abundant resource that is usually thrown away. As the quality is not sufficient for fabric production, Woola claims that 90% of sheep wool equating to 153 tonnes is thrown away in Estonia every year.

In 2021, the company announced to recycle the leftover sheep wool and produce bubble wrap packaging and augment the use of recycled plastic and go for complete biodegradable packaging materials by 2025. Fact.MR projects the market to witness exhibiting growth at 6.4% CAGR between 2022 and 2032 in comparison to a CAGR of 5.8% posted between 2017 and 2021.

Consumer Pressure and Attenborough Effect to support Europe Market Growth

Millennials are becoming increasingly aware of the negative environmental footprints of plastic usage and are thus, leaning towards environmental conscious packaging materials. They value sustainability and are even ready to pay a higher price for it.

Attenborough effect is contributing to market growth. The term is named after David Attenborough, who educates people about plastic usage issues and sustainability. According to Global Web Index, more than 52% of consumers in the U.S and U.K have reduced single-use plastics and 42% considers sustainable packaging while making a purchase, due to the Attenborough effect. All these factors are likely to increase sales of biodegradable packaging materials market by 1.2x.

Investment in Cutting-Edge Manufacturing Technologies to Boost Market Expansion Rate

Manufacturers are investing in state-of-the-art technologies to cater to ever increasing demand for affordable and highly-efficient biodegradable packaging materials. In addition to this, next-generation technological solutions are aiding producers to provide industry-specific packaging solutions.

Moreover, the global war against plastic is creating lucrative opportunities for manufacturers to enter the biodegradable packaging materials market and entice customers with their offerings. Producers are investing in extrusion coating and resin reclamation technology to boost flexibility and speed of manufacturing processes and provide the right packaging solutions, which is likely to contribute to approximately 3/4th of market revenue during the forecast period of 2022-2032.

Ban on Plastic & Stringent Environmental Policies be a Key Market Trend

Rising consumer concern towards environmental issues, stringent enactment of environmental laws, and improved research and development (R&D) operations in the production of bioplastics by key manufacturers is likely to offer plethora of growth opportunities in Europe.

The European Union approved a stern resolution to cut down the overall consumption of thin plastic bags in the region by around 80% by 2022, which in turn, is benefit the manufacturers of biodegradable plastics & paper makers over the coming years.

Moreover, the reduction in the usage of conventional plastic bags is likely to directly improve the consumption of biodegradable plastic bags in malls, retail outlets, and loose packaging applications.

Country-wise Insights

Which Country accounts for more Enhanced Demand for Biodegradable Packaging Market?

Germany accounts for the highest market share in the Europe Biodegradable Packaging market as it holds nearly 35% of the overall market share. The demand for biodegradable packaging is likely to upsurge at the rate of 6.4% CAGR during the forecast years owing to multiple factors.

In March 2019, Germany’s Bundesrat, the upper house of parliament, passed a new packaging intended at boosting recycling of packaging waste. It also instructs that the systems gathering the waste fees are indulged to create incentives that encourage the usage of recycled material to make packaging more sustainable and reduce our dependency on renewable resources.

Moreover, German food delivery company Delivery Hero in March 2019 announced an investment in biodegradable packaging manufacturer Bio-Lutions as governments and companies around the world seek to reduce plastic waste.

Category-wise Insights

Which Material Type is projected to show Maximum Growth?

The European biodegradable packaging market under biodegradable packaging material type is segmented into paper & paperboards packaging material, plastic biodegradable packaging, jute & wood biodegradable packaging, under which paper and paperboards biodegradable packaging materials is likely to retain the dominant position in the regional market.

It accounts for nearly 62.3% of the regional market share and is likely to contribute to ~85% of total market revenue during assessment years. On the other hand, plastic biodegradable packaging material is anticipated to capture roughly 22% over the forecast period, registering a CAGR of 5.7%.

Which End-Use Industry is driving demand?

The biodegradable packaging materials under end-use type is segmented into Food & Beverage, Cosmetics and Personal Care Products, Pharmaceuticals, Consumer Goods Industry. Sales of biodegradable packaging materials are likely to be driven by the food and beverage industry amongst all other end-use industries.

The food & beverage industry accounts for more than 34% of the regional market share. Numerous factors such as enhanced demand for ready-to-eat meals, convenience food, packaged food products are expected to boost market demand by 1.3x. Meanwhile, the consumer goods industry held more than 26% market share in 2021 and is recording a Y-o-Y growth rate of nearly 6.1% throughout the forecast period.

Competitive Landscape: Top Companies in Biodegradable Packaging Market

Key players in the European biodegradable packaging market are undertaking state-of-the-art manufacturing tools and are also focusing on collaborative activities with other market players in emerging economies along with investing highly in research and development to improve sustainability and reduce carbon emission.

• In April 2021, Smurfit Kappa, launched a new range of e-bottle packaging solutions for the growing online beverage market. This range is more sustainable made from recyclable raw material and is customizable according to bottle shapes and sizes. The company also offers a range of automated solutions that helps in the optimization of packaging processes.
• In May 2021, Amcor Limited announced that its team has created more sustainable packaging solutions for butter and margarine, which is made entirely from paper. The paper wrapper is 38% lighter than aluminium and paper packaging and reduces carbon footprint by 81%, thus, helping consumers meet sustainability goals.

Key Segments Covered in the Europe Biodegradable Packing Market Report

• Europe Biodegradable Packaging Market by Material Type :

  • Paper and Paperboards Biodegradable Packaging Materials
    • Coated Unbleached Kraft Paperboard
    • Bleached Paperboard
    • Molded Fiber Pulp Paperboard
    • Recycled Paper Paperboard
  • Plastic Biodegradable Packaging Materials
    • Poly Lactic Acid (PLA)
    • Polyhydroxybutyrate (PHB)
    • Starch Based Plastic
    • Fossil Based Polymer (PCL, PBAT, PBS etc.)
    • Polyhydroxyalkanoates (PHA)
  • Jute Biodegradable Packaging Materials
  • Wood Biodegradable Packaging Materials

• Europe Biodegradable Packaging Market by Application :

  • Biodegradable Packaging for Trays
  • Biodegradable Packaging for Bags
  • Biodegradable Packaging for Boxes
  • Biodegradable Packaging for Clamshells
  • Biodegradable Packaging for Films
  • Biodegradable Packaging for Pouches

• Europe Biodegradable Packaging Market by End Use Industries :

  • Biodegradable Packaging in the Food & Beverage Industry
  • Biodegradable Packaging in the Cosmetics and Personal Care Products Industry
  • Biodegradable Packaging in the Pharmaceuticals Industry
  • Biodegradable Packaging in the Consumer Goods Industry

• Europe Biodegradable Packaging Market by Country :

  • Germany
  • Italy
  • France
  • Spain
  • U.K.
  • Russia
  • BENELUX
  • Rest of Europe