Oxo-biodegradable Plastic Packaging Market

Oxo-biodegradable Plastic Packaging Market Outlook (2024 to 2034)

The global oxo-biodegradable plastic packaging market is estimated to reach US$ 2.5 billion in 2024 and is projected to expand at a CAGR of 5.8% to top a valuation of US$ 4.4 billion by 2034-end.

Oxo-biodegradable plastic is extensively used for packaging various commodities such as foods, meals, pharmaceuticals, frozen meat stocks, and others. This packaging is widely adopted by industries such as pharmaceuticals, food and beverages, healthcare, and personal care.

This packaging is made by incorporating a pro-degradant additive into the plastic during the extrusion process. Also, these plastics are an eco-friendly alternative to traditional plastic packaging as they have a minimal impact on the environment.

Key Market Growth Drivers

• Governments across the globe are implementing stringent regulations to address rising environmental concerns, particularly those stemming from plastic waste.
• Businesses are seeking alternatives that have less impact on the environment. Oxo-biodegradable plastic comes into the picture here as a suitable choice.
• Strict government regulations are prompting manufacturers to focus on developing plastic packaging from eco-friendly and sustainable materials, which is supporting the expansion of the oxo-biodegradable plastic packaging market size.
• Market is benefiting from continuous research and development initiatives focused on enhancing the efficiency and cost-competitiveness of oxo-biodegradable plastics.
• Plastics made using traditional methods are difficult to manage as waste and recycle because they stay in the environment for a very long time. Plastics that can break down more quickly through a process called oxo-biodegradation may provide a solution by reducing the pressure on waste management systems.

Report Attributes	Details
Oxo-biodegradable Plastic Packaging Market Size (2024E)	US$ 2.5 Billion
Forecasted Market Value (2034F)	US$ 4.4 Billion
Global Market Growth Rate (2024 to 2034)	5.8% CAGR
North America Market Growth Rate (2024 to 2034)	5.8% CAGR
East Asia Market Value (2024E)	US$ 600 Million
Sales of Bags and Sacks (2034F)	US$ 500 Million
Key Companies Profiled	EPI Environmental Technologies Inc. Wells Plastics Ltd. Symphony Environmental Technologies PLC Newtrans USA Company Cereplast Inc. Extrapack Ltd. Willow Ridge Plastics Inc. Abbey Polythene Ltd. TMR Woven Bags and Sacks Manufacturers Mondi Group UNIBAG MAGHREB Biome bioplastics Licton Industrial Corp.

Which Factors are Influencing Oxo-biodegradable Plastic Packaging Market Growth?

“Government Initiatives and Rising Awareness Among Consumers about Eco-friendly Packaging”

Government initiatives targeted at reducing plastic pollution and increasing awareness among consumers about eco-friendly packaging and products are driving market growth. These oxo-biodegradable plastic packaging trends are beneficial to manufacturers. Traditional plastics, or what we might call normal plastics, generate a heavy impact on the environment as they have longer life spans.

Oxo-biodegradable plastics serve as an alternative, offering eco-friendly packaging solutions. These plastics contain additional chemicals that help them break down into smaller pieces when exposed to oxygen and heat. This breakdown eventually leads to the plastics biodegrading into non-toxic materials.

“Easy Recyclability of Oxo-biodegradable Plastic”

The functionality of oxo-biodegradable plastics is similar to that of traditional plastics, but their reusability is limited due to their breakdown properties. They can still be recycled in some instances. Also, they have a good life span in terms of usability and last for many years if stored indoors. When oxo-biodegradable plastic gets degraded, it does not produce methane.

What are the Challenges Faced by Oxo-biodegradable Plastic Packaging Producers?

“High Initial Investment Associated with Oxo-biodegradable Plastic Production”

The initial cost requirement for installing and developing oxo-biodegradable plastic packaging solutions is high compared to other alternative products, primarily for large-scale projects. Producing oxo-biodegradable plastic is more expensive compared to composite plastic production because of the costly raw materials needed and the complexity of the process. Manufacturers find it difficult to cut expenses and make these plastics more cost-effective.

“Rising Preference for BOPP and CPP Packaging”

Competition in plastic packaging is getting more intense. Due to innovations in the plastic market, new variants are being introduced. Biopolymer packaging is a more sustainable and eco-friendly alternative to oxo-biodegradable plastic packaging. The adoption of BOPP or CPP packaging is also increasing for packaging purposes, which is hindering oxo-biodegradable plastic packaging market growth.

Country-wise Insights

In recent years, there has been a notable increase in demand for oxo-biodegradable plastic packaging in the East Asia region compared to other regions. Due to the vast population, market opportunities are also increasing. The East Asia region is estimated to account for 23.5% of the oxo-biodegradable plastic packaging market share in 2024.

Why is China an Important Market for Oxo-biodegradable Plastic Packaging Producers?

“Easy Access to Raw Materials and Low Labor Costs”

Attribute	China
Market Value (2024E)	US$ 300 Million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 500 Million

China's vast population and strong manufacturing base make it a lucrative market for oxo-biodegradable plastic packaging producers. Due to increasing environmental concerns, the government is promoting the use of oxo-biodegradable and biodegradable plastics. Because of China's advantageous location, manufacturers can easily procure raw materials. The production cost for oxo-biodegradable plastic is lower in the country due to low labor costs.

Which Aspects are Conducive for Market Expansion in the United States?

“High Awareness of Impact of Traditional Plastic Use on Environment”

Attribute	United States
Market Value (2024E)	US$ 400 Million
Growth Rate (2024 to 2034)	6.1% CAGR
Projected Value (2034F)	US$ 700 Million

Rising awareness of plastic pollution among the population and government has compelled plastic manufacturers to produce recyclable packaging options, such as oxo-biodegradable plastic packaging. Due to vast industrialization of the country, demand for packaging is increasing. There are strict regulations related to plastic use. Oxo-biodegradable plastic packaging is widely used in various industries to reduce plastic pollution from traditional plastic use.

Category-wise Insights

Why are Polyethylene (PE) Oxo-biodegradable Plastic Packaging Sales Increasing?

“Superior Flexibility and Strength of Polyethylene Biodegradable Packaging”

Attribute	Polyethylene (PE)
Market Value (2024E)	US$ 1.9 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 3.3 Billion

Compared to other categories, the demand for polyethylene (PE) oxo-biodegradable plastic packaging is increasing due to its flexibility and strength. Polyvinylchloride (PVC) plastic packaging is also preferred by manufacturers. The use of these packaging solutions to reduce plastic pollution is increasing, as they degrade more quickly than traditional plastic packaging solutions.

How Fast are Sales of Oxo-biodegradable Bags and Sacks Increasing?

“Extensive Use of Oxo-biodegradable Bags and Sacks for Shopping and Carrying Heavy Items”

Attribute	Bags & Sacks
Market Value (2024E)	US$ 300 Million
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 500 Million

Regulatory bodies from various countries have started banning traditional plastic packaging solutions. Due to this, sales of bags and sacks made from oxo-biodegradable plastic are increasing. Oxo-biodegradable garbage and shopping bags are increasingly available. Sacks, used for packing heavy things or large quantities, can also be made from oxo-biodegradable plastic.

Competitive Landscape

Key players in the oxo-biodegradable plastic packaging industry are EPI Environmental Technologies Inc., Wells Plastics Ltd., Symphony Environmental Technologies PLC, Newtrans USA Company, Cereplast Inc., Extrapack Ltd., and Willow Ridge Plastics Inc.

• In February 2024, The Court of Justice of the European Union (CURIA) rejected Symphony Environmental Technologies’ legal arguments and supported the ban on oxo-degradable plastics from the market, highlighting its intention to safeguard human health and the environment.

• In a major step for combating global plastic pollution, Polymateria, a London-based scale-up company located at Imperial College London's White City Campus, secured US$ 24.2 million in a successful Series B funding round in December 2023.

Segmentation of Oxo-biodegradable Plastic Packaging Market Research

• By Material :

  • Polyethylene (PE)
  • Polypropylene (PP)
  • Polystyrene (PS)
  • Polyvinylchloride (PVC)
  • Polyethylene Terephthalate (PET)
  • Metal Salts

• By Packaging Type :

  • Bags & Sacks
  • Food Bags
  • Bin Liners
  • Garbage Bags
  • Shopping Bags

• By End Use :

  • Pharmaceuticals & Healthcare
  • Food & Beverages
  • Household & Personal Care
  • Industrial

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa