Biodegradable Packaging Market is expected to reach USD 39.85 billion due to growing environmental sustainability concerns

The global biodegradable packaging market size was worth around USD 15.96 billion in 2023 and is predicted to grow to around USD 39.85 billion by 2032, with a compound annual growth rate (CAGR) of roughly 10.70% between 2024 and 2032.

Biodegradable packaging refers to packaging materials that can be broken down by natural microorganisms such as bacteria, fungi, and algae, into harmless elements through simple biological processes. This type of packaging is made from renewable resources like corn starch, sugarcane bagasse, and cellulose fibers, or from special polymers created to break down naturally. The materials are designed to stay strong and protective during use while fully decomposing when placed in suitable environmental conditions. Biodegradable packaging is valued for its lower environmental impact, as it reduces long-lasting waste in landfills and oceans and creates fewer greenhouse gas emissions during production. New developments have improved barrier performance, moisture protection, and printing quality, enabling these materials to perform as well as regular packaging. Biodegradable packaging is growing in popularity as consumers and companies look for eco-friendly options and as rules limiting single-use plastics encourage a shift toward more sustainable choices.

Browse the full “Biodegradable Packaging Market By Material Type (Paper & Paperboard, Plastics, and Bagasse), By Type (Degradable Packaging, Reusable Packaging, and Recycled Content Packaging), By Packaging Format (Pouches & Bags, Tray & Clamshells, Bottles & Jars, Label & Tapes, Films & Wraps, and Others), By Application (Healthcare, Personal Care, Food & Beverages, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2024 - 2032” Report at https://www.zionmarketresearch.com/report/biodegradable-packaging-market

The growth of the global biodegradable packaging industry is primarily driven by increasing consumer environmental awareness demanding sustainable alternatives, stringent government regulations banning single-use plastics, and corporate sustainability commitments reducing packaging waste.

Market Growth Factors

Several factors are propelling the expansion of the biodegradable packaging market.

• Environmental consciousness: Growing concern about plastic pollution harming oceans and wildlife is increasing demand for safer packaging, leading brands to choose biodegradable materials that reduce environmental impact.
• Regulatory pressure: Governments are banning single-use plastics and enforcing producer responsibility rules, pushing manufacturers to develop biodegradable packaging that follows new legal requirements.
• Corporate sustainability goals: Large companies are committing to removing non-recyclable packaging and reaching carbon-neutral targets, increasing investment in biodegradable packaging research, development, and supply chain upgrades to show environmental progress.

Restraints

• Cost premium: Biodegradable packaging often costs more because of smaller production scales and higher material expenses, making it harder for budget-focused businesses to adopt.
• Performance limitations: Some biodegradable materials offer weaker barrier strength, lower durability, or limited heat resistance compared to traditional packaging, which may reduce product protection and shorten shelf life in demanding uses.

Biodegradable Packaging Market: Report Scope

Market Segmentation

The biodegradable packaging market can be segmented by material, packaging format, end-use, and region.

Based on material, the market is divided into paper and paperboard, bio-plastics, and bagasse. Paper and paperboard are expected to lead the market during the forecast period due to their renewable sourcing, established recycling infrastructure, and widespread consumer acceptance as environmentally friendly packaging materials.

Based on packaging format, the biodegradable packaging market is segmented into bottles and jars, boxes and cartons, cans, cups and bowls, pouches and bags, and other formats. Pouches and bags are expected to maintain a significant market share during the forecast period due to their versatility across food and non-food applications, combined with material efficiency.

Based on end-use, the biodegradable packaging industry is categorized into food and beverage, personal care and cosmetics, pharmaceuticals, home care, and other consumer goods. Food and beverage leads the market due to massive packaging volumes and strong consumer preference for sustainable packaging in direct contact with edible products.

North America leads the global biodegradable packaging market due to strict environmental regulations, high consumer awareness, and numerous large companies that support sustainable products. The region includes innovative packaging makers that invest in advanced bio-material technologies and develop reliable, eco-friendly supply chains. These companies benefit from well-built recycling and composting systems, government programs that support green purchasing, and clear corporate sustainability goals. A wealthy consumer base willing to pay more for environmentally responsible items also helps market growth. Policies such as the United States 2030 Food Loss and Waste Reduction Goal continue to encourage businesses to adopt biodegradable packaging solutions. In addition, strong universities, research centers, and active venture capital funding support new ideas, helping clean-technology startups develop improved biodegradable materials and packaging applications across different industries.

Key Market Players

Leading companies operating in the global biodegradable packaging market include:

• Tetra Pak International SA
• Amcor PLC
• Berry Global Group Inc.
• Pactiv Evergreen Inc.
• Smurfit Kappa Group PLC
• Crown Holdings Inc.
• Mondi PLC
• International Paper Company
• DS Smith PLC
• Constantia Flexibles
• Huhtamaki Oyj
• NatureWorks LLC
• Plastic Suppliers Inc.
• Kruger Inc.
• Sealed Air Corporation

 Recent Developments

• In July 2025, Karnataka Milk Federation (KMF) launched eco-friendly biodegradable milk packets for its “Nandini” brand made from corn starch, sugarcane, and other plant-based materials, reducing plastic waste in Bengaluru.
• In October 2025, Hinojosa Packaging Group (with KHS Group) won the Liderpack 2025 award for its “BottleClip Carrier”, a 100 % recyclable and biodegradable cardboard packaging solution replacing plastic film for 2-8 PET bottles, reducing material use by up to 85%.

The global biodegradable packaging market is segmented as follows:

By Material Type

• Paper & Paperboard
• Plastics
• Bagasse

By Type

• Degradable Packaging
• Reusable Packaging
• Recycled Content Packaging

By Packaging Format

• Pouches & Bags
• Tray & Clamshells
• Bottles & Jars
• Label & Tapes
• Films & Wraps
• Others

By Application

• Healthcare
• Personal Care
• Food & Beverages
• Others

​By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

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