05. Jul 2017
The global bioplastic packaging market is expected to reach USD 34.24 billion by 2024, says a new report from Hexa Research. Growth is mainly being driven by rising consumer demand for resource efficient and eco-friendly products. Supporting regulations will help to boost important growth over the forecast period.
Europe was the largest market accounting for 32.7% of the volume share in 2016 due to supporting regulations coupled with consumer awareness regarding the conservation of the environment. North America and Asia Pacific followed suit, where the regions together are expected to contribute USD 3.26 billion by 2024.
Companies are ramping up their production capacity as well as foraying into R&D of application of new biopolymers into mainstream applications. The report points to the BASF - Avantium joint venture entered into in October 2016, forming Synvina JV, which will manufacture and market FDCA and PEF. Synvina JV has a production capacity of 50,000 metric tons per year for FDCA and PEF.
R&D efforts to expand the utilization of different raw materials such as PBS, PLA, and PBAT in various mainstream packaging applications are also on the rise, with notable results: in April 2017, for instance, UK-based Biome Bioplastics introduced a fully compostable and recyclable coffee cup made entirely from bioplastic materials. These factors together are expected to provide an impetus to, and open new opportunities for, the growth of the bioplastic packaging market over the next seven years.
High cost of bio-based materials is expected to hinder the growth of the market. However, the costs are expected to reduce as the production volume of these materials will increase.
PET dominated the global market contributing to USD 1.84 billion in 2016. The polymer was extensively used in rigid packaging on account of its high durability, transparency, and ease of moldability. Initiatives undertaken by companies such as Coca-Cola, P&G, and Heinz to use bio-based materials for packing beverages, sauces & spreads and cosmetics is expected to bolster the growth of the rigid packaging market.
PBS is anticipated to witness the fastest growth over the next eight years at a CAGR of 32.1% in terms of revenue on account of its rising demand as a packaging material for food and cosmetics. Rising demand for packed foods and cosmetics is expected to augment the growth of the market over the next few years. In addition, ease of processing for manufacturing films, bags or boxes coupled with the ability of the polymer to decompose naturally in water and carbon dioxide is expected to result in its tremendous growth over the projected period.
Rigid bioplastic packaging accounted for 65.9% of the overall volume share in 2016 and is expected to witness growth over the projected period on account of its increasing demand for manufacturing cups, closures, and bottles. Several companies such as P&G, Coca Cola, Heinz, and Johnson & Johnson utilize bioplastics for manufacturing bottles and stand up pouches made of bio-PET or bio-PE.
Flexible bioplastic packaging is likely to witness substantial growth over the next few years. Rising demand for biodegradable films and bags, particularly for perishable goods, is expected to drive the growth of the market. This packaging is being increasingly used for chocolates, confectionary, fruits, vegetables and dry foods including tea and muesli. Growing consumption of these food products is expected to result in a substantial growth over the forecast period.
The segment is expected to grow at a volume CAGR of 20.6% from 2017 to 2024.
Plastic bottles accounted for 42.7% of the overall volume share in 2016. Rising demand for bio-based bottles on account of their ability to be reused and recycled is expected to augment its growth. Companies are undertaking various initiatives to reduce their carbon footprint by making available separate disposal bins to reuse and recycle these bottles. The segment is also expected to witness the fastest growth on account of an increasing consumer base for bio-PET and bio-PE including Coca-Cola, P&G, and Heinz.
The demand for bioplastic packaging for food applications was 145.9 kilo tons in 2016 and is expected to witness above average growth on account of rising consumer demand for eco-friendly solutions. Growth of the food industry is expected to augment the growth of the market over the next few years.
The growth of the global bioplastic packaging industry driven primarily by consumer demand is also likely to be favored by the implementation of stringent regulations for its synthetic counterparts. Despite the fall in crude oil prices, companies such as BASF, Arkema Dow, Solvay, and Braskem are continuing production at their facilities and focusing on R&D. These factors are likely to result in a tremendous growth of the global bioplastic packaging market growing at a revenue CAGR of 28.3% over the next seven years.