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Global Biodegradable Packaging Materials Market is Projected to Reach $173.45 Billion at a CAGR of 9.1% by 2029

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The Business Research Company

Biodegradable Packaging Materials Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

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The global market for biodegradable packaging materials has made considerable strides in recent years, growing from a valuation of $111.65 billion in 2024 to an impressive $122.26 billion in 2025. Reflecting this strong pace of growth is a compound annual growth rate CAGR of 9.5%. Several factors have fueled this rising trajectory in the historic period including an increase in the demand from eco-conscious consumers, growth of recyclable packaging industry, rise of online food delivery services, and increased utilization of recycled materials in combination with the burgeoning growth of e-commerce.

Expanding on this growth trajectory: From $122.26 Billion in 2025 to Forecasted $173.45 Billion in 2029.

Looking ahead, the biodegradable packaging materials market size is poised to witness strong growth, expanding further to an impressive $173.45 billion by 2029. This presents a promising compound annual growth rate CAGR of 9.1%. Several factors anticipated to drive growth in the forecast period include a rising demand for bio-based materials, escalating consumer preference for eco-friendly products, exacerbated environmental concerns, increased use of biodegradable packaging along with a burgeoning popularity of plant-based packaging. As we gaze into the crystal ball, key trends predicted for the forecast period include the adoption of biodegradable packaging, innovative packaging designs, the rise of paper and cardboard alternatives, adoption of eco-labels, and advancements in recycling technologies.

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Sustainable Packaging: A Key Growth Driver for Biodegradable Packaging Materials Market

What could potentially catalyze the growth of the biodegradable packaging market going forward? One clear answer emerges: the increasing demand for sustainable packaging. This approach to packaging design focuses on eco-friendly materials that minimize environmental impact across a product’s lifecycle, prioritizing recyclability, biodegradability, and avoiding unnecessary waste. All in a bid to ensure that functionality and product protection are not compromised.

Key factors driving this rising demand for sustainable packaging include a growing awareness of plastic pollution, deforestation, landfill waste, high consumer preference for eco-friendly products, corporate sustainability initiatives, and the potential for long-term cost savings through the use of lightweight, recyclable materials. With biodegradable packaging aligning perfectly with these sustainability goals, the increasing consumer demand for eco-friendly packaging solutions is expected to drive the expansion of the biodegradable packaging materials market.

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Key Players Leading the Way in the Biodegradable Packaging Materials Market

Several industry leaders are at the forefront of the biodegradable packaging materials market. Key players include BASF SE, Mitsubishi Chemical Corporation, Braskem S.A., Smurfit Kappa Group, Tetra Pak International S.A., Corbion Purac, Green Dot Bioplastics Inc., Dunapack Packaging, Danimer Scientific Inc., Fabbri Group S.p.A., Vegware Limited, Novamont S.p.A., Paptic Ltd., Biopacktech Co. Ltd., BioGreen Packaging, Teysha Technologies, Packware GmbH, TIPA LTD., Cardia Bioplastics Ltd., Futamura Group, Avani, Biome Bioplastics Limited.

The market is also defined by continuous innovation. Key players are focusing on developing advanced solutions, such as water-based barrier coatings designed to enhance the durability of packaging while remaining eco-friendly. These improved coatings protect against moisture, oils, and grease, extending product shelf life and enhancing functionality. For example, in March 2024, Archroma, a Switzerland-based chemical company, launched a per- and poly-fluoroalkyl substances PFAS-free barrier coating for oil and grease resistance in food and non-food packaging. This innovative product is biodegradable, enhancing sustainability and performance in packaging applications.

Diverse Segments and Geographies Driving Market Growth

Understanding the market involves segmenting it by material type, application, and end-use industry. Material types include paper and paperboards, plastic, jute, and wood. Applications range from trays, bags, boxes, clamshells, to pouches, cutting across end-use industries such as food and beverages, cosmetics and personal care products, pharmaceuticals, and the consumer goods industry.

Regional Insights: North America led the biodegradable packaging materials market in 2024, with other regions covered in the report including Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.

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