Biodegradable Paper and Plastics Packaging Market Size, Share, Growth, and Industry Growth by Type (PLA and PHA) By Application (Textiles and Consumer Product Packaging Industries) Regional Forecast From 2025 To 2034

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BIODEGRADABLE PAPER AND PLASTICS PACKAGING MARKET OVERVIEW

The global Biodegradable Paper and Plastics Packaging Market size stood at USD 11.17 billion in 2025, growing further to USD 21.99 billion by 2034 at an estimated CAGR of 7.82% from 2025 to 2034.

The United States Biodegradable Paper and Plastics Packaging Market size is projected at USD 3.55078 billion in 2025, the Europe Biodegradable Paper and Plastics Packaging Market size is projected at USD 2.9467 billion in 2025, and the China Biodegradable Paper and Plastics Packaging Market size is projected at USD 2.99695 billion in 2025.

The global COVID-19 pandemic has been unprecedented and staggering, with biodegradable paper and plastics packaging experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Due to their wide range of qualities, such as biodegradability, recyclability, flexibility, widespread availability, lightweight, and most crucially the "sustainability" element, biodegradable plastic and paper are widely used for packaging across many sectors. Significant environmental and food safety concerns are driving the development of biodegradable packaging alternatives as a partial substitute for petrochemical-based plastics, which is boosting the market forecast.

As more people demand change and begin to scrutinize firms, the need for sustainable packaging has grown. Sustainable and environmentally friendly packaging is becoming more popular with consumers. Growing environmental concerns and a greater readiness of people all over the world to pay more for sustainable solutions and "greener" packaging are driving the expansion of the biodegradable paper and plastic packaging sector.

KEY FINDINGS

COVID-19 IMPACT

Lockdown to Challenge the Market Growth

The expansion of the paper and plastic packaging industries that use biodegradable materials has been negatively impacted by the pandemic. Businesses in all sectors, including the packaging industry, will need to embrace new technology and operational procedures as manufacturers adapt to the rapidly changing environment. The COVID-19 pandemic has, however, inevitably given rise to various innovations as the market is forced to adjust to a greater degree of package safety, which transforms the industry perspective in the next years.

LATEST TRENDS

Shifting Lifestyles Trends to Boost the Market

Due to the expansion of these nations' electronic, food, and beverage packaging sectors, the need for biodegradable paper and plastics is anticipated to increase in the BRICS economies that are just starting to develop during the next years. The demand for packaged food items will rise as a result of shifting lifestyle trends, and this is expected to fuel growth in the food and beverage sector. The market's growth will be further accelerated by the expanding pharmaceutical packaging sector. The market for biodegradable paper and plastics is expected to grow in the next years because to technological advancements in sales and distribution channels and creative production techniques. The need for packaging materials is rising along with the food industry. The food business has seen greater changes as a result of paper and plastic. However, because traditional plastics made from petroleum are not biodegradable, they have led to several environmental issues such as the threat to marine life and deteriorating air quality. As a result, the food industry now uses paper and plastic that can be broken down into simpler components. It has become a novel method for a variety of industrial applications to reduce the risk that non-biodegradable paper and plastic have created.

• According to the report, the global biodegradable plastics market size is projected to grow from USD 7.7 billion in 2021 to USD 23.3 billion by 2026.

• The Report 2023 highlights that packaging remains the largest market segment for bioplastics, accounting for 43% (934,000 tonnes) of the total bioplastics market in 2023.

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BIODEGRADABLE PAPER AND PLASTICS PACKAGING MARKET SEGMENTATION

By Type Analysis

By type, market is segmented into PLA and PHA. The PLA segment will dominate the market in the coming years.

By Application Analysis

Based on applications, the market is classified into textiles and consumer product packaging industries. The textiles segment will lead the global share through 2031.

DRIVING FACTORS

Environmental Concerns to Propel the Market Growth

The use of biodegradable packaging materials, such paper and plastic, provides a lot of potential benefits for balancing greenhouse gas emissions and other environmental effects throughout the course of a product's life cycle and employing renewable resources rather than limited ones. It is envisaged that the usage of biodegradable paper and plastic products will help preserve sustainability while reducing the environmental effect associated with the disposal of oil-based polymers.

Launch of Government Programs to Raise Consumer Awareness to Augment the Demands

The market for biodegradable paper and plastic packaging is expected to grow as more government programs to raise consumer awareness throughout the world are launched. The market is being driven by increased demand for biodegradable paper and plastic packaging from end-user industries such as restaurants, malls, retail establishments, hotels, and others. This is due to the rise in government activities to increase awareness regarding biodegradable paper and plastic packaging.

The market for biodegradable paper and plastic packaging is segmented into five types, including polyhydroxyalkanoates (PHA), polylactic acid (PLA), cellulose-based plastic, starch-based plastic, and others. PLA is a very transparent polymer that is simple to recycle. It is commonly employed in thermoformed applications for the transparent blister packaging, the packaging of dairy products, and the packaging of ready-to-eat food. and drinking glasses for cold drinks.

• The U.S. Plastics Pact's 2023-24 Impact Report indicates that consumer packaged goods, retailer, and converter Activators produce 33% of plastic packaging in scope in the U.S. by weight, placing 5.57 million metric tons of plastic on the market.

• The Report 2023 emphasizes the increasing use of biodegradable plastics in packaging applications, driven by environmental concerns and regulatory pressures.

RESTRAINING FACTORS

Lack of Adequate Technology to Impede the Market

However, the two main issues that are anticipated to slow the market's development pace are cost effectiveness and a lack of adequate technology. Change in consumer mindset, which has been linked to more expensive costs than traditional items, is anticipated to be a significant problem for the end user industry. It is projected that other issues, such as shorter life and the inability to recycle some components that are not entirely biodegradable, may somewhat restrict market development. The market's development pace may also be hindered by cross-contamination in recycling facilities and the decreased strength and load-carrying ability of biodegradable materials.

• The U.S. Department of Agriculture's 2025 Limited Scope Technical Report on Compostable Materials notes that the lack of standardized definitions and certifications for compostable packaging materials poses challenges to market growth.

• The Plastics Industry Association's 2025 Global Biodegradable Polymers Market Report highlights that the high production costs and scale limitations of biodegradable polymers hinder their widespread adoption.

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BIODEGRADABLE PAPER AND PLASTICS PACKAGING MARKET REGIONAL INSIGHTS

Asia Pacific to Hold the Largest Market Share

In terms of revenue and market share throughout the anticipated period, Asia Pacific will dominate the market for biodegradable paper and plastic packaging. This is a result of the region's rising need for packaging made of biodegradable paper and plastic. The Asia Pacific region dominates the market for biodegradable paper and plastic packaging due to rising consumer awareness of the plastics segment and expanding business opportunities in the food and beverage sector. China is the market leader in the Asia-Pacific region because to the ease of huge consumption brought on by an expansion in urbanization and population in many industries that employ biodegradable paper & plastic packaging.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

• Bemis Manufacturing Company: According to the European Bioplastics Market Data Report 2023, Bemis Manufacturing Company is actively involved in the development and production of biodegradable packaging solutions, contributing to the growth of the bioplastics market.

• DS Smith: The Plastics Industry Association's 2025 Global Biodegradable Polymers Market Report notes that DS Smith is a key player in the biodegradable packaging market, focusing on sustainable packaging solutions to meet consumer demand.

List of Top Biodegradable Paper And Plastics Packaging Companies

• Bemis Manufacturing Company
• DS Smith
• Eurocell srl
• Smurfit Kappa Group
• Mondi Group
• Kruger Inc.
• Riverside Paper Co. Inc.
• Rengo Co Ltd
• Rocktenn
• International Paper
• Amcor plc
• Klabin S.A
• BASF
• Stora Enso
• Clearwater Paper Corporation

REPORT COVERAGE

The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.