Biodegradable Loose Fill Packaging Market Size, Share, Growth, And Industry Analysis, By Type (Starch, Recycled Paper, Others), By Application (Consumer Goods, Cosmetics & Personal Care, Pharmaceutical, Others), Regional Insights and Forecast From 2025 To 2033

Last Updated: 02 June 2025
SKU ID: 27519913

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BIODEGRADABLE LOOSE FILL PACKAGING MARKET REPORT OVERVIEW

The global biodegradable loose fill packaging market size was valued at USD 0.2 billion in 2024 and is projected to touch USD 0.4 billion by 2033, at a CAGR of 7.7% during the forecast period from 2025 To 2033.

Biodegradable materials that can disintegrate in the environment are used to make biodegradable loose-fill packaging. It is frequently employed to cushion and safeguard goods during shipping. The benefit of using biodegradable loose-fill packaging is that it removes the requirement for landfill space and contributes to the reduction of environmental pollution.

The market's expansion can be ascribed to the rise in interest in sustainable and eco-friendly packaging options. The market is expanding in part due to increased consumer knowledge of the advantages of adopting biodegradable loose-fill packaging. Government restrictions on the use of plastic, increased consumer awareness of sustainability, and rising demand for lightweight and compact packaging solutions are some of the key factors predicted to propel the growth of this market.

COVID-19 IMPACT

COVID-19 pandemic has significantly slowed the market's growth 

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

The COVID-19 pandemic has significantly slowed the market's growth for bioplastic packaging. Prior to the pandemic, the developing market was significantly hit by the supply chain collapse, increase in raw material prices, and statewide lockdown. Furthermore, initiatives aiming at creating bioplastics for single-use packaged meals are required due to the COVID-19 pandemic's influence on consumer behavior. Due to its high production viability, performance that rivals thermoplastics made from petroleum, and carbon-neutral life cycle, polylactide (PLA) is expected to experience significant growth over the research period.

LATEST TRENDS

Growing customer preference for eco-friendly packaging materials is fueling market expansion

The need for recyclable and ecologically friendly alternatives has led to a rapid expansion of the market for biodegradable packaging materials. When exposed to microbial action, the market solutions have the property of deteriorating or transforming into natural materials. These biodegradable polymers are also either fossil- or bio-based, often generated from natural resources, and made utilizing eco-friendly production processes.

Biodegradable Loose Fill Packaging Market By 2033

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BIODEGRADABLE LOOSE FILL PACKAGING MARKET SEGMENTATION

By Type

According to type, the market can be segmented into starch, recycled paper, others. Starch is anticipated to be the leading segment.

By Application

Based on application, the market can be divided into consumer goods, cosmetics & personal care, pharmaceutical, others. Consumer goods will be the dominating segment.

DRIVING FACTORS

Rising consumer awareness of health and hygiene will aid market expansion

Growing worries about long-term issues brought on by excessive plastic usage have a substantial impact on the growth of the worldwide biodegradable packaging market's revenue. A practical substitute that can aid in minimizing pollution brought on by plastics is biodegradable packaging. Although there aren't many options for biodegradable packaging at the moment, the vast majority of them are safe for those with allergies and toxicology. The use of biodegradable packaging can reduce the amount of water used, solid waste generated, electricity used, and greenhouse gas emissions. It goes without saying that this is good for the environment, but it also lowers the price of packaging. Over the projection term, significant growth is anticipated. Demand for biodegradable products is anticipated to be driven by rising disposable income levels and rising consumer awareness of health and hygiene, which will boost industry expansion. Due to manufacturers' increased desire for eco-friendly packaging options, the cosmetics and personal care industry is one of the application categories with the quickest growth. Additionally, consumer tastes for natural skincare products are changing as a result of worries about the harm that synthetic chemicals do to the skin. Over the next eight years, it is also projected that the growing usage of plant-based components in cosmetics and personal care products will boost industry growth.

Sector's rising demand for automotive and electronics products

Within the projection period of 2024–2033, demand in the automotive and electronics sectors is anticipated to experience substantial rise. The COVID-19 Pandemic in 2020 had not stopped the rise of the electronics sector. The global electronics and IT industry is expected to produce $2,972.7 billion in value in 2020, up 2% from the previous year, according to the Japan Electronics and Information Technology Industries Association (JEITA). The Organisation Internationale des Constructeurs d'Automobiles (OICA) estimates that in 2021, the world produced 57.3 million automobiles, a rise of 5.4% over the previous year. The demand for protective packaging is also being fueled by the expanding automotive and electrical industries. As a result, throughout the forecast period of 2024–2032, this shows to be a significant driver for the Loose Fill Packaging & Protective Packaging Market.

RESTRAINING FACTORS

Rigid Loose Fill Packaging Regulations Because of environmental worries

Expanded polystyrene foams, one of the main downsides of loose-fill packing materials, are hazardous to the environment because they are not biodegradable. As a result, different countries have implemented rules, some of which attempt to completely outlaw the production and use of loose-fill materials. For instance, to reduce waste and produce long-term environmental advantages, the Department of Environmental Conservation (DEC) of the New York State, United States, implemented a ban on expanded polystyrene foam containers and loose-fill packing on January 1, 2022. During the forecast period of 2022–2027, these rules may pose a barrier to the expansion of the Loose Fill Packaging & Protective Packaging Market.

BIODEGRADABLE LOOSE FILL PACKAGING MARKET REGIONAL INSIGHTS

Asia Pacific is expected to dominate the market during forecast period

Asia Pacific is predicted to keep up its dominance and hold the top rank in the global market for green packaging throughout the forecast period. Convenient foods and beverages are being consumed more frequently as a result of the growing population density. In addition, the green packaging manufacturers in China, India, Japan, and South Korea are expected to put more of an emphasis on ecologically friendly packaging alternatives in response to growing consumer environmental concerns, which will lead to a growth in the regional market. South-East Asia has an abundance of the raw materials needed to make cartons, bags, boxes, and other packaging equipment. This is also expected to have favourable market impacts.

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 of 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 portfolios.

List of Top Biodegradable Loose Fill Packaging Companies

  • Nefab Group (Sweden)
  • Green Light Packaging (U.K.)
  • Alsamex Products (U.K.)
  • Sealed Air Corporation (U.S.)
  • Storopack (Germany)
  • Foam Fabricators (U.S.)
  • Menai Foam & Board (U.K.)
  • ACH Foam Technologies (U.S.)
  • Ferrari Packaging (U.K.)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change. 

Biodegradable Loose Fill Packaging Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 0.2 Billion in 2024

Market Size Value By

US$ 0.4 Billion by 2033

Growth Rate

CAGR of 7.7% from 2024 to 2033

Forecast Period

2025-2033

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Starch
  • Recycled Paper
  • Others

By Application

  • Consumer Goods
  • Cosmetics & Personal Care
  • Pharmaceutical
  • Others

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