Bioplastic Packaging Market Size, Share, Growth, and Industry Analysis, By Type (Biodegradable and Non-Biodegradable), By Application (Cosmetics, Healthcare and Others), and Regional Forecast to 2035

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BIOPLASTIC PACKAGING MARKET OVERVIEW

The Bioplastic packaging Market Size is valued at USD 1.75 billion in 2025, is forecasted to grow consistently, reaching USD 1.81 billion in 2026 and ultimately achieving USD 2.53 billion by 2035, at a steady CAGR of 3.4%.

The global bioplastic packaging market has seen immense growth in recent years, thanks to increasing environmental awareness and demand for sustainable alternatives to conventional plastic packaging. Bioplastics derived from renewable biomass sources like corn starch, sugarcane and cellulose have become integral to industries as wide ranging as food and beverage and personal care. Their ability to reduce carbon footprints and align with circular economy principles has positioned bioplastic packaging as a promising solution in the fight against plastic pollution. The market is expanding as industries adopt biodegradable and compostable options to meet regulatory mandates and consumer preferences for eco-friendly products.

KEY FINDINGS

COVID-19 IMPACT

Bioplastic packaging Industry Had a Mixed Effect Due to supply chain disruption during COVID-19 Pandemic

The COVID-19 pandemic created both challenges and opportunities for the bioplastic packaging market. An immediate impact of the pandemic was that the disruption of supply chains across the globe and low production in industries had temporarily slowed demand. However, as environmental concerns increased, the urgency for sustainable practices was brought forward. Online shopping increased, coupled with increasing demand for safe and hygienic packaging, which further raised interest in bioplastic materials. Companies, therefore, worked on innovative solutions to meet such demands while remaining environmentally sound and helped the market recover and grow in the post-pandemic era.

LATEST TRENDS

Growing adoption of AI to Drive Market Growth

The bioplastic packaging market has dynamic trends which shape its growth trajectory. Advanced bioplastic materials like PLA and PHA provide better performance and degradability. Bioplastics also gain traction through integration in flexible packaging solutions such as pouches and films. Brands are increasing collaboration with the technology providers on better barrier packaging with longer shelf life. This also increases a focus on regional sourcing and production for raw materials as it reduces the carbon footprint for transportation.

• According to the U.S. Department of Agriculture (USDA), the use of bioplastics derived from renewable sources like corn starch and sugarcane has increased significantly. Over 60% of bioplastics used in packaging globally are derived from renewable resources, driven by consumer demand for more sustainable and environmentally friendly packaging solutions.

• The European Bioplastics Association reports that compostable bioplastics are gaining popularity, particularly in the food packaging sector. In 2021, the production of compostable bioplastics grew by 15%, with more than 15% of food packaging in the European Union now using compostable materials. This shift aligns with the EU’s Circular Economy Action Plan, which encourages sustainable and recyclable packaging materials.

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BIOPLASTIC PACKAGING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Biodegradable and Non-Biodegradable

• Biodegradable: Biodegradable plastics are created to degrade through the action of microorganisms into water, carbon dioxide, and biomass. The main source is renewable, derived from corn starch, sugarcane, or cassava. Biodegradable types of plastics that are used for packaging include PLA, PHA, and starch blends.

• Non-Biodegradable: These are plastics derived from renewable sources but do not decompose like biodegradable plastics. They offer high durability and are often used in long-term packaging solutions. Examples include bio-based polyethylene (Bio-PE), bio-based polyethylene terephthalate (Bio-PET), and bio-polyamides (Bio-PA).

By Application

Based on application, the global market can be categorized into Cosmetics. Healthcare and others

• Cosmetics: The personal care industry is embracing bioplastic packaging for products such as shampoos, lotions, and creams. Bio-PE and Bio-PET are used to make strong, recyclable containers, while biodegradable materials are preferred for sample-sized packaging and single-use sachets.

• Healthcare: In the pharmaceutical industry, bioplastic packaging solutions would be blistering packs, medicine bottles and pouches in medical devices. The use of non-toxic and sustainable materials guarantees compliance with strict health and safety regulations. Bioplastics also offer hygienic and eco-friendly alternatives to disposable syringes and medical gloves.

• Others: Advantages of durability and friendliness are contributing to the increasing use of bioplastics in industrial packaging applications like stretch films, strapping, and agricultural films. Compostable films are in high demand for wrapping fresh produce, fertilizers, and seeds as adopted under eco-friendly agricultural practices.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing focus on sustainability to Boost the Market

The primary driver for the bioplastic packaging market is the growing worldwide focus on sustainability. Stringent government regulations for the use of biodegradable materials, as well as changing consumer behavior in favor of environmentally conscious products, contribute to this fact. The widespread adoption of green packaging solutions among multinational corporations and small enterprises shows a commitment towards reducing plastic waste. Furthermore, advancements n bioplastic manufacturing technologies have made these solutions more cost-effective and accessible to a broader range of industries and have driven Bioplastic Packaging market growth.

• According to the European Commission, the European Union has implemented several regulations aimed at reducing plastic waste, including the European Single-Use Plastics Directive. This directive, which bans single-use plastic items by 2025, is accelerating the adoption of bioplastics in packaging, with a focus on products like food containers and bags. As a result, bioplastic packaging adoption in the EU has grown by 20% in the past three years.

• A survey conducted by the U.S. Environmental Protection Agency (EPA) in 2021 revealed that 70% of American consumers are willing to pay more for products with sustainable packaging, including bioplastics. This growing preference for eco-friendly products is driving the demand for bioplastic packaging, particularly in the food and beverage sector, where sustainability is becoming a key purchasing factor.

Restraining Factor

High Cost of Bioplastic packaging to Potentially Impede Market Growth

Despite the promise of the bioplastic packaging market, several challenges remain. The costs of producing high-value bioplastics are relatively much higher as well as less scalable than traditional plastics. Dependence on these feedstocks also raises issues concerning competition with food production supply lines and t e impact of these displacements on food security. The insufficient infrastructure for composting and recycling bioplastic waste hampers its adoption in many areas. These factors have slower market penetration in some of these developing economies.

• According to the U.S. Department of Energy (DOE), the production cost of bioplastic packaging can be up to 30% higher than conventional plastic due to the specialized raw materials and production processes involved. This cost disparity is limiting the widespread adoption of bioplastics, particularly in price-sensitive markets.

• The World Resources Institute (WRI) notes that the availability of feedstocks such as corn and sugarcane for bioplastics production is limited. With increasing competition for these resources from food production and biofuels, there are concerns over the long-term sustainability of bioplastic production. In 2020, only about 2 million tons of bioplastics were produced globally, constrained by the availability of raw materials.

Emerging economies To Create Opportunity for the Product in the Market

Opportunity

Opportunities exist for bioplastic packaging in terms of market space, mainly within emerging economies and sectors such as food delivery and e-commerce. Growing demand in these sectors for single-use bioplastic packaging solutions opens an attractive space for expansion. The scope of opportunities in investments on research and development for the development of high-performance bioplastics with superior functionalities also lies here. In addition to this, how bioplastic packaging solutions connect with global targets for sustainability including the United Nations Sustainable Development Goals (SDGs) makes its relevance in counteracting environmental degradation.

• According to the U.S. Food and Drug Administration (FDA), the food and beverage industry accounts for nearly 50% of the global demand for bioplastics in packaging. With increasing regulations around food safety and sustainability, bioplastics are seen as a viable alternative to traditional plastic packaging. The demand for bioplastics in this sector is expected to grow by 12% annually over the next five years.

• According to the Cosmetics Europe association, the use of bioplastic packaging in the cosmetics and personal care industry is expanding rapidly. In 2021, over 10% of cosmetic packaging in the EU was made from bioplastics, with further growth expected as brands look for sustainable alternatives. This presents a key growth opportunity for bioplastic packaging manufacturers.

Lack of awareness Could Be a Potential Challenge for Consumers

Challenge

Education of consumers and industries is one of the major challenges in the bioplastic packaging market. Misconceptions about biodegradability and composability often lead to improper waste management practices. Another challenge is the competition from cheaper, petroleum-based plastics. These require collaborative efforts from stakeholders, including governments, industries and consumers to promote awareness and build supportive infrastructures.

• According to the U.S. Department of Agriculture (USDA), while bioplastics offer environmental benefits, they often face challenges in terms of performance and durability compared to traditional plastics. In applications such as packaging for high-moisture products, bioplastics have a lower barrier resistance, which limits their use in certain product categories. Around 20% of bioplastic products face performance issues when used in packaging applications.

• The Biodegradable Products Institute (BPI) highlights that despite growing interest in sustainable packaging, consumer awareness of bioplastics remains low. In a survey conducted in 2021, only 40% of consumers in the U.S. recognized bioplastic packaging as a sustainable alternative to conventional plastic. This lack of awareness hinders the widespread adoption of bioplastic packaging, particularly in developing markets.

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BIOPLASTIC PACKAGING MARKET REGIONAL INSIGHTS

• North America

North America is a major market for bioplastic packaging due to the rise in environmental regulations and consumer awareness. The demand for bioplastic packaging solutions has been growing in the United States, mainly in the food and beverages and healthcare sectors. Companies are diversifying their product lines to respond to the demand for sustainable packaging. The emphasis on technological innovation and investment in sustainable practices is strong in this region, hence the growth in the market. The United States Bioplastic Packaging market continues to be the market leader in North America. The presence of major manufacturers and favorable government initiatives to reduce plastic waste have supported growth. Retail and food service industries are among the largest contributors to demand for bioplastics, as companies switch to eco-friendly alternatives to meet consumer expectations and regulatory requirements.

• Europe

Europe is a frontrunner in the adoption of bioplastic packaging, supported by robust environmental policies and a strong emphasis on sustainability. Countries such as Germany, France, and Italy are leading the way in implementing circular economy practices and banning single-use plastics that is further driving the market. The European Union’s directives on reducing plastic waste have accelerated the demand for bioplastics, fostering innovation and growth in the region.

• Asia

The Asia-Pacific region is of potential in the bioplastic packaging market with the population growing and environmental concerns growing. Countries such as China, India, and Japan are experiencing increased demand for sustainable packaging solutions stemming from factors such as population urbanization and altered preferences by the consumer. These countries have a significant Bioplastic Packaging market share in the region. Government efforts to reduce plastic waste and investments in renewable resources have strengthened the market in this region.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Industries are supporting the bioplastic packaging market through strategic innovations and market expansion efforts from key industry players. Companies like NatureWorks LLC, BASF SE, and Novamont S.p.A. are aggressively investing in the R&D departments for improving bioplastic materials performance and scaling up their production processes. For example, NatureWorks LLC has optimized the versatility of polylactic acid (PLA) and adapted it to meet the specific needs of other applications, even including high-temperature food packaging. BASF SE has introduced advanced biodegradable polymers that provide a higher level of mechanical performance for applications ranging from flexible to rigid packaging.

• Arkema: According to the American Chemistry Council (ACC), Arkema is one of the leading players in the bioplastics industry, particularly known for its biobased polyamide resins. Arkema’s bio-based materials are increasingly used in food and beverage packaging, offering an eco-friendly alternative to traditional plastics. The company produces more than 15,000 tons of bioplastics annually, serving markets across North America and Europe.

• NatureWorks: According to the U.S. Department of Agriculture (USDA), NatureWorks is a major producer of Ingeo biopolymer, which is made from renewable plant materials and used widely in bioplastic packaging. NatureWorks produces over 200,000 tons of Ingeo biopolymer annually and supplies it to companies in the food, beverage, and consumer goods industries, making it one of the largest suppliers of bioplastic resins globally.

Strategically, partnerships and acquisitions are starting to reshape the competitive landscape. These help not only market product takeoff but also reduce the key integration challenges such as waste management, thereby building a stronger market ecosystem. Expansion of production capacities is another critical strategy taken by leading companies in the industry. Industry leaders, such as BASF SE and Corbion N.V., have expanded their operations significantly to serve increasing global demand for bioplastics. Indeed, BASF SE has established new production plants for biodegradable polymers in Europe and Asia, securing a stable supply chain to important markets. These efforts not only strengthen the global footprint of major players but also contribute to reducing production costs, making bioplastics more accessible to a wider audience.

In addition to new product development and capacity expansion, companies are taking end-of-life solutions for bioplastics by enhancing their credentials on sustainability. For example, FKuR Kunststoff GmbH is working to develop innovative recycling and composting technologies to enable its products as part of the circular economy. Total industries has also been launching initiatives towards improving the recyclability of its bio-based polyethylene terephthalate or Bio-PET, thus bringing down the impact of its packaging solutions on the environment.

With regulatory trend and consumer trend in alignment with innovations, leaders in the future of the global bioplastic packaging market is shaped. Thus, the move towards a global greener sustainable packaging industry lies ahead. Overall, with production scaling and through strategic alliances formed in innovation together, the market's future leaders take a stride ahead for a bright and sustainable future with bioplastic packaging.

List of Top Bioplastic packaging Companies

• NatureWorks LLC (United States)
• Novamont S.p.A. (Italy)
• BASF SE (Germany)
• Corbion N.V. (Netherlands)
• TotalEnergies Corbion (Netherlands)
• Biome Bioplastics (United Kingdom)
• Danimer Scientific (United States)
• FKuR Kunststoff GmbH (Germany)
• Toray Industries (Japan)
• Plantic Technologies (Australia)

KEY INDUSTRY DEVELOPMENTS

November 2023: TotalEnergies Corbion launched its strategic partnership with the largest food-packaging company in Europe to further develop innovative and compostable bioplastic ready-to-eat meal solutions.

January 2024: Danimer Scientific signed a very significant agreement with the world's second-largest multinational beverage company to make PHA-based bioplastics for bottling applications. Here, the degree of collaboration in material manufacturing from end-use industry is increasing steadily.

REPORT COVERAGE

The study takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The bioplastic packaging market is expected to experience strong growth, driven by the global shift toward sustainability and strict environmental regulations. Despite the problems of high costs and limited infrastructure, ongoing technological advancements and growing consumer awareness are opening up new avenues for increased adoption. Innovation, strategic collaboration, and the scaling of production to meet the demands of diverse industries will be the future of this market. With significant developments across regions and continued efforts to address barriers, the bioplastic packaging market holds immense potential in shaping a sustainable future.