Europe Biodegradable Packaging Market Outlook, 2028

Europe is at the forefront of the global movement towards biodegradable packaging materials. The use of biodegradable packaging materials helps to reduce the environmental impact of packaging waste. Biodegradable packaging materials also help to reduce the amount of waste that goes to landfill and can also help to reduce greenhouse gas emissions. According to the European Environment Agency, the European Union generated approximately 227.5 million tonnes of municipal waste in 2020. Of this waste, nearly 38.4% was packaging waste. Of the packaging waste, around 17.4% was plastic waste. The European standard for biodegradable packaging is EN 13432. This standard requires that 90% of the materials in a commercial composting unit must biodegrade within 180 days. The standard also requires that compostable plastics disintegrate after 12 weeks and completely biodegrade after six months. In 2020, the European Union (EU) adopted the Single-Use Plastics Directive, which bans a number of single-use plastic products, including plastic bags, straws, and cutlery. The Directive also requires that all plastic bottles be collected separately and recycled by 2029. The European Commission adopted the new circular economy action plan (CEAP) in March 2020. It is one of the main building blocks of the European Green Deal, Europe’s new agenda for sustainable growth. The EU’s transition to a circular economy will reduce pressure on natural resources and will create sustainable growth; one of the targets is to make all packaging reusable or recyclable by 2030. The EU Sustainable Products Initiative is a new initiative that is currently being developed by the European Commission; the initiative is expected to set new requirements for the design and production of sustainable products, including packaging. A number of companies are developing edible packaging materials made from materials such as algae, starch, and cellulose. These materials can be eaten or composted, which helps to reduce waste. New biodegradable plastics are being developed from renewable resources such as corn starch and sugarcane. These plastics can be composted or biodegraded in the environment.

According to the research report "Europe Biodegradable Packaging Market Overview, 2028," published by Bonafide Research, the market is anticipated to add more than USD 9 Billion from 2023 to 2028. The biodegradable plastic material market in Europe has been experiencing robust growth in recent years, emblematic of the country's commitment to sustainability and environmental responsibility. As concerns over plastic pollution and its impact on the environment have intensified, there has been a noticeable shift towards the development and adoption of biodegradable plastics as a more eco-friendly alternative. In response, many Europe country-based businesses and organizations have been actively investing in research and development to produce sustainable packaging materials that align with consumer demands for greener, more environmentally friendly options. The public's growing environmental awareness and preference for eco-friendly products have not only sparked a shift in consumer behavior but also encouraged companies to invest in biodegradable packaging solutions. As a result, the Europe’s biodegradable packaging material market is on an upward trajectory, poised for continued expansion as it plays a pivotal role in the nation's broader sustainability efforts and the global movement toward a more environmentally responsible future. Innovations in composting technologies have made it easier to process biodegradable packaging. These technologies can break down biodegradable materials more efficiently, reducing the environmental impact. Collaboration between academic institutions, industry, and government bodies has accelerated research in biodegradable packaging. This collaborative approach fosters the exchange of ideas and resources, promoting innovation.

Based on geography, the market is segmented into Germany, United Kingdom, France, Italy, Spain, and Russia. Germany dominates the market in 2022. Sustainable packaging products that generate less waste, use fewer resources, and consume less energy are popular in Germany. The Verpackungsgesetz (VerpackG), a law from Germany, aims to enhance recycling rates and lessen the negative effects of packaging waste on the environment. All producers and merchants, including those that ship overseas, who sell packaged goods to consumers in Germany are subject to the law. The eco-friendly characteristics of bioplastics, high consumer acceptance of plant-based products, legislative support for the development of degradable packaging materials, and an abundance of renewable raw material sources are a few factors contributing to the growth of the biodegradable packaging material market in Germany. Following Germany, the United Kingdom also has a significant market share. The UK government has set ambitious targets to achieve net-zero carbon emissions by 2050 and reduce plastic waste. As part of this commitment, there has been a push for more sustainable packaging options, including biodegradable materials. Spain is witnessing a growing interest in biodegradable packaging materials due to concerns about plastic pollution and environmental sustainability. The YPACK project, funded by the European Union (EU) and led by the Spanish National Research Council (CSIC), has developed and patented a material from by-products of the food industry as an alternative to traditional food packaging. Likewise Italy, Russia, and rest of European countries also contribute to the overall growth of the market.

In the segment of biodegradable materials, biodegradable paper stands out as the frontrunner, commanding the largest market share among eco-friendly options. This preeminence can be attributed to several factors. Biodegradable paper is a well-established and widely recognized solution, readily embraced by both consumers and industries for its sustainability and versatility. It boasts a wide array of applications, from packaging to disposable tableware and beyond, making it a convenient and eco-conscious choice for various purposes. Moreover, the familiarity and acceptance of paper as an environmentally friendly alternative to traditional plastics have played a significant role in its market dominance. Following closely behind biodegradable paper in market share is biodegradable plastics. Biodegradable plastics offer an effective substitute for conventional plastics, addressing concerns about environmental pollution and sustainability. The growing awareness of the adverse effects of non-degradable plastics has driven the demand for biodegradable alternatives, which can break down naturally and minimize ecological harm. These biodegradable plastics are increasingly utilized in various industries, such as packaging, agriculture, and the automotive sector, further solidifying their place in the market. Bagasse, the fibrous residue left after extracting juice from sugarcane, also holds a significant market share in the biodegradable materials sector. Bagasse products have gained popularity due to their renewable source and minimal environmental impact. These products are not only biodegradable but also compostable, offering a sustainable solution for items like disposable plates, cutlery, and food containers.

On the basis of biodegradable papers; the report is categorized into Corrugated Fiberboard, Kraft Paper, Paperboard, Flexible Paper, Boxboard, and Others (Greaseproof paper, Corrugated Bubble Wrap). Kraft paper and corrugated fiberboard are two essential components of the packaging business, with corrugated fiberboard commanding the biggest market share. Cardboard, also known as corrugated fiberboard is valued for its excellent toughness, adaptability, and affordability. Its unusual design, which includes a fluted layer sandwiched between two flat liners, gives varied items strength and cushioning. This substance is a standard for enterprises across industries because it is the material of preference for shipping boxes, retail displays, and protective packaging. Kraft paper, on the other hand, is recognized for its eco-friendly characteristics, often made from unbleached pulp, making it a more sustainable option. It is known for its strength and tears resistance, making it suitable for a wide range of packaging applications, including bags, wrapping paper, and protective layers within corrugated boxes. Its natural appearance and eco-conscious appeal have led to increased adoption, particularly in industries that prioritize environmentally friendly practices.



Based on the biodegradable plastic materials, the report is categorized into; Cellulose-based plastics, Polylactic acid (PLA), Starch-based, Poly-3-Hydroxybutyrate (PHB), Polyhydroxyalkanoates (PHA), and Others (Protein-based bioplastics,Genetically modified bioplastics) While cellulose-based plastics are a notable player in the biodegradable plastics market, cellulose-based plastics are derived from renewable resources, primarily plant cellulose, making them both biodegradable and compostable. Their eco-friendly nature, along with their biocompatibility, makes them an attractive choice for a wide range of applications, including packaging materials, disposable cutlery, and even 3D printing filaments. These plastics exhibit good mechanical properties and can be processed using existing manufacturing technologies, making them a promising alternative to petroleum-based plastics. Starch-based bioplastics, derived from abundant agricultural sources, contribute to the market's diversity, catering to specific packaging needs. Additionally, poly-3-hydroxybutyrate (PHB) and polyhydroxyalkanoates (PHA) showcase their growing presence, highlighting the constant innovation and technological advancements in the field of biodegradable plastics. The "others" category, encompassing protein-based and genetically modified bioplastics, further exemplifies the market's dynamism and evolving nature. The dominance of cellulose-based plastics underscores the pivotal role they play in Europe’s sustainability efforts, while the presence of a range of biodegradable plastic options reflects the nation's commitment to eco-conscious packaging solutions and its contribution to a more sustainable future in the packaging industry.

According to the Applications of Biodegradable Packaging Material, the market is categorized into Food Packaging, Beverage Packaging, Personal/Homecare Packaging, Healthcare/Pharmaceutical, Logistic, and Others (Agriculture). Biodegradable packaging materials have emerged as a leading trend in the food and beverage industry, capturing the highest market share. This growing dominance can be attributed to the increasing awareness and concern about environmental sustainability among consumers and businesses alike. In a world grappling with the adverse effects of plastic pollution and a mounting need for eco-friendly solutions, biodegradable packaging materials offer a promising alternative. In the food and beverage industry, where packaging plays a pivotal role in preserving the freshness and quality of products, biodegradable materials are proving to be a game-changer. They not only reduce the carbon footprint associated with traditional packaging but also address the disposal and recycling challenges. Biodegradable packaging materials are designed to break down naturally, minimizing their impact on the environment and ecosystems. As a result, they resonate well with environmentally conscious consumers, who are increasingly making purchasing decisions based on a brand's commitment to sustainability. The personal and healthcare products sector closely follows the food and beverage industry in embracing biodegradable packaging materials. This sector recognizes the importance of ensuring product safety and hygiene, which makes sustainable packaging all the more crucial. Biodegradable materials in personal and healthcare products demonstrate the industry's dedication to environmental responsibility, aligning with the principles of health and well-being.

The distribution of biodegradable packaging materials primarily follows a structured hierarchy with wholesalers taking the lead in the distribution network, followed by retailers, and various other channels. The systematic approach that characterizes the European market is seen in this distribution landscape. The availability of biodegradable packaging materials for a variety of enterprises is greatly facilitated by wholesalers, who function as a bridge between producers and retailers. Many businesses needing a steady supply of these materials favor them because of their convenience, affordable cost, and capacity for handling large orders. The availability of biodegradable packaging materials to end users is ensured by retailers, which include both traditional brick-and-mortar stores and online shopping portals. This is especially crucial considering the growing consumer demand for environmentally friendly packaging solutions. Additionally, other distribution channels, which may include direct sales from manufacturers, online marketplaces, and specialty eco-friendly stores, contribute to a diverse and dynamic landscape, addressing niche markets and catering to specific business needs. The prominence of wholesalers and retailers as primary distribution channels underscores the market's maturity and the strategic positioning of biodegradable packaging materials within the broader packaging industry in Europe.

Companies covered in the report:
WestRock Company, BASF SE, The International Paper Company, Amcor Plc, DS Smith plc, Mondi Group, Ranpak Holding Corporation, Sealed Air Corporation, DuPont, Oji Holdings Corporation, Stora Enso Oyj.

Start-ups:
• In 2020, BIOCOMPACK-CE project was launched in 2020 with the aim of promoting biodegradable packaging across Central Europe. The project was funded by the European Union's Interreg Central Europe program and involved partners from six countries: Croatia, Hungary, Italy, Poland, Slovakia, and Slovenia.
• In 2023, The UK's funding agency for science and research, UK Research and Innovation (UKRI), revealed that 17 projects are being funded by its Smart Sustainable Plastic Packaging (SSPP) Challenge to improve the use and management of plastic packaging.
• A UK startup "Polymateria" has developed a technology that makes plastic biodegradable and recyclable. Their thin, flexible plastic breaks down in 226 days and can be recycled into products like flowerpots or pallets.
• The YPACK project, funded by the European Union (EU) and led by the Spanish National Research Council (CSIC), has developed and patented a material from by-products of the food industry as an alternative to traditional food packaging. The new packaging extends the shelf life of meat, fish, or vegetables and degrades within 90 days of disposal while reducing food waste, which is one of the objectives of the EU's circular bio-economy strategy.

Considered in this report:
• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Europe Biodegradable Packaging market Outlook with its value and forecast along with its segments
• Country-wise Biodegradable Packaging market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

By Material Type:
• Paper
• Plastic
• Bagasse

By Paper:
• Corrugated Fiberboard
• Kraft Paper
• Paperboard
• Flexible Paper
• Boxboard
• Others (Greaseproof paper, Corrugated BubbleWrap)

By Plastic:
• Cellulose-based plastics
• Polylactic acid (PLA)
• Starch Based
• Poly-3-Hydroxybutyrate (PHB)
• Polyhydroxyalkanoates (PHA)
• Others (protein-based bioplastics, genetically modified bioplastics)

By Application:
• Food Packaging
• Beverage Packaging
• Personal/Homecare Packaging
• Healthcare/Pharmaceutical
• Logistic
• Others (Agriculture)

By Distribution Channel:
• Wholesalers
• Retailers
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Biodegradable Packaging industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.