The global biodegradable packaging materials market is estimated at USD 88 Billion in 2022 and is forecast to surpass USD 169 Billion by 2032, growing at a CAGR of 6.8% from 2022 to 2032.
Consumer Pressure and “Attenborough Effect”
Millennials are becoming increasingly aware of the negative environmental footprints of plastic usage and are thus, leaning towards environmental conscious packaging materials. They value sustainability and are even ready to pay a higher price for it.
Attenborough effect is contributing to market growth. The term is named after David Attenborough, who educates people about plastic usage issues and sustainability. According to Global Web Index, more than 52% of consumers in the U.S and U.K have reduced single-use plastics and 42% considers sustainable packaging while making a purchase, due to the Attenborough effect. All these factors are likely to increase sales of biodegradable packaging materials market by 1.2X.
Investment in Cutting-Edge Manufacturing Technologies
Manufacturers are investing in state-of-the-art technologies to cater to ever increasing demand for affordable and highly-efficient biodegradable packaging materials. In addition to this, next-generation technological solutions are aiding producers to provide industry-specific packaging solutions.
Moreover, the global war against plastic is creating lucrative opportunities for manufacturers to enter the biodegradable packaging materials market and entice customers with their offerings.
Producers are investing in extrusion coating and resin reclamation technology to boost flexibility and speed of manufacturing processes and provide the right packaging solutions, which is likely to contribute to approximately 3/4th of market revenue during the forecast period of 2022-2032.