Global Biodegradable Packaging Market Size, Share, Growth and Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Contents

Global Biodegradable Packaging Market Size, Share & Growth and Trend Analysis Report, By Material, By Packaging Format, By End Use and By Region (Asia Pacific, Europe, North America, Latin America and Middle East & Africa) and Forecasts 2025 – 2032

Biodegradable packaging refers to packaging materials that can naturally decompose into non-toxic components, such as water, carbon dioxide, and organic matter, through microbial activity.

These materials, often made from plant-based sources like cornstarch, bamboo, or paper, help reduce environmental impact by minimizing waste and pollution.

The biodegradable packaging market was valued at approximately USD XX billion in 2024. It is projected to grow to USD XX billion by 2032, with an estimated compound annual growth rate (CAGR) of 6% from 2025 to 2032.

Industry Trends

The global packaging market is experiencing innovations in bio-based materials, including polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based polymers, are revolutionizing packaging solutions by offering compostable and recyclable options that reduce environmental impact.

Market expansion is fueled by the surge in eco-conscious consumer preferences, the adoption of biodegradable packaging for food & beverage, e-commerce, and personal care sectors, and the shift towards circular economy models.

Advancements in material science, such as nanotechnology-enhanced green packaging films and water-soluble packaging, are improving durability, shelf life, and barrier properties, making biodegradable packaging more competitive with traditional plastics.

However, challenges such as high production costs, limited industrial composting infrastructure, and concerns over biodegradation rates in different environments exists.

As sustainable packaging companies worldwide increasingly invest in green packaging solutions, the biodegradable packaging market is set to evolve with new materials, improved recycling ecosystems, and scalable production capabilities, shaping the future of sustainable packaging.

Industry Expert’s Opinion

Jenny Wassenaar, Chief Sustainability Officer, Trivium Packaging

“It’s also important to consider the full lifecycle costs of packaging, including the end-of-life disposal or recycling. While metal packaging may have a higher initial cost, its recyclability and potential for reuse can offset these costs over time. In contrast, the lower initial cost of plastic packaging may not account for the environmental and waste management costs associated with its disposal.”

TT Consultants’ Perspective

The global biodegradable packaging market is witnessing rapid growth, driven by increasing environmental awareness, stringent regulations on plastic waste, and rising consumer demand for sustainable packaging solutions.

As businesses and consumers prioritize eco-friendly alternatives, the shift toward compostable, recyclable, and plant-based materials is reshaping the packaging industry. Governments worldwide are enforcing bans on single-use plastics and promoting circular economy initiatives, further accelerating the adoption of biodegradable packaging across various sectors.

Leading biodegradable packaging manufacturers are investing in innovations such as bio-based polymers, water-soluble films, and fiber-based packaging to enhance sustainability and performance. Advanced manufacturing techniques, including biodegradable coatings and improved barrier properties, are ensuring functionality without compromising environmental responsibility.

With continuous advancements and growing consumer preference for plastic-free alternatives, the biodegradable packaging market is set to expand, offering scalable and sustainable solutions that align with evolving global sustainability goals.

Market Segmentation

1. By Material (Bioplastic, Paper, and Biodegradable Materials)

The Bioplastics segment leads the biodegradable packaging market, accounting for XX% share in 2024, driven by advancements in materials like Polylactic Acid (PLA) and starch-based plastics. These materials offer compostability, a lower carbon footprint, and broad applications in food, e-commerce, and consumer goods packaging.

Meanwhile, the Paper segment is growing rapidly due to its recyclability and regulatory support for plastic-free alternatives. Paper-based packaging, including coated kraft paper and molded pulp, is gaining traction in foodservice and retail, with innovations in water-resistant coatings enhancing durability.

The Other Biodegradable Materials segment, including bagasse, palm leaves, and seaweed-based packaging, is expanding, particularly in Asia-Pacific and Europe, where plastic bans drive innovation in sustainable packaging solutions.

Emerging solutions like biodegradable films, edible packaging, and water-soluble polymers are gaining interest from biodegradable packaging manufacturers.

As the market evolves, companies are investing in compostable materials, closed-loop recycling, and biodegradable multilayer packaging to meet growing consumer demand for sustainable alternatives in the global packaging market.

2. By Packaging Format (Flexible & Rigid Packaging)

The Flexible Packaging segment dominates the biodegradable packaging market, accounting for XX% share in 2024, driven by increasing demand for biodegradable films, pouches, and wraps in food, personal care, and e-commerce industries.

These materials, often made from bioplastics, paper, or plant fibers, provide lightweight, compostable solutions with reduced carbon emissions. Advances in water-soluble films, bio-based laminates, and home-compostable packaging are further enhancing this segment's growth in the fiber-based packaging market.

Meanwhile, the Rigid Packaging segment, including biodegradable containers, trays, and bottles, is expanding, particularly in food and beverage, healthcare, and cosmetics sectors. Sustainable alternatives such as PLA-based bottles, moulded fiber trays, and sugarcane pulp containers are gaining traction due to their durability and recyclability.

As consumer preference shifts toward plastic-free and compostable solutions, companies are investing in advanced biodegradable coatings, fiber-based packaging, and reusable biodegradable formats to meet evolving sustainability goals in the bio-based packaging market.

3. By End Use (Food & Beverages, Personal Care & Cosmetics, Pharmaceuticals, Homecare, and Other Consumer Goods)

The Food & Beverages segment leads the biodegradable packaging market, accounting for XX% share in 2024, driven by growing consumer demand for eco-friendly alternatives to plastic packaging. Biodegradable films, compostable trays, and molded fiber containers are increasingly used for fresh produce, dairy, bakery, and ready-to-eat meals.

With major food brands and retailers committing to sustainable packaging solutions, innovations in bio-based coatings, edible packaging, and compostable food wraps are further accelerating market growth.

The Personal Care & Cosmetics and Pharmaceuticals segments are witnessing significant adoption of biodegradable bottles, jars, and blister packs from sustainable packaging companies.

Consumers are prioritizing plastic-free and plant-based packaging for skincare, makeup, and wellness products, while pharmaceutical companies are integrating biodegradable pill containers and medical-grade compostable packaging to reduce plastic waste.

Additionally, the Homecare and Other Consumer Goods segments are embracing biodegradable pouches, refillable solutions, and fiber-based packaging, aligning with global sustainability initiatives and regulatory push toward zero-waste packaging alternatives in the sustainable packaging industry.

Competitive Scenario

The global biodegradable packaging market is highly competitive, with key players such as Amcor, Mondi Group, and Tetra Pak leading innovations in compostable materials, fiber-based packaging, and bio-based barrier coatings.

Companies like Sealed Air, Smurfit Kappa, and WestRock are expanding their sustainable offerings through molded pulp solutions and recyclable paper-based alternatives, while bioplastics pioneers such as Novamont, NatureWorks, and BASF focus on PLA, PHA, and plant-based polymers to enhance biodegradability.

Startups are gaining momentum with home-compostable films, water-soluble packaging, and edible coatings, driving niche market expansion among biodegradable packaging companies.

As demand rises across food, personal care, and healthcare industries, companies are prioritizing sustainable sourcing, regulatory compliance, and strategic collaborations with FMCG brands to accelerate the transition to eco-friendly packaging solutions in the global packaging market.

Strategic Activities

In February 2025, Clemson FRESH has launched a new Compostable Packaging Research and Design Center to accelerate the development of sustainable, next-generation packaging. The facility was built with USD 690,000 in funding from the South Carolina Department of Commerce and Clemson University.
In November 2024, Walki has entered a strategic partnership with Lactips to create ‘fully biodegradable, plastics-free’ food packaging using natural polymers, designed to be to be fully recyclable in the paper stream.
In November 2024, Researchers from the Indian Institute of Science (IISc) have developed a biodegradable foam that could transform the packaging industry, while addressing critical environmental concerns. The research team, led by professors Suryasarathi Bose and Subodh Kumar, created a bio-derived foam that offers a sustainable alternative to plastic materials used in traditional fast-moving consumer goods (FMCG) packaging.
In August 2024, Scientists at the Defence Research and Development Organisation (DRDO) of India have developed a new biodegradable packaging solution using polybutylene adipate terephthalate (PBAT), a polymer derived from petroleum products or plant oils.
In June 2024, Barley-based bioplastic breakthrough: 100% biodegradable solution for food packaging. The biocomposite's composition includes amylose and cellulose, compounds abundant in various plant species such as corn, potatoes, wheat, and barley.