Global Biodegradable Packaging Market to hit $178.0 Billion by 2033: Key Trends and Growth Forecast

Market Overview:

According to IMARC Group's latest research publication, "Biodegradable Packaging Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global biodegradable packaging market size reached USD 107.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 178.0 Billion by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Biodegradable Packaging Market

• AI helps biodegradable packaging startups optimize materials using lifecycle assessments, showing up to 30% lower carbon footprint in compostable film choices.
• AI-driven design tools cut prototyping time by around 45% for eco-packaging developers, accelerating innovation in bio-based material design.
• Machine-vision systems in biodegradable material sorting boost recycling throughput by 15%, helping meet circular economy goals more efficiently.
• Packaging innovators, including Polymateria and NatureWrks, are using AI-enhanced tracking and material analytics, supported by government grants in India and UK.
• AI-enabled supply chain forecasting in sustainable packaging cuts excess inventory by up to 20%, reducing waste and improving resource use.

Receive Your "Biodegradable Packaging Market" Sample PDF – Don't Miss Out!

Key Trends in the Biodegradable Packaging Market:

• Novel Material Development: Companies are heavily investing in plant-based materials like seaweed and fungi to replace traditional plastics. IIT Madras, for example, developed mycelium-based packaging from agricultural waste, offering a compostable and strong alternative.
• Consumer Demand for Eco-Friendly Options: Shoppers are actively seeking sustainable choices, with 90% of consumers more likely to buy from brands with eco-friendly packaging. Over half of Millennials and Gen Z specifically purchased products with sustainable packaging recently.
• Regulatory Push for Sustainability: Governments are implementing stricter regulations and bans on single-use plastics. India's draft EPR Rules 2024, effective April 2026, hold producers accountable for packaging waste management, incentivizing eco-friendly practices.
• Focus on Compostable Solutions: The market is seeing a surge in compostable packaging, especially for food service. Pakka launched India's first compostable flexible packaging in 2023, setting a new benchmark for sustainable alternatives.
• AI-Driven Design and Optimization: AI is streamlining packaging development by optimizing material use and accelerating new material discovery. Nestle and IBM Research are using generative AI to find new high-barrier sustainable food packaging materials, reducing development time.

Growth Factors in the Biodegradable Packaging Market:

• Increasing Environmental Concerns: Growing awareness of plastic pollution is a major driver. The US alone produces 80 million metric tons of packaging waste annually, prompting a significant shift towards biodegradable alternatives to reduce landfill burden.
• Stringent Government Regulations: Governments worldwide are enacting stricter rules and bans on single-use plastics. India's draft EPR Rules 2024, effective April 2026, mandate producer responsibility for packaging waste, pushing for eco-friendly materials.
• Rising Consumer Demand: Consumers are actively seeking sustainable packaging, with 90% more likely to buy from brands with eco-friendly options. A 2025 report shows 54% of consumers deliberately chose products with sustainable packaging recently.
• Technological Advancements in Materials: Continuous innovation is enhancing the durability and versatility of biodegradable materials. Companies are investing in plant-based options like cellulose and mycelium, with Ence launching new cellulose-based food packaging in June 2025.
• Corporate Sustainability Commitments: Major companies are pledging to transition to sustainable packaging, creating significant market demand. Unilever aims for 100% reusable, recyclable, or compostable plastic packaging by 2030, driving widespread adoption of biodegradable solutions.

Get Instant Access to the Full Report with a Special Discount!

Leading Companies Operating in the Global Biodegradable Packaging Industry:

• Amcor PLC
• Berkley International Packaging Limited
• Biopak PTY LTD
• Elevate Packaging Inc.
• Greenpack Limited
• International Paper Company
• Kruger Inc.
• Mondi Group
• Ranpak Holding Corporation
• Smurfit Kappa Group PLC
• Tetra Pak International SA
• Toray Plastics (America) Inc. (Toray Industries Inc)

Biodegradable Packaging Market Report Segmentation:

Breakup By Material Type:

• Plastic
• Starch-based Plastics
• Cellulose-based Plastics
• Polylactic Acid (PLA)
• Poly-3-Hydroxybutyrate (PHB)
• Polyhydroxyalkanoates (PHA)
• Others
• Paper
• Kraft Paper
• Flexible Paper
• Corrugated Fiberboard
• Boxboard

Paper accounts for the majority of shares on account of the rising demand for eco-friendly packaging solutions.

Breakup By Application:

• Food Packaging
• Beverage Packaging
• Pharmaceutical Packaging
• Personal/Homecare Packaging
• Others

Food packaging dominates the market due to increasing preferences for natural and organic products.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific enjoys a leading position in the watch market on account of the rising demand for luxury products among individuals.

Recent News and Developments in Biodegradable Packaging Market

• April 2025: IIT Madras researchers unveiled a significant innovation, developing mycelium-based biocomposites from agricultural waste, creating highly effective biodegradable packaging.
• June 2025: Ence introduced new lines of cellulose-based food packaging materials, demonstrating a strong industry shift towards fully renewable and compostable food-grade solutions.
• July 2025: Unilever reported a 25% reduction in development time for recycled plastic packaging by utilizing digital tools to predict color and performance, supporting their broader sustainability goals.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: [email protected]

Tel No:(D) +91 120 433 0800

United States: +1-201971-6302