Biodegradable Paper and Plastic Packaging Market Size to Boom USD 40.75 Bn by 2034, says Towards Packaging Consultants

The biodegradable paper and plastic packaging market size stood at US$ 15.43 billion in 2024 and is predicted to exceed US$ 40.75 billion by 2034, experiencing a CAGR of 10.20% from 2024 to 2034.

/EIN News/ -- Ottawa, April 14, 2025 (GLOBE NEWSWIRE) -- The biodegradable paper and plastic packaging market size to record USD 17 billion in 2025 and is projected to grow beyond USD 40.75 billion by 2034, a study published by Towards Packaging a sister firm of Precedence Research. The key players operating in the market are focused on adopting inorganic growth strategies like acquisition and collaboration to develop new technology for biodegradable paper and plastic packaging, which has estimated to drive the growth of the biodegradable paper and plastic packaging market in the near future.

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Market Overview:

Any type of packaging that will naturally break down and degrade is considered biodegradable packaging. Generally speaking, the term "biodegradable" refers to any sustainable packaging material that will decompose spontaneously in an arbitrary period of time and under any circumstances. According to this concept, everything is biodegradable, even cellulose-based wrappers and timber boxes. The wood will take decades or perhaps centuries to biodegrade, whereas the wrapper would do it in a matter of weeks.

The key characteristics of biodegradable packaging have been mentioned here as follows: eco-friendly materials, non-toxic breakdown, supports sustainable goals, and compostable options. Some biodegradable packaging is also compostable, meaning it breaks down in composing conditions and can be used as fertilizer.

The biodegradable packaging aligns with global movements towards circular economy and zero waste. Rising environmental concerns and stringent regulatory laws against single-use plastics has driven the growth of the biodegradable paper and plastic packaging market over the forecast period.

Biodegradable materials, in contrast to conventional plastic packaging, break down organically over time without producing harmful byproducts. For instance, given the right circumstances, paper-based packaging can break down in as little as two to six weeks. Using biodegradable materials eases the strain on waste management systems by reducing the quantity of garbage dumped in landfills. Biodegradable packaging can even be composted and converted into nutrient-rich soil when disposed of appropriately.

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Major Companies and Initiatives in Biodegradable Packaging:

Company	Initiatives in Biodegradable Packaging
Amazon	Eliminated plastic air pillows from global fulfilment centers, replacing them with recycled paper filler to reduce plastic waste.
Marks & Spencer	Launched a trial to replace plastic packaging with recyclable paper for its Vanilla Fudge Bar, aiming to reduce plastic usage.
IKEA	Committed to eliminating plastic packaging for new products by 2025 and for existing products by 2028, maintaining plastic use only for specific food products for safety and hygiene.
ALPLA	Acquired majority ownership of Paboco (Paper Bottle Company) in October 2023, with bio-based paper bottles in series production since 2024.

Major Key Trends in Biodegradable Paper and Plastic Packaging Market:

Surge in Eco-Conscious Consumer Demand

Consumers are actively choosing products with eco-friendly packaging. Brands are responding by replacing conventional plastic with biodegradable materials to appeal to environmentally aware buyers.

Government Regulations and Bans on Single-Use Plastics

Many countries (EU nations, India, Canada, parts of the U.S.) are banning or taxing single-use plastics. This forces industries to shift toward biodegradable and compostable alternatives.

Growth of Compostable Packaging

Compostable solutions (especially for foodservice packaging) are gaining traction. Industrial and home compostable packaging options are expanding for cups, cutlery, bags, and mailers.

Innovation in Material Science

Development of advanced biopolymers like PLA (Polylactic Acid), PHA (Polyhydroxyalkanoates), and PBS (Polybutylene succinate). Blends of biodegradable plastics with paper fiber to improve performance and degradability.

Shift Towards Circular Economy

Focus on packaging that fits into closed-loop recycling and composting systems. Companies invest in infrastructure to collect and compost biodegradable packaging properly.

New Innovation in E-commerce Packaging

With e-commerce booming, there is need for sustainable mailers, protective fillers, and pouches made from biodegradable materials. Biodegradable void fill, paper wraps, and compostable mailers are increasingly common.

Corporate Sustainability Commitments

Major brands (Unilever, Nestlé, Coca-Cola, etc.) are committing to 100% sustainable packaging by 2025–2030. This drives investment in biodegradable packaging solutions.

Rising in Startups & Investment

Rapid growth of startups and material innovators focused on new biodegradable solutions. Venture capital and corporate investments are flowing into sustainable packaging tech.

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Limitations & Challenges in Biodegradable Paper and Plastic Packaging Market:

Challenges During Recycling

The low recycling rates for multi-layered plastics and laminated paper packaging. Contamination in recycling streams minimizes effectiveness. Limited recycling infrastructure in many regions, especially for flexible packaging.

Competition from Other Packaging Options

The key players and luxury brands have been switching to metal, glass or plant-based materials to meet sustainability goals.

Performance Limitations

Plastic packaging sometimes cannot meet regulatory requirements for certain food or pharma uses due to material concerns. Consumers increasingly expect minimal or zero-waste packaging.

Advancements in Material Science: Market to Boom Rapidly Till 2030

Innovations in biopolymers (PLA, PHA), starch blends, cellulose, and algae-based materials are improving the quality and performance of biodegradable packaging. New technologies allow biodegradable packaging to match conventional plastic in terms of barrier properties, durability, and printability. Rising advancements and innovation of biodegradable materials for packaging purpose has estimated to create lucrative opportunity for the growth of the biodegradable paper and plastic packaging market in the near future.

For instance, in April 2025, With the introduction of its new certified home-compostable packaging, Bubbies Ice Cream, the mochi ice cream brand in the natural channel, is making significant progress toward sustainability. Bubbies is switching to new paper pulp trays for its interior clamshell packaging in April, just in time for Earth Month. As part of the brand's effort to keep paradise clean, this little but effective packaging change drastically lowers the company's plastic waste and will prevent about 310 tons of plastic from ending up in landfills annually. In response to the increased customer demand for eco-friendly products, Bubbies collaborated with Earthcycle to create these unique, certified home-compostable inner trays.

“According to a report publishes by Diversitech Global, 75% of consumers prefer to choose sustainable options while buying goods.”

Furthermore, in April 2025, London-based Orange Packaging and Supplies, a provider of packaging and personal hygiene goods, has announced the launch of the Selpak Professional Recycled Series in the UK. This line of environmentally friendly hygiene products is composed of sustainable materials and comes in completely biodegradable packaging.

Regional Analysis:

North America’s Strong Consumer Demand to Promote Dominance

North America region held the largest share of the biodegradable paper and plastic packaging market in 2024, owing to strong consumer demand for sustainable products. U.S. states (like California, New York) and Canadian provinces leading in plastic bans and compostable packaging mandates. North America is home to major global packaging companies and startups focusing on biodegradable materials. Heavy R&D investments by the key players operating in the North America region to develop next-generation biodegradable polymers and sustainable paper packaging solutions. Large North American corporations in food & beverage, cosmetics, and e-commerce sectors committing to 100% sustainable packaging by 2025–2030.

North America’s Major Government Initiatives for Biodegradable Packaging:

• In July 2024, President Joe Biden announced a comprehensive plan to eliminate single-use plastic products in federal government buildings by 2035 and in government-related food service events by 2027. This initiative aims to reduce plastic waste and promote the adoption of reusable, compostable, and recyclable alternatives.
• New Jersey introduced legislation requiring all packaging materials to be recyclable or compostable by 2034, targeting a 25% reduction in single-use packaging by 2032 and a 65% recycling rate by 2036. This law aims to address pollution from non-biodegradable packaging materials.

Asia’s Rising Foreign Direct Investment to Support Growth

Asia Pacific region is seen to grow at the fastest rate in the biodegradable paper and plastic packaging market during the forecast period. Countries like China, South Korea, Japan, India, and Southeast Asian nations are pushing stricter plastic bans and eco-friendly policies. China’s Plastic Pollution Control Action Plan aims to significantly cut single-use plastics. India has banned certain single-use plastic products and is promoting biodegradable alternatives. Rising middle-class incomes in Asia Pacific region lead to greater demand for eco-friendly premium packaging, especially in cosmetics, personal care, and organic food sectors.

Asia Pacific is the fastest-growing e-commerce market globally. Surge in online food delivery services (e.g., Zomato, Meituan, Swiggy) drives demand for sustainable, biodegradable packaging options to minimize waste. Rich agricultural economies in Asia Pacific provide abundant raw materials like bagasse (sugarcane residue), bamboo pulp, corn starch, and rice husk for producing biodegradable packaging. Major FMCG (Fast Moving Consumer Goods) companies like Unilever, Nestlé, Coca-Cola are committing to biodegradable packaging targets in Asia Pacific region. Asia Pacific benefits from low manufacturing costs and large-scale production capabilities, making biodegradable packaging more competitive in price.

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Segment Outlook

Type Insights

The starch based plastic segment dominated the biodegradable paper and plastic packaging market with the largest share in 2024. Starch is widely available from sources like potato, wheat, corn, cassava, and rice making it cost-effective and renewable. Countries with strong agriculture (e.g., China, U.S., India) supply ample raw material, ensuring steady production and price stability. Starch-based plastics decompose naturally under industrial or home composting conditions.

The cellulose based plastics segment is anticipated to witness lucrative growth during the forecast period. Cellulose is the most abundant natural polymer on Earth, derived from pulp, wood, cotton hemp, and agricultural waste. Readily available and renewable, making it a cost-effective and eco-friendly base for biodegradable packaging. Cellulose-based plastics break down naturally under composting conditions, unlike conventional fossil-fuel plastics. Cellulose films provide a “plastic-free look and feel”, even though they perform like plastic.

Material Insights

The plastic segment accounted for the largest biodegradable paper and plastic packaging market share in 2024. Plastic is lighter than materials like metal or glass. The plastic material is utilized mostly as the shipping weight and costs is reduced. The plastic material has ability to get molded into any size, shape, or thickness. Plastic material packaging is tamper evident and sterile.

The paper segment is anticipated to show the fastest growth during the forecast period. The paper material is manufactured from wood pulp, a renewable natural resource. It is biodegradable and it break down easily in natural environments, minimizing landfill waste. Consumers increasingly prefer paper-based packaging over plastic because it feels more natural and environmentally responsible. Paper packaging is highly recyclable with established global recycling infrastructure.

End User Insights

The food & beverages segment dominated the biodegradable paper and plastic packaging market globally in 2024. The food & beverage industry is one of the largest consumers of packaging globally. Ready-to-eat meals, snacks, beverages, and takeaway food all require packaging, driving huge demand. Consumers are very eco-conscious when it comes to food products.

Sustainable packaging enhances brand reputation and consumer trust, especially in organic, health, and premium food categories. Europe, parts of Asia, North America are implementing strict policies promoting eco-friendly packaging for food & beverage. The rise in online food delivery services and takeaways boosted by lifestyle changes and pandemic trends has increased demand for eco-friendly disposable packaging.

The healthcare segment is anticipated to grow at fastest rate over the forecast period. The healthcare sector requires extensive use of packaging for items like pharmaceuticals, surgical instruments, medical devices, test kits, and disposables. The healthcare sector requires extensive utilization of packaging for items like surgical instruments, medical devices, test kits pharmaceuticals, and disposables. Hospitals and healthcare providers are under pressure to minimize their environmental impact. Green healthcare initiatives and sustainability goals encourage the shift from traditional plastic to biodegradable packaging.

More Insights in Towards Packaging:

• Green Packaging Market Performance, Trends and Strategic Recommendations: https://www.towardspackaging.com/insights/green-packaging-market
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• Organic Substrate Packaging Materials Market Strategic Analysis & Growth Opportunities: https://www.towardspackaging.com/insights/organic-substrate-packaging-materials-market-sizing
• Compostable and Recyclable Cups Market Strategic Growth, Innovation & Investment Trends: https://www.towardspackaging.com/insights/compostable-and-recyclable-cups-market-sizing
• Sustainable Foodservice Packaging Market Planning & Strategic Insights: https://www.towardspackaging.com/insights/sustainable-foodservice-packaging-market-sizing
• Bioplastic Packaging Market Strategic Growth & Investment Trends: https://www.towardspackaging.com/insights/bioplastic-packaging-market-sizing
• Corrugated Boxes Market Trends and Global Production Volumes: https://www.towardspackaging.com/insights/corrugated-boxes-market-sizing
• Paper Packaging Materials Market Size & Regional Production Analysis: https://www.towardspackaging.com/insights/paper-packaging-materials-market-sizing

Recent Breakthroughs in Global Biodegradable Paper and Plastic Packaging Market:

• In February 2025, TIPA, a company focused on manufacturing innovative packaging, revealed the introduction of an advanced home compostable metallized high-barrier film. In a biodegradable approach, the solution offers improved functionality and durability while addressing important issues in environmentally friendly packaging for chips and salty snacks. This introduction comes as the need for sustainable snack packaging is expected to rise by more than 5% globally by 2030.
• In March 2025, Green Lab, a company producing environmental friendly packaging in Southeast Asia formally joined the U.S. market. The company’s sustainable packaging solutions are brought to North America. Green lab is a subsidiary of Frasers & eave Group. The company offers FSC-certified, 100% recycled paper bags, and biodegradable food packaging that competes with conventional solutions in terms of both cost and performance, and many container shipments are currently on their way.

Global Biodegradable Paper and Plastic Packaging Market Players

• Riverside Paper Co. Inc.
• SmartSolve Industries
• Özsoy Plastik
• Ultra Green Sustainable Packaging
• Hosgör Plastik
• Eurocell S.r.l
• Tetra Pak International SA
• Kruger Inc.
• Amcor plc
• Sealed Air
• Sonoco Products Company
• Smurfit Kappa
• Berry Global Inc.
• Tetra Pak
• Elevate Packaging
• Huhtamaki Oyj
• Mondi
• DS Smith
• Atlantic Packaging
• UFlex Limited
• Constantia Flexibles
• Genpak
• Reynolds Packaging
• Crown Holdings, Inc.
• Gerresheimer AG
• Novamont S.p.A.
• WestRock Company
• Ernest Packaging Solutions
• NEFAB GROUP
• Scholle IPN
• Farnell Packaging
• Greiner Packaging
• Greendot Biopak
  

Global Biodegradable Paper and Plastic Packaging Market Segments

By Type:

• Starch Based Plastic
• Cellulose Based Plastics
• Polylactic Acid
• Polyhydroxyalkanoates

By Material:

• Plastic
• Paper

By End User:

• Food and Beverage
• Healthcare
• Catering Service Wares
• Personal and Home Care
• Others
  

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait
    

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