Plant-based Packaging Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Plant-based Packaging Market Size - Analysis

Plant-based Packaging Market Trends

Rising environmental concerns among consumers have increased the demand for more sustainable packaging options. Consumers, especially millennials, and Gen Z, have shown an increasing willingness to pay more for brands that use plant-based packaging materials.

Additionally, many governments worldwide have imposed regulations like bans on specific single-use plastics to promote more sustainable options. This shifts brand and consumer behavior towards seeking out eco-friendly, plant-based packaging alternatives.

Technological advancements have expanded the functionality and viability of plant-based packaging. Where previously plant-derived options may have been limited in performance or applicable only for certain products, innovative processing and material design have increased usefulness. Packaging technologists and manufacturers continue working to develop plant-based packaging materials that can compete with oil-based plastics on various parameters like strength, barrier properties, and shelf-life extension capabilities.

Additionally, through continuous process engineering, plant-based packaging production has become more streamlined and resource-efficient. Supply chain integration along with beneficial cooperation across industries has increased availability of plant raw materials on a commercial scale. This accelerates momentum for the plant-based packaging market by addressing consumer needs as well as industry priorities around sustainability and supply chain resilience.

One of the key challenges currently being faced by the plant-based packaging market is the high costs associated with plant-based materials compared to plastic. While plant-based materials offer sustainability benefits by reducing plastic waste, the production costs for these alternative materials are still higher than traditional plastics. Producing plant-based materials at commercial scale requires substantial investments in R&D, specialized production facilities, and supply chain infrastructure.

For the plant-based packaging market to transition at a larger scale, costs of plant-based packaging need to come down significantly. Thereby, the high relative costs pose a major adoption challenge for the plant-based packaging market currently.

Market Opportunity - Growing Environmental Concern About Plastic Waste and Degradation

Plastic pollution is causing severe damage to ecosystems and has become a global environmental crisis. This is leading to governments and brand owners facing mounting pressure from customers and environmental groups to move away from current plastic packaging formats.

Key winning strategies adopted by key players of Plant-based Packaging Market

Focus on sustainability and environmental friendliness: Major players like NatureWorks, BASF, Novamont and Innovia Films have focused on developing and marketing plant-based materials that are compostable and biodegradable. This aligns well with the growing consumer demand for sustainable options.

Strategic partnerships and scaling operations: Companies in the plant-based packaging market have partnered with global packaging majors for increased production capacities to meet demand. In 2010, NatureWorks partnered with Ire Chemical to set up a 140,000 metric ton PLA plant in Korea, enabling wider Asia market penetration.

Segmental Analysis of Plant-based Packaging Market

Insights, By Material: Sustainable Approach Driving Bioplastics Adoption

Additionally, organizations across industries are committed to reducing their carbon footprint and transitioning to more eco-friendly alternatives. Bioplastics allow them to market their products as sustainable and environment-friendly. Governments worldwide are also implementing policies and incentives to promote the production and consumption of biodegradable materials over conventional plastics.

In terms of packaging type, flexible packaging is expected to account for 58.3% share of the plant-based packaging market in 2024, owing to enhanced user convenience. Flexible packs can be easily molded into various shapes and sizes to suit varied product types. They efficiently use material through downgauging and require smaller footprints for storage and transportation. This makes them ideal for snack foods, fresh produce, ready meals and various other products.

Flexible plant-based packaging has transformed how consumers interact with and consume packaged foods on-the-go. Retailers prefer the branding opportunities and compact storage offered by flexible solutions as well. Owing to their all-round advantages, flexible options dominate the plant-based packaging segment.

Insights, By End Use: Health Perceptions Boosting Demand for Food and Beverage Packaging

Food and beverage brands therefore promote their sustainability commitments through plant-based primary and secondary packaging. The segment also witnesses demand from organic brands and vegan products capitalizing on packaging made from renewable resources.

Additional Insights of Plant-based Packaging Market

• The global production of plastic waste is around 400 million tons annually, with only a small fraction recycled. 40 million tons of plastic waste were generated in the U.S. in 2021, of which only about 5% was recycled.
• The European Union’s ban on single-use plastics by 2030, aimed at reducing plastic waste and promoting sustainable packaging alternatives.
• The U.S. commitment of $75 million for global efforts to combat plastic pollution announced at the United Nations Environmental Assembly (UNEA) in 2022.
• Companies like Nestlé have committed to using 100% recyclable or reusable packaging by 2025, significantly impacting the demand for plant-based packaging materials. Coca-Cola unveiled a prototype bottle made from 100% plant-based plastic, demonstrating the industry's shift towards sustainable packaging options.
• The food and beverage industry accounts for the largest share of the plant-based packaging market due to high consumption rates and the necessity for plant-based packaging solutions.

Competitive overview of Plant-based Packaging Market

The major players operating in the plant-based packaging market include Evergreen Packaging, The Coca-Cola Company, Amcor, Vegware, Tetra Pak International SA, Mondi Group PLC, BASF, Biorgani, Berry Global, and WestRock.

Recent Developments in Plant-based Packaging Market

Plant-based Packaging Market Segmentation

• By Material
  • Bioplastics
    • Polylactic Acid (PLA)
    • Polyhydroxyalkanoates (PHA)
  • Starch-based Materials
  • Bagasse
  • Cellulose
  • Others
• By Packaging Type
  • Flexible Packaging
  • Rigid Packaging
• By End Use
  • Food and Beverage
  • Cosmetics
  • Pharmaceutical
  • Industrial