Report

The Biodegradable Plastic Packaging Market size is estimated at USD 3.01 billion in 2025, and is expected to reach USD 7.70 billion by 2030, at a CAGR of 20.67% during the forecast period (2025-2030).

With consumer awareness of environmental issues peaking, the demand for sustainable products has surged. Biodegradable plastic packaging materials, including Starch Blends, Polylactic Acid (PLA), Polybutylene Succinate (PBS), and Polyhydroxyalkanoates (PHA), are now becoming increasingly common in food service, adorning everything from disposable tableware and plates to coffee cups and containers.

Key Highlights
- Data from the United States Census Bureau, released in March 2024, reveals that 2023 marked a milestone for the United States, with retail food service sales hitting an unprecedented USD 8.33 trillion. As sustainability increasingly shapes consumer purchasing choices, this momentum is poised to bolster the biodegradable plastics sector even further.
- As environmental concerns reach a critical point, industries worldwide are implementing sustainability initiatives to reduce pollution. The food service industry, which has long relied on single-use plastics and foam products, is undergoing a significant transformation. Businesses are shifting toward compostable and biodegradable alternatives to meet regulatory requirements and evolving consumer preferences.
- Biodegradable plastics are emerging as a sustainable alternative to traditional petroleum-based plastics, addressing critical environmental challenges while offering enhanced functionality for diverse packaging applications across industries such as food, e-commerce, and healthcare. With growing environmental awareness and the pressing need to mitigate plastic waste, researchers and manufacturers are introducing advanced materials that not only match the performance of conventional plastics but also deliver substantial environmental benefits.
- The biodegradable bioplastic packaging market is encountering significant challenges as alternative materials such as paper, metal, and conventional non-biodegradable plastics gain market traction. While biodegradable bioplastics provide clear environmental advantages by reducing long-term waste and decreasing reliance on fossil fuels, these alternatives are intensifying competitive pressures due to their established supply chains, cost efficiency, and proven performance characteristics.
- Paper-based packaging represents a key competitive threat. Its renewable, recyclable nature and widespread acceptance make it a preferred choice across various packaging applications. Technological advancements in paper processing and coating have enhanced its barrier properties and durability, enabling it to compete in sectors requiring moisture and grease resistance.


Biodegradable Plastic Packaging Market Trends

Food-service Packaging Segment is Expected to be the Fastest Growing End User


- The food service industry's demand for biodegradable plastic packaging is increasing due to heightened sustainability awareness among consumers and businesses. The industry is adopting plant-based materials, including cornstarch, sugarcane, and bioplastics like PLA (polylactic acid), which offer biodegradable and compostable properties.
- The expansion of food delivery services has increased the requirement for sustainable packaging solutions, prompting food companies to implement biodegradable trays and bowls, food containers, coffee cups, and pods to minimize environmental impact.
- Food service companies are incorporating biodegradable packaging into their sustainability strategies to establish market differentiation and meet eco-conscious consumer preferences. The industry's commitment is reinforced through investments in recycling and composting infrastructure, along with environmental organization collaborations for packaging innovation.
- The adoption of biodegradable materials is expanding globally, particularly in Asia-Pacific and Latin America. With ongoing improvements in the performance and durability of biodegradable packaging, these solutions are positioned for increased adoption across the food service industry.
- For instance, in February 2025, Uttar Pradesh Chief Minister Yogi Adityanath inaugurated a biopolymer manufacturing unit in Kumbhi, Lakhimpur district in India. The unit will produce alternatives to single-use plastics. Biopolymer, a biodegradable and sustainable polymer, will be used in packaging, biomedical applications, food service ware, textiles, and various industrial applications to help reduce global warming.
- The primary application of PLA, by volume, is in single-use packaging, with increasing demand for food service products, particularly disposable coffee cups. European Bioplastics e.V. reports that global bioplastics production capacity reached 1.44 million metric tons in 2024. PLA dominated the bioplastics market with a 22% share of total production capacity, projected to expand to 42.3% by 2024.


Asia Pacific to Register Major Growth


- The demand for biodegradable plastic packaging in China continues to grow due to environmental awareness and government regulations targeting plastic waste reduction. The government's "Plastic Pollution Control Action Plan" promotes sustainable alternatives, including biodegradable plastics. These materials offer advantages such as composability, reduced landfill waste, and minimal environmental impact compared to traditional plastics, making them suitable for companies focused on sustainability targets.
- China's packaging demand is increasing due to the growing emphasis on sustainability, particularly in biodegradable plastic packaging, both rigid and flexible. The food, beverage, and food service sectors are adopting eco-friendly alternatives for containers, bottles, pouches, wraps, and films used in fresh produce, ready-to-eat meals, beverages, and takeout packaging. The personal care, home care, and pharmaceutical industries are also transitioning to biodegradable packaging in response to consumer preferences and regulatory requirements for sustainable packaging solutions.
- The demand for biodegradable plastic packaging in Japan is increasing due to environmental awareness, government regulations, and consumer preferences for sustainability. The Japanese government's Plastic Resource Circulation Act aims to reduce plastic waste, prompting businesses to adopt alternative packaging solutions.
- The biodegradable plastic packaging market in the Asia Pacific region, including Malaysia, Singapore, Thailand, Vietnam, South Korea, and Australia, is experiencing significant growth driven by environmental concerns and government regulations. Governments across the region are implementing policies to reduce plastic waste, including bans on single-use plastics, particularly in Australia and Singapore. These regulations increase the demand for biodegradable alternatives. Companies in the food and retail sectors are adopting sustainable packaging solutions in response to growing consumer preferences for environmentally friendly products.
- The Hub concentrates on creating bio-derived packaging solutions, including sprays, films, bottles, caps, and wrappers that completely degrade in compost, land, and water environments. In partnership with Western Australian biotechnology company Ecopha Biotech, the Hub is developing compostable plastic water bottles from food industry waste. This research program aims to advance sustainable packaging solutions in response to the increasing global demand for plastic alternatives.
- Further, in May 2024, Ecovance Vietnam, a subsidiary of South Korea's SKC Group, invested USD 100 million to establish a biodegradable plastic manufacturing facility in Hai Phong City's Dinh Vu Industrial Zone. The facility will produce PBAT (Polybutylene Adipate Terephthalate) with an annual capacity of 70,000 tons, positioning it to become the world's largest PBAT manufacturing plant by 2025. The facility will also manufacture PBS (Polybutylene Succinate) with an annual capacity of 59,500 tons, along with 6,300 tons of Tetrahydrofuran, solvent as a by-product.


Biodegradable Plastic Packaging Industry Overview

The biodegradable packaging market is consolidated, with market incumbents, such as Amcor PLC, Bio Futura, FKuR, BASF SE, and Singular Solutions Inc., among others, operating in the market. Sustainable competitive advantage can be gained through innovation in design, technology, and application. The market has a moderately high level of barriers to exit, a high preference for established brands, moderate level of advertising expense. Overall, the competitive rivalry is expected to be high and is expected to remain the same during the forecast period.

The global biodegradable plastic packaging market offers low barriers to entry for new players. However, the need to handle high volume requirements and the ecosystem requires a constant reach within the supply chain to support the disposal to facilitate degradability.

Regulatory compliance related to food safety, hygiene, and environmental sustainability is one of the biggest challenges. Additionally, the large capital requirement to enter the production and low product differentiation in packaging are imposing a threat for new players to enter the market. However, medium supplier accessibility and undemanding regulation are expected to facilitate the entry of new players. Overall, the threat of new entrants is also expected to be moderate.

Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support