Rising inclination of people towards use of environment friendly products is one of the major growth drivers of the bio-degradable packaging industry.
In addition to this, rising initiatives of the government for manufacturing of bio-degradable materials also projected to escalate the bio-degradable packaging market.
However, huge differences between the price of bio-degradable and traditional/conventional packaging materials is a major obstacle in front of the global bio-degradable packaging industry.
On the basis of material used in packaging, the market is segment into plastic and paper bio-degradable materials. With 95.1 % of market share, the bio-degradable plastic packaging is the most preferred packaging material however, the bio-degradable paper packaging is anticipated to occupy the largest market and witness a burgeoned growth during 2015-2021.
The global bio-degradable packaging market is divided on the basis of applications as food packaging, pharmaceutical packaging, beverage packaging, etc. At present, food packaging leads the market with 70.2 % of share, although beverage packaging is expected to witness the highest growth in coming 5-6 years.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Regionally, North America has lion’s share of the global bio-degradable packaging industry. Country wise, the U.S. is the largest market (in terms of consumption) of bio-degradable packaging in North America and is anticipated to flourish at a burgeoned pace in the future.
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The European government has planned to reduce the consumption of conventional plastic bags in the region by 80% points in the next 5-6 years. On the back of this step, the bio-degradable plastic industry in Europe is anticipated to flourish at a healthy CAGR of 12.3% during the forecast period. U .K. and Germany are the two major markets of bio-degradable packaging in Europe at present. The market of bio-degradable materials in these countries is majorly driven by the strict enactment of environmental friendly government regulations and continuous innovations and research in the packaging industry.
The global bio-degradable paper packaging market is dominated by the Asia Pacific region followed by Europe and North America. This region is also anticipated to occupy 34% of global bio-degradable plastic market by 2019. Country wise, India and China are the two major markets of bio-degradable packaging in India. The paperboard packaging industry of India is anticipated to witness a burgeoned Y-O-Y growth rate of 11.5 % during 2015-2021.
The capacity of bio-degradable plastics in China in 2014 was around 382 Kilotons and with major bio-degradable plastic projects like PBSA Phase II, the market would surely get fuelled in the coming future.