Europe Biodegradable Packaging Market to Surpass US $7.3 Billion by 2035, Fueled by Sustainability Mandates and Consumer Demand

According to the latest industry outlook, the Europe biodegradable packaging market is projected to grow from US $3.9 billion in 2025 to approximately US $7.3 billion by 2035, expanding at a compound annual growth rate (CAGR) of 6.4% during the forecast period.

This growth trajectory is driven by an accelerated shift toward eco-conscious materials, widespread bans on single-use plastics, and rising consumer preference for sustainable products. Biodegradable materials such as paper, paperboard, bioplastics, jute, and wood are increasingly being adopted across food & beverage, personal care, pharmaceutical, and consumer goods industries.

With plastic waste reduction becoming a top policy priority across European nations, the demand for biodegradable alternatives is surging, with a notable increase in packaging formats such as bags, boxes, clamshells, trays, pouches, and films.

For More Insights into the Market, Request a Sample of this Report: https://www.factmr.com/connectus/sample?flag=S&rep_id=7372

Key Takeaways from Market Study:

The Europe biodegradable packaging market is projected to reach US$ 3.9 billion by 2025.
The market is anticipated to expand to approximately US$ 7.3 billion by 2035.
This growth reflects a CAGR of 6.4% from 2025 to 2035.
Paper & paperboard are expected to maintain a dominant market share of over 60% during the forecast period.
The food & beverage sector is projected to account for more than 34% of demand through 2035.
Germany will continue leading the market with a 35% regional share by 2035.
Biodegradable plastic usage is forecast to grow at a CAGR above 7% during this period.
Bags and boxes are expected to represent around 38% of total applications by 2035.
Consumer willingness to pay more for eco-friendly packaging is expected to rise by over 30% from 2025 to 2035.

Leading Players Driving Innovation in the Europe Biodegradable Packaging Market:

Prominent players in the market are Amcor Plc., Smurfit Kappa, Sealed Air, International Paper, Mondi Group PLC, Tetra Pak International S.A., DS Smith, Kruger Inc., and Toray Plastics Inc.

Strategic Outlook:

Europe's biodegradable packaging landscape is transforming through active innovation, investment in sustainable material technologies, and government incentives. Companies are strengthening their portfolios through product differentiation, improved barrier properties, and recyclable labeling standards to meet evolving regulatory and consumer benchmarks.

Looking Ahead:

With regulations tightening and environmental concerns intensifying, the biodegradable packaging market is on a resilient growth path through 2035. Manufacturers, brands, and retailers adopting biodegradable solutions will be well-positioned to meet Europe's green transition goals while tapping into the next era of sustainable packaging.

Europe Biodegradable Packaging Market News:

In June 2025, Versalis, the chemical subsidiary of Italian energy giant Eni, inaugurated a demonstration plant utilizing its new "Hoop" technology for recycling mixed plastic waste. This innovation transforms diverse plastic materials into feedstock suitable for producing new plastics, including those safe for food and pharmaceutical use. A production-scale Hoop plant is going to be developed in Priolo, Sicily, with production set to start in early 2029. Eni plans to invest around USD 200 million by 2029 in the Priolo complex and other plastic recycling operations as part of a USD 2 billion plan to reorganize Versalis.

In December 2024, the European Council approved the Packaging and Packaging Waste Regulation (PPWR), the last stage in the co-legislative process before it comes into force. PPWR puts substantial focus on green packaging solutions, acknowledging the contribution of biobased and compostable plastics towards minimizing dependence on fossil-based materials and lowering greenhouse gas emissions.

Browse Full Report: https://www.factmr.com/report/europe-biodegradable-packaging-market

More Valuable Insights on Offer:

Fact.MR, in its new offering, presents an unbiased analysis of the global Europe Biodegradable Packaging Market, presenting historical data for 2020 to 2024 and forecast statistics for 2025 to 2035.

The Europe biodegradable packaging market is segmented based on material type, application, end-use industries, and region. By material type, the market includes paper and paperboards-comprising coated unbleached kraft paperboard, bleached paperboard, molded fiber pulp paperboard, and recycled paper paperboard-as well as plastics such as poly lactic acid (PLA), polyhydroxybutyrate (PHB), starch-based plastic, fossil-based polymers like PCL, PBAT, and PBS, and polyhydroxyalkanoates (PHA).

Additionally, jute and wood are considered sustainable material segments. In terms of application, the market is categorized into trays, bags, boxes, clamshells, films, and pouches. The key end-use industries driving demand include the food and beverage industry, cosmetics and personal care products industry, pharmaceuticals industry, and consumer goods industry.

Geographically, while the focus is on the European market, the broader regional analysis includes North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa.

Check out More Related Studies Published by Fact.MR Research:

Biodegradable Packaging Material Market - https://www.factmr.com/report/2063/biodegradable-packaging-material-market

Eco-friendly Food Packaging Market - https://www.factmr.com/report/eco-friendly-food-packaging-market

Oxo-biodegradable Plastic Packaging Market - https://www.factmr.com/report/oxo-biodegradable-plastic-packaging-market

Contact Us:
US Sales Office:
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583
Sales Team : sales@factmr.com
Follow Us: LinkedIn | Twitter | Blog

About Us:
Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning.

This release was published on openPR.