The Biodegradable Plastic Packaging Market is growing at a CAGR of 21%. Rengo Co., Ltd. acquired a 60% stake in Mypak, and North America leads the global market with a 34% share.

Leander,Texas-Dec -01-2025
The Biodegradable Plastic Packaging Market size is estimated at USD 3.21 billion in 2025 and is expected to reach USD 7.50 billion by 2030, at a CAGR of 21% during the forecast period (2025-2030).

The strong trajectory reflects simultaneous regulatory mandates, corporate carbon-pricing policies, and rapid advances in bio-resin processing that together improve economic viability for compostable formats. Brand owners now prefer global rather than regional packaging specifications, allowing large volume contracts that lower per-unit costs. Material innovation continues to cut performance gaps with conventional polymers; marine-degradable PHA and heat-resistant PBAT variants now satisfy demanding barrier and temperature requirements. In parallel, municipal waste-diversion targets push food-delivery and retail sectors to adopt certified compost-ready solutions, creating a predictable offtake for resin suppliers. The biodegradable plastic packaging market therefore, enjoys clear line-of-sight demand that compensates for still-volatile agricultural feedstock pricing.

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United States Funding Announcement:-

✅ October 2025: Ökosix, a U.S.-based startup developing a new bio-based, biodegradable polymer intended to replace conventional plastics (e.g., in medical-grade disposable items) raised US $2.3 million from founders and angel investors, as it prepares to showcase its material at TechCrunch Disrupt 2025.

✅ April 2025: A grant programme was launched by the Composting Consortium in partnership with the U.S. Composting Council and the Biodegradable Products Institute to support organics-recyclers and local governments in scaling recovery of compostable packaging, offering grants of up to US $50,000 per project.

Japan Funding announcement:-

✅ 2025 (official public-policy support notice): According to a 2025 Japanese government report, the country's bioplastics manufacturing capacity was estimated at about 2.47 million tonnes (as of 2024) with plans and incentives for expansion in the coming years, reflecting growing public-sector support for bioplastics and biodegradable packaging adoption at an industrial scale.

✅ 2025 (market forecasts + growing demand context): Recent market-analysis reports for Japan project a sharp increase in the "green packaging" / biodegradable-plastic-packaging market: from an estimated ~US $600 million in 2025 to a much larger figure by 2032, driven by rising sustainability demand, regulatory push, and adoption of plant-based & bio-polymer packaging across industries.

Recent Mergers & Acquisitions

→ Rengo Co., Ltd. (through its JV) acquired a 60% stake in Indonesian corrugated packaging firm Mypak, which specializes in 100% biodegradable, compostable egg and pulp packaging solutions (Q4 2025). General Motors committed $625 million to a joint venture with Lithium Americas Corp. to develop critical lithium mining capacity supporting EV manufacturing supply chains (Q3-Q4 2025).

→ BioPak acquired Bygreen, an Australian sustainable packaging firm known for compostable straws and bioplastic tableware, to expand its eco-friendly packaging portfolio (Q3 2025).

→ TOPPAN Holdings acquired Sonoco Products Company's Thermoformed & Flexibles Packaging (TFP) business for approximately US$1.8 billion (Q2 2025).

Market Segmentation

Segmentation by Product Type:
→ Bags & Pouches: This segment dominates the product type category, driven by strong demand for single-portion food packaging and ready-to-eat food sales.
→ Bottles & Jars: Used particularly in beverages and liquid food packaging.
→ Films & Wraps: Flexible packaging solutions offering barrier protection and biodegradability.
→ Trays & Clamshells: Rigid packaging alternatives for food service and retail.
→ Tapes & Labels: Support packaging with sustainable adhesive applications.

Segmentation by Material Type:
→ Polylactic Acid (PLA): Leading the type segment with approximately 22.5% market share, PLA is favored for its versatility, biodegradability, and renewability from corn starch and sugarcane.
→ Starch-Based Plastics: Holding the maximum share within the biodegradable plastics market, these offer effective alternatives to conventional plastics.
→ Polyhydroxyalkanoates (PHA): The fastest-growing segment due to high biodegradability and sustainable properties.
→ Cellulose-Based Plastics: Derived from cellulose fibers, these support eco-friendly packaging solutions.
→ Plastic Overall: Biodegradable plastics constitute about 57.4% of the material category, dominating due to their flexibility and durability.

Segmentation by End Use:
→ Food & Beverage: Largest segment with approximately 35.2% market share, driven by consumer preference for sustainable packaging in packaged and ready-to-eat foods.
→ Personal Care & Cosmetics: Packaging for beauty and health products focused on sustainability.
→ Pharmaceuticals: Sustainable packaging for medical and drug products.
→ Homecare: Packaging for household cleaning and care products.
→ Others: Includes various other smaller applications.

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Regional insights:-

• North America - 34% share (2024-2025)
North America is one of the largest regional markets (U.S. is dominant). Growth is driven by strong retail & e-commerce demand for recyclable/compostable formats, aggressive sustainability targets from CPG companies, and regulatory pressure (state and federal-level bans/restrictions on single-use plastics).

• Asia-Pacific - 29% share (2024-2025)
Asia-Pacific is often reported as the fastest-growing region (large food & FMCG volumes, rapid urbanization, and rising adoption of biodegradable films in China, India, Japan, South Korea). Several sources put APAC as a top region by revenue (large absolute market) and the region with the highest CAGR; estimated share ranges 30%.

• Europe -33% share (2024)
Europe frequently appears as the region with one of the largest shares due to early and strict regulation on single-use plastics, high consumer sustainability preference, and strong industrial composting capacity. Some reputable reports indicate 32% market share in 2024 depending on whether the study counts paper-based biodegradable formats together with bioplastics.

Key Players

Tetra Pak International SA, Plastic Suppliers Inc., Kruger Inc., Amcor PLC, Mondi PLC, International Paper Company, Smurfit Kappa Group PLC, DS Smith PLC, Klabin SA, Rengo Co. Ltd.

→ Amcor PLC - quick profile & shelving relevance
Why top player: Amcor is repeatedly named among leaders in plant-based / compostable barrier packaging and sustainable packaging product launches. Industry trackers list Amcor as a top vendor in plant-based / sustainable packaging segments.

→ Tetra Pak International S.A. - quick profile & shelving relevance
Why top player: Tetra Pak is a major global player in paper-based liquid/food cartons and has been advancing bio-based / lower-impact carton and fiber solutions often cited alongside Amcor and Mondi in plant/eco packaging analyses.

→ Mondi PLC - quick profile & shelving relevance
Why top player: Mondi is a leading global paper & corrugated packaging group with a strong sustainability commitment (targets to make packaging reusable/recyclable/compostable). Industry overviews list Mondi among top suppliers for sustainable/plant-based packaging.

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Market Drivers:-
→ Increasing consumer demand for eco-friendly and sustainable packaging solutions is a primary driver. Consumers worldwide prefer products with reduced environmental impact, prompting companies to adopt biodegradable packaging.

→ Government mandates and regulations promoting circular economy practices and plastic waste reduction strongly support the market. Policies such as extended producer responsibility (EPR) and bans on conventional plastics push industries towards biodegradable alternatives.

→ Corporate sustainability commitments from major companies across sectors including food, beverages, cosmetics, and e-commerce are accelerating adoption of bio-based, compostable, and recyclable packaging materials.

→ Advances in biopolymer technologies and research & development investments are enhancing the performance, durability, and cost-effectiveness of biodegradable packaging, encouraging wider industrial use.

→ The booming e-commerce sector and changing retail formats increase demand for flexible, sustainable packaging options, driving market expansion.

→ Growth in agricultural applications such as biodegradable mulch films and compostable bags also contributes significantly.

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