Key end-users and healthcare and food service industries to indulge in strong competition in the compostable plastic packaging material market during 2018-2018
According to recent market research, among all the end-use industries of compostable plastic packaging material, food and beverage industry is expected to hold the highest market value of over US$ 1,100 Mn by the end of 2028. However, in terms of growth rate, both healthcare and food service industries are expected to witness increasing demand with an anticipated CAGR of 6.4% during the forecast period of 2018-2028.
Government rules mandate the use of compostable plastic packaging materials for various end-use industries
Government bodies of several regions across the world have already mandated the use of compostable plastic packaging materials. Recycled plastics are more harmful due to additional coloring agents, flame retardants, stabilizers and other chemicals. Various associations such as SPI (Society of Plastics Industry), NFPA (National Food Processor Association), FDA (Food & Drug Association) and others have thus formed additional regulations for the usage of recycled plastics in food packaging.
These regulations and government policies have restricted the usage of fossil based and recycled plastics, in turn promoting the consumption of compostable plastic materials. Sustainable development and production of primary products is one of the effective marketing techniques that portrays the complete brand as an ethical and responsible manufacturing firm towards nature.
The compostable plastic packaging material market is marked by growing concerns regarding the environmental impact of plastic and packaging manufacturers’ initiatives to address the challenge by introducing biodegradable packaging solutions. The compostable plastic packaging material is similar to biodegradable plastic, however, it provides additional nutrients to the soil after decomposition. Introduction of innovative packaging solutions that can be composted is trending in the plastic packaging industry.
NatureWorks, a leading producer in the compostable plastic packaging material market has recently introduced novel coffee capsules with compostable plastic packaging material. Along with introducing compostable plastic packaging material, manufacturers in the compostable plastic packaging material market are also taking initiatives in establishing a complete chain that ends in proper disposal of plastics. BASF has launched a new ‘Futuro Compostable’ initiative that engages in bio-waste management and promotes appropriate use of compostable plastic packaging material to ensure closed-loop disposal system.
A new trend – plastic-free shopping aisle- has been introduced by a Dutch supermarket Ekoplaza which has introduced a compostable plastic packaging material used by TIPA- a leader in sustainable and compostable plastic packaging material. Although the use of compostable plastic packaging material is being promoted by government initiatives, manufacturers in the compostable plastic packaging material market are likely to face challenges of establishing a closed loop system of disposal because, despite their compostable nature, compostable plastic packaging material has to be treated in an industrial composting facilities.
High cost and limited availability may hinder the growth of the global compostable plastic packaging materials market
The compostable plastic materials are designed to degrade in certain conditions only. The commercial compost facilities provide required conditions for composting of materials. Thus, for the application of compostable plastic resins, the availability of compost facilities is prime requirement. It limits the availability of compostable plastic to mostly developed regions like United States, China, Germany, Spain, and Italy which have enough compost facilities.
This type of plastic materials are also high in cost. The price of compostable plastic resins are found to be around three times higher than the fossil based plastic resins. Production of shopping bags and other retail plastic bags is not found to be feasible for large number of retail consumers. This restricts the implication of compostable plastic resins in packaging industry as the usage these plastic will lead to overall high cost of primary product and will either reduce the profitability margin of the manufacturer or affect the sales of the product.
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- Starch Blends
- Plates & bowls
- Food service
- Food & Beverage
- Cosmetics & Personal Care
- North America
- Latin America
- Western Europe
- Eastern Europe