Compostable Plastic Packaging Material Market: Food & Beverage Sector Continues to Dominate Healthcare Industry to Generate Significant Demand in the Coming Decade: Global Industry Analysis 2013 - 2017 and Opportunity Assessment 2018 - 2028
- Future Market Insights
- April 2018
- 329 pages
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.
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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