Market Trends and Future Prospects of Bioplastics in the Global Packaging Industry

Across retail shelves, e-commerce parcels, and ready-to-eat food containers, packaging is undergoing one of the most rapid material transitions of the 21st century.

- Vanapriya Kosalairaman, Kesavan Devarayan,* Harith Kishore Sagadhevan, Krishna Piriya Panneerselvam

Bioplastics a diverse family of bio-based, biodegradable, and compostable polymers such as PLA, PHA, bio-PE, and starch blends—are emerging as prominent alternatives to conventional fossilbased plastics. Their rising adoption is powered by several converging forces: ambitious corporate sustainability commitments, regulatory measures targeting single-use plastics, and growing consumer preference for environmentally responsible packaging. Yet, the sector also faces significant challenges, including production costs, infrastructure gaps for waste management, and uncertainties surrounding environmental impacts. This article provides a comprehensive overview of the current market landscape, technological and regulatory drivers, commercial factors, challenges, and future prospects for bioplastics in global packaging.

Current Market Snapshot and Growth Projections

Market estimates for bioplastic packaging differ across studies, but all indicate rapid expansion. Global market size for bioplastic packaging in 2024–2025 is estimated in the mid-to-upper billion-dollar range, with strong double-digit compound annual growth rates (CAGRs) projected through 2030. Production capacity is also rising sharply. According to European Bioplastics, global bioplastics production capacity will increase from about 2.5 million tonnes in 2024 to over 5.7 million tonnes by 2029—nearly doubling within five years. New facilities producing PLA, PHA, and bio-PE are being commissioned by both traditional chemical companies and specialized biopolymer firms.

Two primary forces underpin these aggressive capacity expansions:

1. Regulatory pressure to reduce fossil-based plastic waste, and

2. Corporate and consumer demand for more sustainable packaging.

These signals reinforce each other, creating a selfsustaining cycle of demand growth and production investment.

Regulatory and Policy Drivers