Bio-Based Packaging Market Surges USD 11.82 Bn in 2025 at 12.60% CAGR

Bio-Based Packaging Market Trends 2025: AI Integration and INEOS Launches Drive Sustainable Transformation

According to market projections, the bio-based packaging industry is expected to grow from USD 10.5 billion in 2024 to USD 34.4 billion by 2034, reflecting a CAGR of 12.60%. In 2024, Asia Pacific led the market with over 42% share. Bioplastics, flexible, and primary packaging segments dominated. From 2025 to 2034, Europe, PHA, rigid, secondary packaging, and healthcare sectors are set to grow significantly.

Last Updated: 24 July 2025 Category: Others Packaging Insight Code: 5714 Format: PDF / PPT / Excel

The global bio-based packaging market is projected to reach USD 34.4 billion by 2034, expanding from USD 11.82 billion in 2025, at an annual growth rate of 12.60% during the forecast period from 2025 to 2034. The rising demand for the development of eco-friendly and sustainable packaging solutions has influenced the development of the global bio-based packaging market. The developing goal to reduce the usage of plastic packaging has driven the manufacturing of bio-based packaging. Strict government regulation is the major factor due to which the Asia Pacific region to dominate this market.

 Bio-Based Packaging Market Growth and Trends 2025

Key Takeaways

  • In terms of revenue, the market is valued at USD 11.82 billion in 2025.
  • The market is projected to reach USD 34.4 billion by 2034.
  • Rapid growth at a CAGR of 12.60% will be observed in the period between 2025 and 2034.
  • Asia Pacific dominated the global market by holding more than 42% of the market share in 2024.
  • Asia Pacific dominated the global market with the largest share in 2024.
  • Europe is expected to grow at a notable CAGR from 2025 to 2034.
  • By material type, the bioplastics segment contributed the biggest market share of 45% in 2024.
  • By material type, the polyhydroxyalkanoates (PHA) segment is expected to expand at a significant CAGR between 2025 and 2034.
  • By packaging format, the flexible packaging segment contributed the biggest market share of 58% in 2024.
  • By packaging format, the rigid packaging segment will be expanding at a significant CAGR between 2025 and 2034.
  • By application, the primary packaging segment contributed the biggest market share of 60% in 2024.
  • By application, the secondary packaging segment is expanding at a significant CAGR between 2025 and 2034.
  • By end-use industry, the food & beverage segment held the major market share of 48% in 2024.
  • By end-use industry, the healthcare & pharmaceuticals segment is projected to grow at a CAGR between 2025 and 2034.

Market Overview

The global bio-based packaging market refers to the industry segment dedicated to the production and utilization of packaging materials derived from renewable biological resources, such as plants, agricultural waste, and microorganisms, rather than traditional fossil fuels. These materials are designed to be more sustainable and environmentally friendly, offering benefits like reduced carbon footprint, biodegradability, and compostability. The market is driven by increasing global awareness of environmental issues, stringent regulations on conventional plastic use, and a strong consumer preference for sustainable products. Bio-based packaging serves as a critical alternative for various applications, including food and beverage, personal care, pharmaceuticals, and e-commerce, contributing significantly to the transition towards a circular economy.

Rising Technological Advancement

  • Rising technological advancements in the area of sustainable packing are a major trend in the marketplace of bio-based plastic packing. To provide the altering requirement of the customers, there is are outline of new skills that chain the decomposable packaging.

Growing E-commerce and Online Shopping

  • The rising change of the customers in the direction of online shopping and e-commerce enhances the demand for sustainable packing approaches.

Increasing Adoption of Eco-friendly Packaging

  • The increasing adoption of eco-friendly packaging in several industries has influenced research and development in this market.

How Can AI Improve the Global Bio-Based Packaging Market?

The incorporation of AI in the global bio-based packaging market plays an important role in transforming the production process of the packages. Advanced technology has helped to enhance the quality of the packaging, circularity, traceability, and optimization process. Machine learning and generative AI support in exploring huge chemical spaces and formulating new combinations which is recyclable and bio-degradable. It also helps to analyse the demand of the market and helps in reduction in wastage of materials. The growing promises of companies to use eco-friendly packaging have influenced the demand for the incorporation of artificial intelligence.

Market Dynamics

Drivers

Rising Demand for Sustainable Packaging

The continuous demand for sustainable packaging in several brands has driven the development of the bio-based packaging market. Consumers have become more concern about the ecological impact of traditional packaging resources, raising the demand for more sustainable choices. Meanwhile, bio-based packaging is classically generated from renewable materials and is recyclable and compostable. Thus, customer demand is the main reason for the development of the bio-based packaging sector. However, this type of packaging can offer advantages other than being sustainable. Therefore, bio-based packing may be lighter and stronger than traditional packaging resources, which expands its suitability for utilization.

Restraints

High Material Charges

The rising costs of materials have hindered the growth of the bio-based packaging market. The manufacture of bio-based resources often includes higher charges because of the utilization of renewable resources and the requirement for particular processing technologies. This charge factor can be a hindrance to the extensive acceptance of the global bio-based packing, particularly for small and medium-sized initiatives.

Opportunity

Rising Customer Consciousness Boosting

The main opportunity is the growing customer consciousness and increasing demand for sustainable packing solutions. As customers become more ecologically aware, they are looking for products with environment-friendly packing. This trend is inspiring producers to accept global bio-based packaging resources, generating a noteworthy market opportunity. Moreover, the rising e-commerce segment, which depends heavily on packing for product distribution, offers a lucrative chance for worldwide bio-based packaging solutions. Continuous technological progressions in bio-based resources and packaging skills.

Inventions in resources such as starch blends, PLA, and PHA are improving the presentation and cost-efficacy of bio-based packing. These progressions are generating bio-based substitutes progressively inexpensive with outmoded plastic packing in terms of sturdiness, elasticity, and affordability. The growth of new bio-based resources and the development of present ones are anticipated to drive the development of the industry. Additionally, the growing investment in study and the growth of progressive bio-based resources are opening up new opportunities for this sector.

Segmental Insights

Why the Bioplastics Segment Dominated the Market in 2024?

The bioplastics segment contributed a considerable share of the global bio-based packaging market in 2024 due to the advancement of technology. The rising technological growth in the area of sustainable packaging is a major trend in this segment of bioplastic packaging. To supply the changing requirements of the customers, there is are overview of new technologies that help the recyclable packaging. Companies are constantly investing in their research and development, which has fuelled the growth of the market. This segment is developing continuously because of enhancements in the formulation of the bioplastics, which have improved the demand for this segment.

The polyhydroxyalkanoates (PHA) segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034. This segment is widely demanded in the food & beverages industry. The rising concern about choosing packaging that is spill-proof and that does not react with oils. The increasing anti-plastic regulation in the food packaging industry has raised the demand for this segment profoundly.

Why the Flexible Packaging Segment Dominated the Market in 2024?

The flexible packaging segment is expected to have a considerable share of the global bio-based packaging market in 2024 due to rising demand for environment-friendly packaging. The rising drive of the sustainable enterprises is influencing the demand for flexible packing which are eco-friendly and bio-based. Industries are addressing the apprehensions associated with plastic waste by collaborating and developing biodegradable flexible packaging solutions. Flexible packaging decreases the demand for materials, which raises the demand for this market.

The rigid packaging segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034. The bio-based global rigid packaging is observing the development by owing to the growing consciousness of the traditional plastic influence on the ecology. The corporation has pledged to endorse the circular economy and decrease ecological impact through its advanced bio-based solutions. The rising focus on innovation in this market has enhanced the demand for such packaging.

Why the Primary Packaging Segment Dominated the Market in 2024?

The primary packaging segment is expected to have a considerable share of the global bio-based packaging market in 2024 due to the growing customer demand for environment-friendly, sustainable, and safe packaging substitutes. Primary packaging includes packaging of pharmaceuticals, food & beverages, and personal care products. This segment is highly in demand due to branding and safety concerns. This segment is widely utilized due to high-end innovation in this sector, as this packaging remains in direct contact with the products.

The secondary packaging segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034. This type of packaging is high in demand due to the rising e-commerce, food & beverage, and retail sectors. This packaging segment comprises trays, wrapping, cartons, and boxes, which have raised the demand for this type of packaging.

Why the Food & Beverage Segment Dominated the Market in 2024?

The food & beverage segment is expected to have a considerable share of the global bio-based packaging market in 2024 due to the increasing demand for sustainable packaging solutions in the food and beverage industry. The growing demand for sustainable packing solutions to decrease food wastage and protect product integrity influences the development in this sector. The rising customer preference for environment-friendly packaging choices. With the companies looking for more sustainable packaging solutions, there is a rising demand for bio-based packaging in the food & beverage industry. Corporations are working collectively to find resolutions that are harmonized with ecologically friendly creativity.

The healthcare & pharmaceuticals segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034. This significant growth is mainly due to the growing demand for global bio-based packaging solutions in the healthcare & pharmaceutical sector, as it helps to protect the security and quality of medical supplies. This development is credited to the growing demand for global bio-based packing solutions in the engineering sector, as it helps to shield goods from damage throughout storage and transportation.

Regional Insights

Rising Population and Increasing Ecological Consciousness Demand Asia Pacific Promote Dominance

Asia Pacific held the largest share of the global bio-based packaging market in 2024, due to the rising population and rising ecological concerns among people. The presence of several global bio-based packaging producers in the region is influencing the growth of the market. This region is also profiting from favourable government strategies and creativity aimed at endorsing sustainable choices and decreasing plastic waste. The high demand for sustainable packing solutions and strict ecological guidelines are the main reasons driving development.

Europe’s Strong Ecological Guidelines Support Growth

Europe is estimated to grow at the fastest rate in the global bio-based packaging market during the forecast period. This market is driven in this region due to stringent environmental guidelines and high customer consciousness about sustainable packaging choices. Countries such as the U.K., Germany, Italy, France, and several others are leading the way in the acceptance of worldwide bio-based packaging, maintained by sturdy government provision and a well-recognized recycling infrastructure.

Top Companies in the Bio-Based Packaging Market

 Bio-Based Packaging Market Top Key Players

  • NatureWorks LLC
  • BASF SE
  • Novamont S.p.A.
  • TotalEnergies Corbion PLA
  • Braskem S.A.
  • Stora Enso Oyj
  • Huhtamaki Oyj
  • Amcor Plc
  • Tetra Pak International S.A.
  • Mondi Group
  • International Paper
  • Smurfit Kappa Group Plc
  • Sonoco Products Company
  • Innovia Films (now part of CCL Industries)
  • TIPA Corp. Ltd.
  • Futamura Chemical Co., Ltd.
  • Danimer Scientific
  • Biome Bioplastics Limited
  • PTT Global Chemical Public Company Limited (PTT GC)
  • Alpla Group

Latest Announcements by Industry Leaders

  • In April 2025, Clariant’s Head of Global Marketing Coatings & Adhesives, Ray Gonzales, expressed, "The printing ink industry needs reliable solutions that can ensure consistent production schedules. Ceridust 1310 offers formulators the stability they need, reducing their vulnerability to carnauba wax supply fluctuations while maintaining high performance standards." (Source: Clariant)

New Advancements in the Market

  • In April 2025, Clariant announces the launch of Ceridust 1310, an innovative wax solution designed to address the increasing supply chain complexities facing formulators. (Source: Clariant)
  • In July 2025, INEOS Styrolution launched bio-attributed polystyrene for food packaging. (Source: The Manila Times)

Bio-Based Packaging Market Segments

By Material Type

  • Bioplastics
    • Polylactic Acid (PLA)
    • Polyhydroxyalkanoates (PHA)
    • Starch Blends
    • Bio-Polyethylene (Bio-PE)
    • Bio-Polyethylene Terephthalate (Bio-PET)
    • Polybutylene Adipate Terephthalate (PBAT)
    • Other Biodegradable Bioplastics
    • Other Bio-based Non-biodegradable Plastics
  • Paper & Paperboard (from sustainable sources)
  • Wood Fiber-Based Materials
  • Other Natural Fibers (e.g., bamboo, sugarcane bagasse, mushroom mycelium, seaweed)

By Packaging Format

  • Rigid Packaging
    • Bottles & Jars
    • Trays & Containers
    • Clamshells
  • Flexible Packaging
    • Pouches & Sachets
    • Bags & Wraps
    • Films

By Application

  • Primary Packaging
  • Secondary Packaging
  • Tertiary/Transport Packaging

By End-Use Industry

  • Food & Beverage
  • Personal Care & Cosmetics
  • Healthcare & Pharmaceuticals
  • Consumer Electronics
  • E-commerce & Retail
  • Other Consumer Goods

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa
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  • Insight Code: 5714
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 24 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Yogesh Kulkarni is an experienced Research Analyst specializing in the packaging sector, with a strong foundation in statistical analysis and market intelligence. He currently contributes his expertise to Towards Packaging.

Learn more about Yogesh Kulkarni

Aditi Shivarkar, with 14+ years in packaging market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards Packaging 's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The primary growth driver is the rising demand for sustainable and eco-friendly packaging due to increased consumer awareness and environmental regulations. Brands are under pressure to reduce their carbon footprint, and bio-based packaging being compostable and derived from renewable sources aligns perfectly with ESG goals. Strong momentum from the food & beverage and healthcare industries further accelerates adoption.

The market is projected to grow from USD 11.82 billion in 2025 to USD 34.4 billion by 2034, at a robust CAGR of 12.60%, offering significant long-term investment potential. Innovations in material science, supportive regulatory frameworks, and growing demand from global e-commerce and FMCG players are making the sector highly attractive for strategic investments and M&A.

Asia Pacific currently leads the market with over 42% share, thanks to favorable regulations, local production advantages, and increasing ecological awareness. Europe, backed by strong environmental legislation and consumer support for green packaging, is expected to grow at the fastest CAGR through 2034, making both regions prime targets for expansion and investment.

AI is transforming product development, supply chain efficiency, and waste reduction in this market. Machine learning aids in optimizing formulations and predicting consumer demand, while generative AI explores new biodegradable material combinations. This tech integration enhances traceability, quality, and customization pushing innovation cycles and reducing time to market.

Bioplastics particularly PLA and PHA are dominating due to their high performance and biodegradability. PHA is seeing rapid adoption in food and healthcare packaging due to its oil-resistant and spill-proof nature. Starch blends and bio-PE/PET are also attracting interest for their cost-effectiveness and scalability.

The key restraint is the high cost of raw materials and production, which often exceeds conventional plastic packaging. Specialized processing equipment and limited global production capacity further add to costs. However, advancements in material science and scaling innovations are steadily narrowing this cost gap.

The food & beverage sector leads with 48% share, driven by consumer demand for sustainable options and regulatory pressure to reduce plastic usage. The healthcare & pharmaceuticals segment is expected to grow the fastest, propelled by the need for safe, compliant, and eco-conscious packaging solutions.

The market is moderately consolidated, with key players like NatureWorks LLC, BASF SE, Novamont, TotalEnergies Corbion, Braskem, and Tetra Pak leading innovation. Competitive advantage is now shifting toward companies with robust R&D pipelines, scalable manufacturing capabilities, and AI-driven design systems. Collaborations and acquisitions are accelerating as firms race to secure market share.