BASF, International Paper, Mondi, Smurfit Kappa and Stora Enso are key vendors in the global biodegradable packaging materials market, according to a Research and Markets report.
Global Biodegradable Packaging Materials Market 2014-2018 forecasts the market to grow at a CAGR of 10.53 percent over the four-year period.
One of the emerging trends in the market is the market growth and expansion through alliances, joint ventures and acquisitions, the report says. Market players are expanding their geographical reach and product portfolios to gain a competitive position in the market.
According to the report, the demand for biodegradable packaging materials is expected to surge because of the increase in consumer demand for biodegradable packaging. Growing consumer awareness and the adoption of biodegradable materials for packaging applications by retail outlets has a favorable influence on the market.
The report also says the lack of sophisticated technology to support the substitution of biodegradable plastics instead of traditional petroleum-based plastics is a major restraint.
A July white paper by L.E.K. found sustainable packaging is now a $27 billion market, and it is growing at a rate of nearly 4 percent annually.