FMI’ Analyst View: Sustainability is Encouraging the Use of Cassava-based Packaging. The Industry Likely to Reach $2 Billion by 2023!
FMI’ Analyst View: Sustainability is Encouraging the Use of Cassava-based Packaging. The Industry Likely to Reach $2 Billion by 2023!
The global cassava packaging market is anticipated to accumulate a market value of US$ 1.86 billion in 2023 and is expected to garner a valuation of US$ 4.1 billion by exhibiting a CAGR of 8.2% in the forecast period 2023 to 2033. The cassava packaging market reflected a growth of 6.8% CAGR in the historical period 2018 to 2022.
The biodegradability and increasing environmental concern toward compostable packaging alternatives is boosting the adoption of cassava-based packaging. Cassava packaging is the most suitable alternative to plastic and Styrofoam packaging. The flourishing food sector is one of the key driving forces for the cassava packaging market, as the containers made up of cassava are compatible with hot and cold food and are microwave-friendly.
- With the increasing burden of packaging waste generated across the globe, governments are adapting to alternative sources, such as biodegradable packaging like cassava.
- The rising use of starch-based bioplastics as an alternative packaging option due to their barrier properties, which restrict moisture transfer from food to the atmosphere, and implementation of strict environmental regulations over the use of these packaging, which have a lower negative impact on the environment than traditional plastics, are acting as a key driver for cassava packaging market.
- Besides this, volatility in oil prices forces manufacturers to look for a consistent source of raw material, which is creating lucrative opportunities for industry expansion, thereby leading to market expansion.
- The use of starch-based biodegradable packaging for cosmetics packaging, food packaging, pharmaceutical packaging, and commodities packaging is anticipated to boost the market growth.
On the other hand, ongoing investments and subsidies provided by the government of developing nations on the use of biodegradable plastics to reduce the disposal issues of conventional plastics in sea and landfills are further expected to drive market growth. Also, governments are promoting the use of bioplastic by providing subsidies and charging taxes, which significantly contributes toward market expansion. The overarching concern of climate change and the scarcity of fossil resources in future are accelerating the search for compostable packaging concepts.
Stringent government regulations against the use of traditional plastics have fuelled the demand for bioplastics. Bioplastics have the capability to bypass the environmental impacts of petroleum-based plastic packaging. This is contributing to increased product demand for cassava-based packaging. Cassava-based packaging is created by combining several biodegradable materials like starch blends. This material can be utilized to reduce the reliance on fossil fuel-based plastic packaging, eventually increasing the use of green packaging and boosting sustainability and an inclination toward environmental protection.
Region-wise, Europe is appearing to dominate the market by accumulating over 40% market share by end of the forecast period. Increasing awareness of consumers toward the effects of plastic and non-biodegradable packaging on the environment is driving the demand for cassava-based packaging in this region. Governments and other regulatory bodies in the region are coming up with more and more ways to promote and incentivize the use of cassava for packaging.
North America is expected to reflect significant growth by growing a CAGR of 7.6% during the forecast period. This region is expected to witness tremendous growth as a result of increasing government efforts toward the use of an environmentally safe packaging approach that drives the demand for cassava-based packaging.
How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing cassava-based packaging solutions are expected to create lucrative opportunities for market growth during the forecast period.
- In May 2022, Amcor Rigid Packaging announced the development and launch of PowerPostTM. This technology produces nearly one-third of lighter bottles with 30% less energy and 30% less carbon than most 20 oz. bottles by dislodging the vacuum in the container post-filling.
- In January 2022, Amcor Plc. showcased AmFiberTM, a new platform for paper-based packaging products. AmFiber’s innovations aim to reimagine the functionality of traditional paper packaging, offering a broad range of functional benefits to meet the changing needs of consumers. AmFiber’s product is an innovative solution tailored to provide snacks and confectionery items to European customers with recyclable packaging that offer a high barrier to oxygen and moisture.
Cassava is derived from cassava roots and used as a biodegradable packaging. Cassava packaging is renowned for its environmentally friendly and lightweight design, it has gained considerable development in developed countries with the fast-paced lifestyle and growing food distribution and takeout facilities, as it protects and preserves its freshness from air contamination.
Cassava Packaging Market: Regional Outlook
North America is showing tremendous growth as a result of government restrictions on the use of an environmentally safe packaging approach that drives the demand for cassava packaging. As the adoption of eco-friendly products grows, Europe dominates the market for cassava packaging due to a growth in demand for the product.
Thailand and Indonesia are the main cassava producers, so cassava packaging is projected to have the largest market share, with South Asia and East Asia being the third largest producers.
#modernplasticsindia #plasticmagazine #indianmagazine #indianplasticmagazine #modernplasticsaward #ginujoseph #modernplastic #plasticindia #plasticnews #plasticrecycling #modernplasticsglobalnetwork #modernglobalnetwok #modernplasticsaward2023 #PlasticIndustry
