The global biodegradable plastic packaging market is projected to reach $10.6 billion by the end of 2020, according to a report by Mordor Intelligence. The analysts predict that increasing consumer concern about the environment and regulatory pressures will cause the market to grow 18 per cent annually (CAGR) over the next 5 years.
According to the report, the biodegradable plastic packaging market is currently worth $4.65 billion. Europe accounts for 45 per cent of the market followed by North America and then Asia Pacific.
However, analysts say the lack of supply of bioplastics and the high cost of materials will hinder the future growth of the market.