Cornstarch Packaging Product

Why the Boom in Biodegradable and Compostable Packaging?

The sustainable packaging industry, including biodegradable and compostable packaging, is growing rapidly in the United States. According to data from the US Environmental Protection Agency (EPA), the generation of biodegradable plastics in the US increased by nearly 50% from 2010 to 2017. The Biodegradable Products Institute (BPI) reports that the production of certified compostable plastics in the US has also increased significantly in recent years.

One trend in the sustainable packaging industry is the increasing use of plant-based materials for packaging. These materials, such as corn starch and sugarcane, can be easily composted and have a lower environmental impact than traditional petroleum-based plastics.

Another trend is the increasing adoption of composting infrastructure in the US. The EPA reports that the number of composting facilities in the US has increased by nearly 50% from 2010 to 2017, enabling more consumers and businesses to compost their biodegradable packaging.

The demand for sustainable packaging is also being driven by consumer preferences and government regulations. A survey by the Sustainable Packaging Coalition (SPC) found that nearly 75% of consumers in the US are willing to pay more for packaging that is environmentally friendly. Additionally, a number of cities and states in the US have implemented laws or regulations to reduce the use of single-use plastics and promote the use of compostable packaging.

Overall, the future of the biodegradable and compostable packaging sector in the US looks bright, with increasing demand and adoption of sustainable packaging solutions. As more companies adopt sustainable packaging practices and infrastructure improves, we can expect to see continued growth in this industry.

There is evidence to suggest that companies in the sustainable biodegradable and compostable packaging sector are experiencing growth and profitability.

According to data from market research firm MarketsandMarkets, the global market for biodegradable plastics is expected to grow at a compound annual growth rate (CAGR) of 17.8% from 2018 to 2023, reaching a market size of $19.7 billion. This rapid growth is being driven by increasing demand for environmentally friendly packaging solutions and government regulations promoting the use of biodegradable plastics.

In the US specifically, the EPA reports that the generation of biodegradable plastics increased by nearly 50% from 2010 to 2017. This suggests that companies in the biodegradable plastics industry are seeing strong growth.

Additionally, a number of companies in the sustainable packaging sector have been recognized for their financial performance and growth. For example,  one plant-based packaging company was named one of Fast Company’s “Most Innovative Companies” in 2020, and another compostable packaging company was named one of Forbes’ “100 Most Promising Companies” in 2015.

Overall, the data suggests that companies in the sustainable biodegradable and compostable packaging sector are experiencing growth and profitability, as demand for environmentally friendly packaging solutions increases and more companies adopt sustainable packaging practices.

There are several factors that may contribute to why some companies in the biodegradable and compostable packaging sector may be lagging behind others. Some potential reasons include:

  1. Lack of investment in research and development: Companies that are investing in research and development of new and innovative biodegradable and compostable packaging solutions may be better positioned to stay ahead of the competition.

  2. Limited infrastructure: The adoption of biodegradable and compostable packaging may be limited by the availability of composting facilities and other infrastructure needed to properly dispose of these materials. Companies that are located in areas with limited infrastructure may face challenges in the adoption of these packaging solutions.

  3. Limited consumer demand: The demand for biodegradable and compostable packaging is driven in part by consumer preferences. Companies that are located in areas with limited consumer demand for these products may struggle to gain traction in the market.

  4. High costs: The production of biodegradable and compostable packaging can sometimes be more expensive than traditional packaging materials. Companies that are unable to offset these higher costs through price increases or other cost-saving measures may struggle to compete with companies that are able to offer lower-priced products.

  5. Limited government support: Government policies and regulations can also impact the adoption of biodegradable and compostable packaging. Companies that are located in areas with limited government support for these products may face challenges in the market.

  6. Overall, there are a variety of factors that may contribute to why some companies in the biodegradable and compostable packaging sector may be lagging behind others. It is important for companies to stay abreast of market trends and developments and to continuously seek out new and innovative solutions in order to remain competitive in this rapidly growing industry.

In conclusion, the sustainable biodegradable and compostable packaging sector is experiencing rapid growth and innovation. As demand for environmentally friendly packaging solutions increases, and as more companies adopt sustainable packaging practices, we can expect to see continued growth in this industry. Companies that are able to invest in research and development and stay ahead of market trends are well positioned to take advantage of the opportunities in this sector. The adoption of biodegradable and compostable packaging not only benefits the environment, but also offers financial benefits for companies and consumers. As such, it is worth considering the adoption of these solutions as a way to stay competitive and contribute to a more sustainable future.

 

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