Biodegradable Foam Market Growth Accelerated by Surging Environmental Concerns
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| Biodegradable Foam Market |
Biodegradable foam or
biodegradable packaging foam is a packaging material used for cushioning
fragile items. It is produced using plant-based materials that decompose
without harming the environment. Biodegradable foam finds applications for
packaging electronic goods, pharmaceutical products, food products, and other
items to prevent damage during shipping. The global biodegradable foam market
is estimated to be valued at US$ 906.1
Mn in 2023 and is expected to exhibit a
CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new
report published by Coherent Market Insights.
Market Dynamics:
The global biodegradable foam
market is witnessing high growth owing to the increasing environmental concerns
regarding non-biodegradable plastics. Stringent regulations on the usage of
conventional foams and polystyrene have led packaging manufacturers to shift
toward biodegradable materials. Furthermore, major e-commerce companies such as
Amazon have adopted biodegradable foam for packaging, which is influencing
other players to adopt sustainable solutions. However, high production costs of
biodegradable foam compared to traditional foams and inadequate infrastructure
for waste collection and composting remain key challenges for market growth
over the forecast period.
SWOT Analysis
Strength: Biodegradable foams are
environmentally friendly as they decompose without polluting the environment.
They can be very cost effective compared to regular plastics as waste
management costs are reduced. Biodegradable foams also provide insulation and
cushioning properties similar to regular foams.
Weakness: The manufacturing
processes for biodegradable foams are more complex than regular foams,
increasing production costs. The insulation and strength properties of some
biodegradable foams may not be at par with regular petroleum-based foams.
Opportunity: Stringent
regulations regarding use of regular plastics provide a strong market
opportunity for biodegradable alternatives like foams. Growing consumer
preference for eco-friendly products also opens up opportunities. Regulations
mandating use of biodegradable packaging offers a steady demand.
Threats: Intense competition from
established regular foam players poses a threat as they try to fight
substitution. Volatility in raw material prices needed for biodegradable foams
is also a threat.
Key Takeaways
The Global
Biodegradable Foam Market Size is expected to witness high growth over
the forecast period of 2023 to 2030 due to increasing environmental regulations
against use of regular plastics. The market size is projected to reach US$ 906.1 Million by 2024.
Regional analysis: Europe currently dominates the market due to
stringent environmental laws regarding plastic usage and waste management. The
Asia Pacific region is expected to showcase the fastest growth on account of a
growing consumer preference for eco-friendly alternatives in countries like
India and China.
Key players: Key players operating in the biodegradable foam market
are BASF SE, Arkema SA, Dow Chemical Company, Synbra Technology BV, and Sekisui
Alveo AG. BASF and Arkema dominate the market with their wide range of
biodegradable foam product offerings used in various end use industries like
packaging, automotive and construction.
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