by The global botanical packaging market is a part of the sustainable packaging industry which involves the use of plants and plant based materials for manufacturing alternative packaging solutions. Made from renewable and biodegradable sources, botanical packaging offers eco-friendly alternatives to plastics and Styrofoam packaging. Products like corrugated boxes, molded fiber containers and bags made from materials like bamboo, wheat straw, paper and bio-plastics offer enhanced functionality while reducing dependence on petroleum based packaging.
The Global Botanical Packaging Market is estimated to be valued at US$ 138.24 Bn in 2024 and is expected to exhibit a CAGR of 34.% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the botanical packaging are Acacia Communications,fSONA Networks,LightPointe Communications,Plaintree Systems Inc.,Trimble Hungary Kft. (Eos Positioning Systems),Wirepas Ltd.,Aoptix Technologies Inc.,NEC Corporation,Signify Holding (formerly Philips Lighting),Wireless Excellence Limited (CableFree). Growing awareness about environmental hazards of plastic waste and stringent regulations around single use plastics are driving demand for sustainable alternatives. Major brands and retailers have also committed to reduce plastic packaging which is fueling adoption of natural fiber and plant based packaging materials. Regionally, North America and Europe lead the market due to high consumer preference for eco-friendly products while China, India and Brazil are witnessing fastest growth due to expansion of sustainable packaging industry.
Market key trends
One of the key trends driving growth in the Global Botanical Packaging Market Size is the transition towards plant based bio-economy. Continuous research and new product development is expanding application of agricultural waste and fast growing plants like bamboo, straw and switchgrass for manufacturing packaging materials. Their ability to store carbon and regenerate makes them attractive substitutes for petroleum based plastics. Another notable trend is the customization of plant based packaging for specific end uses. Advanced processing and composite formulation is enhancing barrier properties, rigidity and strength of botanical packaging bringing them at par with plastic packaging for different industries like food and beverages, cosmetics, electronics etc.
Porter’s Analysis
Threat of new entrants: New entrants face high barriers as R&D and production cost to develop FDA approved botanical packaging is high. Bargaining power of buyers: Individual buyers have low bargaining power compared to bulk buyers like food and beverage companies. Bargaining power of suppliers: Suppliers have moderate bargaining power as botanical raw materials can be sourced from multiple regions globally. Threat of new substitutes: Threat is moderate as food grade plastic and metal are alternatives but may not offer sustainability benefits of botanical packaging. Competitive rivalry: Intense as key players globally invest heavily in R&D and capacity expansion.
Geographical Regions
North America currently dominates the global botanical packaging market in terms value owing to stringent regulations regarding use of sustainable materials in food contact applications. The region accounted for over 35% share of the overall market in 2021 on back of presence of leading food companies and packaging producers in the US and Canada.
Asia Pacific market is expected to exhibit fastest growth during the forecast period driven by rising middle class population, changing consumer preferences towards green packaging and flexible regulatory framework in various countries like India and China. Expanding retail infrastructure and growing online food delivery trend in the region will further support regional market growth over coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
