The global biodegradable bags market was $1.47bn in 2017 and is expected to reach $2.9bn by the end of 2026.
Over the years, the demand for biodegradable bags has grown due to the implementation of stringent regulations on the use of non-degradable plastic by various governments across the world and an increase in awareness among consumers.
The food and beverage industry contributes heavily to the biodegradable packaging industry. Thus, the growth of F&B-related packaging will promote market growth in coming years.
The US accounted for the largest market share, mainly due to people’s increasing environmental concerns.
The rise in urbanisation leading to increased environmental concerns in developing economies such as India and China is a major reason for switching towards biodegradable packaging in the Asia-Pacific region.
The Middle East and Africa also shows a favourable growth in demand in this market.
The biodegradable bags market is therefore expected to grow at a healthy CAGR globally over the forecast period.