In 2017, the global biodegradable packaging market stood at $287.3 million. By 2023, it’s expected the market will expand to $429.2 million, boasting a compound annual growth rate (CAGR) of 6.92% over the next five years, according to a new report from ResearchAndMarkets.

Growth in this sector is driven by two main causes, the report revealed:

  • Increasing government regulations, which force manufacturers to search for more environmentally friendly packaging solutions
  • A change in consumer preferences, as more and more consumers support brands that do their part to minimize their impact on the environment

According to the report, there are also two main restraints that are preventing the market from growing even faster:

  • The growth and advancement in biodegradable paper and plastics, as manufacturers can’t use packaging solutions that haven’t yet been invented
  • Higher costs, which increase prices while lowering margins—something most manufacturers would do anything to avoid

For more information, check out this press release.