Analysis from Technavio (London) predicts that the global bioplastic packaging materials market will grow at a 23% compound annual growth rate between 2015 and 2019.
According to the report, the demand for bioplastics is expected to surge during the forecast period because of an increased need for eco-friendly packaging. Increased awareness of the benefits of bioplastic packaging among end users is propelling growth.
However, the report also found that a major challenge for the development of this market is the high cost of producing bioplastic materials, which is currently acting as a major restraint for market vendors. Widening of the demand-supply gap in the last few years has led to a substantial increase in the cost of raw materials.