Canada Biodegradable Packaging Market Size, Share, and COVID-19 Impact Analysis, By Packaging Format (Bottles & Jars, Boxes & Cartons, Cans, Cups & Bowls, Pouches & Bags, Films & Wraps, Labels & Tapes, and Others), By Material (Paper & Paperboard, Bioplastic, and Bagasse), and Canada Biodegradable Packaging Market Insights, Industry Trend, Forecasts to 2035

Canada Biodegradable Packaging Market Size Insights Forecasts to 2035

• The Canada Biodegradable Packaging Market Size Was Estimated at USD 18.3 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 5.1% from 2025 to 2035
• The Canada Biodegradable Packaging Market Size is Expected to Reach USD 31.9 Billion by 2035

According to a research report published by Spherical Insights & Consulting, The Canada Biodegradable Packaging Market Size is Anticipated to Reach USD 31.9 Billion by 2035, Growing at a CAGR of 5.1% from 2025 to 2035. The Canada biodegradable packaging market is driven by rising environmental concerns, increasing demand for sustainable packaging solutions, stringent government regulations banning single-use plastics, and growing adoption of eco-friendly materials across food & beverage, healthcare, retail, and e-commerce industries.

Market Overview

The Canada Biodegradable Packaging Market includes all operations that produce packaging products that decompose through natural processes without harming the environment. The process uses materials that consist of paper and paperboard, bioplastics, and packaging items made from bagasse. The market growth is driven by sustainability initiatives and consumer demand for eco-friendly products and regulatory requirements which mandate plastic waste reduction and corporate climate neutrality commitments. Manufacturers and retailers now prefer to use biodegradable and compostable packaging solutions because people increasingly understand the problems associated plastic waste and the limited availability of landfill space.

The Canada Biodegradable Packaging Market demonstrates key trends which will determine its future growth path. The first trend shows rising demand for compostable bioplastics and plant-based materials which include PLA and bagasse because of their environmental advantages. Biodegradable product markets establish themselves through Federal and provincial regulations that restrict single-use plastics. Product development occurs through the creation of lightweight packaging and water-resistant biodegradable coatings and recyclable hybrid materials which enhance performance while decreasing production expenses.

The Canadian government supports the biodegradable packaging market through environmental policies that establish plastic waste reduction targets and create sustainability frameworks. The market receives advantages from regulations that uphold circular economy practices together with extended producer responsibility EPR systems and green manufacturing facilities. Biodegradable materials adoption receives

Report Coverage

This research report categorizes the market for the Canada Biodegradable Packaging Market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada biodegradable packaging market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada biodegradable packaging market.

Driving Factors

The Canada Biodegradable Packaging Market operates through two main drivers which include increased environmental awareness and rising customer interest in sustainable packaging solutions that deliver environmental protection. People and businesses now choose biodegradable options because they want to reduce plastic waste and landfill environmental impact. Government regulations which restrict or ban single-use plastic items across multiple provinces have created increased market demand for products. The growth of food delivery services and takeaway culture and e-commerce platforms have created a need for sustainable packaging materials. Corporate sustainability commitments and carbon reduction goals are further pushing companies to adopt biodegradable packaging solutions.

Restraining Factors

Despite having bright growth prospects, the Canada Biodegradable Packaging Market faces some limitations. The higher production cost compared to traditional plastic packaging is a major drawback for the market. The biodegradable packaging materials have some performance limitations, especially related to moisture resistance, heat resistance, and durability.

Market Segmentation

The Canada biodegradable packaging market share is classified into packaging format and material.

• The boxes & cartons segment accounted for the largest revenue market in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Canada Biodegradable Packaging Market is segmented by packaging format into bottles & jars, boxes & cartons, cans, cups & bowls, pouches & bags, films & wraps, labels & tapes, and others. Among these, the boxes & cartons segment accounted for the largest revenue market in 2024 and is expected to grow at a significant CAGR during the forecast period. This dominance is largely due to the high demand from the e-commerce, retail, and food & beverage industries, where boxes and cartons are used extensively as packaging materials. In addition to this, the cost-effectiveness, easy recyclability, compostability, and easy availability of paper-based raw materials have also contributed to their dominant market position.

• The paper & paperboard segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The Canada Biodegradable Packaging Market is segmented by material into paper & paperboard, bioplastics, and bagasse. Among these, the paper & paperboard segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The dominance of this segment is driven by strong consumer acceptance, lower production costs compared to bioplastics, existing recycling infrastructure in Canada, and government support for sustainable paper-based alternatives. Furthermore, paper & paperboard offer versatility, durability, and sustainability, making them the material of choice for packaging applications.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada Biodegradable Packaging Market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Amcor plc
• Tetra Pak International S.A.
• WestRock Company
• Mondi Group
• Smurfit Kappa Group
• BASF SE
• NatureWorks LLC
• International Paper Company
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In June 2024, ExxonMobil launched a new series of bunker fuels with lower sulphur content aimed at reducing environmental impact and aligning with stricter maritime emission regulations, strengthening its presence in the South American market.

Market Segment

This study forecasts revenue at the Canada, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Canada Biodegradable Packaging Market based on the below-mentioned segments:

Canada Biodegradable Packaging Market, By Packaging Format

• Packaging Format Bottles & Jars
• Boxes & Cartons
• Cans
• Cups & Bowls
• Pouches & Bags
• Films & Wraps
• Labels & Tapes
• Others

Canada Biodegradable Packaging Market, By Material

• Paper & Paperboard
• Bioplastic
• Bagasse