Global Biodegradable Plastics Market Size, Share & COVID-19 Impact Analysis, By Product, Application, By Region Forecasts, 2024 – 2032

Global Biodegradable Plastics Market Size, Share & COVID-19 Impact Analysis, By Product, Application, By Region Forecasts, 2024 – 2032

The biodegradable plastic market was valued at US $ 7.9 billion in 2023 and is expected to reach US $ 20.9 billion by 2032 growing at a CAGR of 21% during the forecast period 2024 – 2032.

Biodegradable plastics are widely utilized in the packaging business since they are environmentally beneficial. With growing environmental concerns about plastic usage (plastics contain dangerous poisons that impact people, animals, and plants), biodegradable plastic substitutes are gaining popularity. Plastic trash floating in the ocean for hundreds of years can serve as a means of transportation for invasive organisms. This previously mentioned factor is supporting the market's growth. Strict regulations implemented by federal agencies and various governments to promote the use of biodegradable polymers in packaging and reduce plastic waste are driving demand for this business. The requirements for green packaging are getting stricter. The market is growing as a result of the requirement for many FMCG companies to use biodegradable packaging in order to meet the requirements.

The need for biodegradable plastics is expected to rise, particularly by the forecast period due to a variety of end-use segments' increased need for biodegradable plastics, strict sustainability requirements, and growing environmental concerns. By the conclusion of the term, the global market will grow as a result of rising consumer awareness of the sustainability of plastic solutions and intensified attempts to phase out the usage of conventional, non-biodegradable plastics. The conventionally used plastics made of petroleum take years to break down or decompose and are left in landfills for a very long period. Compared to regular plastics, which take about 1,000 years to decompose, biodegradable plastics break down 60% faster and require more than 180 days to break down.

The market for biodegradable plastics has, however, been more expensive than that of traditional polymers, which will prevent the industry from expanding into new market applications and segments. The cost of producing these plastics is 20–80% more than that of conventional plastics. The primary cause of this is the high cost of polymerization of biodegradable plastics in numerous processes, many of which are currently in the research and development stages. Economies of scale have not yet been realised, which is impeding market expansion during the projected timeframe.

“Starch-Based segment, by product, to be dominating market from 2023 to 2030.”

In terms of value, the starch-based product category accounted for the most in 2023 (more than 41.3 percent). The market is segmented into starch-based, PLA, PBAT, PBS, PHA, and other product categories depending on product. In all years under estimation, this starch category is anticipated to account for a larger share of both volume and value. Starch-based plastics find application in a variety of industries, including the packaging, automotive, and agricultural sectors. Furthermore, PLA product plastics are rapidly dominating the market. This submarket is supported by PLA, which has the lowest price of any product.

“Packaging segment, by application, to be dominating market from 2023 to 2030.”

In 2023, the dominant application segment for biodegradable plastics was packaging, with revenues exceeding 60.3%. The packing business is one of the major consumers of biodegradable polymers. used to print rigid and flexible packages. The market for biodegradable plastics is expanding, for instance, as more environmentally friendly plastics are being used in place of conventional plastics to make trays, bottles, cups, and other items.

“Europe to be largest region in biodegradable plastic market.”

Europe emerged as the world's top region in 2023 for the production of bioplastic income, accounting for almost 43% of total receipts. The region should so anticipate a rise in demand for guidance on managing plastic waste and EU regulations pertaining to single-use plastics. Asia Pacific will continue to be known as the world's most dynamic continent in the end. Growth in the disposable income and predicted improvements in living standards in developing nations like China and India should support the regional market.

It is anticipated that the use of biodegradable plastic will grow considerably in Europe in the near future for a variety of reasons, including stringent environmental laws, a growing public awareness of environmental issues, and rising costs for biotechnology research and development. Governmental initiatives, such as the resolution passed by the European Union to reduce the region's overall consumption of single-use plastic products by approximately 80% by the end of the twenty-second year, are therefore expected to increase demand for biodegradable plastics.

Biodegradable plastic Competitive Landscape

The competitive landscape of the Biodegradable plastic market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Biodegradable plastic technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Biodegradable plastic market is highly competitive, with numerous companies vying for market share. Prominent companies in the Biodegradable plastic Market include:

Cargill Incorporated, Biome Technologies plc, PTT MCC Biochem Co., Ltd., BASF SE, Plantic Technologies Limited, Synbra Technology BV, Total Corbion PLA, Novamont SpA, Futerro, Eastman Chemical Company, NatureWorks LLC, Danimer Scientific, Trineso, FKuR Kunststoff GmbH and others.

Recent developments:

BASF announced in June 2023 that a Centre of Excellence for Biodegradation and Microplastics would be established at its Michigan site. This project will assist in giving local clients strategies for achieving the sustainability and circularity agendas. The main goals of this research are to better understand the biodegradability of novel chemicals, develop fresh perspectives on microplastics, and assess compostability.

Bluepha Co.Ltd and TatalEnergies Corbion signed an MOU in May 2023 with the goal of accelerating PLA/PHA solution development in China. In this approach, merging Bluepha PHA technology with Luminy PLA from the former significantly advances the development of various new high-performance biopolymers for packaging and other uses.

PTT MCC Biochem and IFG biocomposites group inked a contract in July 2022 to promote IFGbio, a new bioPBS-based staple fibre. The goal of this partnership is to develop a bulk fibre substitute for use in the food and beverage, building, and geotextile industries, among other areas.

Beginning in October 2021, Biome's subsidiary BIOPLASTICS Limited will commercially distribute and execute trial runs for biodegradable tree shelters in the UK. These offer the same advantages as tree shelters, but because they are made of the company's bioplastic substance, they last for five years before decomposing after two years.