Organic Recycling of Bio-based Plastics

Global Organic Recycling of Bio-based Plastics Market to Reach US$4.2 Billion by 2030

The global market for Organic Recycling of Bio-based Plastics estimated at US$2.5 Billion in the year 2024, is expected to reach US$4.2 Billion by 2030, growing at a CAGR of 9.3% over the analysis period 2024-2030. Plastic Bottles, one of the segments analyzed in the report, is expected to record a 10.3% CAGR and reach US$1.7 Billion by the end of the analysis period. Growth in the Polymer Foams segment is estimated at 9.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$668.7 Million While China is Forecast to Grow at 14.5% CAGR

The Organic Recycling of Bio-based Plastics market in the U.S. is estimated at US$668.7 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$931.5 Million by the year 2030 trailing a CAGR of 14.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.7% and 8.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.3% CAGR.

Global Organic Recycling of Bio-Based Plastics Market – Key Trends & Drivers Summarized

What Makes Organic Recycling of Bio-Based Plastics a Game-Changer in Waste Management?

The rise of bio-based plastics presents a sustainable alternative to fossil-fuel-derived plastics, but their end-of-life management remains a critical challenge. Traditional recycling methods often struggle to accommodate these materials due to their unique composition, necessitating an organic recycling approach. Organic recycling, primarily through industrial composting and anaerobic digestion, allows bio-based plastics to break down naturally, returning valuable nutrients to the environment without contributing to microplastic pollution. This process is particularly effective for bio-based polymers such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch blends, which decompose efficiently under controlled conditions. However, infrastructure for large-scale organic recycling remains underdeveloped in many regions, posing both challenges and opportunities for industry players. As regulatory frameworks tighten around single-use plastics, governments and businesses are increasingly investing in compostable alternatives and the systems required to manage them. The push for a circular economy is driving innovations in organic waste processing, integrating bio-based plastics into existing composting facilities. Despite these advancements, consumer confusion regarding proper disposal methods remains a key hurdle. Mislabeled or mismanaged bio-based plastics can end up in conventional recycling streams, contaminating batches and reducing overall recycling efficiency. Addressing these issues requires comprehensive education campaigns, better labeling, and an expansion of composting infrastructure to accommodate the growing demand for sustainable plastic alternatives.

How Are Innovations in Material Science Reshaping the Organic Recycling Landscape?

Material science advancements are playing a transformative role in the organic recycling of bio-based plastics, enabling faster degradation, improved mechanical properties, and enhanced compatibility with existing waste processing technologies. Researchers are developing next-generation biopolymers with optimized molecular structures that facilitate enzymatic breakdown, reducing composting time while maintaining product performance. Emerging formulations, such as enzyme-embedded plastics, accelerate the degradation process, allowing composting facilities to handle larger volumes more efficiently. Innovations in multilayer packaging are also being explored, integrating biodegradable barrier layers that replace conventional petroleum-based laminates. Meanwhile, developments in smart additives and bio-based plasticizers are enhancing the mechanical strength and flexibility of compostable plastics, making them more competitive with traditional polymers. The introduction of organic-compatible inks and adhesives ensures that compostable packaging remains truly biodegradable, eliminating contamination risks in organic waste streams. However, scalability remains a challenge, as the cost of high-performance bio-based plastics is often higher than conventional alternatives. To bridge this gap, industry leaders are working to optimize production processes, leveraging renewable feedstocks such as agricultural residues and algae-based polymers to reduce dependency on food crops. The growing collaboration between academia, manufacturers, and waste management providers is accelerating the transition toward fully compostable and economically viable bio-based plastics. With the demand for sustainable packaging solutions surging, the role of advanced material science in improving compostable plastics` efficiency and affordability is becoming more crucial than ever.

Is the Infrastructure Ready to Handle Large-Scale Organic Recycling of Bio-Based Plastics?

While compostable plastics offer an eco-friendly alternative to traditional polymers, their success depends heavily on the availability of industrial composting and anaerobic digestion facilities. Currently, the disparity in global infrastructure presents a significant bottleneck, with only a fraction of composting sites equipped to process bio-based plastics efficiently. Many existing composting plants prioritize food and yard waste, lacking the specialized conditions required to break down bioplastics at optimal rates. To address this issue, governments and private sector stakeholders are investing in facility upgrades, incorporating high-temperature composting units and enzymatic treatment technologies. The development of decentralized composting hubs is also gaining traction, particularly in urban areas where waste separation and localized processing can reduce transportation emissions. Additionally, standardized certification schemes, such as EN 13432 and ASTM D6400, are being refined to ensure that bio-based plastics meet stringent degradation criteria, preventing the influx of non-compostable materials into organic recycling streams. Another critical challenge is the integration of bio-based plastics into municipal waste collection systems. Many regions lack dedicated bins for compostable plastics, leading to contamination in both composting and recycling streams. To mitigate this issue, policymakers are rolling out extended producer responsibility (EPR) programs, requiring manufacturers to contribute to the development of end-of-life solutions for their products. Public-private partnerships are also emerging as a viable approach to expanding composting networks, with major brands investing in waste management initiatives to support the broader adoption of bio-based packaging. As infrastructure expansion gains momentum, the seamless integration of compostable plastics into waste management systems will be essential to maximizing their environmental benefits.

What’s Fueling the Rapid Growth of the Organic Recycling of Bio-Based Plastics Market?

The growth in the organic recycling of bio-based plastics market is driven by several factors, including technological advancements, shifting consumer preferences, regulatory mandates, and increased investment in sustainable waste management infrastructure. One of the most significant drivers is the tightening of government regulations banning single-use plastics and promoting compostable alternatives. Countries worldwide are implementing stringent policies that mandate the use of certified compostable materials in food packaging, shopping bags, and agricultural films. Simultaneously, the rise of eco-conscious consumer behavior is accelerating demand for compostable products, prompting brands to transition toward sustainable packaging solutions. The food service industry, in particular, is a major adopter of compostable plastics, driven by regulatory pressures and growing consumer preference for biodegradable packaging. Another critical driver is the rapid advancement of industrial composting technologies, which are improving the efficiency of organic recycling processes and reducing operational costs. Investments in anaerobic digestion facilities are also expanding, providing additional avenues for bio-based plastic waste to be converted into biogas and biofertilizers. Additionally, the increasing adoption of bioplastic certification programs is fostering greater market transparency, ensuring that only truly compostable materials enter organic waste streams. Supply chain innovations, including the development of bio-based feedstocks from agricultural byproducts, are further enhancing the market`s competitiveness by reducing dependency on food crops and lowering production costs. Lastly, major corporations and retailers are setting ambitious sustainability targets, driving large-scale adoption of bio-based plastics and supporting the growth of organic recycling infrastructure. As the intersection of policy, technology, and consumer demand continues to evolve, the market for organic recycling of bio-based plastics is poised for exponential expansion in the coming years.

SCOPE OF STUDY:

The report analyzes the Organic Recycling of Bio-based Plastics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Source (Plastic Bottles, Polymer Foams, Plastic Films, Other Sources); Application (Packaging Application, Building & Construction Application, Electrical & Electronics Application, Automotive Application, Textiles Application, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 47 Featured) -

• BASF SE
• Biome Bioplastics Ltd.
• Bio-on S.p.A.
• Biotec GmbH & Co. KG
• Braskem S.A.
• Carbiolice
• Carbios
• Danimer Scientific
• FKuR Kunststoff GmbH
• Green Dot Bioplastics
• Mitsubishi Chemical Corporation
• NatureWorks LLC
• Neste Oyj
• Novamont S.p.A.
• Plantic Technologies Limited
• Samsara Eco
• Teijin Limited
• TIPA Corp Ltd.
• TotalEnergies Corbion
• UBQ Materials

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.