Biodegradable Plastics Market Forecasts to 2030 – Global Analysis By Feedstock (Bacteria-based, Cellulose-based and Other Feedstocks), Type (Bio-based and Bio and Fossil-based Biodegradable), End User and By Geography

Biodegradable Plastics Market Forecasts to 2030 – Global Analysis By Feedstock (Bacteria-based, Cellulose-based and Other Feedstocks), Type (Bio-based and Bio and Fossil-based Biodegradable), End User and By Geography

According to Stratistics MRC, the Global Biodegradable Plastics Market is accounted for $5.85 billion in 2024 and is expected to reach $11.37 billion by 2030 growing at a CAGR of 11.7% during the forecast period. Plastics made from renewable resources like plants, algae, or microorganisms are known as biodegradable plastics, compostable plastics, or eco-friendly plastics. Biodegradable plastics, as opposed to conventional plastics made from fossil fuels, can decompose naturally through biological processes into harmless elements like water, carbon dioxide, and biomass. Due to this quality, they are very desirable for a variety of applications, including packaging, agriculture, automotive, and consumer goods.

According to the India Brand Equity Foundation (IBEF), the electronics manufacturing industry in India is projected to reach US$520 billion by 2025.

Market Dynamics:

Driver:

Increasing consumer preference for biodegradable plastics

Global demand for biodegradable plastics is being driven by the overuse of disposable single-use plastics and their detrimental effects on the environment and human health. Being made of petroleum, plastics take decades to degrade and end up in landfills, making them one of the most urgent environmental concerns. Biodegradable plastics are absorbed into the environment and break down quickly. Biodegradable plastics also decompose more quickly than conventional plastics. As a result, growing environmental concerns are anticipated to fuel the market for biodegradable plastics.

Restraint:

Comparatively more expensive than conventional plastics

The market's growth is constrained by biodegradable plastics' higher price compared to traditional polymers. Plant-based materials, like corn starch or sugarcane, are frequently used as the raw materials for biodegradable plastics. In comparison to the extraction and refinement of fossil fuels used in conventional plastics, the production and processing costs of these renewable resources can be higher. In comparison to conventional plastics, the production of biodegradable plastics may require extra steps or specialized machinery. This may raise production costs and drive up the price of the manufacturing process as a whole.

Opportunity:

Increasing use of new technologies

Future years are expected to bring about a wealth of investment opportunities due to the continuous adoption of new technologies in the production of biodegradable plastics. Antimicrobial technology is now being incorporated into the production of biodegradable materials to create materials with longer shelf lives and to prolong the preservation of packaged goods, particularly food items. Additionally, antimicrobial packaging is used to stop microbial growth and guarantee chemical and microbiological food safety.

Threat:

Fluctuating oil prices

The cost of plastics is influenced by changes in oil prices. In the long term, this would be difficult. With the dynamics of supply and demand, oil prices may decrease. This may lead to a drop in the cost of traditional plastics, which would hinder the demand for biodegradable plastics.

Covid-19 Impact:

Due to disruptions in supply chains and production services around the world, the COVID-19 pandemic had a negative effect on the production of biodegradable plastics globally. Additionally, millions of people discarded single-use plastic items like gloves, masks, sanitizer bottles, and aprons during the pandemic, producing a significant amount of plastic waste. The use of biodegradable plastics in PPE and other products has increased as a result of this factor. The market trend for biodegradable plastics is also anticipated to grow favourably following the corona virus pandemic due to company developments.

The Bio and Fossil-based Biodegradable segment is expected to be the largest during the forecast period

The bio- and fossil-based biodegradable segment in the biodegradable plastics market has experienced notable growth due to several factors. Increasing environmental concerns and regulations promoting sustainable practices have driven demand for biodegradable alternatives. Consumers are becoming more conscious of their environmental footprint, favoring products that degrade naturally. Additionally, advancements in technology have made bio-based plastics more cost-effective and viable for various applications. This segment's growth is further fueled by the depletion of fossil fuels, pushing industries to explore renewable alternatives.

The Food & Beverage segment is expected to have the highest CAGR during the forecast period

The growth of the food and beverage segment in the biodegradable plastics market can be attributed to several key factors. Firstly, heightened consumer awareness regarding environmental sustainability has prompted F&B companies to seek eco-friendly packaging alternatives. Biodegradable plastics offer a solution by minimizing the ecological footprint of packaging materials. Additionally, regulatory pressures and governmental initiatives aimed at reducing plastic waste further drive the adoption of biodegradable alternatives in the F&B sector. Moreover, advancements in biodegradable plastic technology have improved their performance, making them increasingly suitable for food packaging applications.

Region with largest share:

The growth of the biodegradable plastics market in North America can be attributed to several factors. Increased consumer awareness and concerns about environmental pollution have led to a rise in demand for eco-friendly alternatives to traditional plastics. Government regulations promoting sustainable practices and waste management initiatives have further fueled market growth. Technological advancements in biopolymer production processes have made biodegradable plastics more cost-effective and commercially viable. Additionally, collaborations between key industry players and research institutions have accelerated innovation and product development in the region.

Region with highest CAGR:

The Asia-Pacific region has witnessed significant growth in the biodegradable plastics market due to several key factors. Increasing environmental concerns and stringent regulations regarding plastic waste disposal have driven demand for eco-friendly alternatives. The burgeoning population and rapid urbanization in countries like China and India have led to higher consumption rates, prompting industries to adopt sustainable packaging solutions. Moreover, government initiatives promoting the use of bioplastics and investments in research and development have further accelerated growth in the region.

Key players in the market

Some of the key players in Biodegradable Plastics market include Amcor Limited, BASF, Biome Bioplastics, Cardia Ltd, Cargill Incorporated, Cereplast Inc, Corbion, Danimer Scientific, Dow Inc., Eastman Chemical Company, Mitsubishi Chemical Holding Corporation, NatureWorks, Novamont, Plantic Technologies, Toray Industries, Trineso and Yield10 Bioscience, Inc.

Key Developments:

In January 2024, Danimer Scientific, Inc is pleased to announce that Dr. David Moody and Mr. Richard Altice have been appointed as members of Danimer’s Board of Directors. Dr. Moody’s appointment is effective immediately, and Mr. Altice’s appointment is effective as of April 15, 2024.

In November 2023, Cereplast, Inc. has begun production at its new facility in Seymour, Indiana. The Company also announced that it has moved its corporate headquarters to offices in El Segundo, California, from Hawthorne, California.

Feedstocks Covered:
• Bacteria-based
• Cellulose-based
• Lignin-based
• Starch-based
• Other Feedstocks

Types Covered:
• Bio-based
• Bio and Fossil-based Biodegradable

End Users Covered:
• Food & Beverage
• Personal Care & Cosmetic
• Transportation
• Electrical & Electronics
• Building & Construction
• Textile Industry
• Medical & Healthcare
• Agriculture Industry
• Consumer Goods
• Packaging Industry
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements