Biodegradable Plastics Market by Type (PLA, Starch Blends, PHA, Biodegradable Polyesters), End Use Industry (Packaging, Consumer Goods, Textile, Agriculture & Horticulture), and Region( APAC, Europe, NA, South America, MEA) - Global Forecast to 2028
Biodegradable Plastics Market
The biodegradable plastic market is projected to reach USD 20.9 billion by 2028, at a CAGR of 21.3% from USD 7.9 billion in 2023. Increasing demand for biodegradable plastics from various end-use segments, stringent regulatory & sustainability mandates, and growing concerns for the environment are driving the market for biodegradable plastics.
Attractive Opportunities in the Biodegradable Plastic Market
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Biodegradable Plastic Market Dynamics
Driver: Increasing use in packaging and compostable bag applications
Packaging is one of the fastest-growing industries globally. According to a National Geographic study, approximately 40.0% of plastic produced is packaging used just once and then discarded. Moreover, approximately 500 million plastic bags are used worldwide annually. However, the increasing use of plastics poses a severe threat to the environment. With the advent of digital media, consumers and manufacturers have shifted their preference toward recyclable and eco-friendly materials. The Packaging and Packaging Waste Directive has been established in Europe, which has two main objectives: to help prevent trade barriers and reduce the impact of packaging waste on the environment. Similarly, the US FDA imposes stringent regulations related to recycling plastic materials used for food contact. All these regulations are expected to offer growth opportunities for biodegradable plastics.
Restraint: Higher price of biodegradable plastics than conventional plastics
The higher cost of biodegradable plastics than that of traditional polymers restrains the market's growth in many application segments. Biodegradable plastics often use plant-based materials as their raw materials, such as corn starch or sugarcane. These renewable resources come with their own production and processing costs, which can be higher compared to the extraction and refining of fossil fuels used in conventional plastics.
The production process of biodegradable plastics may involve additional steps or specialized equipment compared to conventional plastics. This can increase production costs and make the overall manufacturing process more expensive. In general, bio-based materials are still at the development stage. They have not been commercialized to the same level as their petrochemical counterparts, which have been developing rapidly for more than 50 years.
Opportunity: Development of new applications
With the increasing focus on sustainability and regulations adapted by government for green procurement policies, manufacturers of biodegradable plastics have significantly increased opportunity in the developing end-use industries such as electronics, medical, and automotive. Biodegradable plastics are finding applications in medical devices and implants. They can be used for temporary implants that degrade over time, reducing the need for additional surgeries for removal. Biodegradable sutures and drug delivery systems are also being developed using these materials. Biodegradable plastics are being researched and developed for use in construction materials, such as biodegradable insulation, films, and temporary formwork. These applications offer potential solutions for reducing plastic waste in the construction industry.
Initially, biodegradable plastics were used for niche products. The development of newer applications of biodegradable plastics is providing opportunities to its manufacturers.
Challenge: Fluctuating oil prices
Biodegradable plastics are usually more expensive than conventional plastics. However, fluctuations in oil prices affect the prices of plastics. This would be a challenge in the long term. However, the temporary increase in oil prices will increase the prices of conventional plastics. This would make biodegradable plastics an attractive alternative as they will have the edge over conventional plastics with respect to price and sustainability. This will be a short-term driver to the biodegradable plastics market. However, the prices of oil may fall with the demand-supply dynamics. This can result in a decrease in the prices of conventional plastics, which would affect the demand for biodegradable plastics.
Biodegradable Plastic Market: Ecosystem
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"PBAT based biodegradable plastic has the second fastest growth for biodegradable plastic market, in terms of value."
The flexibility and resilience of PBAT make it ideal for blending with another biodegradable polymer that is strong and rigid for plastic bottle production. It is fully biodegradable (compostable) and can be processed on conventional blown film equipment used for polyethylene. PBAT has also been investigated as a toughening agent for PLA.
Packaging was the largest share by application in biodegradable plastic market in 2022, in terms of value.
Increasingly, consumers are seeking environmentally friendly packaging options. Biodegradable plastics align with consumer preferences for sustainable and eco-friendly choices. Packaging made from biodegradable materials can enhance a brand's image, attract environmentally conscious consumers, and contribute to a positive consumer perception.
“Europe was the largest market for biodegradable plastic in 2022, in terms of value."
Europe has been at the forefront of implementing regulations and policies to address plastic waste and promote sustainable practices. The European Union's Single-Use Plastics Directive, for example, aims to reduce the impact of certain single-use plastic products by restricting their use and promoting alternatives, including biodegradable plastics. Such regulations create a favourable market environment for biodegradable plastics.
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Key Market Players
The key players in this market are BASF (Germany), NatureWorks (US), Total Corbion (Netherlands), Novamont (Italy), Biome Bioplastics (UK), Mitsubishi Chemical Holding Corporation (Japan), Toray Industries (Japan), Plantic Technologies (Australia), Danimer Scientific (US), and Fkur Kunstsoff (Germany). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow.
Read More: Biodegradable Plastics Companies
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Report Metric |
Details |
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Years considered for the study |
2019-2028 |
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Base Year |
2022 |
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Forecast period |
2023–2028 |
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Units considered |
Kiloton; Value (USD Million/Billion) |
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Segments |
Type, Application, and Region |
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
BASF (Germany), NatureWorks (US), Total Corbion (Netherlands), Novamont (Italy), Biome Bioplastics (UK), Mitsubishi Chemical Holding Corporation (Japan), Toray Industries (Japan), Plantic Technologies (Australia), Danimer Scientific (US), and Fkur Kunstsoff (Germany) |
This report categorizes the global biodegradable plastic market based on type, application, and region.
Based on the type:
- PLA
- Starch Blends
- PHA
-
Biodegradable Polyesters
- PCL
- PBAT
- PBS
-
Others
- Regenerative Cellulose
- Cellulose Derivative
Based on the end-use industry:
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Packaging
- Rigid Packaging
- Flexible Packaging
-
Consumer Goods
- Electrical Appliances
- Domestic Appliances
- Others
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Textiles
- Medical & Healthcare Textile
- Personal care, clothes, and other textiles
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Agriculture & Horticulture
- Tapes & Mulch Films
- Others
- Others
Based on the region:
- APAC
- Europe
- North America
- South America
- Middle East & Africa
Recent Developments
- In April 2021, NatureWorks announced a new strategic partnership with IMA Coffee, which is a market leader in coffee handling processing and packaging. This partnership aims at increasing the market reach for high-performing compostable K-cup in North America.
- In February 2020, BASF and Fabbri Group (Italy) formed a joint venture to develop a sustainable solution for cling film used in fresh-food packaging. The film will be used in wrapping meat, seafood, and fresh fruits & vegetables. It will be made by the Fabbri group with BASF's Ecovio bioplastic and will boost the demand for biodegradable plastics in packaging applications.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the biodegradable plastics market?
The growth of this market can be attributed to rising demand in the developing countries undergoing industrialization and increasing awareness towards the environment.
Which are the key sectors driving the biodegradable plastics market?
The sectors driving the demand for biodegradable plastics are packaging, consumer goods, textiles, and agriculture & horticulture, among others.
Who are the major manufacturers?
Major manufactures include BASF (Germany), NatureWorks (US), Total Corbion (Netherlands), Novamont (Italy), Biome Bioplastics (UK), Mitsubishi Chemical Holding Corporation (Japan), Toray Industries (Japan), Plantic Technologies (Australia), Danimer Scientific (US), and Fkur Kunstsoff (Germany), among others.
What is the biggest restraint for biodegradable plastics?
The biggest restraint can be the higher price of biodegradable plastics than the conventional plastics.
How is COVID-19 affecting the overall biodegradable plastics market?
The COVID-19 pandemic has caused a decrease in demand for biodegradable plastic technology, resulting in decreased sales and revenue for market participants.
What will be the growth prospects of the biodegradable plastics market?
Rising population, rapid urbanization and government regulations in emerging economies coupled with an increase in environmental awareness and the need for biobased society. .
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The study involved four major activities in estimating the market size of the biodegradable plastic market. Exhaustive secondary research was done to collect information on the market, the peer market, and the grandparent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, articles from recognized authors, gold standard and silver standard websites, and databases. Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The biodegradable plastic market comprises several stakeholders in the value chain, which include manufacturers, and end users. Various primary sources from the supply and demand sides of the biodegradable plastic market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the biodegradable plastic industry. Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, raw material, application, type, end-use industries, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of biodegradable plastic and outlook of their business, which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
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Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the size of the biodegradable plastic market.
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of the key market players, along with extensive interviews for opinions with leaders such as directors and marketing executives.
Data Triangulation
After arriving at the total market size from the estimation process, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
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Market Definition
Biodegradable plastics are types of plastics that can be broken down by microorganisms into natural elements over time. They are designed to have a reduced impact on the environment compared to traditional plastics, which can persist in the environment for hundreds of years.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, and forecast the size of the biodegradable plastic market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To estimate and forecast the market size based on type, application, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and Impact on biodegradable plastic market
Generating Response ...
Growth opportunities and latent adjacency in Biodegradable Plastics Market