Polybutylene Adipate Terephthalate Market by Grade, Application (Films, Sheets & Bin Liners, Coatings & Adhesives, Molded Products, Fibers), End-Use Industry (Packaging, Consumer Goods, Agriculture, Bio-medical), and Region - Global Forecast to 2027
Polybutylene Adipate Terephthalate Market
The global polybutylene adipate terephthalate market was valued at USD 1.5 billion in 2022 and is projected to reach USD 2.8 billion by 2027, growing at 13.1% cagr during the forecast period. Increasing demand for polybutylene adipate terephthalate (PBAT) from emerging markets and rising demand for PBAT from packaging and consumer goods industries are driving the market.
Attractive Opportunities in the PBAT Market
Note: e-estimated p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
To know about the assumptions considered for the study, Request for Free Sample Report
Polybutylene Adipate Terephthalate Market Dynamics
Driver: Shift in consumer preference towards bio-based plastics
Consumer awareness regarding sustainable plastic solutions and pervasive efforts to eliminate the use of non-biodegradable conventional plastics contribute to the market growth of biodegradable plastics such as PBAT. Traditional plastics, which are generally petroleum-based, take decades to break down or degrade and lay in landfills for a long period. Biodegradable plastics break down faster when they are discarded and are absorbed back into the natural system. In addition, the rate of decomposition of biodegradable plastics by the activities of microorganisms is much faster than that of traditional plastics. The growing consumer awareness regarding these adverse effects (arising from traditional plastics) encourages the use of PBAT.
There is also growing concern over the potential health risks associated with traditional plastics. PBAT is a non-toxic material, which makes it a safer and healthier option. For example, PVC may cause genetic disorders, ulcers, deafness, and vision failure. Consumers are becoming more conscious of the impact of their purchasing decisions on the environment. As a result, there is an increasing demand for sustainable and eco-friendly products, including those made from PBAT.
Restraint: Higher price of PBAT than that of its alternatives
The higher cost of biodegradable plastics than that of traditional polymers restrains the market's growth in many application segments. Generally, the production cost of biodegradable plastics is 20–80% higher than that of conventional plastics. This is primarily due to the high polymerization cost of biodegradable plastics, as most of the processes are still in the development stage and hence, have not achieved economies of scale.
PBAT is a relatively new and innovative material, and its production is still limited compared to traditional plastic materials. The production process for PBAT is complex and requires specialized equipment and techniques, which can increase the production cost. Additionally, the raw materials used in PBAT production, such as succinic acid, adipic acid, and butanediol, are more expensive than the raw materials used in traditional plastic production. The higher cost of PBAT can make it less competitive with traditional plastic materials, especially in applications that require high volumes or low-cost materials. However, as the demand for sustainable and eco-friendly materials continues to grow, the cost of PBAT is expected to decrease as production technology improves.
Opportunity: High potential in emerging economies
The bioplastics & biopolymers market players are continuously implementing organic and inorganic strategies for their growth. PBAT is gaining popularity in emerging markets, where the demand for sustainable materials is growing rapidly. This presents significant growth opportunities for PBAT manufacturers, especially in regions like Asia, Africa, and South America. In south Korea LG Chem is building a 50,000 ton/year plant, which will be operational by 2024. Similarly, SK Geo Centric and Kolon Industries are partnering to establish a 50,000 ton plant in Seoul, South Korea.
Challenge: Easy availability of competitive products
PBAT is not the only biodegradable material available in the market. Other biodegradable materials, such as PLA (polylactic acid), PHA (polyhydroxyalkanoate), and starch-based polymers, are also available and may offer advantages over PBAT in certain applications. The most prevalent biodegradable plastic preferred over PBAT is PLA.
Polybutylene Adipate Terephthalate Market Ecosystem
Source: Secondary Research, Interview with Experts and MarketsandMarkets Analysis
In terms of value, the packaging segment is projected to account for the largest share of the PBAT market, by end-use industry, during the forecast period.
The packaging industry accounted for a share of 50% in terms of value, of the overall PBAT market in 2021. Packaging applications of PBAT polymers include food packaging, non-food packaging, healthcare packaging, cosmetic & personal care packaging, shopping bags, and others. They are used for manufacturing bottles, loose-fill, cups, pots, bowls, flexible films, and other products. There is a huge demand for packaging made from PBAT polymers as they are used for wrapping organic food and premium and branded products having specific requirements. Food & beverage manufacturers are increasingly switching to PBAT polymers to mitigate environmental and economic issues. In many regions, especially Europe and North America, stringent governmental regulations are forcing industries to reduce their carbon footprint, which has increased the demand for PBAT based products.
Films, Sheets & Bin Liners is projected to account for the fastest growth of the PBAT market, by application, during the forecast period
Based on application, the Films, Sheets & Bin Liners segment dominated the market. PBAT is often used for the production of films due to its good stretchability, flexibility, and good processability. The films made from PBAT can be transparent, translucent, or opaque, depending on the desired end-use application. PBAT films also have good sealability and good printability, making them suitable for use in flexible packaging applications. It is used in various applications such as packaging films for food, industrial, and agricultural products.
APAC is expected to be the fastest-growing market during the forecast period.
Based on region, Asia Pacific is a key market to produce PBAT and is projected to grow at a CAGR of 14.5% in terms of value during the forecasted period. The availability of low-cost raw materials and labour, coupled with growing awareness among people, makes the region an attractive investment destination for PBAT manufacturers. The rising population, urbanization, and industrialization are some of the factors that will drive the PBAT market in this region.
Source: Secondary Research, Interview with Experts and MarketsandMarkets Analysis
To know about the assumptions considered for the study, download the pdf brochure
Polybutylene Adipate Terephthalate Market Players
Major players operating in the global Polybutylene Adipate Terephthalate Market include BASF SE (Germany), Novamont S.p.A (Italy), Willeap (South Korea), Kingfa (China), Hangjhou Peijin Chemical Co. Ltd (China), Zhejiang Biodegradable Advanced Material Co. Ltd (China), Anhui Jumei Biotechnology (China), Go Yen Chemical Industrial Co. Ltd (Taiwan), Jinhui Zhaolong Advanced Technology Co. Ltd (China), Mitsui Plastics, Inc (US), and Chang Chun Group (China).
Polybutylene Adipate Terephthalate Market Report Scope
|
Report Metric |
Details |
|
Market Size Value in 2022 |
USD 1.5 billion |
|
Revenue Forecast in 2027 |
USD 2.8 billion |
|
CAGR |
13.1% |
|
Years considered for the study |
2018-2027 |
|
Base Year |
2021 |
|
Forecast period |
2022–2027 |
|
Units considered |
Volume (Ton); Value (USD Million) |
|
Segments |
Grade, Application, End-use Industries, and Region |
|
Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
|
Companies |
BASF SE (Germany), Novamont S.p.A (Italy), Willeap (South Korea), Kingfa (China), Hangzhou Peijin Chemical Co. Ltd (China), Zhejiang Biodegradable Advanced Material Co. Ltd (China), Anhui Jumei Biotechnology (China), Go Yen Chemical Industrial Co., Ltd (Taiwan), Jinhui Zhaolong Advanced Technology Co. Ltd (China), Mitsui Plastics, Inc (US), and Chang Chun Group (China) are the key players in the PBAT market. |
This report categorizes the global Polybutylene Adipate Terephthalate Industry based on grade, application, end-use industry, and region.
On the basis of grade, the PBAT market has been segmented as follows:
- Extrusion Grade
- Thermoforming Grade
- Other Grades
On the basis of application, the PBAT market has been segmented as follows:
- Films, Sheets & Bin Liners
- Coatings & Adhesives
- Molded Products
- Fibers
- Other Applications
On the basis of end-use industry, the PBAT market has been segmented as follows:
-
Packaging
- Food Packaging
- Non-Food Packaging
- Consumer Goods
-
Agriculture
- Mulch Films
- Netting
- Others
-
Bio-medical
- Medical Devices
- Medical Consumables
- Bone Implants
-
Other End-Use Industries
- Textiles
- Electronics
On the basis of region, the PBAT market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In June 2022, Confoil, an Australian manufacturer of food packaging and BASF collaborated to develop certified compostable dual ovenable paper tray for packaging. These trays are made of lightweight paperboard and coated with BASF’s biopolymer Ecovio PS 1606.
- In April 2020, Novamont S.P.A launched a new grade of Mater-Bi for extrusion coating and lamination on paper board and other substrates, which can be compostable in industrial parts. This grade provides an appreciable improvement in process stability, coating thicknesses, and processing speed comparable with LDPE, and excellent adhesion to different substrates. The excellent toughness and resistance to perforation make it suitable for food and microwave use.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the PBAT market?
The growth of this market can be attributed to growing awareness towards biodegradable plastics and rising demand from emerging economies.
Which are the key end-use industries driving the PBAT market?
End-use industries such as packaging, consumer goods, agriculture and bio-medical are driving the demand for PBAT market.
Who are the major manufacturers?
Major manufacturers include BASF SE (Germany), Novamont S.P.A (Italy), Willeap (South Korea), Kingfa (China), Hangjhou Peijin Chemical Co. Ltd (China), Zhejiang Biodegradable Advanced Material Co. Ltd (China), Anhui Jumei Biotechnology (China), Go Yen Chemical Industrial Co. Ltd (Taiwan), Jinhui Zhaolong Advanced Technology Co. Ltd (China), Mitsui Plastics, Inc (US), and Chang Chun Group (China), among others.
What is the biggest restraint for PBAT?
The biggest restraint can be high cost of PBAT as compared to conventional plastics.
How is COVID-19 affecting the overall PBAT?
The PBAT market saw a disruption in supply chain for supply of raw materials.
What will be the growth prospects of the PBAT?
High demand for PBATs in the packaging and increasing agriculture market are driving the market. .
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the market size of the PBAT market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent 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, certified publications, 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 PBAT market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the PBAT Industry 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 PBAT 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 grade, application, 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 PBAT and future 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 2021 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for PBAT for each region. The research methodology used to estimate the market size included the following steps:
- The global biodegradable plastics market was identified, and the share for PBAT was determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on grade, application, end-use industry, and country were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Data Triangulation
After arriving at the total market size from the estimation process explained above, 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.
Market Definition
PBAT is a fossil resource-based biodegradable plastic. It is produced by random co-polymerization of 1,4-butanediol, adipic acid, and Dimethyl Terephthalate (DMT) monomers. PBAT is marketed commercially as a fully biodegradable plastic. It has excellent biopolymer properties, such as high flexibility and good thermal stability. PBAT’s high degree of biodegradability makes it a suitable material to use as a replacement for conventional plastics in packaging, consumer goods and agriculture industries.
Key Stakeholders
- Manufacturers of PBAT
- Feedstock Suppliers
- Manufacturers In End-use Industries
- Traders, Distributors, and Suppliers
- Regional Manufacturers’ Associations and General Biodegradable Plastic Associations
- Government & Regional Agencies and Research Organizations
Report Objectives
- To define, describe, and forecast the size of the Polybutylene Adipate Terephthalate Industry, 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 grade, application, end-use industry, 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
Generating Response ...
Growth opportunities and latent adjacency in Polybutylene Adipate Terephthalate Market