Global Biodegradable Plastics Market – Industry Trends and Forecast to 2030

Global Biodegradable Plastics Market, By Product Type (Polylactic Acid (PLA), Starch Blends, Biodegradable Polyesters, Polyhydroxyalkanoates (PHA), Others), Application (Packaging and Bags, Consumer Goods, Agriculture and Horticulture, Textile, Others) - Industry Trends and Forecast to 2023 to 2030.

Biodegradable Plastics Market Analysis and Size

The essential factors contributing to the market growth in the forecast period of 2023 to 2030 include the increasing application of biodegradable plastics in the agriculture and food & beverages sectors. In addition, the growing inclination of consumers toward biodegradable plastics is significantly contributing to the market growth.

Data Bridge Market Research analyzes that the global biodegradable plastics market which was USD 17.50 billion in 2022, is expected to reach USD 70.89 billion by 2030, growing at a CAGR of 19.11% during the forecast period of 2023 to 2030.

In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Biodegradable Plastics Market Scope and Segmentation

Market Definition

Biodegradable plastics are made from petroleum and renewable raw materials such as corn, wheat, bamboo, and sugarcane. Microorganisms such as fungi and bacteria degrade them into water, biomass, and carbon dioxide (CO2). As a result, they are used in a variety of ways, ranging from flexible packing materials for various food products to extruded, injection-molded in traditional machines.

Global Biodegradable Plastics Market Dynamics

Drivers

• Growing consumer inclination toward biodegradable plastics

The worldwide demand for biodegradable plastics is being fueled by the excessive use of disposable single-use plastics and their negative impact on the environment and human health. Plastics are one of the most pressing environmental concerns, as they are made from petroleum and take decades to degrade and end up in landfills. Biodegradable plastics degrade quickly and are absorbed into the environment. Furthermore, when compared to traditional plastics, biodegradable plastics decompose faster. Therefore, the increasing use of biodegradable plastics is driving the market growth.

• Increased application in agriculture and food & beverages sector

The mulching films and plant pots are made from biodegradable plastics in the agriculture and horticulture industries. This, combined with the growing use of agricultural products in the burgeoning F&B sector and growing use in food packaging and compostable bags applications and the rapidly increasing glass industry, are the key factors driving market expansion. The increased use of biodegradable plastics in packaging and agriculture is also expected to contribute to the market growth.

Opportunities

• Surging consumer awareness

Rising consumer awareness of eco-friendly plastic solutions and increased efforts to reduce the use of conventional plastics extend profitable opportunities to the market players in the forecast period of 2023 to 2030.

• Favorable regulations and policies

Biodegradable plastic producers have significant growth opportunities in various end-use industries such as electronics, automotive, and medical, thanks to favorable government regulations and a growing focus on eco-friendly plastics for green procurement policies. The biodegradable plastics converters are heavily investing in research and development for eco-friendly plastics in biomedical applications such as screws, stitching materials, and implants, which will further expand the future growth of the biodegradable plastics market.

 Restraints/Challenges

• High costs

The high cost of biodegradable plastics is one of the most significant factors impeding the biodegradable plastic market. The increased prices are due to the complex engineering processes as well as the instability of raw materials used in the fabrication of biodegradable plastics.

• Issues associated with performance

The key performance issues with biodegradable plastics include low heat resistance and low barrier properties to water, air, and oxygen. As a result, penetration in several industries, including automotive and electronics, has been limited. Furthermore, poor mechanical properties such as low tensile and impact strength and processing capabilities are preventing biodegradable plastics from being used in a variety of applications. Biodegradable plastics' limitations pose a significant barrier to market expansion. These performance issues will further challenge the biodegradable plastics market growth rate.

This global biodegradable plastics market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the global biodegradable plastics market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In May 2023, DuPont announced the acquisition of Spectrum Plastics Group. This group is specialised in manufacturing medical devices. This acquisition will enhance DuPont's current line of biopharmaceutical and pharmaceutical processing, medical device, and packaging products. DuPont's position in the medical industry will be strengthened.
• In September 2021, BASF and WPO Polymers cooperated in distributing biopolymer ecovio for certified compostable bags in Spain and Portugal. This is in line with BASF’s biopolymers business growth strategy.   

Global Biodegradable Plastics Market Scope

The global biodegradable plastics market is segmented on the basis of product type and application. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Type

• Polylactic Acid (PLA)
• Starch Blends
• Biodegradable Polyesters
• Polyhydroxyalkanoates (PHA)
• Others

Application

• Packaging and Bags
• Consumer Goods
• Agriculture and Horticulture
• Textile
• Others

Global Biodegradable Plastics Market Regional Analysis/Insights

The global biodegradable plastics market is analysed and market size insights and trends are provided by product type and application as referenced above.

The countries covered in this market report are U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, and Rest of Middle East and Africa.

North America dominates the market due to the increased application in agriculture and food & beverages sectors. The plant pots are made from biodegradable plastics in the agriculture and horticulture industries. The increased use of biodegradable plastics in packaging and agriculture is also contributing to the market growth.

Asia-Pacific is expected to grow during the forecast period of 2023 to 2030 due to the growing consumer inclination towards biodegradable plastics. Conventional plastics are one of the most pressing environmental concerns, as they are made from petroleum and take decades to degrade and end up in landfills. Biodegradable plastics degrade quickly and are absorbed into the environment. This has fueled the worldwide demand for biodegradable plastics and is driving the market growth.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Global Biodegradable Plastics Market Share Analysis

The global biodegradable plastics market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the global biodegradable plastics market are:

• BASF SE (Germany)
• NatureWorks LLC (U.S.)
• TT Global Chemical Public Company Limited (Thailand)
• Total Energies (Netherlands)
• Novamont S.p.a. (Italy)
• Fkur (Germany)
• Dupont (U.S.)
• Biome Bioplastics (U.K.)
• Mitsubishi Chemical Holding Corporation (Japan)
• Toray Industries Inc., (Japan)
• Dow (U.S.)
• Plantic (Australia)
• TianAn Biologic Materials Co., Ltd. (China)
• Danimer Scientific (U.S.)
• Evonik Industries AG (Germany)
• Eastman Chemical Company (U.S.)
• DAIKIN (Japan)
• SOLVAY (Belgium)