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 2029
Market Analysis and Size
Over the last few years, governments have increasingly focused on green procurement policies, which is also acting as a key determinant favoring the growth of the biodegradable plastics market. For instance, the German government announced in 2020 that from July 2021, single-use plastic products such as cutlery, straws, food containers, and other similar products will be prohibited from being sold in the country. Moreover, the various advantages of biodegradable plastic over non-degradable and non-decomposable plastic as non-degradable plastic creates major waste management problems such as water and land air pollution, largely contributing to the expansion of biodegradable plastics market.
Global biodegradable plastics market was valued at USD 7.70 billion in 2021 and is expected to reach USD 22.28 billion by 2029, registering a CAGR of 14.20% during the forecast period of 2022-2029. The packaging and bags accounted for the largest share in the biodegradable plastics market over the forecast year owing to the stringent government regulations implemented across the packaging sector. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.
Report Scope and Market Segmentation
2022 to 2029
2020 (Customizable to 2014 - 2019)
Revenue in USD Billion, Volumes in Units, Pricing in USD
By Product Type (Polylactic Acid (PLA), Starch Blends, Biodegradable Polyesters, Polyhydroxyalkanoates (PHA), Others), Application (Packaging and Bags, Consumer Goods, Agriculture and Horticulture, Textile, Others)
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, Rest of Middle East and Africa
Market Players Covered
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) and SOLVAY (Belgium)
Biodegradable plastics are made from petroleum and renewable raw materials like 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.
Biodegradable Plastics Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
- Growing Consumer Inclination towards 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 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. According to data published by the European Environment Agency in January 2021, nearly 40% of respondents said they planned to adopt more sustainable behavior in the future. As a result, rising environmental concerns are expected to drive the biodegradable plastics market.
Furthermore, 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 food and beverage (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 segment's growth.
- Surging Consumer Awareness
Furthermore, 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 2022 to 2029.
- Favourable Regulations and Policies
Additionally, the 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.
- 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.
Moreover, factors such as the fluctuating oil prices that create volatility in demand for biodegradable plastics, complex production process, and the limited regulations related to biodegradable plastic in developing economies are also anticipated to hamper market growth.
This 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 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.
COVID-19 Impact on Biodegradable Plastics Market
The coronavirus had an adverse impact on the biodegradable plastics market. The consumer goods, packaging, textiles, agriculture, and horticulture are all industries that use biodegradable plastics, which were all negatively affected by the pandemic. The global suspension of vehicle movement is expected to disrupt the logistics of various companies, affecting market growth over the forecast period. The total shutdown of downstream operations results in high inventory costs. Furthermore, future project delays and investment cuts will have a negative impact on growth. The rapid growth of single-use plastics in the mask and glove industry will have an impact on biodegradable plastics market growth. Delays in key approvals, such as the resolution of new plants due to a travel advisory, currency risks, and weak demand in emerging markets, may stymie growth. The supply chain disruptions led to the reduction in revenue targets of almost 75% of the businesses as per the Institute for Supply Management Research. Moreover, consumer demand has decreased as people are now more focused on removing non-essential expenses from their budgets since the general economic situation of most people has been badly impacted by the outbreak.
On the flip side, the demand for e-commerce shipment classified as essential packaging has increased dramatically. Furthermore, due to these factors, the impact of the Covid-19 pandemic on the packaging industry will be mixed. Furthermore, due to these factors, the impact of the Covid-19 pandemic on the packaging industry will be mixed.
- In February 2020, BASF and the Fabbri Group (Italy) formed a joint venture to develop a sustainable cling film solution for fresh-food packaging. Meat, seafood, and fresh fruits and vegetables will all be wrapped in the film. The Fabbri group will produce it using BASF's Ecovio bioplastic, which will increase demand for biodegradable plastics in packaging applications.
- In April 2021, IMA Coffee, a market leader in coffee handling, processing, and packaging, has announced a new strategic partnership with NatureWorks. This collaboration aims to expand North America's market for high-performance compostable K-cups.
Global Biodegradable Plastics Market Scope
The biodegradable plastics market is segmented on the basis of product type and application. The growth amongst these segments will help you analyze 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.
- Polylactic Acid (PLA)
- Starch Blends
- Biodegradable Polyesters
- Polyhydroxyalkanoates (PHA)
- Packaging and Bags
- Consumer Goods
- Agriculture and Horticulture
Biodegradable Plastics Market Regional Analysis/Insights
The biodegradable plastics market is analyzed and market size insights and trends are provided by country, product type and application as referenced above.
The countries covered in the biodegradable plastics market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the high demand for biodegradable plastics due to rising environmental concerns and stringent regulations on petroleum-based plastics within the region.
On the other hand, Asia-Pacific is estimated to show lucrative growth over the forecast period of 2022-2029, due to the easy availability of raw materials within the region. Moreover, the surging awareness regarding biodegradable plastics utilization as a viable substitute to conventional plastics also accelerates market demand over the region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact 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 Biodegradable Plastics Market Share Analysis
The 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 biodegradable plastics market.
Some of the major players operating in the 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)