Global Biodegradable Plastic Market By Product Type (Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch Blends, Polycaprolactone (PCL), Polybutylene Succinate (PBS), Other Product Types), By Application (Packaging, Agriculture, Textiles, Automotive, Consumer Goods, Other Applications) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032.

Report Overview

In 2022, the Global Biodegradable Plastic Market size was valued at USD 5.8 Billion and is expected to reach USD 25.1 Billion in 2032. and from 2023 to 2032, this market is estimated to register a CAGR of 16.2%.

Biodegradable plastic is a type of plastic that can decompose naturally. Under certain conditions, it breaks down into carbon dioxide, water, and biomass. Companies across the globe have been researching and developing these plastics for years, resulting in less harmful versions to the environment.

Unlike regular plastic, biodegradable plastic’s properties come from the polymer’s chemical structure rather than the raw materials used to make it. The degradation of plastics is inconsistent due to varying disposal conditions worldwide. They can be broken down through controlled degradation in a specific environment or with the help of enzymes.

Furthermore, Biodegradation refers to the characteristic of a material being able to entirely transform into water, CO2, and biomass through the activity of microorganisms such as fungi and bacteria. Biodegradable plastics can decompose with the help of microorganisms in the environment by becoming part of the microbial food web.

Actual Numbers Might Vary in the Final Report.

Key Takeaways

• Biodegradable Plastic Market to Experience Annual Compound Growth at CAGR 16.2%
• The projected to reach a valuation of USD 25 Billion By 2032.
• In 2022, the market was valued at USD 5.8 Billion.
• Product Analysis: Starch blends were an enormous force in the biodegradable plastics market, accounting for 40% market share.
• Application Analysis: Packaging currently commands a 58% market share due to growing consumer interest in eco-friendly options in packaging solutions.
• Europe dominated this global study (44%). Consumer awareness and government regulations regarding non-biodegradable plastics contributed significantly.
• Drivers: Increased demand for biodegradable plastic packaging of food and consumer goods as well as government restrictions on single-use plastics have led to an increased interest in more biodegradable alternatives.
• Restraints: Biodegradable plastics present a costly barrier to market growth.
• Opportunities: Rising demand across various end-use industries such as medical and automotive.
• Trends: Increase in biodegradable plastic use due to consumer disapproval of single-use plastics.
• Key players in the market include Eastman Chemical Company, NatureWorks LLC, Novamont SPA, and Yield10 Bioscience among many others.

Market Scope

Product Type Analysis

The Starch Blends Segment Held the Largest Market Share in the Global Biodegradable Plastic Market.

Based on product type, the global biodegradable plastic market is segmented into Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch Blends, Polycaprolactone (PCL), Polybutylene Succinate (PBS), and Other Product Types. Among these, starch blends were the most dominating segment in 2022, with a market share of 40%.

Starch-based polymers are a promising alternative to oil-based polymers for food packaging. The chemical industry is shifting toward eco-friendly products to create a sustainable environment. Plastics that are biodegradable and made from starch are less toxic because they are derived from plant-based materials.

Therefore, these starch-based polymers are generally used for food packaging, which is predicted to boost the market for packaged fish, meat, and vegetables during the forecast period.

After the starch blend, Polylactic Acid (PLA) is expected to experience substantial growth in the coming years. Owing to its properties such as eco-friendliness and sustainability, it has become a popular alternative to traditional plastic that is made from non-renewable materials.

As the need for eco-friendly products has grown, so has the biodegradable plastic market demand such as polylactic plastics also grown.

Application Analysis

The Packaging Segment Is The Most Dominant Because Consumers Are Seeking Environmental Friendly Packaging Solutions.

Based on applications, the market for global biodegradable plastic is divided into packaging, agriculture, textiles, automotive, consumer goods, and other applications. The packaging segment held the largest share of 58% among these applications. This dominance is attributed to the shifting preferences of consumers towards sustainability.

Therefore, if manufacturers use biodegradable packaging, it can help them to improve their brand’s reputation, draw in eco-conscious customers, and foster a positive experience for sustainable packaging. The increasing demand for packaged food impacts the need for biodegradable plastics in packaging applications.

After packaging, the agricultural sector is the second most dominating application in the market. The biodegradable plastic is widely used in the agriculture sector. Using biodegradable plastic in agriculture, mulch ensures water conservation in the soil, suppresses weed growth, and maintains favorable soil temperatures to facilitate faster plant growth. This leads to its market’s growth.

Key Market Segments

By Product Type

• Polylactic Acid (PLA)
• Polyhydroxyalkanoates (PHA)
• Starch Blends
• Polycaprolactone (PCL)
• Polybutylene Succinate (PBS)
• Other Product Types

By Applications

• Packaging
• Agriculture
• Textile
• Automotive
• Consumer Goods
• Other Applications

Drivers

The Increase In Demand For Biodegradable Plastic In the Packaging of Food and Consumer Goods Is  Anticipated To The Growth of the Global Biodegradable Plastic Market.

The market for biodegradable plastic is booming owing to the growing packaging sector for consumer goods, food, and beverages. Consumers across the world are becoming more aware of the importance of sustainable packaging, thereby growing the demand for biodegradable materials. As individuals become more conscious of the environment, they’re more likely to use sustainable materials for everyday use.

Moreover, several leading key players in the industry are launching new products with less harmful substances that can be reused. In addition, sustainable products with fewer chemicals are better alternatives for non-biodegradable plastics, which is expected to boost its demand in the coming years.

Government Restrictions On Single-Use Plastic is Providing A Huge Benefit To The Biodegradable Plastic Market.

Non-decomposable plastics are a major source of pollution, and to address this issue, several regions around the world have banned the usage of non-composable plastics. This ban on single-use plastics and the growing awareness among individuals about the harmful environmental effects of plastic waste drive the market growth. In addition, consumers are willing to pay higher prices for bio-friendly plastics, increasing the demand for bio-based plastics over the forecast period.

Restraints

The cost associated With Biodegradable Plastics Is A Major Restraint On Growth.

Owing to high production costs, the market growth is expected to slow down over the forecast period. The cost of manufacturing biodegradable plastic would be much higher than manufacturing fossil-based plastic. This factor is negatively impacting the demand in developing countries. Moreover, the production cost of biodegradable plastics is highly dependent on feedstock prices.

The increasing prices of raw materials further increase the cost of bio-based plastics. The cost of polylactic acid (PLA) can range from 20 to 50% higher than other materials due to the complex process of converting sugarcane or maize into building blocks for producing PLA.

Opportunity

The Increasing Demand From Various End-Use Industries Is Anticipated To Create Lucrative Opportunities for Key Players.

The ban on conventional plastics and government policies toward sustainable ecosystem development drive market growth. In addition, profitable government regulations and a growing emphasis on eco-friendly plastic for biodegradable materials are expected to boost the market’s growth.

However, green procurement guidelines offer significant growth opportunities for biodegradable plastic manufacture in end-use industries such as medical, electronics, automotive, etc. Biodegradable plastics such as PGA, PCL, PLA, bio-PBS, etc., are used to manufacture bio-medical devices and equipment.

Biodegradable plastic converters strongly support research and development efforts for eco-friendly plastic in various bio-medical applications such as implants, stitching materials and screws. Factors as such these are expected to create more opportunities for emerging key players in the market.

The Increasing Adoption Of Emerging Technologies To Create New Opportunities.

The constant introduction of new technologies into the biodegradable plastics manufacturing processes is expected to provide ample investment opportunities to the market in the coming years. For instance, antimicrobial technology has been introduced into biodegradable materials manufacturing.

This technology provides materials with a longer shelf life and extends the preservation of packaged products, especially food products. Antimicrobial packaging prevents deterioration and ensures microbiological and chemical food safety by preventing microbial growth.

Trends

Biodegradable Plastics are Becoming Increasingly Popular in the Global Market due to the Increasing Demand for Environmentally Friendly Alternatives and Single-Use Plastics.

Biodegradable plastics are becoming increasingly popular as consumers and manufacturers work to reduce plastic waste and its negative effects on ecosystems. Single-use plastics are a major source of pollution and environmental degradation, and biodegradable plastics are a better alternative. Biodegradable single-use cutlery, straws, cups, and food containers are becoming increasingly popular.

Biodegradable plastics are experiencing rapid growth due to the growing demand from consumers for more sustainable alternatives to conventional petroleum-based plastics. Biodegradable plastics are a fast-growing market due to the growing need for sustainable packaging solutions.

Regional Analysis

Europe Holds Region Accounted Significant Share of the Global Biodegradable Plastic Market

Europe holds the largest market share of 44% in the global biodegradable plastic market. This region was one of the leading revenue generators in the biodegradable plastic market in 2022 globally. Consumer awareness about the utilization of sustainable plastic and the European government banning the use of non-biodegradable plastics are the main factors driving the market growth in the region.

The increasing depletion of soil and environment due to the increasing use of plastics has led to a shift towards bio-based plastics that can be recycled and eco-friendly. In addition, Europe aims to cut down on single-use plastic products by 80%, and demand for these materials is increasing.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Innovation is the Driving Force Behind Sustainability, Enabling Key Players To Establish A Dominant Position In The Global Biodegradable Plastic Market.

Key players in this market are operating several strategies through innovation. Innovation is the key to advancing sustainability in the market. Researchers and industry experts are collaborating to produce new biodegradable materials derived from renewable resources such as starch, cellulose, and algae.

Furthermore, the development of processing technologies is increasing biodegradation plastics’ production efficiency and affordability, thus making them more widely available.

Market Key Players

The global biodegradable plastic market is characterized by the presence of several prominent players worldwide, resulting in market segmentation. The emergence of new key players is subject to fierce competition from established market leaders, particularly those with established brand recognition and extensive distribution channels.

Competition in the biodegradable plastics market varies from region to region. For instance, North America and Europe have medium levels of competition due to numerous regional and international players in these regions. In Asia Pacific, competition is relatively low due to the region’s limited number of industry players.

• Mitsubishi Chemical Corporation
• Biome Technologies plc
• Plantic Technologies Limited
• Eastman Chemical Company
• NatureWorks LLC
• Novamont SpA
• Yield10 Bioscience, Inc.
• Synbra Technology BV
• Danimer Scientific
• BASF SE
• PTT MCC Biochem Co., Ltd.
• Total Corbion PLA

Recent Development

In March 2023: According to the latest market data compiled by European Bioplastics in cooperation with the nova-Institute, global bioplastics production capacities are set to increase from around 2.2 million tonnes in 2022 to approximately 6.3 million tonnes in 2027.

In July 2023, A team led by researchers at the University of Washington developed new bioplastics that degrade on the same timescale as a banana peel in a backyard compost bin. These bioplastics are made entirely from powdered blue-green cyanobacteria cells, otherwise known as spirulina.

Report Scope