Global Polyhydroxybutyrate (PHB) Market Size, Share, And Business Benefits By Type (Poly-3-hydroxybutyrate (P3HB), Poly-4-hydroxybutyrate (P4HB), Poly-3-hydroxybutyrate-co-3-hydroxyvalerate (PHBV), Poly-3-hydroxybutyrate-co-3-hydroxyhexanoate (PHBH), Others), By Source (Plant-based, Bacteria-based, Others), By Application (Packaging, Biomedical, Pharmacological, Veterinary, Agriculture, Personal Care, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Polyhydroxybutyrate (PHB) Market is expected to be worth around USD 679.1 million by 2034, up from USD 146.2 million in 2024, and grow at a CAGR of 16.6% from 2025 to 2034. Asia Pacific’s 46.2% dominance reflects growing demand for biodegradable plastics across industries.

Polyhydroxybutyrate (PHB) is a type of biopolymer that belongs to the polyhydroxyalkanoates (PHA) family. It is naturally produced by microbial fermentation of sugars or lipids and is fully biodegradable and biocompatible. PHB looks and performs very much like polypropylene, offering good tensile strength and UV resistance, but it breaks down completely into carbon dioxide and water under composting conditions.

The Polyhydroxybutyrate (PHB) market revolves around producing, commercializing, and applying this biopolymer in industries like packaging, agriculture, textiles, and medical devices. With rising global concerns around plastic waste, governments and industries are turning to PHB as a solution. The market has been witnessing gradual but steady growth, supported by innovations in biotechnology and increasing investments in sustainable material development.

Government bans on single-use plastics and strict environmental regulations are major growth drivers for PHB. Countries across Europe and parts of Asia are implementing regulations encouraging biodegradable plastics, creating a stronger market push. Also, the growing consumer preference for sustainable packaging and green alternatives further boosts PHB demand across various sectors.

Demand for PHB is rising sharply in packaging, agriculture films, and biomedical applications. Consumer goods companies are shifting towards compostable packaging solutions to align with global sustainability goals. As more industries seek biodegradable material options, PHB’s demand outlook is becoming stronger year-on-year, especially in high-growth economies.

Key Takeaways

• Global Polyhydroxybutyrate (PHB) Market is expected to be worth around USD 679.1 million by 2034, up from USD 146.2 million in 2024, and grow at a CAGR of 16.6% from 2025 to 2034.
• In 2024, Poly-3-hydroxybutyrate (P3HB) captured a leading 46.3% share in the PHB market type.
• Plant-based sources dominated the Polyhydroxybutyrate (PHB) market in 2024, accounting for a strong 58.4% share.
• Packaging applications led the Polyhydroxybutyrate (PHB) market in 2024, holding a significant 37.3% global share.
• The PHB market size in Asia Pacific reached a strong USD 67.5 million.

By Type Analysis

In 2024, Poly-3-hydroxybutyrate (P3HB) captured a strong 46.3% market share.

In 2024, Poly-3-hydroxybutyrate (P3HB) held a dominant market position in the By Type segment of the Polyhydroxybutyrate (PHB) Market, with a 46.3% share. The strong performance of P3HB can be linked to its superior biodegradability, excellent biocompatibility, and enhanced mechanical properties compared to other PHB types.

Industries like packaging, agriculture, and biomedical are increasingly adopting P3HB-based solutions to meet the rising demand for sustainable alternatives. Its ability to completely break down without leaving toxic residues has made it a preferred choice in eco-conscious markets. In 2025, this momentum is expected to continue, with Poly-3-hydroxybutyrate anticipated to retain a notable share owing to regulatory pushes for biodegradable materials.

The growth of green packaging initiatives, coupled with the increasing focus on carbon footprint reduction, will further fuel its adoption. Moreover, P3HB’s flexibility in processing and compatibility with existing manufacturing technologies support its expansion across various end-use sectors. The growing awareness among consumers about environmental impacts is also adding to the rise of P3HB products.

By Source Analysis

Plant-based sources dominated the Polyhydroxybutyrate (PHB) market, accounting for a significant 58.4% share.

In 2024, Plant-based held a dominant market position in the By Source segment of the Polyhydroxybutyrate (PHB) Market, with a 58.4% share. The dominance of plant-based PHB is mainly driven by the global shift toward renewable and sustainable resources. Growing environmental concerns and the push to reduce dependency on petroleum-based plastics are major factors fueling demand for plant-derived PHB.

Companies are increasingly investing in plant-based raw material sourcing to produce biodegradable plastics without compromising on performance or quality. In 2025, the momentum around plant-based PHB is expected to stay strong, with governments supporting bio-based product initiatives through grants and subsidies. Consumer preference is also playing a key role, as buyers are actively seeking eco-friendly alternatives with minimal environmental impact.

Plant-based PHB offers advantages like a lower carbon footprint, easier compostability, and strong mechanical properties, making it highly attractive across industries like packaging, agriculture, and medical devices. With continuous advancements in fermentation technologies and cost-effective biomass sourcing, the plant-based segment is likely to expand further.

By Application Analysis

Packaging applications led the PHB market in 2024, holding a notable 37.3% share.

In 2024, Packaging held a dominant market position in the By Application segment of the Polyhydroxybutyrate (PHB) Market, with a 37.3% share. The leadership of packaging applications is largely driven by the increasing demand for sustainable, biodegradable materials in consumer goods and food industries.

PHB’s natural compostability and strong barrier properties make it an ideal replacement for conventional plastics used in packaging solutions. Brands across the globe are shifting toward eco-friendly packaging to meet regulatory pressures and growing consumer demand for green products. In 2025, the packaging sector is projected to further expand its use of PHB, fueled by bans on single-use plastics and corporate sustainability targets.

The lightweight nature, good oxygen barrier performance, and biodegradability of PHB packaging align perfectly with the needs of industries seeking both functionality and environmental responsibility. Companies are introducing innovative PHB-based packaging products for applications such as bags, containers, and food wraps, strengthening the segment’s dominance.

With rising awareness among consumers regarding plastic pollution and governments encouraging biodegradable packaging, PHB adoption in this application area is expected to grow steadily. The packaging segment’s solid foundation will likely continue supporting its stronghold in the By Application category through 2025.

Key Market Segments

By Type

• Poly-3-hydroxybutyrate (P3HB)
• Poly-4-hydroxybutyrate (P4HB)
• Poly-3-hydroxybutyrate-co-3-hydroxyvalerate (PHBV)
• Poly-3-hydroxybutyrate-co-3-hydroxyhexanoate (PHBH)
• Others

By Source

• Plant-based
• Bacteria-based
• Others

By Application

• Packaging
• Biomedical
• Pharmacological
• Veterinary
• Agriculture
• Personal Care
• Others

Driving Factors

Growing Demand for Biodegradable Plastics Across Industries

One of the top driving factors for the Polyhydroxybutyrate (PHB) market is the growing demand for biodegradable plastics across industries. With increasing concerns about plastic pollution and its harmful impact on the environment, industries like packaging, agriculture, and healthcare are rapidly shifting toward sustainable alternatives.

PHB, being fully biodegradable and produced from renewable sources, perfectly fits the need for eco-friendly solutions. Governments across various countries are banning single-use plastics and promoting the adoption of biodegradable materials, which is pushing companies to invest more in PHB-based products. Additionally, consumers are becoming more aware of environmental issues, preferring products that leave a lower carbon footprint.

Restraining Factors

High Production Costs Limit Large-Scale PHB Adoption

One of the biggest restraining factors for the Polyhydroxybutyrate (PHB) market is the high production cost. Compared to traditional petroleum-based plastics, making PHB requires expensive raw materials, advanced fermentation processes, and costly purification steps. These higher costs make PHB products more expensive for end-users, limiting their adoption, especially in cost-sensitive markets.

Although PHB offers great environmental benefits, many industries still hesitate to switch because of pricing concerns. In addition, limited large-scale production facilities add to the challenge of reducing costs. Until newer, more cost-efficient production technologies are developed or raw material sourcing becomes cheaper, the high price gap will continue to slow down the mass acceptance of PHB across different industries.

Growth Opportunity

Expansion of Sustainable Packaging Solutions Using PHB

A major growth opportunity for the Polyhydroxybutyrate (PHB) market lies in the expansion of sustainable packaging solutions. As more industries, especially food, beverage, and consumer goods, commit to greener practices, the demand for eco-friendly packaging is rising fast.

PHB’s excellent biodegradability and safe composting characteristics make it a perfect material for replacing traditional plastics in packaging applications. Brands are under increasing pressure to meet sustainability goals, offering huge chances for PHB-based innovations like bags, wraps, containers, and disposable packaging products.

Also, supportive government policies and growing consumer preference for green-packaged goods are pushing companies to invest more in PHB packaging. This shift toward sustainable solutions will open massive new markets for PHB in the coming years.

Latest Trends

Use of Advanced Fermentation Methods for PHB Production

One of the latest trends in the Polyhydroxybutyrate (PHB) market is the use of advanced fermentation methods for production. Companies and researchers are focusing on improving fermentation techniques to make PHB more cost-effective and efficient.

New microbial strains and genetically modified bacteria are being used to increase the yield of PHB from renewable sources like sugarcane, corn, and waste biomass. These innovations are helping to reduce production time, lower costs, and make the entire process more sustainable.

As technology improves, it becomes easier to produce PHB on a larger scale, meeting the rising global demand. This trend is expected to make PHB more competitive against traditional plastics and strengthen its role in the future of biodegradable materials.

Regional Analysis

In 2024, Asia Pacific dominated the PHB market with a 46.2% share.

In 2024, Asia Pacific held a dominant market position in the global Polyhydroxybutyrate (PHB) market, accounting for 46.2% of the overall share and reaching a market value of USD 67.5 million.

The strong presence in Asia Pacific is supported by rapid industrialization, growing environmental awareness, and government initiatives promoting biodegradable plastics in countries like China, India, and Japan.

North America is another important region, driven by rising consumer demand for sustainable packaging and strong regulatory frameworks supporting green materials. Europe is showing steady growth as well, thanks to strict environmental policies and increasing adoption of bio-based plastics across the packaging and agriculture sectors.

The Middle East & Africa region is witnessing emerging interest in PHB products, mainly fueled by sustainability initiatives and diversification of material sourcing. Latin America is gradually expanding its PHB usage, with food packaging industries and agricultural applications opening new opportunities.

Key Regions and Countries

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

Key Players Analysis

In 2024, BioCrick BioTech continues to strengthen its position in the Polyhydroxybutyrate (PHB) market through its focus on biotechnological innovations. The company’s expertise in microbial fermentation and natural product extraction offers a competitive edge, helping it deliver high-quality PHB materials tailored for pharmaceutical and research applications.

Becton, Dickinson and Company (BD) leverages its strong presence in medical devices and diagnostics to explore sustainable material integration, including PHB-based components. With healthcare industries increasingly seeking greener alternatives, BD’s investment in biodegradable materials like PHB aligns with its broader environmental, social, and governance (ESG) goals. In 2024, BD’s initiatives to develop biocompatible, eco-friendly medical products are enhancing its brand value and future-proofing its product lines.

Polysciences Inc. is emerging as a key supplier in the PHB market by offering high-purity PHB resins for industrial and laboratory use. The company’s specialization in specialty polymers and custom formulations enables it to cater to niche markets demanding biodegradable solutions. In 2024, Polysciences is benefiting from a surge in demand for eco-friendly materials in sectors such as packaging, life sciences, and electronics.

Top Key Players in the Market

• BioCrick BioTech
• Becton, Dickinson and Company
• Polysciences Inc
• TianAn Biologic Materials Co., Ltd.
• Kaneka Corporation
• Newlight Technologies
• Bluepha PHA
• PhaBuilder
• Other Key Players

Recent Developments

• In February 2025, BD announced its intent to separate its Biosciences and Diagnostic Solutions business to enhance strategic focus and drive growth. This separation aims to create a pure-play medical technology company and a standalone life sciences and diagnostics business.​
• In April 2024, Kaneka introduced the first reusable food containers made from Green Planet™. These containers were adopted by Japan Airlines (JAL) for serving side dishes on international flights starting June 2024. The initiative aimed to reduce the use of petroleum-derived plastics and lower CO₂ emissions by approximately 30% due to the containers’ lighter weight.

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