The global biodegradable plastic market was surpassed at USD 4.2 billion in 2021 and is expected to hit around USD 10.2 billion by 2030, growing at a CAGR of 10.36% from 2022 to 2030.
The increasing use of biodegradable plastics, owing to strict governmental laws prohibiting the use of conventional plastics, coupled with growing awareness among the public towards the ill effects of plastic waste is stoking the growth of the market. The above factors are expected to spur market growth during the forecast period.
Biodegradable plastics are plastics that decompose in the environment within a reasonable period. Biodegradable plastics are made up of renewable raw materials. Many of these plastics require biodegradable additives to enhance the biodegradation process and some may require a specific environment to disintegrate. Time taken by plastics to decompose depends upon various factors such as raw materials used and environmental conditions such as moisture and temperature.
The starch-based segment leads the global market. Starch-based plastics are used in various applications such as packaging, consumer electronics, agriculture, automotive, and textiles. PLA is also one of the most consumed biodegradable plastic-type. It is used in 3D printing, mulch film, and packaging.
Packaging is the leading application of biodegradable plastics. A ban on plastics by European Commission is anticipated to drive the segment during the forecast period. Novel applications of biodegradable plastics in the medical sector for drug encapsulation and medical surgeries are being increasingly practiced.
Around the world, people are facing grave issues of plastic waste as conventional plastics take hundreds of years to decompose. To tackle this, issue several countries have banned the use of single-use plastic products and are promoting the use of eco-friendly biodegradable plastics. Ban of non-reusable conventional plastics in many regions around the globe, especially in Europe and North America is estimated to propel the market. Additionally, improving the standard of living and increasing disposable income in developing countries are likely to augur well for the market in the Asia Pacific and Central & South America.
Key players are investing in research and development activities to create improved products that are strong and can be easily decomposed in the natural environment. Many the companies have integrated the value chain to serve customers better and improve the profits of the company
Scope of The Report
|Market Size in 2021||USD 4.2 billion|
|Revenue Forecast by 2030||USD 10.2 billion|
|Growth rate from 2022 to 2030||CAGR of 10.36%|
|Forecast Period||2022 to 2030|
|Segmentation||Product, application, region
|Companies Covered||Cargill Incorporated; PTT MCC Biochem Co., Ltd.; Biome Technologies plc; Plantic Technologies Limited; BASF SE; Total Corbion PLA; Synbra Technology BV; Futerro; Novamont SpA; NatureWorks LLC; Eastman Chemical Company; Trineso; Danimer Scientific; FKuR Kunststoff GmbH|
Starch-Based was the largest product segment for biodegradable plastics in 2021 with a revenue share of more than 40.0%. Based on product, the market is divided into starch-based, PLA, PBAT, PBS, PHA, and others. The starch-based segment is projected to dominate the market in terms of value as well as volume throughout the forecast horizon. Starch-based plastics are used in application industries such as packaging, automobiles, and agriculture. The PLA Product plastics are also rapidly gaining their ground in the arena. The inexpensive cost of PLA compared to any other Product is a major driving factor for the segment.
PHA is projected to register significant growth during the forecast period. The increasing use of PHA in medical and other applications is expected to fuel the growth of the PHA segment in the market. PHA is majorly used in medical applications such as drug encapsulation and medical implants. Other medical uses include tissue engineering, bone marrow scaffolds, and bone plates. Other than medical, PHA is also used in the production of compost bags; agriculture foil & films; and packaging for food & beverages and consumer products. These factors are expected to fuel the growth of PHA globally.
Packaging was the largest application segment for biodegradable plastics in 2021 with a revenue share of more than 60.0%. Packaging is one of the leading application sectors for biodegradable plastics. It is used in both rigid and flexible packaging. Replacement of conventional plastics by these plastics in food packaging such as boxes, wraps, cups, and plates is gaining momentum, which is supporting the growth of the biodegradable plastic market.
The agriculture sector also held a significant share in the market. The use of biodegradable mulch film ensures conservation of water in the soil, suppression of weed growth, and conducive soil temperature maintenance to facilitate faster crop development. The surging use of biodegradable plastics in consumer goods is also evident in developed economies.
Europe was the largest regional market for biodegradable plastics in 2021 with a revenue share of more than 43.0%. High awareness among people toward plastic waste coupled with European Union ban on single-use plastics is estimated to propel the regional market during r the forecast period. On the other hand, Asia Pacific is expected to emerge as the fastest-growing market in the global arena. Rising disposable income and improving the standard of living in developing countries such as China and India are anticipated to augment the market in the region.
The Central & South America region also emerged as a promising destination in the market. The availability of cheap raw materials is likely to augur well for the market in the region. The region is projected to register a CAGR of 9.6% during the forecast period.
The U.S. market is expected to rise significantly during the forecast period on account of the growing demand for bio-based packaging in the food and consumer goods sectors. Bio bags and bio-based plastics have higher tensile strength, are eco-friendly, and are convenient for use as compared to conventional plastics. As a result, the demand for biodegradable plastics is further projected to propel during the forecast period
The Europe market is anticipated to witness substantial growth over the coming years owing to various factors such as the presence of stringent environment-friendly laws, increasing environmental concerns among consumers, and rising R&D investments in the bioplastics sector by private as well as public organizations. In addition, government initiatives such as the decision of the EU to minimize the overall consumption of single-use plastic products by about 80% in the region by 2019 are anticipated to propel the demand for biodegradable plastics during the forecast period
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