Biodegradable Plastics Market Analysis

Biodegradable Plastics Market Overview

Biodegradable Plastics Market Size was valued at USD 5.34 billion in 2023. The Biodegradable Plastics industry is projected to grow from USD 5.80 billion in 2024 to USD 11.25 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.63% during the forecast period (2024- 2032). Biodegradable plastics are widely utilized in the packaging business since they are environmentally beneficial. Biodegradable plastic alternatives are becoming more popular as environmental worries about plastic consumption grow (plastics contain hazardous toxins that affect plants, animals, and people). Invasive organisms can use floating plastic debris, which can last hundreds of years in water, as a mode of transit. This aforementioned reason is assisting in the market's expansion.

The demand for this industry is being boosted by tough rules enacted by various governments and federal agencies with the goal of reducing plastic waste and promoting the use of biodegradable plastics in packaging. Green packaging standards are becoming more stringent. As a result, many FMCG companies are being forced to employ biodegradable packaging in order to meet the criteria, which is fueling the market's expansion.

COVID 19 Analysis

Since an immense number of cases are being accounted for due to the Covid pandemic, there are many changes that the global market is undergoing. It is hard for the biodegradable plastics market to change their administrations of this unexpected change. Further, the inaccessibility of raw materials is hampering the economy, efficiency, and the players that are a part of the global market. Additionally, this is further hampering the manufacturing and production units of the market that is creating setbacks and enormous amounts of losses for both the domestic and worldwide Biodegradable Plastics market players. The pandemic has expanded the requirements and centers for medical care and vaccine areas. Consequently, the need is for a wide-scale improvement of the product for the small, medium, and large-scale enterprises.

The global biodegradable plastics markets and governments are understanding the rising need for investment followed by a large-scale launch of the market products and services. The public sector is likewise expanding its research and development quantum for the development of the market. Likewise, the key market players are opting for the development of market products and services and enhancing their portfolio and market range. Innovations and product expansions are on the way for market growth especially during the forecast period that will end in 2030.

List of Key Players in the Biodegradable Plastics Market 

The market players are as follows:

• BASF (Germany)


• Mitsubishi Chemical Holding Corporation (Japan)


• Biome Bioplastics (UK)


• NatureWorks (US)


• Total Corbion (Netherlands)


• Novamont (Italy)

Market Dynamics

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  Drivers

  
  

The increasing demand for biodegradable plastics market from various end-use segments along with stringent regulatory and sustainability mandates followed by growing concerns for the environment is driving the demand for biodegradable plastics, especially by the end of the forecast period in 2028. The improving consumer awareness regarding the sustainability of plastic solutions along with increased efforts to eliminate the use of non-biodegradable conventional plastics will contribute towards the global market growth by the end of the period. The traditionally used petroleum-based plastics take years to break or degrade and lay in landfills for a long time. Biodegradable plastics market breaks down 60% and take more than 180 days or less in comparison to traditional plastics which take approximately 1,000 years to break down.

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  Restraints

  
  

There has been a high cost associated with biodegradable plastics market in comparison to the traditional polymers that will restrain the market from growing in various market applications and segments/ the production cost of these plastics is 20-80% higher in comparison to the conventional plastics. The main reason behind this is the high polymerization cost of biodegradable plastics in many processes and is still in the development phase and stage. Economies of scale have yet not been received that is hampering the market growth during the forecast period.

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  Technology Analysis

  
  

The increasing focus on sustainability and favorable government regulations for green procurement policies promise a great expansion of the biodegradable plastics market size especially during the forecast period that will be ending in 2027. Biodegradable plastic manufacturers have significant opportunities and degrees of technology available in the new end-use industries like medical, electronics, and automotive. The manufacturers are investing in research and development activities for the use of biodegradable plastics in various applications of an array of market industries like medical and in various functions like stitching materials, implants, and screws. Plastics like PLA and bio-PBS are being used for the manufacturing of medical equipment and devices.

Study Objectives

• The biodegradable plastics market report helps in examining the potential factors that will lead to the elements of the market that will bring about accomplishing a higher development CAGR and market income before the forecast period that will be ending in 2027. The report additionally examines the basis on which the report has been curated and forecasts made by the industry chiefs and business specialists.


• The report further assists with having a productive Biodegradable Plastics market investigation of the market working in different regional and worldwide business sectors. The report likewise comprehends the basis of the global market segmentation that will be useful in improving the income enhancement capability and investments of the market and further, enhance the market chances of reaching the predicted growth scale and revenue quantum by the end of the forecast period of 2027.


• The market further means to have a qualitative discussion of the biodegradable plastics market working from the competitive point of view. The report judges the potential of the market players by the new improvements and recent developments attempted by them during the period. The market report likewise discusses the mergers, acquisitions, joint ventures, and coordinated efforts that will be useful in mass development and adding quality to the Biodegradable Plastics market by the end of the period in 2027.

Segment Overview

The biodegradable plastics market revenue is enhancing because of the rising potential of the segments to meet the rising needs of the target audience. The market has been segmented based on the following factors:

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  Based on the types:

  
  

The market deals in PLA, PHA, starch blends, biodegradable polyesters in the form of PCL, PBS, and PBAT, amongst others like cellulose derivative, and regenerative cellulose that will help in meeting the rising needs of the target audience.

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  Based on the industry end-use:

  
  

The Biodegradable Plastics industry end-use includes the packaging industry, consumer goods, textiles, and agriculture, and horticulture. Packaging is further divided into rigid and flexible packaging. Consumer goods include domestic and electrical appliances. Textiles include medical, healthcare, personal care, and clothes, amongst others. The last Biodegradable Plastics market segment that is agriculture and horticulture includes tapes and mulch films.

Regional Analysis

The biodegradable plastics market trends have been divided into 4 major regions across the globe namely North America, Europe, North America, and the rest of the world (RoW). The growth of the biodegradable plastics market is likely to soar high and reach the maximum market limit in the APAC region. The main reason behind this is the easy availability of raw materials that is helpful and is being used to manufacturer the manufacturing of biodegradable plastics. Also, the growth of the market products in the APAC region is dependent on the awareness about the use of plastics as a viable alternative for traditional plastics that are available at a reduced market price.

Recent Developments

• February 2022: Kaneka, a Tokyo-based chemical business, wants to double the present output of a biodegradable polymer that can be utilized in a wide range of plastic applications to 20,000 tons per year. According to Kaneka, this polymer, designated PHBH, is biosynthesized by microorganisms using plant oils as the major raw source. The polymer, which is made entirely of plant-based materials, has been verified to breakdown in seawater. Microorganisms will eventually breakdown more than 90% of PHBH products into carbon dioxide and water if they are discharged into the sea, according to the business. A new rule in Japan is set to take effect in April, requiring businesses to minimize their usage of plastics. As customers and investors pay more attention to firms' social responsibility and environmental performance, demand for Kaneka's biodegradable polymer has increased.

Report Overview

The biodegradable plastics industry report focuses on the development of market factors that will be responsible for the expansion of the market operations during the forecast period. The market report has a qualitative discussion on the impact of the pandemic on the operations followed by the performance of the market segments. The report also covers the performance of the key market players in the domestic and international market. The report further, discusses the recent developments in the form of collaborations and joint ventures that are entered by these players for mass benefit.

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