Poly (Butylene Adipate-Co-Terephthalate) Market Analysis

Global Poly (Butylene Adipate-Co-Terephthalate) Market Overview

Poly (Butylene Adipate-Co-Terephthalate) Market Size was valued at USD 1.6 Billion in 2023. The Poly (Butylene Adipate-Co-Terephthalate) industry is projected to grow from USD 1.74 Billion in 2024 to USD 3.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.89% during the forecast period (2024 - 2032). Adoption as an appropriate replacement for low density polyethylene (LDPE), supportive government policies for green procurement, an increase in the usage of biodegradable plastic in packaging, and a rise in customer appetite for packaged foods, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Poly (Butylene Adipate-Co-Terephthalate) Market Trends

• Shift in consumer preference towards bio-based plastics is driving the market growth

The market for biodegradable plastics like PBAT is expanding as a result of consumer awareness of sustainable plastic alternatives and widespread initiatives to stop using conventional plastics that are not biodegradable. Traditional plastics, which are mostly made of petroleum, take decades to disintegrate and spend a lot of time in landfills. When biodegradable plastics are thrown away or reincorporated into the environment, they degrade more quickly. Additionally, compared to conventional plastics, biodegradable polymers decompose significantly more quickly because to the actions of microbes. The adoption of PBAT is encouraged by the increased public knowledge of these negative consequences (caused by conventional plastics).

Concern over the potential health dangers connected to conventional plastics is also rising. Because PBAT is non-toxic, using it is safer and better for you. PVC, for instance, can result in genetic problems, ulcers, hearing loss, and vision impairment. Customers are paying more attention to how their purchases affect the environment. As a result, there is a rising need for environmentally friendly and sustainable goods, particularly those produced with PBAT.

PBAT is ductile and durable, and it may be produced using standard film extrusion methods. This contributes to the production of films having LDPE-like mechanical characteristics. Nevertheless, PBAT is more rigid than its homopolymers. Incorporating PBAT into polymer blends that contain brittle polymers like PLA (Polylactic Acid) or thermoplastic starch (TPS) can therefore aid increase their toughness without affecting their biodegradability.

Increased research is being conducted by PBAT (polybutylene adipate terephthalate) industry participants to create flexible and moldable composites based on PBAT and calcium carbonate. When compared to other biodegradable plastics, the combination of cheap calcium carbonate and PBAT is somewhat cost-competitive. On the other hand, producers are expanding the amount of packaging films they produce using a mixture of PBAT and PBS (polybutylene succinate). Thus, driving the Poly (Butylene Adipate-Co-Terephthalate) market revenue.

Poly (Butylene Adipate-Co-Terephthalate) Market Segment Insights

Poly (Butylene Adipate-Co-Terephthalate) Application Insights

The Poly (Butylene Adipate-Co-Terephthalate) market segmentation, based on Application, includes composite bags, bin bags, mulch films, cling films, and stabilizers. In 2022, the market segment for composite bags was the largest. This is explained by the fast (3–6 month) degradation of such plastic bags. Additionally, it is a better environmental alternative because to its lower carbon footprint when compared to plastics made from petroleum. Additionally, within the examined time frame, it is anticipated that the booming packaged food and beverage industries in places like Asia-Pacific and Europe will increase demand for biodegradable plastics like polybutylene adipate terephthalate.

Poly (Butylene Adipate-Co-Terephthalate) End Use Insights

The Poly (Butylene Adipate-Co-Terephthalate) market segmentation, based on End Use, includes packaging, agriculture & fishery, consumer goods, and coatings. In 2022, the packaging segment had the greatest share. The packaging sector has been growing steadily over the past few years. The packaging industry has been significantly influenced by the food and beverage sector. During the projected period, it is anticipated that the packaged food industry's expansion will increase demand for paperboard packaging. Packaging for consumer goods uses PBAT. The application's market share is expected to increase soon. Over the next few years, it is predicted that appealing esthetics will be created by removing unneeded content and elegant, minimalist packaging design will be major trends. Given that PBAT is frequently used in food packaging, the expansion of the packaging sector is one of the major factors driving the worldwide PBAT market. The PBAT market is anticipated to be driven by an increase in demand for packaged foods.

Figure 1: Poly (Butylene Adipate-Co-Terephthalate) Market, by End Use, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Poly (Butylene Adipate-Co-Terephthalate) Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Poly (Butylene Adipate-Co-Terephthalate) market, dominated this market in 2022 (45.80%), a result of government attempts to promote PBAT products, expanding urbanization, a sizable consumer base, growing consumer knowledge of biodegradable products, and sustainability. Growing demand for mulch bags, composite bags, and cling films throughout the region, a growing preference for biodegradable packaging, and rising investments for the development of more advanced PBAT products are also anticipated to propel the growth of the Asia Pacific market. Moreover, China’s Poly (Butylene Adipate-Co-Terephthalate) market held the largest market share, and the Indian Poly (Butylene Adipate-Co-Terephthalate) market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: POLY (BUTYLENE ADIPATE-CO-TEREPHTHALATE) MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Poly (Butylene Adipate-Co-Terephthalate) Market is expected to register fastest growth from 2023 to 2032. The majority of consumption results from the region's residents' rigorous use of compost and rubbish bags made of PBAT. The end-use industries in the area are also actively adopting PBAT-based packing materials for their products. Due to growing public knowledge of biodegradable plastics, there is now a greater need for PBAT in both compostable and biodegradable packaging. Further, the U.S. Poly (Butylene Adipate-Co-Terephthalate) market held the largest market share, and the Canada Poly (Butylene Adipate-Co-Terephthalate) market was the fastest growing market in the North America region.

Europe Poly (Butylene Adipate-Co-Terephthalate) market accounts for the significant market share, because consumers have more discretionary income, the food and beverage industry is expanding quickly, there is a growing consumer demand for biodegradable products, there is a developing market for high-quality packaged foods and food items, there is a growing trend toward compostable packaging, and there are strict regulatory regulations. Future growth of the polybutylene adipate terephthalate market in Europe is anticipated to be fueled by additional factors like rising consumer demand for biodegradable products to lessen environmental impact and rising public and private sector efforts to promote biodegradable plastic to cut down on plastic production. Further, the German Poly (Butylene Adipate-Co-Terephthalate) market held the largest market share, and the U.K Poly (Butylene Adipate-Co-Terephthalate) market was the fastest growing market in the European region

Poly (Butylene Adipate-Co-Terephthalate) Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Poly (Butylene Adipate-Co-Terephthalate) market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Poly (Butylene Adipate-Co-Terephthalate) industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Poly (Butylene Adipate-Co-Terephthalate) industry to benefit clients and increase the market sector. In recent years, the Poly (Butylene Adipate-Co-Terephthalate) industry has offered some of the most significant advantages to medicine. Major players in the Poly (Butylene Adipate-Co-Terephthalate) market, including Far Eastern New Century Corporation, Lotte Fine Chemical Co. Ltd., Jiangsu Tories biomaterials co. Ltd., BASF SE, SK Chemicals, Jinhui Zhaolong High Technology, Novamont SpA., WILLEAP, and Eastman Chemical Company, are attempting to increase market demand by investing in research and development operations.

Chemicals are produced by LG Chem Ltd., a division of LG Corp. Petrochemicals, IT and electrical materials, and energy solutions are all produced and sold by the corporation. Polyvinyl chloride (PVC), ethylene, propylene, butadiene, benzene, polarizers, glass substrates, semiconductor materials, and RO membranes are just a few of the products it offers. Additionally, it sells anti-diabetic medications, growth hormone, vaccines, and battery materials. It also produces and distributes display and battery materials for LCD photoresist, OLED materials, and other displays. After working with a smaller local chemical firm to expand its presence in the eco-friendly product industry, LG Chem Ltd. revealed in September 2021 that the company is preparing to develop biodegradable polymers. According to the terms of the partnership agreement, LG Chem will produce polybutylene adipate-co-terephthalate (PBAT).

A producer of bioplastic raw materials, Novamont S.P.A. supplies products in Italy. The business combines chemistry and agriculture, turning on local bio-refineries and offering an environmentally friendly application, allowing customers to use resources effectively throughout their life cycles with positive social, economic, and environmental effects. A new grade of Mater-Bi that is biodegradable in industrial parts was introduced by Novamont S.P.A. in April 2020 for extrusion coating and lamination on paper board and other substrates.

Key Companies in the Poly (Butylene Adipate-Co-Terephthalate) market include

• Far Eastern New Century Corporation


• Lotte Fine Chemical Co. Ltd.


• Jiangsu Tories biomaterials co. Ltd.


• BASF SE


• SK Chemicals


• Jinhui Zhaolong High Technology.


• Novamont SpA.


• WILLEAP


• Eastman Chemical Company

Poly (Butylene Adipate-Co-Terephthalate) Industry Developments

August 2021: The largest chemical company in South Korea, LG Chem Ltd., revealed plans to invest over USD 2.2 billion by 2028 to expand its domestic manufacturing of eco-friendly materials.

June 2022: Together with BASF, Confoil, an Australian producer of food packaging, created a certified compostable dual ovenable paper tray for packing. These trays are built of thin paperboard and have a coating of the biopolymer Ecovio PS 1606 from BASF.

Poly (Butylene Adipate-Co-Terephthalate) Market Segmentation

Poly (Butylene Adipate-Co-Terephthalate) Application Outlook

• Composite Bags


• Bin Bags


• Mulch Films


• Cling Films


• Stabilizers

Poly (Butylene Adipate-Co-Terephthalate) End Use Outlook

• Packaging


• Agriculture & Fishery


• Consumer Goods


• Coatings

Poly (Butylene Adipate-Co-Terephthalate) Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America