Key Market Overview:
Biodegradable plastic market size was worth USD 7.65 Billion in 2022 and is projected to reach around USD 22.12 Billion by 2030, growing at a CAGR of 14.2% during the forecast period (2022-2030).
Biodegradable plastics or bioplastics are plant-based plastics made of such molecules that are easily decomposed and result in less harmful products for the environment. These plastics can decompose naturally with the help of biological organisms such as bacteria, fungi, and algae. Further, these plastics are preferred more than conventional plastics due to their biodegradable nature as they are made from various materials such as starch, cellulose, sugarcane, and biodegradable synthetic polyesters. Moreover, these bioplastics offer various advantageous properties which result in favorable adoption by major manufacturing facilities. The properties include the ability to easily get recycled, consume less energy while manufacturing, and produce less amount of waste after degradation. Some of the major biodegradable plastics are polybutylene adipate terephthalate (PBAT), polyvinyl alcohol (PVA), and polylactic acid (PLA).
Furthermore, the market growth is estimated to witness significant growth owing to the large-scale demand from packaging industries combined with strict rules on the plastic ban imposed by the governments of various countries across the world. The high adoption of such bioplastics also results in creating awareness about their products as an effective alternative to conventional plastic ones. Moreover, starch-based bioplastics were the largest product segment for the biodegradable plastics market in 2021 with a revenue share of more than 42%. Additionally, the packaging waste directive has been set up in Europe which has two main goals— to reduce the negative effect of packaging on the environment and to help resolve trade barriers in terms of favorable rules for sustainable bio-based products made of these bioplastics.
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||22.12 Billion|
|By Type||Polylactic Acid [PLA], Polybutylene Succinate [PBS], Starch Blends, Polybutylene Adipate Terephthalate [PBAT], Polyhydroxyalkanoates [PHA], and Others|
|By Degradation Method||Oxo-Biodegradable, Hydro-Biodegradable, And Photo-Biodegradable.|
|By Application||Disposable Items( Cutlery, Food Service Containers, And Others), Packaging (Flexible Packaging And Rigid Packaging), FMCG (Bags, Bottles, Disposable Bags, Cups, And Bins) Agricultural & Horticultural, And Others|
|By End-user Industry||Packaging Industry, Textile Industry, Agriculture Industry, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey, Switzerland] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]|
|Key Players||Tetra Pak International SA, Plastic Suppliers Inc., Kruger Inc., Amcor Limited Mondi PLC, BASF SE, Total Corbion, Mitsubishi Chemical Corporation, Biome Bioplastics Ltd., Plantic Technologies, Toray Industries Inc., Novamont S.p.A., Bioplastics International|
The demand for eco-friendly food packaging containers boosts the need for biodegradable plastics, which acts as the key driver for the market. Further, agricultural and textile industries leaning towards these non-hazardous and recyclable plastics are also boosting the biodegradable market. Along with that, governments prohibit the use of conventional plastic due to its hazardous effects on the environment. Hence, shifting the interest of manufacturers and consumers towards biodegradable plastic which in result accelerates the market revenue. In the context of consumer preference, bioplastics always remain on the favorable side due to the growing awareness about plastic pollution via examples of growing landfills. Thus, consumers look out for factors such as non-toxicity, ready decomposition, and aid in reducing carbon footprints while buying environment-friendly and sustainable products.
The high cost of biodegradable plastics than conventional plastics is forcing manufacturing industries to choose ordinary plastics over them, which restrains market growth. Along with that, the requirement of special chemical processing by these plastics in a suitable range of temperature and moisture for decomposition also hinders the market growth. Additionally, bioplastics do not offer strength and durability as compared to conventional plastics which significantly limits the market adoption.
With advancements in the innovation of products, many countries are exploring alternatives to biodegradable plastics such as seaweed. An infamous company in Indonesia, Evoware is producing containers made from seaweed which is expected to offer lucrative opportunities for the market in these countries in the forecasting future.
Moreover, numerous recycling methods like chemical recycling and robust mechanical are implemented for the bioplastics. These methods range from techniques such as pyrolysis, depolymerization, and several other methods that decompose the plastics and recover the raw materials. These techniques are adopted as favorable ways to convert used bioplastics into fossil fuel chemicals or renewable chemicals for further use in new product innovations. This led to the high availability of bio-based raw materials and an increase in the production of biodegradable plastics
The biodegradable plastic market has been significantly impacted especially during the COVID-19 pandemic. The disruptions in manpower, logistics, and supply chains coupled with material unavailability have slowed the growth of the industry during the previous year. Production facilities around the globe were shut down during the first half of the pandemic. Additionally, the post-pandemic economic crisis led to a delay in the profitable roll-out of the bio-plastic market. Hence, market suppliers faced frequent challenges as disruptions in the supply chain.
Furthermore, due to the COVID-19 outbreak and its gradual spread, sectors of essential needs such as required food, and getting supplies safely to the customers are drastically affected. Along with that, there has been a sharp reduction in demand for non-essential packaging due to global impact. On the other hand, the need for essential packaging like e-commerce shipment has observed massive growth coupled with facing a new set of challenges. Thus, the effect of COVID-19 on the packaging industries has been mixed due to these reasons.
Biodegradable plastic Market Segmentation:
The type segment is separated into starch blends, polybutylene adipate terephthalate [PBAT], polylactic acid [PLA], polybutylene succinate [PBS], polyhydroxyalkanoates [PHA], and others. The starch blend segment is estimated to contribute the largest revenue share to the industry growth. The starch blend is extensively used in the reduction of the carbon footprint of traditional resins thus, propelling the market growth. Along with that, the starch blend is a bio-based and biodegradable plastic that has low toxicity. Further, polylactic acid (PLA) is projected to register the fastest CAGR growth during the forecast period owing to the increased demand for its application in home products, textiles, electronic appliances, hygiene products, and agriculture. The PLA is a compostable and biodegradable thermoplastic manufactured by the fermentation of sugar obtained from various renewable sources, such as sugarcane, wheat, corn starch, and tapioca roots.
By Degradation Method
The degradation method segment is classified into Oxo-Biodegradable, Hydro-Biodegradable, and Photo-Biodegradable. The oxo-biodegradable segment is projected to contribute the largest shares in the market growth during the forecast future. These plastics are degraded by certain cell-mediated reactions and oxidative techniques by bacteria and fungi. Oxo-biodegradable plastics are certified as safe for use at high temperatures in terms of all food-type packaging. They are offered in various forms plastic bags, films, containers, and many more. Thus, oxo-biodegradable plastics find a wide variety of applications in the food industry. Furthermore, hydro-biodegradable plastics are also expected to contribute a substantial share in the market growth owing to the factor that they degrade faster than any other bio-plastics. Since they are made using renewable resources they degrade faster. However, they are far more expensive and have less strength limiting their wide adoption in the market.
The application segment is divided into disposable items, packaging, agricultural & horticultural, and others. The packaging segment contributes the largest revenue share over 48 %( 1.15 million tons) of the total biodegradable plastic market in 2021. Sectors such as the food industry, e-commerce, personal care & cosmetics, and others are finding a wide variety of applications in the packaging sector. Moreover, the shifting preferences of customers towards eco-friendly products are also encouraging manufacturers to lean towards bioplastics-based packaging. Furthermore, disposable items such as cutlery, food service containers, and even medical equipment are also projected to hold a substantial share in the market growth. These disposable items undergo methods that utilize flexible bioplastic resins. These resins are then mixed with a biodegradable plasticizer such as acetyl tributyl citrate (ATBC). This process results in a flexible biodegradable material that is molded into several pieces of medical equipment as well such as a multidose syringe, suction canister, specimen tube, needle cap and needle safety shield, scalpel, sharps container, toner cartridge, and ink cartridges.
By End Use
The end-user segment is categorized into packaging, textile, agriculture, and others. The packaging segment registered the largest revenue of the industry growth during the forecast period. This is attributed to the inclination of customers towards bio-based plastic from conventional plastics. The growing awareness about the environment along with usage in food packaging are offering numerous applications. Additionally, the textile segment is also projected to contribute substantial shares to the market growth in terms of volume and revenue. One of the major textile applications of such bioplastics is in protective clothing or protective equipment. Bioplastics are primarily used in such protective textiles due to water and thermos-regulating properties, along with the availability of allergen-free and sustainable production of bioplastic-based fabrics.
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa, Latin America. Europe is expected to contribute the largest revenue share to the market growth. The factors such as the increased consumer awareness in terms of the consumption of biodegradable plastic as preventive measures coupled with the growing government regulations on the usage of plastics support the market growth. The government encouraging the decision of the EU to minimize the complete consumption of single-use plastic goods by 80% in the region by 2019 which is expected to increase the demand for biodegradable plastics during the projected period.
Moreover, the large presence of established market players is estimated to accelerate the market growth in the Europe region. Along with that, the increasing R&D investments in the bioplastics industries by the public, as well as private organizations, are also expected to create favorable circumstances for the market statistics.
Biodegradable plastic Market Competitive Landscape:
The competitive landscape of the biodegradable plastic industry helps in gaining a better understanding of the latest outlook of the global market coupled with the regulatory policies of the country. The research forecast also helps in assessing the future evolution of the industry by offering measurable and qualitative insights on market valuation, development trends, and size for global market segments. The key players operating in the market include-
• Tetra Pak International SA
• Plastic Suppliers Inc.
• Bioplastics International
• Kruger Inc.
• Amcor Limited Mondi PLC
• BASF SE
• Total Corbion
• Mitsubishi Chemical Corporation
• Biome Bioplastics Ltd.
• Plantic Technologies
• Toray Industries Inc.
• Novamont S.p.A.