The Biodegradable Plastics Market Size was valued at USD 5.52 billion in 2023. It is projected to reach USD 11.19 billion by 2031 and grow at a CAGR of 9.08% over the forecast period 2024-2031.
The Biodegradable Plastics Market is growing significantly due to rising environmental concerns and stricter regulations on traditional plastics are driving demand for sustainable alternatives. Consumers are increasingly aware of the benefits of bioplastics, and advancements in technology are bringing down production costs. Increasing consumer demand for sustainable packaging solutions and eco-friendly alternatives to traditional plastics is a significant factor propelling market expansion. Additionally, a surge in demand for sustainable packaging solutions and the possibility of government incentives to promote bioplastic use are fueling market growth.
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Market Dynamics
Drivers
Shifting consumer preference toward eco-friendly plastic products
Growing adoption of biodegradable plastics in compostable bag applications and packaging
The surge in the adoption of biodegradable plastics within compostable bag applications and packaging is pivotal for propelling the biodegradable plastics market forward. This adoption is primarily fueled by escalating environmental concerns and a burgeoning preference for sustainable alternatives to conventional plastics. With compostable bags offering an environmentally friendly solution that can decompose into natural elements, industries are increasingly embracing biodegradable plastics to meet consumer demands, thus driving market growth.
Restraint
High Cost of production and manufacturing of biodegradable plastics as compared to traditional plastics
The restraining factor for the biodegradable plastics market is the significant difference in production and manufacturing costs compared to traditional plastics. Biodegradable plastics often require specialized processes and raw materials, increasing production expenses. This higher cost is a deterrent for businesses considering a switch to biodegradable alternatives, especially in price-sensitive markets, hindering the market's growth despite the increasing demand for eco-friendly solutions.
Opportunities
Innovation in materials and technology
Regulatory support and government initiatives promoting biodegradable plastics
Challenges
Reduced Performance and durability compared to traditional plastics
The ongoing conflict between Russia and Ukraine has severely disrupted the global supply chain for essential raw materials, particularly petroleum, essential for biodegradable plastic production. With Russia being a major petroleum exporter, reduced imports and sanctions imposed by many nations due to the war have triggered shortages and significant price hikes. These disruptions have directly impacted the biodegradable plastic market, causing challenges in material sourcing and potentially leading to decreased production and increased costs for manufacturers worldwide. Addressing these challenges may necessitate alternative material procurement strategies and investment in sustainable sourcing practices.
During an economic downturn, the biodegradable plastic market may experience a slowdown in growth due to reduced consumer purchasing power and corporate spending. Businesses may prioritize cost-saving measures, potentially decreasing investment in sustainable alternatives like biodegradable plastics. Additionally, fluctuations in currency values and supply chain disruptions could further exacerbate challenges in sourcing raw materials and manufacturing biodegradable products. Overall, economic downturns present obstacles for the biodegradable plastic market, requiring adaptation strategies to navigate turbulent economic conditions.
By Type
PLA
PHA
Starch Blends
Biodegradable Polyesters
PBAT
PCL
PBS
Others
Cellulose Derivative
Regenerative Cellulose
Starch Blends dominated the type segment of the biodegradable plastic market and generated a revenue share of about 42% in 2023. This dominance is due to their excellent biodegradability, renewable sourcing, and versatility in applications ranging from packaging to consumer goods. Their eco-friendly nature and compatibility with existing manufacturing processes further propelled their adoption, making starch blends a preferred choice for industries seeking sustainable alternatives to conventional plastics.
By End-use Industries
Packaging
Textile
Agriculture
Consumer Goods
Others
By End-use Industries, packaging held the largest revenue share of more than 55% in 2023 owing to the escalating demand for sustainable packaging solutions. Biodegradable plastics offer an eco-friendly alternative to conventional packaging materials, aligning with increasing consumer and regulatory pressures for environmental responsibility. The versatility and compatibility of biodegradable plastics with existing packaging processes further contributed to their dominance in this sector. This trend reflects a growing industry shift towards greener packaging practices to reduce environmental impact.
Regional Analysis
Europe dominated the Biodegradable Plastics Market with the highest revenue share of more than 40% in 2023 due to its stringent environmental regulations and proactive initiatives promoting sustainable practices. The region's commitment to reducing plastic waste and fostering a circular economy framework has driven widespread adoption of biodegradable plastics across industries. Additionally, the presence of advanced recycling infrastructure and increasing consumer preference for eco-friendly products further bolstered Europe's leadership in the biodegradable plastics market.
Asia Pacific is expected to grow at the highest CAGR in the Biodegradable Plastics Market during the forecast period driven by expanding industrialization, burgeoning population, and increasing awareness about environmental sustainability. Furthermore, supportive government regulations and initiatives aimed at reducing plastic waste contribute to the region's accelerated adoption of biodegradable plastics, driving its robust growth in the forecast period.
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REGIONAL COVERAGE:
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The Key Players are Fkur Kunstsoff, BASF, Danimer Scientific, Novamont, Biome Bioplastics, Toray Industries, NatureWorks, Plantic Technologies, Mitsubishi Chemical Holding Corporation, Total Corbion & Other Players.
In February 2024, the Mitsubishi Chemical Group (MCG Group) announced the development of new biodegradable biopolyester resins with a high biomass content and exceptional flexibility. The newly created SA916N and SA916F resins are biodegradable, meaning they can be broken down by microorganisms found in nature.
In September 2023, Chevron Phillips Chemical expanded its partnership with Georgia-based bioplastics company Danimer Scientific to further explore the development and commercialization of high-volume biodegradable plastic products. This collaboration will utilize Danimer's Rinnovo™ polymers through CPChem's loop slurry reactor process at its Bartlesville, Oklahoma facility.
In August 2022, Toray Industries, Inc. made a groundbreaking announcement regarding the development of the world's first 100% bio-based adipic acid. This acid serves as a raw material for nylon 66 (polyamide 66) and is derived from sugars found in inedible biomass.
In November 2020, Biome Bioplastics secured approximately £59k in funding from the Government-backed agency Innovate UK. This funding will be used to develop and test a new generation of biodegradable tree shelters made from their innovative bioplastics.
| Report Attributes | Details |
|---|---|
| Market Size in 2023 | US$ 5.52 Billion |
| Market Size by 2031 | US$ 11.19 Billion |
| CAGR | CAGR of 9.08% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2023-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (PLA, PHA, Starch Blends, Biodegradable Polyesters, and Others) • By End-use Industries (Packaging, Textile, Agriculture, Consumer Goods, and Others) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
| Company Profiles | Fkur Kunstsoff, BASF, Danimer Scientific, Novamont, Biome Bioplastics, Toray Industries, NatureWorks, Plantic Technologies, Mitsubishi Chemical Holding Corporation, Total Corbion |
| DRIVERS | • Shifting consumer preference toward eco-friendly plastic products • Growing adoption of biodegradable plastics in compostable bag applications and packaging |
| Restraints | • High Cost of production and manufacturing of biodegradable plastics as compared to traditional plastics |
Ans. The Compound Annual Growth rate for the Biodegradable Plastics Market over the forecast period is 9.08%.
Ans. The projected market size for the Biodegradable Plastics Market is USD 11.19 billion by 2031.
Ans: Germany dominated the Europe region in the Biodegradable Plastics Market with the highest revenue share in 2023.
Ans: The Biodegradable Plastics Market is primarily driven by increasing environmental concerns, stringent regulations on plastic waste management, and growing consumer demand for sustainable packaging solutions.
Ans: Opportunities for the Biodegradable Plastics Market include expanding applications in various industries such as packaging, agriculture, and consumer goods, driven by the growing demand for eco-friendly alternatives and technological advancements improving product performance.
TABLE OF CONTENT
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.4 Opportunities
4.4 Challenges
5. Impact Analysis
5.1 Impact of Russia-Ukraine War
5.2 Impact of Economic Slowdown
5.2.1 Introduction
5.2.2 Impact on major economies
5.2.2.1 US
5.2.2.2 Canada
5.2.2.3 Germany
5.2.2.4 France
5.2.2.5 United Kingdom
5.2.2.6 China
5.2.2.7 Japan
5.2.2.8 South Korea
5.2.2.9 India
6. Value Chain Analysis
7. Porter’s 5 forces model
8. PEST Analysis
9. Average Selling Price
9.1 North America
9.2 Europe
9.3 Asia Pacific
9.4 Latin America
9.5 Middle East & Africa
10. Biodegradable Plastics Market Segmentation, By Type
10.1 Introduction
10.2 Trend Analysis
10.3 PLA
10.4 PHA
10.5 Starch Blends
10.6 Biodegradable Polyesters
10.6.1 PBAT
10.6.2 PCL
10.6.3 PBS
10.7 Others
10.7.1 Cellulose Derivative
10.7.2 Regenerative Cellulose
11. Biodegradable Plastics Market Segmentation, By End-use Industries
11.1 Introduction
11.2 Trend Analysis
11.3 Packaging
11.4 Textile
11.5 Agriculture
11.6 Consumer Goods
11.7 Others
12. Regional Analysis
12.1 Introduction
12.2 North America
12.2.1 USA
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Eastern Europe
12.3.1.1 Poland
12.3.1.2 Romania
12.3.1.3 Hungary
12.3.1.4 Turkey
12.3.1.5 Rest of Eastern Europe
12.3.2 Western Europe
12.3.2.1 Germany
12.3.2.2 France
12.3.2.3 UK
12.3.2.4 Italy
12.3.2.5 Spain
12.3.2.6 Netherlands
12.3.2.7 Switzerland
12.3.2.8 Austria
12.3.2.9 Rest of Western Europe
12.4 Asia-Pacific
12.4.1 China
12.4.2 India
12.4.3 Japan
12.4.4 South Korea
12.4.5 Vietnam
12.4.6 Singapore
12.4.7 Australia
12.4.8 Rest of Asia Pacific
12.5 The Middle East & Africa
12.5.1 Middle East
12.5.1.1 UAE
12.5.1.2 Egypt
12.5.1.3 Saudi Arabia
12.5.1.4 Qatar
12.5.1.5 Rest of the Middle East
12.5.2 Africa
12.5.2.1 Nigeria
12.5.2.2 South Africa
12.5.2.3 Rest of Africa
12.6 Latin America
12.6.1 Brazil
12.6.2 Argentina
12.6.3 Colombia
12.6.4 Rest of Latin America
13 Company Profile
13.1 Fkur Kunstsoff
13.1.1 Company Overview
13.1.2 Financials
13.1.3 Product/Services Offered
13.1.4 SWOT Analysis
13.1.5 The SNS View
13.2 BASF
13.2.1 Company Overview
13.2.2 Financials
13.2.3 Product/Services Offered
13.2.4 SWOT Analysis
13.2.5 The SNS View
13.3 Danimer Scientific
13.3.1 Company Overview
13.3.2 Financials
13.3.3 Product/Services Offered
13.3.4 SWOT Analysis
13.3.5 The SNS View
13.4 Novamont
13.4 Company Overview
13.4.2 Financials
13.4.3 Product/Services Offered
13.4.4 SWOT Analysis
13.4.5 The SNS View
13.5 Biome Bioplastics
13.5.1 Company Overview
13.5.2 Financials
13.5.3 Product/Services Offered
13.5.4 SWOT Analysis
13.5.5 The SNS View
13.6 Toray Industries
13.6.1 Company Overview
13.6.2 Financials
13.6.3 Product/Services Offered
13.6.4 SWOT Analysis
13.6.5 The SNS View
13.7 NatureWorks
13.7.1 Company Overview
13.7.2 Financials
13.7.3 Product/Services Offered
13.7.4 SWOT Analysis
13.7.5 The SNS View
13.8 Plantic Technologies
13.8.1 Company Overview
13.8.2 Financials
13.8.3 Product/Services Offered
13.8.4 SWOT Analysis
13.8.5 The SNS View
13.9 Mitsubishi Chemical Holding Corporation
13.9.1 Company Overview
13.9.2 Financials
13.9.3 Product/Services Offered
13.9.4 SWOT Analysis
13.9.5 The SNS View
13.10 Total Corbion
13.10.1 Company Overview
13.10.2 Financials
13.10.3 Product/Services Offered
13.10.4 SWOT Analysis
13.10.5 The SNS View
14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
14.3.1 Industry News
14.3.2 Company News
14.3.3 Mergers & Acquisitions
15. USE Cases and Best Practices
16. Conclusion
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