Biodegradable Plastic Market

Market Overview

The global Biodegradable Plastic Market size was valued at USD 7.10 billion in 2021 and is predicted to reach USD 49.93 billion by 2030 with a CAGR of 24.2% from 2022-2030. Biodegradable plastic refers to plant-based plastic that has no hazardous impact on the environment. They can be easily decomposed by microorganisms such as fungi and bacteria into water, biomass, and carbon dioxide (CO2). According to the BBC Science Focus, biodegradable plastics take only three to six months to fully decompose, which is far quicker than traditional plastics that take hundreds of years to disintegrate.

Market Dynamics and Trends

The increasing demand of biodegradable plastics can be attributed to the rising environmental concerns, which pushed governments to impose stringent regulations for eliminating single use plastics. For instances, in order to minimize the adverse effects of the plastics on the environment, China has banned non-biodegradable plastic bags in all major cities and towns in 2020, and aims to ban it in the entire country by the end of 2022.

Also, the growing consumers awareness regarding sustainable solutions and green procurement policies are also contributing towards the growth of the market as biodegradable polyesters are the best alternative of plastics.  Moreover, rise in the usage of biodegradable materials in food packaging, bottles, and disposable tableware due to government support for biodegradable materials, along with strict regulation against the plastic usage given their adverse environmental impacts are expected to drive the market in this region.

However, the growth of the market is negatively impacted by high costs of biodegradable plastic over its conventional counterparts. On the other hand, new bioplastics made from the skins of tropical fruits at a lower price are expected to create ample growth opportunities for the market in the coming years.

Market Segmentations and Scope of the Study

The biodegradable plastic market is segmented on the basis of type, end use industry, feedstock, application and geography. On the basis of type, the market is divided into biobased, biodegradable, fossil based and other. Further, on the basis of biobased, the market is sub segmented into PE, PET, PA, PUR, PRF and others. On the basis of biodegradable, the market is sub divided into PLA blends PHA, PBS, PBAT, starch blends and others. On the basis of fossil based, the market is sub categorized into PBAT, PCL and others. On the basis of end use industry, the market is categorized into packaging, automotive, electrical and electronics, agriculture & horticulture, textiles, building & construction, medical, coatings, pharmaceutical and others.  Further, on the basis of packaging the market is sub categorized into films, containers, bags, sachets & nets, trays & punnets, and others. On the basis of automotive, the market is sub-divided into vehicle components, interior (seats, head rests or arm rests), exteriors parts, wheel parts. On the basis of electrical and electronics, the market is sub-bifurcated into electronic devices, audio devices, insulators and others. On the basis of textile, the market is sub categorized into woven, non – woven, and others. On the basis of building and construction, the market is sub segmented into bio composites, insulation materials, and others. On the basis of medical, the market is sub categorized into implants (screws, pins or plates), material for pills and capsules, dentistry, tissue engineering materials, and others. On the basis of feedstock, the market is classified into sugarcane and sugar beet, corn, wood, and others. On the basis of application, the market is classified into films containers bags, sachets & nets, trays & punnets, and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Europe holds the lion share of biodegradable plastic market at present and is expected to continue dominating the market during the forecast period. This is attributed to factors such as rising environmental concerns and severe regulations on the petroleum and plastic industry. For instances, in July 2021, EU announced to put a ban on some single plastic products for protecting marine ecosystem. In addition, in July 2020, German government had announced a ban on the sale of single use plastic products such as cutlery, straws, food containers, and other similar products from mid-2021 onwards to minimize the use of plastic across the country.

However, Asia-Pacific is expected to show a steady rise due to growing packaging industry in this region, which holds more than 80% of the bioplastic market. Countries that majorly contribute to this demand include China, India, South Korea, and Japan. Such growing demand for eco-friendly and flexible packaging in consumer goods industry, along with innovation in packaging materials are expected to drive the biodegradable plastic market growth in this region.

Competitive Landscape

The biodegradable plastic market comprises of various market players such as BASF, Nature Works, Total Corbion, Novamont, Biome Bioplastics, Mitsubishi Chemical Holding Corporation, Toray Industries, Plantic technologies, Danimer Scientific and Fkur Kunstsoff. These manufacturers are actively indulging in R&D initiatives, product & technology innovations, and industrial collaborations to enhance their product, increase their growth and geographical region.

For instance, in April 2021, Nature Works announced a new strategic partnership with IMA Coffee, which is a market leader in coffee handling processing and packaging. This partnership aims at increasing the market reach for high-performing compostable K-cup in North America.

Also, on March, 2022 BASF has signed a strategic cooperation agreement with Zhejiang REEF Technology Co., Ltd. to develop several formulations for applications used in the automotive, packaging and consumer industries. Under this agreement, BASF will provide it's recently launched IrgaCycle to REEF technology along with technical consultancy and support for recycled polymer formulations conducted at BASF’s test facilities.

Key Benefits

• The biodegradable plastic market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the biodegradable plastic market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on   the biodegradable plastic market is provided in the report.

• The competitive analysis of the market players along with their market share in the biodegradable plastic market.

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Type

• Bio-Based

  • PE

  • PET

  • PA

  • PUR

  • PRF

  • Others

• Biodegradable

  • PLA blends

  • PHA

  • PBS

  • PBAT

  • Starch Blends

  • Others

• Fossil Based

  • PBAT

  • PCL

  • Others

• Others

By End Use Industry

• Packaging

  • Films

  • Containers

  • Bags, Sachets & Nets

  • Trays and Punnets

  • Others

• Automotive

  • Vehicle Components

  • Interior (Seats, Head Rests or Arm Rests)

  • Exteriors Parts

  • Wheel Parts

  • Others

• Electrical & Electronics

  • Electronic Devices

  • Audio Devices

  • Insulators

  • Others

• Agriculture & Horticulture

• Textiles

  • Woven

  • Non – Woven

  • Others

• Building and Construction

  • Bio Composites

  • Insulation Materials

  • Others

• Medical

  • Implants (Screws, Pins or Plates)

  • Material for Pills and Capsule

  • Dentistry

  • Tissue Engineering Materials

  • Others

• Coatings

• Pharmaceutical

• Others

By Feedstock

• Sugarcane and Sugar Beat

• Corn

• Wood

• Others

By Feedstock

• Films Containers Bags

•  Sachets & Nets

• Trays & Punnets

•  Others

By Geography

• North Americas

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Remaining Countries

Key Players

• BASF

• Nature Works

• Total Corbion

• Novamont

• Biome Bioplastics

• Mitsubishi Chemical Holding Corporation

• Toray Industries

• Plantic technologies

• Danimer Scientific

• Fkur Kunstsoff

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Analysis Period	2021–2030
Base Year Considered	2021
Forecast Period	2022–2030
Market Size Estimation	Billion (USD)
Market Segmentation	By Type (Biobased, Biodegradable, Fossil Based and Other), by End Use Industry (Packaging, Automotive, Electrical and Electronics, Agriculture & Horticulture, Textiles, Building & Construction, Medical, Coatings, Pharmaceutical Others) by Feedstock (Sugarcane and Sugar Beat, Corn, Wood, and Others) by Application (Films Containers Bags, Sachets & Nets, Trays & Punnets, and Others)
Geographical Segmentation	North America (U.S., Canada, Mexico) Europe (UK, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific), Rest of the World (UAE, Saudi Arabia, South Africa, Brazil, Remaining Countries)
Companies Profiled	BASF, Nature Works, Total Corbion, Novamont, Biome Bioplastics, Mitsubishi Chemical Holding Corporation, Toray Industries, Plantic technologies, Danimer Scientific and Fkur Kunstsoff.