Biodegradable Plastics Market Growing at a CAGR 9.6% and will Reach USD 6.8 billion by 2027
Change in preference of consumer toward eco-friendly plastic products and governments initiatives on green procurement policies are primarily driving the biodegradable plastic market in the forecasted period.
The global biodegradable plastics market was valued at USD 3.5 billion in 2020, and it is expected to reach USD 6.8 billion by 2027, with a CAGR of 9.6%, during the forecast period from 2021 to 2027.
Determinants such as rising use in food packaging & compostable bag applications, the shifts in consumer preference toward eco-friendly plastic products, and the focus of governments on green procurement policies are primarily driving the biodegradable plastic industry during the forecast period.
However, the higher cost of biodegradable plastics than that of conventional plastics is hampering the biodegradable plastic market growth. Emerging end-use industries of biodegradable plastics provide a lucrative opportunity for the market to grow.
The market trend is converting to bio-based products to reduce reliance on conventional plastics. Additionally, most of the manufacturers in various industries such as textiles, packaging, and agriculture are adopting bioplastic due to strict government regulations. These factors are principally influencing the growth of the biodegradable plastic market. Biodegradable plastics are used for manufacturing flexible films, loose-fill, bottles, pots, bowls, cups, and other products. Thermoset plastics and thermoplastics are the two types of biodegradable plastics mainly used for packaging purpose.
The conventional non-biodegradable plastics is a huge environmental issue on a global level. Governing bodies are trying to tackle this global issue by banning single-use plastics and appealing to people to use biodegradable plastics over non-biodegradable plastics. Moreover, customers are willing to spend more on biodegradable plastic packaging owing to its environmental benefits.
Biodegradable plastics refer to the polymer that is designed to breakdown whenever exposed to the microorganisms. It requires humid conditions, carbon dioxide, biomass, and water. These polymers are made from natural by-products; these natural by-products are commonly petrochemicals, micro-organisms, renewable raw materials, or combinations of all three.
Regional analysis specifies that the European region is anticipated for the highest market share in both value and volume for the biodegradable plastic market. This growth can be attributed to the legal framework and strategies made by European Governing bodies that are expected to boost the extensive use of bio based plastic products and provide growth opportunities for the European biodegradable market. European consumers choose bioplastic products over conventional plastic products considering their environmental benefits. Thus Europe has a significant market share in terms of revenue in the global biodegradable market.
Moreover, Asia-Pacific region is expected to witness the fastest market growth due to the extensive presence of sugarcane feedstock, which can be utilized for bio plastics production. Additionally, increasing demand for bioplastic products among Asia Pacific consumers supports the growth of bio based products in this region.
Key Findings in Biodegradable Plastics Market:
- Based on Type, the Starch-based segment is expected to have the highest market share during the forecast period. Whereas, the Polylactic Acid (PLA) or Polylactide (PLA) segment is anticipated to grow with the fastest CAGR during the forecasted period from 2021 to 2027.
- Based on the Application, packaging segment is held the largest share of the biodegradable plastic market in 2020. Moreover, the agriculture segment also held the significant share in the global market.
- Based on regions, the European region is anticipated to capture a significant portion of the global biodegradable plastics market during the forecast period. On the other hand the fastest growing region is Asia Pacific owing to the growing disposable income in this region and improving the standards of living in the developing countries in Asia Pacific is augmenting the growth in this region.
Recent News in Biodegradable Plastics Industry:
- In June 2021, the company named NatureWorks expanded their business in Thailand with establishing a fully new integrated Ingeo PLA production plant facility. It is anticipated that the new facility can produce upto 75,000 tons of Ingeo biopolymer annually.
- In July 2021, Danimer Scientific signed a partnership agreement with the University of Minnesota’s Forever Green to explore the potential of pennycress oil in making the company’s Nodax biodegradable solution.