Bioplastics are items manufactured from renewable feedstocks such as corn, sugarcane, and cellulose. As compared to conventional synthetic plastics, bio-based plastics have the potential to reduce carbon dioxide emissions by around 30% to 70% and require 65% less energy. Therefore, the production of bioplastics is environment friendly, cost-effective, and efficient. The key market players of the bioplastics market are NatureWorks, Braskem, Biome Bioplastics, Toray Industries, Plantic Technologies, PTT MCC Biochem, Green Dot Bioplastics, etc.
The global bioplastics market was valued at US$ 11.2 Bn in 2020. It is expected to display growth at a compounded annual growth rate of over 17.3% from 2021 to 2027, thereby raising its valuation to more than US$ 36.8 Bn.
The bioplastics market is categorized on the basis of product type – biodegradable and non-biodegradable. Non-biodegradable plastics held more than half of the market share in 2019. With an increase in the demand for various consumer goods, this segment is expected to continue leading the bioplastics market during the forecast period. The biodegradable segment is anticipated to witness the highest growth largely due to the stringent regulations regarding the single-use plastic ban across the globe. However, the comparatively higher price of biodegradable plastics might restraint its growth.
The packaging industry led the global bioplastics market in terms of revenue. The packaging industry is further sub-divided into rigid and flexible packaging. The rigid packaging industry is anticipated to witness a high growth rate to the rising demand from the shipping industry. Bioplastic fibers offer several benefits as compared to traditional polymer fibers. As a result, the textile industry is expected to propel the growth of the global bioplastics market.
The market is segmented into Polylactic Acid (PA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxy Alkenoates (PHA), starch blends, and others. Starch blends accounted for the majority of the market share in this segment due to the rising demand for flexible packaging and the agricultural sector. Since starch blends assist in decreasing the carbon footprint of conventional resins, their growth is further propelled. Starch blends are expected to dominate the market during the forecast period followed by the PBS plastic-type.
This segment is further divided into Polyethylene (PE), Polyethylene Terephthalate (PET), Polyamide (PA), Polypropylene (PP), Polytrimethylene Terephthalate (PTT) and others. Among these, the PET segment garnered a maximum of the bioplastics market, followed by the PE bioplastic segment. During the forecast period, the PET bioplastic is projected to witness the highest growth rate as well as dominate the global bioplastics market.
With a worldwide halt on manufacturing activities and delayed supply of raw materials as a result of a disrupted supply chain, the bioplastics market has witnessed a slight decline in the growth rate. Furthermore, due to the contagious nature of COVID-19, consumers have opted to utilize any existing bags to avoid contracting the disease. With reduced demand and supply, the growth of this market during the pandemic period has been sluggish. Post-lockdown scenarios paint a slightly different picture due to an increasing need for packaged items. For instance, the food and beverage industries have witnessed a rise in takeaway orders as compared to dine-in orders.
1. Growing Population and Rapid Urbanization:
Growing population and resulting rapid urbanization is anticipated to drive the growth of the packaging industry. The demand thus generated by the packaging industry is projected to positively affect the growth of the global bioplastics market.
2. Proliferation into several industries:
Enhanced physical properties and the growing suitability of bioplastics in various industries may positively affect the bioplastics market growth. Therefore, the penetration of bioplastics in industries such as agriculture, consumer goods, textile, construction, automotive and transportation will contribute to the bioplastics market rise.
Stringent regulations set by governments globally with regards to green procurement policies will increase the requirements for biodegradable plastics. Moreover, the support from the industrial regulatory bodies is expected to aid the growth of the bioplastics market.
1. Preference for natural materials:
Consumer preference for natural/organic materials over that of bioplastic packaging may negatively impact the growth of the global bioplastics market.
2. Health concerns:
The production of bioplastics includes the use and release of several toxic chemicals. Moreover, issues regarding disposal and the additional processes required for bioplastic production may hinder the global bioplastics market.
3. High cost:
Bioplastic production involves high initial capital as well as high R&D investments. This is a major restraining factor for the global bioplastics market.
Europe dominated the global bioplastics market capturing around 44% of the total market share in 2019. Factors responsible for this growth are the increasing environmental concerns, rising R&D investments by private as well as public organizations, and the enactment of government laws pertaining to single-use plastics.
North America is estimated to witness significant growth during the forecast period due to the soaring demand from the food and beverage, medical as well as packaging industries. Additionally, efforts by the United States of America and Canada to reduce pollution generated by single-use plastics are fueling the market growth.
The Asia – Pacific region is envisaged to witness a steady growth rate due to easy land availability for manufacturing industries. The shift in the production landscape towards emerging countries may positively affect regional market growth.
The research report analyses the ecosystem of the bioplastics market and categorizes the bioplastics market to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
Research Methodology
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