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 2021-2027.
The conventional type of plastics (Non-biodegradable) 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.
The polymer that is designed to break down whenever exposed to the microorganisms is called as Biodegradable plastics. In order to degrade the biodegradable plastic, it requires humid conditions, water, carbon dioxide, and biomass. These polymers are made out of natural byproducts; these natural byproducts are commonly renewable raw materials, micro-organisms, petrochemicals, or combinations of all three.
Factors such as increasing 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 market in the forecasted period.
However, the higher cost of biodegradable plastics than that of conventional plastics is hampering the market growth. Emerging end-use industries of biodegradable plastics provide a lucrative opportunity for the market to grow.
The unique insights provided by this report also includes the following:
Based on type, the starch-based segment was dominating the market in the year 2020
The starch-based product type segment is anticipated to drive the market growth in terms of revenue throughout the forecasted period. Starch-based biodegradable plastics are applied in many industries such as agriculture, automobiles, and packaging. The segment is expected to grow significantly at the CAGR of 10.4% during the estimated period. Also, PLA-type plastics are gaining more traction rapidly in this area. The inexpensive cost characteristic of PLA compared to other types of biodegradable plastics is a major factor driving the segmental growth at a significant rate.
Based on application, the Packaging segment is expected to grow with a high growth rate during the forecast period.
Based on application, the global biodegradable plastic market is categorized into packaging, agriculture, consumer durables, textiles, and many others. Amongst all, the Packaging segment is anticipated to hold the largest of the market by both volume and value. Biodegradable plastic packaging is applied in varied forms of packaging such as rigid packaging, and flexible packaging, among others. Products made of conventional plastics are aggressively being replaced by biodegradable plastics in food packaging by-products such as boxes, cups, wraps, and plates thus supporting the market growth for the biodegradable plastic market.
Based on Regions, the Europe region is dominating the global Biodegradable Plastics market in the year 2020
Based on the regions, the Biodegradable Plastics market has been segmented as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. 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 biobased plastic products and provide growth opportunities for the European biodegradable market. Moreover, the Asia Pacific region is expected to witness the fastest market surging rate due to the extensive presence of sugarcane feedstocks, which can be utilized for bioplastics production.
North America is also expected to witness substantial growth in the market owing to the technological advancement and increasing demand for sustainable and environmental friendly solutions are some of the key factors propelling the market growth.
Company Profiles and Competitive Intelligence:
The major players operating in the global Biodegradable Plastics market include NatureWorks, BASF SE, Total Corbion PLA, Mitsubishi Chemical Holdings, Biome Technologies plc, Plantic Technologies, Bio-On, Danimer Scientific, Novamont S.p.A, Toray Industries, Eastman Chemical Company, Dow Inc, Novamont S.p.A., Plantic, and Natureworks among others. The key players operating in this market are focusing on collaborating with various stakeholders and innovating new products.
The report also provides an in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
Drivers
Restraints
Opportunities
Challenges
| Sr. No. | Trends | Impact |
| 1 | Increasing usage in food packaging & compostable bags applications | Positive |
| 2 | Increasing stringent government regulations relating to environmental friendly plastics | Positive |
| 3 | Shift in consumer preference toward eco-friendly plastic products | Positive |
| 4 | High cost of biodegradable plastic material compared to the conventional plastic material | Negative |
The report also provides in-depth analysis of recent News Developments and Investments
The key players operating in the market are:
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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