Biodegradable Plastic Market to Cross $12.58 billion Revenue by 2030

Biodegradable Plastic Market Overview

“The Biodegradable Plastic Market Predictable at $3.52 billion in 2022, is estimated to increase at a CAGR of 14.56% from $4.30 billion in 2023 to $12.58 billion by 2030.”

Public awareness of plastic pollution is driving demand for better plastic management, leading to increased use of bio-based and biodegradable plastics. Governments are passing legislation to prohibit single-use plastics and promote environmentally friendly alternatives. Bioplastics are used in various industries, providing potential for sustainable solutions worldwide.

Biodegradable plastics are gaining popularity due to their toughness and adaptability, as well as global regulatory efforts. Consumer demand for sustainability and environmentally friendly solutions drives growth. Collaboration among industry participants fosters innovation and market expansion. Improved waste management infrastructure, like composting facilities and advanced recycling technology, aids in effective garbage disposal and management. Global regulatory efforts encourage and prohibit biodegradable alternatives, driving market growth.

Technological advancements, like bio-based feed stocks, have enabled the widespread use of biodegradable plastics. Investor support for R&D and commercialization projects reflects the market's resilience. Countries aim for net zero emissions to prevent global warming, and corporations prioritize long-term solutions, replacing all packaging materials with biodegradable plastics.

Biodegradable plastics companies are making data-driven decisions before investing in new technologies, merging and acquiring (M&A) to stay afloat during the epidemic and collaborate on mission-critical initiatives in packaging, agriculture, and consumer products. They are ensuring business continuity by establishing long-term relationships with clients, consumers, and partners through solid supply chains and after-sales services.

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Market Dynamics

Growth Factors

The market expansion of biodegradable plastics is driven by the prohibition of single-use plastics and increased public awareness of their environmental impact. Governments are outlawing non-biodegradable plastics and promoting the use of biodegradable polymers. Customers are willing to pay extra for eco-friendly alternatives, leading to a higher demand for biodegradable plastics in the future.

Biodegradable polymers offer numerous benefits but also have drawbacks, such as the lack of differentiation between conventional and biodegradable polymers, and the presence of conventional plastics in biodegradable plastic landfills.

Biodegradable plastics require specific temperature and moisture environments for decomposition, emitting toxic chemicals like greenhouse gases. Their breakdown is detrimental to the environment and limits their growth in the near future, making them a potential threat to future generations.

Market Drivers

The biodegradable plastics market is being driven by the increasing demand for biodegradable packaging

• The bioplastics market is rapidly expanding and diversifying, with applications ranging from beverage bottles in packaging to hardware parts in consumer electronics and interior elements in the automotive sector.
• The food packaging industry is experiencing a surge in demand for biodegradable plastics due to consumer preference for durable packaging solutions. This trend is driving vendors to develop greener technology and techniques to attract a larger consumer base, resulting in a direct drive for long-lasting and environmentally friendly products.
• The growing use of biodegradable plastics in retail goods like electronics, furniture, clothing, shoes, toiletries, meat, cheese, and baked foods has significantly boosted the growth of the biodegradable plastics business, attracting businesses like food processing and packaging.
• The growth of agriculture, horticulture, and textile industries is boosting the demand for biodegradable plastic bags.

Government Focus on Efficient Plastic Waste Management

• The rise in single-use plastic products has led to global governments focusing on plastic waste management, resulting in an increase in non-biodegradable garbage, which negatively impacts the environment. As a result, governments worldwide are supporting and implementing biodegradable polymers, leading to an increase in demand.
• Bio-based trash can be recycled with conventional waste, and industrial composting is enhanced with the introduction of biodegradable and compostable bio-based plastic goods.
• Global plastic pollution is a pressing issue, and biodegradable plastics can help address this. Proper waste management systems are crucial for the environment, as bioplastics can be reused, mechanically recycled, and organically recycled, thereby increasing demand for these sustainable alternatives.

Bio-based and renewable raw material development

• The global biodegradable polymers market is dominated by biodegradable plastics, which are developed from renewable resources, biomass, and bio-based raw materials like starch and vegetable crop by-products, and are used in various applications like packaging and retail items.
• The future trend is predicted to see a decrease in the use of fossil fuels, leading to an increase in the utilization of biodegradable polymers.
• Polymer makers are shifting their focus to bio-based raw sources, aligning with the global view of the bio-based raw material industry.
• The growing availability of bio-based resources is promoting the development of biodegradable polymers.

Competitive Landscape of the Biodegradable Plastic Market

• Eastman Chemical Company
• Dow Inc.
• NatureWorks LLC
• Danimer Scientific
• Toray Industries, Inc.
• p.A.
• TianAn Biologic Materials Co., Ltd.
• Biome Technologies plc
• Mitsubishi Chemical Corporation
• BASF SE
• Plantic Technologies Limited
• Yield10 Bioscience, Inc.
• Corbion

Recent Developments in Biodegradable Plastic Market

On January 31, 2020, BASF SE closed the acquisition of Solvay’s polyamide business (PA 6.6). The acquisition helped the company expand its market in Asia and as well as North and South America. The acquisition between BASF SE and Solvay included eight production sites in Germany, France, China, India, South Korea, Brazil, and Mexico. It also helped the company establish research & development centers in Asia and the Americas.

February 2022: Bioplastics International introduced water-soluble PVA. The material is developed to be used as a replacement to plastics. It can be used for manufacturing water-soluble PVA bags and packaging films. The material is being used in the healthcare sector for drug delivery systems, artificial organs, wound management, and contact lenses owing to its biodegradability, biocompatibility, and non-toxicity.

January 2022: Terra Verdae Bioworks Inc. announced the acquisition of PolyFerm Canada. The acquisition is aimed at enhancing the company's PHA technology portfolio. The acquisition enabled the company to develop advanced biodegradable bioplastic products to cater to the growing Biodegradable Plastics market demand for sustainable alternatives to products.

January 2022: Vikas Ecotech Limited announced investing in environment-friendly BioPlastics (PHA) technology. The company is also in the process of collaborating with Aurapha Private Ltd. for the manufacturing of Biodegradable Plastics. PHAS would be manufactured using renewable resources and will be bio-degradable in nature.

August 2022: Danimer Scientific acquired November, a biodegradable polymer producer. This development will be helpful in the production of PHA-based resins and other biodegradable materials.

Regional Insights

In 2022, Europe led the global biodegradable plastics market, driven by rising consumer awareness and the EU's non-biodegradable plastics ban. The region's growing environmental concerns due to plastic usage have led to a shift towards bio-based, reusable, and environmentally friendly products.

Asia Pacific is expected to experience the fastest development in the forecast period due to its large customer base and rapidly expanding agriculture and food and beverage industries. As an agricultural region, it accounts for one-fifth of global agricultural land. The application of biodegradable polymers in agriculture is driven by this factor. The region's vast population and high demand for consumer goods contribute to market growth.

Segments Covered in the Biodegradable Plastic Market

Biodegradable Plastic Market By Type

• Starch-based
• PBS
• PLA
• PHA
• PBAT
• Others

Biodegradable Plastic Market By End-User

• Consumer Goods
• Agriculture
• Packaging
• Others

Biodegradable Plastic Market By Regional Outlook

• North America
• Europe
• Asia Pacific
• Rest of the World

Frequently Asked Questions:

What is the current size of the global biodegradable plastic market?

The Biodegradable Plastic Market Predictable at $3.52 billion in 2022, is estimated to increase at a CAGR of 14.56% from $4.30 billion in 2023 to $12.58 billion by 2030.

Which key factors stimulate the biodegradable plastic market growth?

Prohibition on the use of single-use plastic along with rising awareness among people related to the ill-effects of plastic waste on the environment are the key factors that stimulate the market growth.

Why packaging is the leading end-use segment in the global biodegradable plastics market?

In 2022, packaging is the leading end-use segment in the global biodegradable plastics market. This is mainly attributed to the shifting consumer trend from synthetic to bio-based products.

Why Europe was front-runner in terms of revenue in the global biodegradable plastics market?

In 2022, Europe was front-runner in terms of revenue in the global biodegradable plastics market. Rising consumer awareness along with the government of Europe has banned the usage of non-degradable plastics are the key factors that fuel the market growth in the region.