Bioplastics Market Overview

“The Bioplastics Market Predictable at $11.90 billion in 2022, is estimated to increase at a CAGR of 17.14% from $18.50 billion in 2023 to $61.80 billion by 2030.”

Bioplastic, a renewable polymer, can replace petroleum-based ones, reducing CO2 emissions by up to 70% and carbon footprints by 42%. It uses 66% less energy than regular petroleum plastic production. The global bioplastics market is evolving, with competitors focusing on R&D and increasing manufacturing capacity.

Bioplastics have gained rapid adoption due to their technological capabilities and favorable legislation. Environmentally friendly properties, increased consumer acceptance, regulatory frameworks for degradable containers, and clean energy raw material sources are major market drivers. Bioplastic manufacturing is energy-efficient, requiring 66% less energy than traditional plastic, and has no impact on the environment or the planet due to its non-toxic nature and quick degradation process. Bioplastic emissions are low during the degradation process.

Bioplastics are being increasingly used to reduce carbon footprints by 42%, leading companies like Nestle, Nike, Coca-Cola, and Ford to invest in their production for various applications like plastic bottles and automobile components. They are also gaining popularity in catering, packaging, agriculture, and automotive. Bioplastics are also ideal for organic farming, as farmers use biodegradable mulching films. Consumers prefer bioplastic packaging over synthetic plastics, and governments worldwide are enacting laws to promote their resilience and degradability.

The European Union is a significant political supporter of the bioplastics industry, and its growth is largely attributed to the availability of common feedstocks like maize, grain, corn, and sugarcane, which are widely available globally, ensuring that fluctuations in global crude oil prices do not impact the industry's expansion.

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Key Takeaways

Over the projection period, the Asia Pacific bioplastics market would rise at a CAGR of 13.65%.

From 2023 to 2030, the biodegradable product segment is predicted to develop at a CAGR of 16.42%.

Market Dynamics

Growth Factors

The food and beverage industry is shifting towards bioplastic packaging due to the increasing use of plastic in products. This shift will likely lead to a growth in the bioplastics industry. However, commercialization requires significant R&D investment and continued research to improve material efficiency, simplify synthesis, and optimize biomaterial usage. Companies like PepsiCo and Coca-Cola are developing bio-based polyethylene bottles, nylon-based bottles, and PET plastic bottles for packaging. Companies like NEC Corporation also use bioplastics in products like POS terminals and LCD projectors. Increased CSR initiatives are expected to boost bioplastic demand and investor interest.

Starch- and PLA-based bioplastic classes have grown rapidly, accounting for a significant portion of the bioplastic ingredient market. Other bioplastics include cellulose-based bioplastics, polyhydroxyalkanoates, bio-polyamide, and biopolyethylene. The US and Europe lead the market, with Asia-Pacific and the Rest of the World trailing behind. Bioplastics have applications in packaging, agriculture, food services, vehicle consumer electronics, home appliances, and consumer goods. The bioplastic industry is driven by factors such as high consumer acceptance, high fossil fuel prices, increased dependency on fossil fuels, and the demand for eco-friendly products, including renewability, availability, functionality, technological features, and recycling options.

Bioplastics currently make up less than 1% of the 367 million tonnes of plastic produced annually. However, the market for bioplastics has grown significantly due to increased demand and the introduction of complex applications. The global bioplastics production capacity is predicted to increase from over 2.42 million tonnes in 2021 to over 7.59 million tonnes in 2026, making bioplastics the first-ever material to account for over 2% of global plastic manufacture.

Bioplastics are increasingly used in various applications, including packaging, electronics, catering goods, agriculture, automotive, toys, textiles, and more. Packaging will remain the largest bioplastics market category in 2021, accounting for 48% of the total. However, as functional polymer capabilities improve, areas like automotives, transportation, and building and construction continue to grow.

Growth Drivers

Increasing Packaging Industry Demand for Eco-Friendly Plastics to Drive Market Growth

Biodegradable polymers are widely used in the packaging industry, offering similar properties to conventional plastics. They are used in both stiff and flexible packaging, and with the rise in e-commerce, the need for more packaging material is expected. Bio-based polymers can easily replace conventional plastics, making them a potential solution to reduce plastic pollution.

The food and pharmaceutical industries are increasing their demand for renewable feedstock-based polymers, while the demand for ready-to-eat foods has grown in both developed and emerging economies. Manufacturers are seeking safe, inert packaging materials with minimal environmental impact, which is expected to increase the global bioplastics market share.

The market will benefit from increased demand for compostable plastics to improve soil quality.

Plastics are used in agriculture and horticulture for various purposes, including greenhouses, storage bags, bins, and silos. They are also used in intensive farming practices to limit weed development, protect crops from pests, and regulate soil moisture and nutrient content. Conventional plastic, however, is not biodegradable and remains in the environment for multiple harvest seasons, causing environmental harm and hindering agricultural growth by preventing roots from accessing water and nutrients.

Agricultural-based plastic product manufacturers are focusing on biodegradable plastics made from renewable and sustainable raw ingredients due to their technical and economic viability. These biodegradable plastics stimulate plant development, contribute to soil enrichment, and are increasing in demand in agriculture and horticulture, indicating potential worldwide market growth.

Trends

The market for flexible packaging is expected to be dominated

Bioplastics are eco-friendly and easily degradable, used in flexible packaging for food, medications, and beverages. They are also used in non-food packaging like napkins, tissues, toilet paper, nappies, sanitary towels, food wrapping paper, and coated cardboard for cups and plates, as well as in flexible and loose-fill packaging.

Cornstarch bioplastics are used in flexible and loose-fill packaging, with polylactic acid (PLA) primarily used in food packaging. Bio polyethylene terephthalate (PET), bio polyethylene, and bio polypropylene are commonly used packaging films. The global market for flexible converter packaging is expected to reach USD 102 billion in 2021.

Packmedia reports that the US, Central, and East Asia account for 28% of the bioplastics packaging market, with revenue growth of around 6.4% and volume growth of 1.6% in Europe. The market is expected to grow by 2.9% and 2% in 2022. Asia-Pacific has the largest manufacturing capacity for bioplastics, accounting for 45% of total capacity. Rising consumer awareness and tight government bans in China, India, and Japan are expected to boost demand.

Competitive Landscape of the Bioplastics Market

• NatureWorks LLC
• SABIC
• BASF SE
• Futerro
• Trinseo S.A.
• Braskem
• PTT MCC Biochem Co., Ltd.
• An Phat Holdings
• Total Corbion PLAIR
• SUPLA (JIANGSU SUPLA BIOPLASTICS CO., LTD.)
• Solvay
• TEIJIN LIMITED
• TORAY INDUSTRIES, INC.
• Toyota Tsusho Corporation
• Avantium
• PTT MCC Biochem Co., Ltd.
• An Phat Holdings

Recent Developments in Bioplastics Market

Plastics and packaging are key product areas for the EU Commission's "Circular Economy Action Plan," which will be released in spring 2020 as part of the "Green Deal." To combat the throwaway society and minimise waste, the EU Commission is planning a plastic tax, limitations on microplastics, and encouragement of plastic recycling, among other things. A new "framework law for bio-based, biodegradable, and compostable plastics" should be in place by the end of 2021, explicitly defining what these categories represent and how bioplastics should be disposed of. A life cycle analysis can help to avoid greenwashing: Biobased plastics should be utilised if they provide actual environmental benefits over fossil plastics and do not conflict with food production.

August 2022: BASF Venture Capital GmbH, the corporate venture company of BASF SE, Germany, and Aqua-Spark, a Dutch investment fund, is investing in Sea6 Energy Pvt. Ltd. Sea6 Energy is a leader in the production and processing of tropical red seaweed. Sea6 Energy is also working on developing bioplastics and biofuels based on red seaweed.

April 2022: Trinseo launched MAGNUM BIO ABS for automotive applications. The launch of MAGNUM BIO ABS extends the company's sustainably-advantaged portfolio and supports efforts to deliver sustainable, innovative solutions to customers enabling them to achieve sustainability goals.

March 2022: ABB technology to automate NatureWorks' new bioplastics plant in Thailand, helping to meet the increasing global demand for sustainable materials. The new site is set to produce 75,000 tons of Ingeo PLA biopolymer per year – an integrated process from fermentation to polymerization enhances supply chain reliability. ABB technology will help improve energy and production efficiency of bioplastic manufacturing, expected to grow over 260% by 2026

Regional Insights

Europe leads the global bioplastics market with a revenue share of over 45% in 2022. Bioplastics are used in various applications, including refuge bags, loose packaging, and agricultural mulch films. With over 100 billion bags used annually, European consumers are increasingly adopting bioplastics in major industries like packaging, consumer goods, textiles, medical devices, automotive, and transportation.

The North American market is expected to benefit from the increasing demand for bioplastics due to its strong sustainability focus and the US Department of Agriculture's efforts to promote environmentally friendly goods, thereby increasing the overall demand for bioplastics in the region.

The Asia-Pacific region, with a strong food and beverage sector and diverse packaging usage, accounted for the largest bioplastics market revenue share in 2020 and is the fastest-growing region, with a CAGR of 12.45%. China, India, and Japan are the largest income providers, but the market environment may change due to China's reliance on raw materials.

The material price for biodegradable plastic is projected to climb due to China's limited production capability. To avoid such high material prices, industry participants are focusing on increasing lead time.

Segments Covered in the Bioplastics Market

Bioplastics Market By Product

• Biodegradable
• Polylactic Acid
• Polybutylene Adipate Terephthalate (PBAT)
• Polybutylene Succinate (PBS)
• Starch blends
• Others
• Non-biodegradable
• Polyethylene
• Polyethylene Terephthalate
• Polytrimethylene Terephthalate
• Polyamide
• Others

Bioplastics Market By Application

• Packaging
• Rigid Packaging
• Bottle & Jar
• Trays
• Others
• Flexible Packaging
• Pouches
• Shopping/Waste Bags
• Others
• Consumer goods
• Agriculture
• Automotive & Transportation
• Textile
• Building & Construction
• Others

Bioplastics Market By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Frequently Asked Questions:

What is the current size of bioplastics market?

The Bioplastics Market Predictable at $11.90 billion in 2022, is estimated to increase at a CAGR of 17.14% from $18.50 billion in 2023 to $61.80 billion by 2030.

What will be the CAGR of global bioplastics market?

The global bioplastics market is poised to grow at a CAGR of 17.14% from 2023 to 2030.

Who are the prominent players operating in the bioplastics market?

The major players operating in the bioplastics market are TEIJIN LIMITED, TORAY INDUSTRIES, INC., Toyota Tsusho Corporation, Avantium, PTT MCC Biochem Co., Ltd., An Phat Holdings, NatureWorks LLC, SABIC, BASF SE, Futerro, Trinseo S.A., Braskem, Total Corbion PLAIR, SUPLA (JIANGSU SUPLA BIOPLASTICS CO., LTD.), Solvay.

Which are the driving factors of the bioplastics market?

High consumer acceptability, high fossil fuel prices, increased reliance on fossil fuels, and the demand for more eco-friendly goods are some of the primary reasons driving the bioplastic industry.