Biodegradable Plastic Market

Biodegradable Plastic Market Outlook - 2027

The global biodegradable plastic market was valued at $1.6 billion in 2019 is expected to reach $4.2 billion by 2027, growing at a CAGR of 13.3% from 2020 to 2027.

Biodegradable plastic is a plant-based plastic with no hazardous effects on the environment. It degrades naturally in base compounds in a reasonable amount of time. Hence, plastic, defined as biodegradable, is made of molecule that can break down naturally by the action of micro-organisms. Some of the major known types of biodegradable plastic include, Polylactic Acid) (PLA), Polybutylene adipate terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), and starch blends.

The global biodegradable plastic market is in the introductory phase of the industry life cycle and is expected to explore new growth opportunities during the coming years. Some of the basic factors driving the demand for the market include governmental initiatives to eliminate single use plastic and strict regulatory outlook against the use of conventional plastic products.

Industry trends are shifting toward biobased products to reduce dependence on conventional plastics. Moreover, most of the manufacturers in industries such as packaging, textile and agriculture are shifting toward biobased plastic due to stringent regulations from the government. Such factors are largely impacting the biodegradable plastic market growth.

On the other hand, the growth of the market is negatively impacted by high cost of biodegradable plastic over its conventional counterparts. For instance, polylactic acid based bioplastics are at least eight times as expensive as the petroleum-based plastics. However, new biopalstics made from the skins of tropical fruits at a lower price, are expected to provide lucrative growth opportunities in upcoming times.

The global biodegradable plastic market is segmented on the basis of type, application, and region. Based on type, the market is classified into PolylacticAcid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), starch blends, and others. On the basis of application, the global biodegradable plastic market is categorized into packaging, agriculture, textile, consumer durable and others. Based on region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

Some of the major manufacturers studied and profiled in the global biodegradable plastic market are BASF SE, Dow Inc., Novamont S.p.A., Plantic, Natureworks, Corbion N.V., Biome Technologies plc, Mitsubishi Chemical Holdings, Eastman Chemical Company, and Danimer Scientific.

Biodegradable Plastic, By Region

Europe accounted for the highest revenue share in both biodegradable plastic market. This is attributed to European legal framework and strategies that are expected to boost the extensive use of biobased plastic products and provide growth opportunities for the Europe biodegradable market. LAMEA is expected to witness fastest growth rate owing to the large presence of sugarcane feedstock, which can be utilized for production of bioplastics. Increase in demand for bioplastic products among European customers stimulates the growth of biobased products in this region. European customers choose bioplastic products over conventional plastic products considering their environmental benefits. Thus Europe has significant market share in terms of revenue in the global biodegradable market.

Biodegradable plastic, by Type

Starch blends emerged as the global leader in terms of revenue share in the biodegradable plastic market. This is accounted to its demand in flexible packaging and agricultural sector. Starch blends are widely used to decrease the carbon footprint of conventional resins, thus enhancing the market growth. The chemical industry is witnessing a shifting trend from synthetic toward biobased products to build sustainable eco systems. Starch based plastic is biobased as well as biodegradable plastic with low toxicity. Packaging industry is one the major consumers of stanch blends due to its versatile behavior. PLA is expected to witness highest growth owing to increasing application in food packaging as a sustainable source. 

Biodegradable plastic, by Application

Packaging emerged as the global leader in terms of revenue in biodegradable plastic market. This is attributed to shifting trend of consumers from synthetic to biobased products in response to the growing environmental awareness. In food packaging, biodegradable plastic is offering a promising functionality and is being used in range of applications. Rise in preferences for packaged food in response to demographic and life style changes directly impact the demand for biodegradable plastic in packaging applications. Agriculture is expected to witness highest growth rate owing to growing application of biodegradable mulch films in agriculture. The biodegradable mulch film is becoming more popular than traditional plastic films. This is attributed to many factors that indicate the market for biodegradable mulch film is developing due to greater decomposition in the soil. It is estimated that 75%-80% content in the mulch film is renewable and its use is increasing.

COVID-19 Scenario Analysis:

• The suspended movement of vehicles across the globe is expected to disrupt the logistics of different companies, thus affecting the market growth in the forecast timeframe. 
• Complete shutdown in the downstream operations lead to high inventory cost. Additionally, delay in upcoming projects and investment cuts will negatively impact the growth. 
• Rapid growth of single use plastics in mask and gloves industry will further affect the market growth for biodegradable plastics.
• Delay in key approvals, such as delay in new plant resolution due to travel advisory, currency risks, and subdued demand in emerging countries may hinder the growth.

Key Benefits For Stakeholders

• The biodegradable plastic market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides an in-depth analysis of the biodegradable plastic market forecast for the period 2020–2027.
• The report provides an in-depth analysis of the biodegradable plastic market share analysis for the period 2020–2027.
• The report outlines the current biodegradable plastic market trends and future estimations from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets. 
• The key drivers, restraints, and market opportunity and their detailed impact analysis are elucidated in the study.

 Biodegradable Plastic Market Report Highlights