Biodegradable Plastic Market Expected To Reach $4.2 Billion By 2027

According to a new report published by Allied Market Research, titled, “Biodegradable Plastic market by Type, Application: Opportunity Analysis and Industry Forecast, 2020–2027”, the global biodegradable plastic market was valued at $1.6 billion in 2019 and is expected to reach $4.2 billion by 2027, growing at a CAGR of 13.3% from 220 to 2027.

Biobased and biodegradable plastic are a perfect substitute to conventional plastic, although, currently its cost is high as compared to petroleum-based plastics. The biodegradable plastic market is still developing; and growth opportunities are widening with growing awareness for biobased products. PHA, one of the biodegradable plastic types is not commercialized to mass scale yet due to high price issues. At present, several manufacturers are opting different routes to lower the cost of the PHA and support ongoing demand. Currently, there are only 15-20 manufacturers operating in this market and primary processing of raw material is predominantly done by these players itself. Owing to high demand for biodegradable plastic, the production capacities of these manufacturers are changing rapidly and the similar trends are expected during the forecast period.

On the basis of type, starch blends are the promising type of biodegradable plastic as compared to other types. Starch blend can be modified to any desirable properties during production so that it can be used as per the convenience. Starch is popularly known to reduce the carbon footprint of traditional resins as they can replace petroleum-based polymers with natural ones. 

Packaging industry emerged as the major consumer of global Biodegradable plastic market. Packaging companies are increasingly using biodegradable plastics to manufacture large number of products; thus positively influencing the market demand.

Key manufacturers profiled in the market include BASF SE, DowInc. Novamont S.p.A., Plantic, Natureworks, Corbion N.V., Biome Technologies plc, Mitsubishi Chemical Holdings, Eastman Chemical Company, and Danimer Scientific.

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 Findings Of The Study

• Based on type, the starch blends segment emerged as the global leader by acquiring over 50% market share in 2019, and it is anticipated to be the largest market during the forecast period

• Europe is the major consumer of biodegradable plastic among other regions. It accounted for more than 50% of the global Biodegradable market share in 2019.

• Presence of large number of regulatory bodies in Europe is one of the key factor behind the flourishing growth in the Europe region

• Packaging is single major application segment of the biodegradable plastic, wherein, growth is driven by flexible and rigid packaging applications

• LAMEA exhibits highest growth for the biodegradable plastic due to growing number of imports and rising business expansions from manufacturers.