According to a new report published by Allied Market Research, titled, “Bioplastic Market by Biodegradable Plastic Type, Non-biodegradable Plastic Type, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global bioplastic market was valued at $4.6 billion in 2019, and is projected to reach $13.1 billion by 2027, growing at a CAGR of 13.8% from 2020 to 2027.
Bioplastics are obtained by converting the sugar present in plants into plastic. The sugar in turn is obtained from corn, cane, sugar beets, wheat, or potatoes. This makes bioplastics sustainable and better for the environment as compared to conventional plastics. Bioplastics are extensively used in the production of rigid packaging. However, the level of technical complexity involved in bioplastics packaging is high.
Bioplastic has the potential to reduce carbon dioxide emission. Greenhouse gas emission of bioplastic is minimal during the time of degradation. These advanced environmental friendly properties and functionalities are anticipated to drive the market growth. Factors such as eco-friendly properties, increase in consumer awareness, growth in environmental concerns, and favorable government policies drive the growth of the bioplastic market. However, high production cost and comparatively lower performance standards than synthetic plastics restrain the market growth to a certain extent.
The global bioplastic market is segmented on the basis of type, application, and country. On the basis of biodegradable plastic type, the market is divided into polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), polyhydroxyalkanoates (PHA), starch blends, and others. The starch blends segment was the highest contributor in the market and is expected to grow with a CAGR of 10.6% during the forecast period.
On the basis of non-biodegradable plastic type, the market is segmented into PE, PET, PA, PP, PEF, PTT, and Others. The PET segment was the highest contributor in the market and is expected to grow with a CAGR of 15.1% during the forecast period.
On the basis of application, the market is categorized into packaging, agriculture, textile, consumer durable, and others. The packaging segment was the highest contributor in the market and is expected to grow with a CAGR of 13.7% during the forecast period. The global bioplastic market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Major manufacturers responsible for growth of bioplastic market size includes BASF SE, Biotec Pvt. Ltd., Biotrem, Danimer Scientific, Dow Inc., Eastman Chemical Company, Hemp Plastic, Minima, Mitsubishi Chemical Holdings, Novamont SpA, and Solanyl Biopolymers.
Impact of COVID-19 on the market
Due to nationwide lockdown, import dependency on China for various raw materials for the production of bioplastic hampers, which has affected the market to great extent.
However, as China started production in limited capacity, the material price for bioplastic is expected to increase. Industry players are focusing to extend the lead time to avoid such high material price. Market is expected to gain growth in coming years, with technological advancement and innovation.
Key findings of the study
- Based on biodegradable plastic type, the starch blends segment emerged as the leader by acquiring more than 39% bioplastic market share in 2019, and it is anticipated to be the largest market during the forecast period
- Presence of large number of regulatory bodies in Europe is one of the key factors of the flourishing growth in Europe.
- Packaging is single major application segment of the biodegradable plastic, wherein, growth is driven by flexible and rigid packaging applications.
- The PET segment was the highest contributor in the market and is expected to grow with a CAGR of 15.1% during the forecast period.