According to a new report published by Allied Market Research, titled, “Compostable Plastic market by Type, Application: Opportunity Analysis and Industry Forecast, 2020–2027”, the global compostable plastic market was valued at $991.2 million in 2019 and is expected to reach $3,102.6 million by 2027, growing at a CAGR of 15.4% from 2020 to 2027.
Compostable plastics are a perfect substitute to conventional plastic, although, currently its cost is high as compared to petroleum-based plastics. The compostable plastic market is still developing; and growth opportunities are widening with growing awareness for biobased products. PHA, one of the core materials for compostable 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 compostable 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, other types are the promising type of compostable plastics as compared to home compostable. Growing penetration of compostable bioplastics instead of petroleum-based plastics is expected to boost the market demand. Most of the petroleum-based plastics are non-compostable that lead to choking waterways and filling up landfills, which has increased the applications of compostable plastics.
Compostable bags industry emerged as the major consumer of global compostable plastic market. Packaging companies are increasingly using compostable plastics to manufacture large number of products including dried snacks & candy packaging, bakery goods packaging, water & juice bottles, and meat trays, and beverages cups, films & card stock, and others.
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.
Key Findings Of The Study
Based on application, the compostable bags segment emerged as the global leader by acquiring 47.5% market share in 2019
Europe is the major consumer of compostable plastic among other regions. It accounted for more than 50% of the global compostable 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
Compostable bag is single major application segment of the compostable plastic, wherein, growth is driven by flexible and rigid packaging applications
LAMEA is expected to witness highest growth in compostable plastic market due to rising availability of the raw material and production infrastructure.