Description
The Global Biodegradable Plastic Market size was USD 5.3 billion in 2023 and it is expected to grow to USD 14.5 billion in 2031 with a CAGR of 14.1% in the 2023-2030 period.
Global Biodegradable Plastic Market: Overview
The biodegradable plastic sector is growing as concerns over disposable plastics rise, driving a shift towards alternatives that are more sustainable. Rising demand across a variety for sectors, including the packaging, farming, and beverages and food, is a major driver of market expansion. Stringent legislative rules aimed at minimising waste made of plastic and promoting sustainability drive uptake. Big companies like as BASF SE, NatureWorks LLC, or Total Corbion PLA have invested major investments in recyclable plastic growth, while governments all through the globe are launching programmes that promote usage. Prominent innovations, like BASF SE’s Ecovio and NatureWorks LLC’s Ingeo, generated from sources of renewable energy, demonstrate the industry’s commitment to sustainable solutions. These achievements highlight the growing importance of biodegradable plastics in combating environmental challenges and satisfying the increasing demand for green goods. These achievements highlight the growing significance of biodegradable plastics for combating ecological issues and satisfying the increasing demand for sustainable goods.
Governments are taking steps to promote the adoption of biodegradable plastics via a variety of evaluates aimed at boosting consumption while minimising harm to the environment. Subsidies, exemptions from taxes, environmentally friendly certification initiatives, procurement strategies, legal requirements, or funding for research and development efforts include numerous examples.
Global Biodegradable Plastic Market: Covid-19 Impact
The COVID-19 epidemic has had an enormous effect on the international biodegradable plastic industry. During the shutdowns, major companies were reducing production due to government constraints, but the rising usage of single-use plastics such as face masks or sanitizer containers resulted in an upsurge in plastic trash. Leading players in the sector are using techniques such as geographical growth to improve the bioplastic capacity and productivity. For instance, Total Corbion PLA introduced the first world-scale PLA facility in September 2020, able to produce up to 100,000 tonne yearly. China additionally implemented severe restrictions, notably a ban on non-biodegradable bags in key cities and neighbourhoods by the final year of 2022. These activities will likely increase the trajectory of the biodegradable plastic business.
Global Biodegradable Plastic Market: Growth Drivers
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Environmental Awareness
Rising worries about the environment have led to advances in plastics that decompose. BASF SE will launch its biodegradable bioplastic Ecovio in 2022, made from renewable energy sources. NatureWorks LLC expanded its Ingeo PLA production in Thailand in 2021 to suit Asia’s increasing demand for it. In 2020, Totally Corbion PLA built the world’s biggest PLA plant in the nation of Thailand, demonstrating the business’s dedication to alternative products to minimising the use of plastic.
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Government Regulations
Governments globally are implementing rigorous rules that minimise waste from plastic and encourage environmentally friendly products. These regulations include a ban on single-use plastics, limits on packaging made from plastic, and incentives for using sustainable alternatives. Such rules create a regulatory structure that promotes the use of biodegradable plastics throughout enterprises.
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Increasing Consumer Demand
Consumer tastes are evolving towards environmentally friendly and sustainable items. When consumers grow more aware of environmental issues, they are actively looking for goods that reduce their negative environmental impact. Biodegradable materials comply with these ideals, providing an environmentally friendly option for an array of uses such as wrapping, food service products, and goods for consumers.
Global Biodegradable Plastic Market: Restraining Factors
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Cost Competitiveness
Biodegradable materials are sometimes priced higher than typical plastics. This cost gap can be an obstacle to broad acceptance, particularly in price-conscious savings where companies may prioritise lowering expenses over concerns about the environment. However, advances regarding technology and efficiencies of scale are gradually reducing the cost gap.
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Limited Performance
Biodegradable plastics might not work as well as usual plastics, notably in regards to durability, resistance to heat, as well as barrier traits. This restricts their use for powerful industries like cars and electronics, wherein power and specialised material qualities are important.
Global Biodegradable Plastic Market: Opportunity Factors
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Innovation in Technology
Biodegradable plastic technology has been developed by ongoing study and development activities. It involves researching novel materials, ingredients, and manufacturing procedures having the goal of boosting efficiency, lowering costs, and expanding application choices, thereby improving biodegradable plastics’ competitive edge in the market.
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Emerging Markets
Growing ecological awareness and supportive laws in emerging economies create tremendous possibilities for biodegradable plastics. As the economies of these nations grow or urbanise, there is an increasing need for environmentally friendly options, making it easier for recyclable plastics to enter new markets and industries.
Global Biodegradable Plastic Market: Challenges
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Public Perception
Despite the environmental advantages of biodegradable plastics, their their widespread use by customers and companies remains a barrier. Scepticism regarding the efficiency, cost, and end-of-life handling of biodegradable plastics can stymie uptake. Educating customers and fostering trust in the effectiveness and long-term viability of biodegradable plastics is essential to overcome such a challenge.
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Infrastructure Limitations
Use of recyclable plastics requires adequate facilities for gathering, recycling, and composting. Nevertheless, many locations lack the facilities required for properly handling biodegradable garbage. This includes facilities of decomposing biodegradable plastics as well as separate garbage collection systems. Overcoming these physical restrictions is essential for realising biodegradable polymers’ maximum effectiveness in reducing pollution caused by plastic.
Global Biodegradable Plastic Market: Segmentation
Based on Type of Material: The biodegradable plastic market is segmented into PLA, PHA, starch-based plastics, PBS, PE, PP, and others, reflecting a diverse range of materials catering to various application needs.
Based on Application: The biodegradable plastic market is categorized by application into packaging, agriculture, textiles, consumer goods, automotive, and other sectors, offering versatile solutions for a wide range of industries and end-user needs.
Based on Region: The biodegradable plastic market is segmented geographically into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa, reflecting regional variations in demand, regulations, and market dynamics.
Global Biodegradable Plastic Market: Regional Insights
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North America:
The biodegradable plastic business in North America is expanding rapidly, spurred by increasing concerns about the environment and the need for ecologically friendly alternatives for standard polymers. Plastic garbage plays a significant part among the region’s pollution concerns. In 2020, the USA processed over 35.7 million tonnes of urban solid waste materials, with plastics comprising estimated 12.8% of that total. Similarly, Canada collected an estimated 3.3 million tonnes of trash made of plastic in 2019, with just 9 percent being recycled. These results illustrate the immediate need for actions to combat plastic pollution, as well as the rising need for biodegradable plastics as an important part of the proposed solution.
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Asia Pacific:
Factors driving the swift development in the biodegradable plastic market in Asia Pacific include a greater understanding of plastic’s harmful effects on the environment, initiatives by governments, applications in medicine, demand for packaging that is flexible, advances in technology, regulatory assistance and increased demand from the automobile industry. These drivers work together to expand the regional marketplace.
Global Biodegradable Plastic Market: Competitive Landscape
BASF SE, NatureWorks LLC, Total Corbion PLA, Novamont S.p.A., Mitsubishi Chemical Corporation, Biome Bioplastics Limited, Danimer Scientific, Cardia Bioplastics, Futerro, Bio-On S.p.A.
Global Biodegradable Plastic Market: Recent Developments
- BASF and Mingyang’s offshore wind farm in Zhanjiang, China, has received Project Approval, with plans for a 500 MW capacity to be operational by 2025. The joint venture aims to supply renewable electricity to BASF’s Zhanjiang Verbund site. This project supports green transformation and carbon reduction in the chemical industry. The Zhanjiang Verbund site represents BASF’s largest investment, totaling around €10 billion, and will be its third-largest worldwide.
- NatureWorks is progressing on its new fully integrated Ingeo™️ PLA biopolymer manufacturing facility in Thailand, set for full production by 2025. The plant will have an annual capacity of 75,000 tons, supporting growth in markets like 3D printing and sustainable packaging. Critical equipment, including a melt crystallizer, is now onsite. The company continues to prioritize safety, receiving industry safety awards for its Minnesota and Nebraska facilities.