Description
The Global Compostable Plastic Market size was USD 1.2 billion in 2023 and it is expected to grow to USD 3.5 million in 2031 with a CAGR of 16.7% in the 2023-2030 period.
Global Compostable Plastic Market: Overview
The global biodegradable plastic business is going through an enormous modification, due to increasing worries about the environment and a demand for ecologically friendly alternatives of conventional packaging materials made from plastic. Recyclable plastics, including PLA, PBS, PHA, PBAT, or, and starch blends, emerge as green alternative that organically decay, reducing the detrimental effects of typical plastics. Recent cases exhibit growing applications in many sectors: PHA material have the potential to surpass a sales volume of US$ 550.4 million through 2033, with food and beverage preparation and e-commerce sectors prevailing in revenue produce. In addition, the skin care business is increasingly employing compostable plastic containers for cosmetic and hygienic items. As pollution from plastic rates continue high, with estimations of 12% globally pollution from plastics, 8% marine debris, 40% waste from landfills, and 20% burning, demand for biodegradable plastics highlights the urgent need for environmentally friendly options.
Global Compostable Plastic Market: Covid-19 Impact
The COVID-19 epidemic has culminated in an enormous rise the need for biodegradable plastics, driven by increased awareness of the environment. The LAMEA region is well-suited for significant growth, with abundant sugar fuel for bioplastic manufacturing. Home recyclable plastics develop as a profitable marketplace, with biodegradable gloves heading the way. Major firms such as BASF SE as well as Dow Inc. are going after strategic strategies such as new products and cooperation to grow, their market share. However, problems stay, including the costly nature of polymers made from biomass as well as the requirement for specialised anaerobic breakdown treatments.
Global Compostable Plastic Market: Growth Drivers
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Environmental Awareness:
The increasing recognition of the degradation of the environment and the adverse effects of typical plastics has increased demand for biodegradable plastics. Both consumers and companies are looking for sustainable ways to reduce pollution and adverse environmental effects.
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Regulatory Support:
Government regulations and programmes encouraging sustainability and decreased waste promote the use of biodegradable plastics. Actions such as restrictions on plastics that are only used once and demands for eco-friendly packaging are driving the growth of the industry.
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Rising Demand for Eco-Friendly Packaging:
The growing public’s desire for sustainable packaging materials contributes to demand for plastics that decompose. Food and beverage, personal hygiene, and online shopping industries are rapidly turning to recyclable containers to satisfy sustainable objectives and satisfy customers.
Global Compostable Plastic Market: Restraining Factors
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High Production Costs:
Biodegradable plastics frequently incur greater production costs than conventional plastics because of variables such as raw material sourcing, manufacturing processes, and specialised machinery. This expense disagreement could pose a barrier to widespread adoption, particularly among price-sensitive sectors and markets.
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Performance Limitations:
Compostable polymers might possess lower resilience, shelf life, and insulating qualities than traditional plastics. These limitations may limit its usability in some industries and applications where tight specifications for performance must be met.
Global Compostable Plastic Market: Opportunity Factors
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Market Expansion in Emerging Economies:
Emerging economies provide significant possible possibilities for the biodegradable plastic business, due to growing environmental awareness, increasing disposable incomes, and supportive government policies. Moving into those markets can open up new customer bases and improve market share.
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Technological Advancements:
Progressive advances in biodegradable plastic technology provide chances to increase the quality of the product, lower production costs, and broaden use options. Material composition, processing processes, and compost technology may all be enhanced to make compostable plastics appealing and competitive in the marketplace.
Global Compostable Plastic Market: Challenges
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Waste Management Infrastructure:
Compost and waste disposal amenities were limited, rendering widespread utilisation of recyclable plastics difficult. Insufficient collecting, sorting, as well as composting infrastructure may impede the correct disposal and oversight of biodegradable packaging supplies.
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Consumer Education and Acceptance:
Educating consumers on the advantages and secure use of recyclable plastics is critical for their market acceptability and uptake. Overcoming misunderstandings, addressing scepticism, and building trust in biodegradable packaging solutions requires collaborative efforts involving education initiatives and open communication strategies.
Global Compostable Plastic Market: Segmentation
Based on Type: The Compostable Plastic market is segmented Home Compostable Plastic, Others.
Based on Application: The Compostable Plastic market is categorized by application into Compostable cutlery, Compostable bag, Compostable straw, Compostable gloves, Compostable cup (cold cup), Compostable tray/dish.
Based on Region: The Compostable 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 Compostable Plastic Market: Regional Insights
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North America:
The biodegradable plastic business in North America, encompassing the USA and Canada, has grown significantly due to the building of fresh production facilities. Government initiatives that encourage environmentally friendly goods, combined with rising customer awareness of the environment, are encouraging synthetic plastic producers to shift towards biodegradable plastic components. Consumer demand for compostable plastic containers, which is driven by increased ecological concerns about the non-biodegradability of artificial plastics, drives market growth. The market in North America benefits from educated consumers with significant purchasing power and a high degree of concern for the environment. Furthermore, the legal structure promotes the adoption of biodegradable plastics by improving innovation and acceptance across an array of industries. The growing requirement for compostable disposable cups in eateries and confectionery is an important component of consumer demand, indicating the evolution.
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Asia Pacific:
The Asia Pacific biodegradable plastics business is growing substantially because of an abundance of factors. For instance, increasing recognition of the hazards to the environment linked with typical plastics is driving up the need for environmentally conscious packaging alternatives in this area. In addition, the swift development of online shopping and the developing food and beverages industries, which rely drastically on biodegradable packaging materials, are driving growth in the market. Furthermore, government initiatives and laws aimed at minimising plastic waste and advocating biodegradable plastics are creating a favourable regulatory climate for growth in the market.
Global Compostable Plastic Market: Competitive Landscape
Cargill Incorporated, Biochem Co. Ltd., Biome Technologies plc, Cardia Bioplastics, Grabio, Greentech Corporation, Northern Technologies International Corporation, S.K. Chemicals Co. Ltd., Minima Technology Co, Biotec Pvt. Ltd. Green Dot Holdings LLC, Plantic Technologies Limited, BASF SE, Total Corbion PLA, Synbra Technology BV, Futerro Novamont SpA, NatureWorks LLC, Eastman Chemical Company, Trinseo, Danimer Scientific, FKuR Kunststoff GmbH.
Global Compostable Plastic Market: Recent Developments
- Danimer Scientific, Inc.: On October 23, 2023, a prominent bioplastics company specializing in biodegradable materials, unveiled home compostable retail packaging for fruits and vegetables. Developed in collaboration with BIOLO, a biodegradable packaging manufacturer, and Bolthouse Farms, a carrot producer, this innovative packaging solution marks a significant step towards sustainable packaging practices in the food industry.
- Total Corbion PLA: On April 22, 2024, in China, Poly lactic acid (PLA) bioplastics are experiencing a surge in popularity, reflecting the nation’s strong commitment to sustainability. PLA’s renewable nature, industrial compostability, and minimal carbon footprint offer a compelling solution amidst growing environmental concerns, positioning it as a viable alternative to conventional fossil-based plastics in the country’s quest for eco-friendly practices.