Biodegradable Plastics Market

Market Snapshot

Biodegradable Plastics Market: By Type, End-use, and Region

Market Synopsis:

Global Biodegradable Plastics market is valued at 7,679.8 Million in 2021 and is projected to reach a value of 36825.7 Million by 2028 at a CAGR of 25.1% over the forecast period.

The growing demand for biodegradable plastics across end-use categories, and growing environment concerns are the key factors for the Biodegradable Plastics market growth. The stringent regulations and sustainability mandates worldwide and increased development of new applications are other major factors for the market growth. In addition, the growing awareness among consumers regarding the ill-effects of waste plastic and the rising use of Biodegradable Plastics in packaging industry are some other key growth factors over the forecast period.

The promotion of Biodegradable Plastics by governments and the ban of single-use plastics are some key opportunities in the global Biodegradable Plastics market. Moreover, the increased demand for environment-friendly and sustainable packaging solutions among the young generation is another key factor for the growth of the market. The increased demand for bio-degradable plastics across emerging nations is further estimated to enhance the market growth over the forecast period. However, the high price of Biodegradable Plastics is one of the key restraints in the global Biodegradable Plastics market.

Market Segmentation:

The global Biodegradable Plastics market is segmented on the basis of Type(Starch-Based,PLA,PBS,PBAT,PHA,Others),End-use(Packaging,Agriculture,Consumer Goods,Others),Region(North America,Europe,Asia Pacific,Latin America,Middle East & Africa). Based on type, the market is segmented as starch-based, PLA, PBS, PBAT, PHA, and others. On the basis of end-use, the market is segmented into packaging, agriculture, consumer goods, and others.

Starch-based had a major share in Biodegradable Plastics Market

In 2021, the starch-based category dominated the global Biodegradable Plastics market and had more than 30% of the market volume and value share in the same year. This is primarily due to the high application of starch-based across industries such as packaging, automobiles, and agriculture among others. The different properties of starch-based categories such as elongation and tensile strength are projected to boost the category growth in the years to come.

Besides, the PLA category is presumed to witness the fastest growth over the forecast period. The PLA is manufactured from renewable resources, and also it is biodegradable and compostable. PLA is derived from tapioca roots, corn starch, chips, or sugarcane, or starch. The PLA is non-toxic and environment-friendly material due to which is highly used across industries such as packaging, automotive, and others. The major applications of PLA are drink cups, thermoformed products, containers, takeaway food trays, and planter boxes.

Packaging was the leader in the Biodegradable Plastics

The packaging category dominated the Biodegradable Plastics market in 2021. The category accounted for over 50% of the market revenue share in the same year. The Biodegradable Plastics is majorly used in flexible and rigid packaging. The increased replacement of traditional plastics by Biodegradable Plastics products in food & beverage packaging such as boxes, cups, wraps, and plates is the key reason for the category dominance. Moreover, the growing environmental regulations and change in the consumer lifestyle are some other key factors for the growth of the category over the forecast period. Besides, the agriculture category is expected to hold a significant share over the forecast period. This is due to the high use of biodegradable mulch film that ensures conservation of water in the soil along with suppression of weed growth and soil temperature maintenance for faster crop development.

Asia Pacific Biodegradable Plastics Market to Grow at the Fastest CAGR

Europe had a major share in the global Biodegradable Plastics market in 2021. The region had more than 35% of the market revenue and volume share in 2021. The strict government regulations and economic conditions are the key factors for regional dominance. Moreover, high awareness in the consumers for plastic waste along with the ban on single-use plastics are some other key factors for the growth of the region during the forecast period. Besides, Asia Pacific is estimated to witness the fastest growth in the global Biodegradable Plastics market due to rising demand for Biodegradable Plastics across emerging nations of Asia Pacific and the rising packaging industry in the region. The improved standard of living and growing disposable income of young consumers in the region are some other key factors for the growth of the Asia Pacific Biodegradable Plastics market during the forecast period.

North America is presumed to witness substantial growth during the forecast period. This is majorly owing to the rising consumer awareness for sustainable packaging solutions along with the increased demand for bio-degradable products in the region. Moreover, Latin America is projected to emerge as one of the promising regions due to the availability of raw materials at low cost and growing awareness for environment-friendly products in the region.

Competitive Landscape

The global Biodegradable Plastics market is fragmented in nature due to the presence of global, regional, and country-level players. The companies are investing heavily in research & development activities to develop new products. Some of the major strategies followed by the key players include mergers & acquisitions, partnerships, collaboration, new product launch, and others. The major players in the Biodegradable Plastics market are BASF SE, NatureWorks LLC, Novamont, Total Corbion, Biome Plastics, Danimer Scientific, Fkur Kunstsoff, Plantic Technologies, Toray Industries, Akro Plastics, Green Dot Plastics, Mitsubishi Chemical Corporation, Carbion, and Biome Technologies plc.

The Biodegradable Plastics is Segmented as Follows: