In terms of revenue, the Global Biodegradable Plastics Market is expected to reach 36825.7 Million by 2028, growing at a Compound Annual Growth Rate (CAGR) of 25.1% from 2022 to 2028. High demand for biodegradable plastics from several end-user industries coupled with stringent rules and regulations with sustainability mandates are major factors driving the market for biodegradable plastics.
- Packaging sub-segment in applications held a substantial market share in 2021. The environmental regulations and changing lifestyle preferences of consumers have raised the demand for biodegradable plastics in the packaging. As Plastics has high durability and impermeability to water, this has motivated their usage in packaging. The Packaging applications of biodegradable plastics include healthcare packaging, food packaging, shopping bags, cosmetic & personal care packaging, and others.
- Europe is the largest regional segment. This is due to the higher demand as well strong research & Development facilities offered by key market players.
Some of the key players in the Biodegradable Plastics market include - 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.
Consumer awareness for sustainable plastic solutions with several initiatives to eliminate the usage of non-biodegradable conventional plastics that contributes to the market growth of biodegradable plastics. The traditionally used petroleum-based plastics take a long time to break down and lay in landfills for a long period of time. The biodegradable plastics break down faster when they are discarded as well as absorbed back into the natural system. These are factors fuelling the market growth. Additionally, the rate of decomposition of biodegradable plastics is faster than traditional plastics.
The increasing need for reducing dependency on conventional fossil fuels is another reason boosting bio-based products demand. The new policies & regulations implemented by the government bodies globally for the usage of disposables and shopping bags are fuelling the market growth for bio-based products.
The Asia Pacific is projected to have potential market growth for Biodegradable Plastics Market. The growth in the region is attributed to the easy availability of the raw materials used for manufacturing biodegradable plastics coupled with the spreading awareness regarding the usage of biodegradable plastics as an alternative to traditional plastics.