Biodegradable Plastics Market Size and Global Growth Analysis by 2028
[Research Report] The biodegradable plastics market size is expected to grow from US$ 7,331.11 million in 2022 to US$ 20,840.29 million by 2028; it is estimated to record a CAGR of 19.0% from 2022 to 2028.
MARKET ANALYSIS
Biodegradable plastic can be decomposed naturally in the environment by the action of living organisms, usually microbes, into water, carbon dioxide, and biomass. It can be synthesized using renewable raw materials, microorganisms, and petrochemicals. They are designed to mineralize in a controlled waste management environment and also provide an effective and environment-friendly alternative to the synthetic polymers. Government bodies and manufacturers across the globe have taken efforts for improving the efficiency of recycling and upcycling plastic wastage. Growing awareness among customers about adverse effects of conventional plastics is anticipated to boost the product demand.
GROWTH DRIVERS AND CHALLENGES
The customers in developed and developing countries have been educated of the ill effects of conventional plastics on their lifestyle and the environment. As a result, they demand more environmentally friendly products, which leads to a depreciation in the use of crude oil and natural gas, that results in the reduction carbon footprints. . Biodegradable plastic is a surrogate for nearly all conventional plastics used in a diverse range of applications. These plastics offer innovative alternatives with enhanced properties, along with distinctive ability to lessen the emissions as well as provide the same qualities and functionalities as that of conventional plastics. The biodegradable plastics are synthesized using renewable resources as well as fossil raw materials, such as cellulose ester, PLA, PHA, starch derivatives, and copolyesters. Various organizations are engaged in bringing transformation in the handling of plastics, through strategic planning, communication, consumer awareness campaigns, documentary films, education, clean up campaigns, raising business awareness, scientific research, entrepreneurial innovation, legislation, and sustainability. The key aim is to educate the users regarding plastic pollution, thereby encouraging the invention of more sustainable solutions, and empowerment of more people and business organizations to take action to stop plastic pollution. Therefore, the revolution in consumer demand on the basis of environmental awareness, packaging convenience, and sustainable plastic production systems is boosting the biodegradable plastic market growth.
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Biodegradable Plastics Market: Strategic Insights
CAGR (2022 - 2028)19.0%- Market Size 2022
US$ 7.33 Billion - Market Size 2028
US$ 20.84 Billion
Market Dynamics
- Growing awareness among customers about adverse effects of conventional plastics
- Clean up efforts taken up by the governments Resources
- Emerging Use of Biodegradable Plastic in Biomedical Applications
- Implementation of biodegradable plastics in biomedical applications
Key Players
- BASF SE
- Novamont SpA
- NatureWorks LLC
- Mitsubishi Chemical Corporation
- Total Corbion PLA
- Plantic Technologies Limited
- Kingfa Sci. & Tech. Co., Ltd
- Green Dot Bioplastics
- FKuR Kunststoff GmbH
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Geography - North America
- Europe
- Asia Pacific
- Middle East and Africa
- South and Central America
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REPORT SEGMENTATION AND SCOPE
The "Global Biodegradable Plastics Market Analysis to 2030" is a specialized and in-depth study with a major focus on the global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation by type, end user, and geography. The global biodegradable plastics market has been witnessing high growth over the recent past and is expected to continue this trend during the forecast period. The report provides key statistics on the consumption of biodegradable plastics worldwide along with their demand in major regions and countries. In addition, the report provides the qualitative assessment of various factors affecting the biodegradable plastics market performance in major regions and countries. The report also includes a comprehensive analysis of the leading players in the biodegradable plastics market and their key strategic developments. Several analyses on the market dynamics are also included to help identify the key driving factors, market trends, and lucrative opportunities that would, in turn, aid in identifying the major revenue pockets.
Further, ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global biodegradable plastics market, which helps understand the entire supply chain and various factors affecting the market growth.
SEGMENTAL ANALYSIS
The global biodegradable plastics market is segmented on the basis of type, and end user. Based on type, the biodegradable plastics market is segmented as PLA, PHA, starch blends, PBS, PBAT, and others. On the basis of end user, the market is classified as, packaging and bags, agriculture and horticulture, consumer goods, and others. Based on type, the starch blends accounted for a significant share. Starch is a naturally occurring polymer that is found in plants such as corn, rice and potatoes in the form of water-insoluble granules. Starch has been receiving growing attention as raw material for the production of films due to the lack of the availability of the conventional film-forming resins. Polyhydroxyalkanoates (PHA) belongs to the family of naturally occurring polymers. The PHA has found a vital place in the medical applications owing to its biocompatibility. It has a good ultraviolet resistance but resists poorly to acids and bases and is also soluble in chloroform and other chlorinated hydrocarbons. PBS is known to naturally decompose in water and carbon dioxide. PBS is widely used in the manufacturing of packaging films and boxes and also in cosmetic packaging. Based on end user, packaging and bags segment accounted for a major share. The biodegradable plastics have found a vital place in the packaging and bags sector owing to its properties like high tensile strength and convenience of usage as compared to the conventional plastics. Surging demand for environmentally friendly food packaging is shifting the focus of crucial polymer manufacturers and packaging companies to decomposable plastics. The use of sustainable plastics in everyday life has been included in the manufacturing of consumer goods including toys, combs, tool handles and other goods. The PLA and PHA polymers have found widescale applications in production of toys. Italeri, one of the leading Italian toy manufacturing companies, has implemented the use of PHA and PLA plastic for the production of toys.
REGIONAL ANALYSIS
The report provides a detailed overview of the global biodegradable plastics market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Europe accounted for a significant share of the market and valued at more than US$ 2,600 million in 2022. The dominance is attributed to increasing environmental concerns among consumer and rising adoption of biodegradable plastics owing to its eco-friendly nature. Moreover, stringent regulations imposed on single use plastic band coupled with government initiatives towards adoption of recyclable packaging will drive the regional industry size. North America is also expected to witness considerable growth valued at approximately US$ 4,900 million in 2028, attributed to the to increasing awareness among people for environment-friendly products. Growing awareness about global warming and plastic pollution propels consumers to opt for environmentally friendly packaging’s. Asia Pacific is growing considerably with CAGR with more than 20.5%. The rising number of bans on traditional plastics proves to be the primary driver for the growth of this market. Besides, the growing demand for flexible packaging from the consumer goods industry and the adoption of various technological innovations in packaging will boost the regional growth.
INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES
The report provides a detailed overview of the global biodegradable plastics market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America.
In 2022, Kaneka announced to invest 15 billion Japanese yen to increase its production capacity for KANEKA Biodegradable Polymer Green Planet in Japan. The investment is aimed to increase the production capacity from 5,000 metric tons to around 20,000 metric tons per year, with operations set to commence in January 2024.
In 2021, South Korea based SK Group, announced to form strategic partnership with local trading company LX International and food firm Daesang to launch a joint venture (JV) for production of PBAT with an investment worth US$ 151.3 million.
Biodegradable Plastics Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 7.33 Billion |
| Market Size by 2028 | US$ 20.84 Billion |
| Global CAGR (2022 - 2028) | 19.0% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2028 |
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
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IMPACT OF COVID/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION
The report provides a detailed overview of the global biodegradable plastics market with respect to five major regions, namely; North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South & Central America. Industries such as packaging and bags, agriculture and horticulture, and consumer goods, and automotive have been the major consumers of biodegradable plastics. In 2020, these industries had to slow down their operations due to disruptions in the value chain caused by the shutdown of national and international boundaries. Moreover, lockdowns imposed by different countries hampered the ability of industries to maintain inventory levels in the same year. The pandemic also wreaked havoc on the automotive and consumer goods industry. The shortage of manpower resulted in the deceleration of biodegradable plastics production and distribution operations. Additionally, government restrictions and other COVID-19 precautions reduced the production capacities of biodegradable plastics manufacturers in the value chain. In 2021, the global marketplace began recovering from the losses incurred in 2020 as governments of different countries announced relaxations in social restrictions. Further, rising government bans for single use plastics, and expanding production capacities in the agriculture and food & beverage packaging industry in different regions of the world resulted in a rise in demand for biodegradable plastics in 2021.
COMPETITIVE LANDSCAPE AND KEY COMPANIES
Some of the key players operating in the biodegradable plastics market include, BASF SE, FKuR Kunststoff GmbH, Green Dot Bioplastics Inc, Novamont SpA, Kingfa Science and Technology Co Ltd, NatureWorks LLC, Mitsubishi Chemical Holdings Corp, Plantic Technologies Ltd, TotalEnergies Corbion BV, and API SpA, among others.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Growing awareness among customers about adverse effects of conventional plastics, and supportive government policies for eco-friendly products and biodegradable plastics are some of the key driving factors for the biodegradable plastics market.
Based on the type, the starch blends segment accounted for the largest revenue share. Starch has been receiving growing attention as raw material for the production of films due to the lack of the availability of the conventional film-forming resins. Therefore, this factor is expected to boost the starch blends’ segment, leading to largest revenue share.
The utilization of biodegradable plastics in biomedical applications, is expected to provide lucrative growth opportunities to the global biodegradable plastics market during the forecast period.
The major players operating in the global biodegradable plastics market are BASF SE; Novamont SpA; NatureWorks LLC; Mitsubishi Chemical Corporation; Total Corbion PLA; amongst others.
Europe biodegradable plastics market is expected to surge as strict government legislations are limiting the utilization of customary plastics. Therefore, several FMCG companies are adopting biodegradable packaging so to conform to the standards, which in turn, is propelling the growth of this market. Therefore, Europe accounts for the largest share of the global biodegradable plastics market.
Based on end-user, consumer goods is the fastest-growing segment. The utilization of biodegradable plastics in consumer goods on a large scale globally due to high tensile strength, transparency, and other mechanical properties, is driving the segment’s growth.
The List of Companies - Biodegradable Plastics Market
- BASF SE
- Novamont SpA
- NatureWorks LLC
- Mitsubishi Chemical Corporation
- Total Corbion PLA
- Plantic Technologies Limited
- Kingfa Sci. & Tech. Co., Ltd
- Green Dot Bioplastics
- FKuR Kunststoff GmbH
- API SpA
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published and advised several client across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organization are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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