Bioplastics Manufacturing in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

During the current period, concerns over the future of petroleum-based plastics supported the need for recyclable and sustainable bioplastics. Volatility in the world price of crude oil influenced major plastics producers to search for an alternative. Despite oil price volatility, bioplastics remain more expensive than petro-based products. Revenue has been falling at a CAGR of 1.7% through the end of 2024 to $677.8 million, including an expected jump of 0.5% in 2024 alone. Profit is also expected to slump to 3.9% of revenue in 2024, down from 7.6% in 2019.

Trends and Insights

• Despite volatility in oil prices, bioplastics remain significantly more expensive than petro-based plastics.
• Manufacturers spend on research and development in an attempt to reduce unit costs. Starch-based bioplastics have gained popularity because of their sustainability.
• Imposed regulations have encouraged the increased use of environmentally friendly plastics. Manufacturers are concentrated in regions with significant manufacturing activity, like the Great Lakes.
• Also, manufacturers are located near major markets like packaging suppliers. Manufacturers primarily compete on price and quality.
• Manufacturers must produce high-quality products with minimal costs to compete with other bioplastic manufacturers and petro-based plastic products.

Industry Overview

Industry revenue has declined at a CAGR of 1.4 % over the past five years, to reach an estimated $677.8m in 2024.

Trends and Insights

Rising demand has limited revenue declines for manufacturers The need for bioplastic products has increased in recent years. Large companies joining the campaign for green packaging and growing environmental concerns about using petroleum-based packaging materials have contributed to rising consumer needs.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Environmental concerns and economic factors
• Plastic product manufacturers are expected to enjoy solid demand as consumer spending continues to expand in the years to come. Rising purchases of plastic products will cause manufacturers to need more plastic, some of which will be bioplastics.