Biodegradable plastics are the type of plastics that can be broken down into water, carbon dioxide, and biomass by the action of living organisms, usually micro-organisms. Biodegradable plastics are typically made from renewable sources, microbes, petrochemicals, or a combination of all three. Some biodegradable plastics are compostable, which means they decompose under controlled conditions such as those found in compost or anaerobic digestion locations.
According to this analysis, the Global Biodegradable Plastics Market was valued at ~US$ 5 billion in 2017. It is estimated to be ~US$ 7 billion in 2022 and is forecasted to reach a market size of ~US$ 12 billion by 2028, growing at a CAGR of ~9% due to the shifting consumer preference towards eco-friendly plastic solutions.
Increasing consumer awareness regarding eco-friendly plastic solutions and rising efforts to reduce the use of conventional plastics are expected to drive the biodegradable plastics market growth.
Biodegradable plastics break down faster than conventional plastics and degrade 60% in less than 180 days, compared to traditional plastics which take about 1,000 years to decompose.
Growing piles of garbage and landfills have become a major environmental disaster, with many negative impacts on ecosystem flora and fauna. Growing consumer awareness of the effects encourage the use of biodegradable plastics. Hence, shifting consumer preference toward using environmentally friendly plastic products, driving the market for biodegradable plastics.
The major challenge faced by the market is the high price of biodegradable plastics as compared to traditional polymers. Biodegradable plastics are typically 20-80% more expensive to manufacture than conventional plastics, due to the high polymerization cost of such plastics. Higher costs of these plastics hinder the market growth.
The COVID-19 pandemic and resulting lockdowns have disrupted supply chains on both supply and demand sides, which negatively impacted many manufacturing and service industries such as consumer goods, packaging, textiles, agriculture, and horticulture. The closure of biodegradable plastic manufacturing plants and the irregular supply of raw materials required for production hindered the industry growth in 2019-2020.
By End-User: The packaging segment held the largest market share in the global biodegradable plastics market in 2021, due to rising consumer demand for durable green packaging materials for food, beverages, and other products.
In the packaging industry, conventional plastics are being replaced by bio-based plastics for making boxes, wraps, cups, and plates, which is supporting the growth of the biodegradable plastic market.
New product launch by the companies positively impacts the biodegradable plastics for the packaging segment. For instance, EnviGreen, an Indian manufacturer of edible and 100% biodegradable plastic bags, innovated ‘EnviGreen bags’ to have the capability to break down completely in 15 seconds if placed in the boiling water.
By Region: Europeheld the largest market share among all other regions within the Global Biodegradable Plastics Market in 2021, due to high awareness among people toward plastic waste.
A complete ban imposed on single-use plastics by the European government is the major reason for the bio-based plastic materials to grow in the region.
The region is expected to lead the biodegradable plastics market over the forecast period owing to the fast implementation of plastic restriction policies, and the presence of advanced standards and certification systems to check the biodegradability of plastic materials.
Growing economies like China and India have implemented severe regulations on conventional plastics utilization and major manufacturers in the countries are introducing sustainable packaging solutions like bio-based products, which is estimated to drive market growth.
Regional players control about 45% of the market, while country-niche players hold the second largest share. Some of the major players in the market include BASF SE, Belmont Packaging Ltd., Danimer Scientific, Eastman Chemical Company, Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont S.p.A., Plantic, TORAY INDUSTRIES, INC., TotalEnergies Corbion, PTT Global Chemical Public Company Limited, FKuR, among others.
Note: This is an upcoming/planned report, so the figures quoted here for market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and report delivered within a maximum of 2 working weeks.
According to this analysis, the Global Biodegradable Plastics Market was valued at ~US$ 5 billion in 2017. It is estimated to be ~US$ 7 billion in 2022 and is forecasted to reach a market size of ~US$ 12 billion by 2028, growing at a CAGR of ~9% due to the shifting consumer preference towards eco-friendly plastic solutions.
Increasing consumer awareness regarding eco-friendly plastic solutions and rising efforts to reduce the use of conventional plastics are expected to drive the biodegradable plastics market growth.
Biodegradable plastics break down faster than conventional plastics and degrade 60% in less than 180 days, compared to traditional plastics which take about 1,000 years to decompose.
Growing piles of garbage and landfills have become a major environmental disaster, with many negative impacts on ecosystem flora and fauna. Growing consumer awareness of the effects encourage the use of biodegradable plastics. Hence, shifting consumer preference toward using environmentally friendly plastic products, driving the market for biodegradable plastics.
The major challenge faced by the market is the high price of biodegradable plastics as compared to traditional polymers. Biodegradable plastics are typically 20-80% more expensive to manufacture than conventional plastics, due to the high polymerization cost of such plastics. Higher costs of these plastics hinder the market growth.
The COVID-19 pandemic and resulting lockdowns have disrupted supply chains on both supply and demand sides, which negatively impacted many manufacturing and service industries such as consumer goods, packaging, textiles, agriculture, and horticulture. The closure of biodegradable plastic manufacturing plants and the irregular supply of raw materials required for production hindered the industry growth in 2019-2020.
Scope of the Report
The Biodegradable Plastics Market is segmented by Product Type, End-User, and Geography. In addition, the report also covers the market size for each of the five regions' Biodegradable Plastics Market. The revenue used to size and forecast the market for each segment is USD billion.By Product Type
- Starch Based
- Polylactic acid (PLA)
- Polyhydroxyalkanoates (PHA)
- Polybutylene Adipate Co-terephthalate (PBAT)
- Poly Butylene Succinate (PBS)
- Others
By End-User Segment
- Packaging
- Agriculture
- Consumer Goods
- Textiles
- Healthcare
- Others
By Region
- North America
- USA
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Indonesia
- AustraliaRest of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Players
- BASF SE
- Belmont Packaging Ltd
- Danimer Scientific
- Eastman Chemical Company
- Mitsubishi Chemical Corporation
- NatureWorks LLC
- Novamont S.P.A
- Plantic
- TORAY INDUSTRIES, Inc
- TotalEnergies Corbion
- PTT Global Chemical Public Company Limited
- FKuR
Key Trends by Market Segment
- By Product Type: The starch-based segment held the largest market share in the global biodegradable plastics market in 2021, owing to its wide area of applications such as packaging, automobiles, and agriculture
- Starch-based biodegradable plastics are widely used for tires in the automotive industry as it helps in reducing fuel consumption
By End-User: The packaging segment held the largest market share in the global biodegradable plastics market in 2021, due to rising consumer demand for durable green packaging materials for food, beverages, and other products.
In the packaging industry, conventional plastics are being replaced by bio-based plastics for making boxes, wraps, cups, and plates, which is supporting the growth of the biodegradable plastic market.
New product launch by the companies positively impacts the biodegradable plastics for the packaging segment. For instance, EnviGreen, an Indian manufacturer of edible and 100% biodegradable plastic bags, innovated ‘EnviGreen bags’ to have the capability to break down completely in 15 seconds if placed in the boiling water.
By Region: Europeheld the largest market share among all other regions within the Global Biodegradable Plastics Market in 2021, due to high awareness among people toward plastic waste.
A complete ban imposed on single-use plastics by the European government is the major reason for the bio-based plastic materials to grow in the region.
The region is expected to lead the biodegradable plastics market over the forecast period owing to the fast implementation of plastic restriction policies, and the presence of advanced standards and certification systems to check the biodegradability of plastic materials.
Growing economies like China and India have implemented severe regulations on conventional plastics utilization and major manufacturers in the countries are introducing sustainable packaging solutions like bio-based products, which is estimated to drive market growth.
Competitive Landscape
The Global Biodegradable Plastics Market is highly competitive with ~300 players, including globally diversified players, regional players, and many country-niche players. Most of the country-niche players are suppliers of raw materials for biodegradable plastics used in various end-user industries.Regional players control about 45% of the market, while country-niche players hold the second largest share. Some of the major players in the market include BASF SE, Belmont Packaging Ltd., Danimer Scientific, Eastman Chemical Company, Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont S.p.A., Plantic, TORAY INDUSTRIES, INC., TotalEnergies Corbion, PTT Global Chemical Public Company Limited, FKuR, among others.
Recent Developments Related to Major Players and Organizations
- In July 2021, Solvay acquired the global coating business of Bayer AG, having facilities in France, Brazil, and the U.S. The acquisition strengthened the sustainable and bio-based solutions in the company’s portfolio. The whole product portfolio and research & development projects from Bayer AG have been shifted to Solvay
- In April 2021, NatureWorks announced a new strategic partnership with IMA Coffee, which is a market leader in coffee handling processing and packaging. This partnership aims at increasing the market reach for high-performing compostable K-cup in North America
Conclusion
The global biodegradable plastics market witnessed slow growth for the year 2020, owing to the COVID-19 pandemic. A complete ban on imports and export disrupted the supply chain and hampered the market globally. However, the market condition is expected to get better in 2022, thereby restoring growth over the forecast period. The market is primarily driven by the increasing usage of Biodegradable Plastics in packaging, automotive, and other industries. Though the market is moderately competitive with over ~300 participants, few regional players control the dominant share and country-niche players also hold a significant share.Note: This is an upcoming/planned report, so the figures quoted here for market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and report delivered within a maximum of 2 working weeks.
Key Topics Covered in the Report
- Snapshot of Global Biodegradable Plastics Market
- Industry Value Chain and Ecosystem Analysis
- Market size and Segmentation of the Global Biodegradable Plastics Market
- Historic Growth of Overall Global Biodegradable Plastics Market and Segments
- Competition Scenario of the Market and Key Developments of Competitors
- Porter’s 5 Forces Analysis of Global Biodegradable Plastics Industry
- Overview, Product Offerings, Strengths, & Weaknesses of Key Competitors
- Covid-19 Impact on the Overall Global Biodegradable Plastics Market
- Future Market Forecast and Growth Rates of the Total Global Biodegradable Plastics Market and Segments
- Market Size of Application/End User Segments with Historical CAGR and Future Forecasts
- Analysis of Global Biodegradable Plastics Market
- Major Production/Supply and Consumption/Demand Hubs within Each Region
- Major Country-wise Historic and Future Market Growth Rates of the Total Market and Segments
- Overview of Notable Emerging Competitor Companies within Each Region
- Origin Materials
- Notpla Limited
- Ecovative LLC
- Cocoon
- Cruz
- Foam
Key Target Audience - Organizations and Entities Who Can Benefit by Subscribing This Report
- Biodegradable Plastics Manufacturers
- Starch Based Biodegradable Plastics Suppliers
- Polylactic acid (PLA) Biodegradable Plastics Suppliers
- Polyhydroxyalkanoates (PHA) Biodegradable Plastics Suppliers
- Polybutylene Adipate Co-Terephthalate (PBAT) Biodegradable Plastics Suppliers
- Poly Butylene Succinate (PBS) Biodegradable Plastics Suppliers
- Biodegradable Plastics Distributors
- Emerging and Startup Biodegradable Plastics Companies in the Market
- Government Departments of Polymers
- Ministries and Departments of Agriculture
- Ministries and Departments of Textile
- Ministries and Departments of Packaging
- Ministries and Departments of Healthcare
- Importers and Distributors of Biodegradable Plastics
- Environmental Regulatory Authorities
- Recycled Plastic Films Manufacturers
- Recycled Plastic Foam Manufacturers
- Recycled Plastics Distributors
- Emerging and Startup Recycled Plastics Companies in the Market
- Different Types of Recycled Plastics Institutes
- Government Departments of Polymers
- Ministries and Departments of Electrical & Electronics
- Ministries and Departments of Construction Materials
- Ministries and Departments of Chemicals
- Ministries and Departments of Petrochemicals
- Importers and Distributors of Recycled Plastics
Period Captured in the Report
- Historical Period: 2017-2021
- Forecast Period: 2022-2028F
Frequently Asked Questions
What is the Study Period of this Market Report?
- The Global Biodegradable Plastics Market is covered from 2017-2028 in this report, which includes a forecast for the period (2022-2028)
What is the Future Growth Rate of the Global Biodegradable Plastics Market?
- The Global Biodegradable Plastics Market is expected to witness a CAGR of ~9% over the next 6 years
What are the Key Factors Driving the Global Biodegradable Plastics Market?
- Rising awareness among the public regarding the ill effects of plastic waste and governments prohibiting the use of single-use plastic are expected to be the primary drivers of this market
Which is the Largest End-User Segment within the Global Biodegradable Plastics Market?
- The packaging segment held the largest market share in the global biodegradable plastics market in 2021
Who are the Key Players in the Global Biodegradable Plastics Market?
- BASF SE, Belmont Packaging Ltd., Danimer Scientific, Eastman Chemical Company, Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont S.p.A., Plantic, TORAY INDUSTRIES, INC., TotalEnergies Corbion, PTT Global Chemical Public Company Limited, FKuR, among others are the major companies operating in Global Biodegradable Plastics Market.
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- TAM/SAM/SOM Analysis
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Table of Contents
1. Executive Summary
2. Market Overview and Key Trends Impacting Growth
3. Global - Market Segmentation by Product Type, Historic Growth, Outlook & Forecasts
4. Global - Market Segmentation by End-User, Historic Growth, Outlook & Forecasts
5. Industry/Competition Analysis - Competitive Landscape
6. Key Competitor Profiles (Company Overview, Product Offerings, and Strengths & Weaknesses Analysis)
7. Geographic Analysis & Major Countries Market Historic Growth, Outlook, and Forecasts
8. Industry Expert’s Opinions/Perspectives
9. Analyst Recommendation
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Key Players
- BASF SE
- Belmont Packaging Ltd.
- Danimer Scientific
- Eastman Chemical Company
- Mitsubishi Chemical Corporation
- NatureWorks LLC
- Novamont S.p.A.
- Plantic
- TORAY INDUSTRIES, INC.
- TotalEnergies Corbion
- PTT Global Chemical Public Company Limited
- FKuR
- Origin Materials
- Notpla Limited
- Ecovative LLC
- Cocoon
- Cruz
- Foam
