Biodegradable Plastic Market Size By Type (Polylactic Acid (PLA), Starch Blends, Polyhydroxyalkanoates (PHA), and Biodegradable Polyesters (PBAT, PBS), Application (Packaging, Consumer Goods, Agriculture) & Region for 2024-2031

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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Biodegradable Plastic Market Valuation – 2024-2031

The biodegradable plastics market is experiencing significant growth driven by the incorporation of advanced technologies to meet evolving standards in sustainability, performance, and environmental impact across various industries. With applications spanning packaging, agriculture, textiles, and more, biodegradable plastics are essential in delivering innovative solutions to a diverse range of users. Valued at USD 5.47 Billion in 2023, the market is projected to reach approximately USD 18.44 Billion by 2031, highlighting its robust growth trajectory.

The demand for eco-friendly and sustainable materials is propelling advancements in biodegradable plastic technology and formulations. These innovations facilitate seamless integration with existing production systems and offer enhanced properties such as increased strength and faster decomposition rates, thereby improving product performance and reducing environmental impact. This integration is set to strengthen the market with the biodegradable plastics market anticipated to achieve a compound annual growth rate (CAGR) of 16.40% between 2024 and 2031.

Biodegradable Plastic – Definition/ Overview

Biodegradable plastic is a form of plastic material that decomposes naturally in the environment using microorganisms like bacteria and fungi to produce water, carbon dioxide, and biomass over a certain period of time under specific conditions. Unlike regular plastics which can remain in the environment for hundreds of years, biodegradable polymers are designed to degrade more quickly lowering their environmental impact. These plastics are primarily manufactured from renewable raw materials such as plant starches, cellulose, or biodegradable polymers, and are being employed in a variety of applications to address growing concerns about plastic pollution and sustainability.

Biodegradable polymers are pretty cool because they're good for the environment, so you see them popping up everywhere! For example, in packaging, they're used to make things like bags, food containers, and wrapping – all helping to cut down on landfill waste. In farming, they're great for mulch films, plant pots, and even coatings for fertiliser that break down and feed the soil after you're done with them. Even in medicine, you'll find them in sutures, drug delivery systems, and temporary implants that just dissolve in your body. And let's not forget those consumer goods like disposable cutlery, plates, and fabrics – giving us more eco-friendly choices compared to regular plastic stuff. All these different uses really show how versatile and awesome biodegradable plastics are, especially when it comes to sustainability and cutting down on pollution.

The future's looking bright for biodegradable plastics! More and more people are waking up to environmental issues, and tough new rules are helping cut down on plastic waste. Scientists and companies are busy making these plastics even better – think stronger, more bendy, and quicker to break down.

Using cool new ingredients like leftover food and farm scraps should make them even greener and cheaper. Plus, imagine biodegradable plastics combined with things like smart packaging or other bio-based materials! That could open up tons of possibilities in all sorts of industries. As we all look for more eco-friendly stuff, the market for these plastics is predicted to grow, playing a big role in building a circular economy and a more sustainable world.

How Growing Corporate Sustainability Efforts Drive the Biodegradable Plastic Market?

More and more companies are going green, and that's really boosting the biodegradable plastics market. Businesses across the board are making environmental responsibility a priority. They understand they need to cut down their environmental footprint, both to follow the rules and to keep up with what consumers want – more eco-friendly options! You can see this happening with packaging, as companies switch to biodegradable polymers to reduce waste and push for more recycling. By using biodegradable stuff, businesses aren't just shrinking the amount of trash that ends up in landfills, they're also making their brand look good. It's a win-win! Environmentally conscious consumers and investors are drawn to companies that are doing their part.

Corporate sustainability initiatives frequently include comprehensive strategy for reducing greenhouse gas emissions, conserving natural resources, and using renewable materials. Biodegradable plastics which are often made from renewable resources like corn starch, sugarcane, and other plant-based components are well aligned with these sustainability objectives. Companies are investing in R&D to increase the performance and cost-effectiveness of biodegradable plastics making them a viable replacement for regular plastics. This investment is not simply a commitment to environmental stewardship but also a strategic decision to remain competitive in a market where sustainability is becoming an increasingly important difference.

The quest for sustainability is also fueled by growing regulatory demands from governments throughout the world who are enacting strict rules and prohibitions on single-use plastics. Companies are actively looking for biodegradable alternatives to comply with these laws and avoid potential penalties. Businesses that use biodegradable plastics can comply with growing environmental rules while also contributing to global sustainability efforts. This proactive approach not only reduces regulatory risks but it also positions businesses as sustainability leaders supporting long-term growth and resilience in an increasingly environmentally concerned marketplace.

Will Limited End-of-Life Infrastructure Hamper the Biodegradable Plastic Market?

Limited end-of-life infrastructure is a key problem to the biodegradable plastics business potentially impeding its expansion and efficacy. While biodegradable polymers are intended to break down faster than regular plastics, their breakdown still necessitates specialised conditions commonly seen in industrial composting facilities. Unfortunately, the availability of such facilities is limited in many areas resulting in scenarios in which biodegradable plastics may not dissolve as planned if they end up in landfills or natural habitats failing to deliver their full environmental benefits.

The current waste management systems are largely geared to handle traditional plastics, and the addition of biodegradable plastics may complicate sorting and processing. Due to a lack of broad industrial composting infrastructure, biodegradable plastics may be disposed of inappropriately resulting in contamination in recycling streams or inadequate breakdown in landfill conditions. This mishandling has the potential to erode market credibility and customer confidence by failing to realise the promised environmental benefits of biodegradable plastics leading to scepticism about their effectiveness and sustainability claims.

Fixing these infrastructure problems is going to take some serious cash and a team effort from governments, industry players, and waste management organisations. We really need to build more industrial composting facilities, get the word out to people about how to properly dispose of this stuff, and make sure we have clear labels on all those biodegradable plastics. Otherwise, the whole biodegradable plastics market might not take off like we hope it will. Without the right EOL infrastructure, these eco-friendly materials won't really be all that practical, and people won't be as likely to use them. So, it's not just about the plastics themselves – it's about having systems in place that help them break down efficiently and fit into a circular economy.

Category-Wise Acumens

Will Adaptability for Use in Commercial Composting Systems Drive the Type Segment?

The polylactic acid segment is dominating the market. Adaptability for usage in commercial composting systems is an important driver driving growth in the biodegradable plastics market particularly within the type sector. Biodegradable plastics designed to degrade efficiently in commercial composting facilities have substantial advantages over those that do not. This adaptability ensures that the materials degrade completely into non-toxic components under controlled settings delivering on their environmental promise. As a result, manufacturers are likely to focus on developing and promoting biodegradable plastics that are compatible with these systems which will drive market innovation and differentiation.

The emphasis on interoperability with commercial composting systems tackles an important issue for both consumers and businessesproper disposal and end-of-life management. Companies can make their products more appealing by guaranteeing that biodegradable plastics can be properly digested in current composting infrastructure. This compatibility not only decreases environmental effect but also makes garbage management easier for businesses and governments. As a result, goods that are easily biodegradable in business systems are expected to gain increased adoption as they give a clear and practical answer to plastic waste disposal issues.

Regulatory trends and consumer preferences are increasingly favouring items that have verifiable end-of-life results. Governments and environmental organisations are campaigning for waste management solutions that prioritise composting and recycling, hence providing a favourable regulatory climate for biodegradable plastics that fulfil commercial composting criteria. Consumers are growing pickier wanting products that reflect their environmental beliefs. This increased demand for sustainable and easily compostable items will lead companies to produce biodegradable plastics that are optimised for commercial composting systems, resulting in market growth and differentiation in the type sector.

Will High Demand for Sustainable Alternatives Drive the Applications Segment?

Right now, packaging is where it's all happening in the biodegradable plastics market. Why? Because we're all looking for more sustainable options. People are waking up to the environment, and they're starting to prefer products that don't trash the planet. This is especially true in areas like packaging, where single-use plastics have taken a beating for causing pollution. So, biodegradable plastics seem like a smart move—they work like regular plastic but are kinder to the earth. That’s why businesses everywhere are looking for ways to switch to these biodegradable options, giving customers what they want and hitting those corporate sustainability goals at the same time.

Regulatory pressures and shifting policies aimed at minimising plastic waste exacerbate the need for sustainable alternatives. Governments around the world are imposing bans and limitations on single-use plastics creating a favourable atmosphere for the development of biodegradable alternatives. Industries that rely extensively on plastic materials such as consumer products and agriculture are increasingly turning to biodegradable alternatives to comply with requirements and demonstrate their commitment to environmental responsibility. This regulatory push combined with consumer demand is propelling the applications industry as businesses seek viable and compatible alternatives to traditional plastics.

Biodegradable plastics are versatile enough to be used in industries other than packaging such as consumer goods and agriculture. Biodegradable plastics provide practical solutions for a variety of needs including disposable cutlery and food containers as well as agricultural mulch films and plant pots. As firms look for new applications and creative uses for biodegradable materials, the applications section of the market is expected to increase significantly. This development into numerous industries demonstrates biodegradable plastics ability to transform established practices and pave the way for a more sustainable future.

Gain access into Biodegradable Plastic Market Report Methodology

Country/Region Wise Acumens

How Rising Consumer Awareness Drive the Biodegradable Plastic Market in Europe Region?

Europe dominates the biodegradable plastic market. With increased environmental consciousness, European customers are scrutinising their purchase decisions preferring products that reflect their values of sustainability and eco-friendliness. This awareness extends to the negative consequences of traditional plastics on the environment including pollution and trash generation. As a result, there is an increasing need for alternatives such as biodegradable plastics which provide a more environmentally responsible answer for packaging, consumer goods, and other uses.

Consumer awareness has an even greater impact on the biodegradable plastics business in Europe where strong rules and policies targeted at minimising plastic waste exist. Governments around the area have set ambitious targets and launched programmes to reduce plastic pollution including as restrictions on single-use plastics and mandates for eco-friendly packaging alternatives.  This regulatory landscape creates a conducive environment for the adoption of biodegradable plastics as companies seek to comply with regulations while meeting consumer preferences. The combination of consumer-driven demand and supportive regulatory frameworks fuels market growth and innovation within the biodegradable plastics sector in Europe.

The impact of sustainability-focused initiatives and campaigns launched by various organisations and advocacy groups cannot be underestimated. These activities are critical in raising awareness about the environmental impact of plastic consumption and advocating the benefits of biodegradable alternatives. These initiatives through educational programmes, awareness campaigns, and media coverage help to shape customer attitudes and behaviours towards sustainable products like biodegradable plastics. As consumer awareness grows and sustainability remains a top focus in the European market, demand for biodegradable plastics is likely to climb steadily fueling additional market expansion and acceptance across industries.

Will Increasing Agriculture and Food & Beverage Industry Boost the Biodegradable Plastic Market in Asia-Pacific Region?

The Asia-Pacific region is the fastest-growing region in the biodegradable plastic market. With significant urbanisation and rising disposable incomes, there is a growing demand for food and agricultural output throughout the region. As a result, the packaging needs of these industries are growing necessitating the use of environmentally friendly packaging materials such biodegradable plastics. As customers become more environmentally concerned, there is an increasing preference for packaging materials with little environmental impact which aligns with both industries sustainability aims.

Stringent rules and policies aimed at minimising plastic waste are progressively being introduced in Asia-Pacific countries boosting demand for biodegradable plastics in agriculture and the food and beverage industries. Governments are establishing policies to prohibit single-use plastics and promote environmentally friendly alternatives creating a favourable atmosphere for the development of biodegradable packaging options.  This regulatory landscape incentivizes businesses in these industries to transition towards sustainable packaging options including biodegradable plastics to comply with regulations and demonstrate corporate responsibility.

The Asia-Pacific region has enormous prospects for innovation and commercial expansion in the biodegradable plastics industry. As one of the world’s fastest-growing regions, it has a large consumer market and a robust manufacturing sector. With increased investment in R&D and technological breakthroughs, there is enormous opportunity for the development of new and superior biodegradable plastic formulations customised to the region’s agriculture and food & beverage industries. As a result, these sectors rapid growth is likely to generate significant market expansion and adoption of biodegradable plastics in the Asia-Pacific region in the coming years.

Competitive Landscape

The Biodegradable Plastic Market is a dynamic and competitive industry, marked by a diverse array of players striving to capture market share. These companies are actively engaged in efforts to solidify their presence by implementing strategic initiatives such as collaborations, mergers, acquisitions, and garnering political support. With a focus on innovation, these organizations are continuously enhancing their product offerings to meet the diverse needs of consumers across various regions.

Some prominent players in biodegradable plastic market include

  • BASF SE
  • NatureWorks LLC
  • Total Corbion PLA
  • Novamont S.p.A.
  • Metabolix
  • Bio-On S.p.A.
  • Danimer Scientific
  • Braskem
  • Plantic Technologies

Latest Developments

  • In December 2023, Sulzer, a Swiss technology company, is expanding its line of bioplastics with the introduction of a new end-to-end licenced technology called CAPSULTM for the continuous manufacturing of polycaprolactone (PCL), a biodegradable polyester commonly used in the packaging, textile, agricultural, and horticulture industries.
  • In February 2024, LG Chem Ltd., a renowned South Korean chemical producer, and CJ CheilJedang Corp., a food and biotechnology corporation, formed an environmentally friendly bio-nylon joint venture to cut carbon emissions and earn new revenue. The CEOs of the two businesses, LG Chem and CJ CheilJedang, revealed on Thursday that they had signed a head of agreement (HOA) to build a joint venture factory to make environmentally friendly nylon with PMDA.

Report Scope

REPORT ATTRIBUTESDETAILS
STUDY PERIOD

2018-2031

Growth Rate

CAGR of~16.40%

Base Year for Valuation

2023

HISTORICAL PERIOD

2018-2023

Forecast Period

2024-2031

Quantitative Units

Value in USD Billion

Report Coverage

Revenue Forecast, Growth Factors, Competitive Landscape, key Players, Segmentation Analysis

Segments Covered
  • Type
  • Applications
Region Covered
  • North America
  • Europe
  • Asia Pacific
  • Middle East And Africa
Key Players
  • BASF SE
  • NatureWorks LLC
  • Total Corbion PLA
  • Novamont S.p.A.
  • Metabolix
  • Bio-On S.p.A.
  • Danimer Scientific
  • Braskem
  • Plantic Technologies
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Biodegradable Plastic Market, By Category

Type

  • Polylactic Acid (PLA)
  • Starch Blends
  • Polyhydroxyalkanoates (PHA)
  • Biodegradable Polyesters (PBAT, PBS)

Applications

  • Packaging
  • Consumer Goods
  • Agriculture

Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa

Research Methodology of Market Research

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