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Biodegradable Plastics Market To Reach USD 15.86 Billion By Year 2032

Biodegradable Plastics Market Size Was Valued at USD 5.72 Billion in 2023 and is Projected to Reach USD 15.86 Billion by 2032, Growing at a CAGR of 12 % From 2024-2032.

04-07-2024
Vishal Panchmukh
Chemical and Materials
Pristine Intelligence LLP

According to a new report published by Pristine Intelligence, titled, “Biodegradable Plastics Market by Application and Type: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the Biodegradable Plastics Market Size Was Valued at USD 5.72 Billion in 2023 and is Projected to Reach USD 15.86 Billion by 2032, Growing at a CAGR of 12 % From 2024-2032.

Biodegradable plastics, designed to decompose through the action of living organisms like microbes, break down into water, carbon dioxide, and biomass. Produced using renewable raw materials, microorganisms, petrochemicals, or combinations thereof, these plastics have diverse applications, including foamed packing materials, extruded products, and injection-molded items. Universal standards, new materials, and a compostable logo assure consumers of their biodegradability. Various fillers, such as wood flour, lime, clay, or waste paper, can be incorporated to enhance flexibility in appearance and functionality. Moreover, biodegradable plastics can be co-injected with materials like LDPE, PP, and HDPE, creating cost-effective, waterproof items compared to traditional plastics.

There are two primary types of biodegradable plastics: bioplastics derived from renewable sources and plastics made from petrochemicals with biodegradable additives to facilitate decomposition. These types serve distinct environmental and practical purposes, reducing plastic waste and supporting sustainable manufacturing practices. Biodegradable plastics play a crucial role in addressing the environmental concerns associated with conventional plastics, promoting circular economy principles, and reducing plastic pollution. Their versatility and eco-friendly characteristics make them increasingly important for various industries striving for sustainable solutions.

According to the global Biodegradable Plastics market analysis, the market is divided by application, type, and geographical division. The Biodegradable Plastics Market is segmented into Type, Application, and region. By Type, the market is categorized into PLA, PBAT, Starch Blends, PHA, and Biodegradable Polyesters. By Application, the market is categorized into packaging, Consumer Goods, Textile, Agriculture & Horticulture, Fibers, and Others. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players to sustain a competitive environment and increase their market share.

The biodegradable plastics market is experiencing robust growth driven by increasing consumer preference for sustainable and eco-friendly products. With rising awareness of environmental issues, consumers demand alternatives to traditional plastics that degrade naturally, reducing long-term ecological impact. Regulatory initiatives are another significant driver, as governments worldwide implement stringent regulations to curb plastic pollution and promote sustainable practices. Bans on single-use plastics and mandates for eco-friendly packaging solutions directly propel the demand for biodegradable plastics, making compliance a priority for industries ranging from packaging to consumer goods.

Rapid urbanization and industrialization globally present a significant opportunity for the biodegradable plastics market. As urban populations grow, so does the demand for sustainable packaging solutions that reduce environmental impact. Industries are increasingly turning to biodegradable plastics due to stringent regulations and consumer preferences for eco-friendly products. These plastics break down naturally into non-toxic components, minimizing pollution and landfill waste, and supporting waste management strategies in urban settings by reducing landfill burden and littering. They contribute to cleaner cities and healthier environments by mitigating the harmful effects of plastic pollution on wildlife and marine ecosystems.

Global Biodegradable Plastics Market, Segmentation

The Biodegradable Plastics market is segmented based on type, application, and region.

Type:

The type segment is further classified into PLA, PBAT, Starch Blends, PHA, and Biodegradable Polyesters. Among these, the PBAT sub-segment accounted for the highest market share in 2023. PBAT's versatility and environmental benefits drive its adoption across various industries. Beyond packaging and medical products, PBAT is used in agricultural films and mulch films, reducing plastic waste in farming and supporting sustainable agriculture. Its properties allow blending with other biodegradable plastics, enhancing its applicability in diverse manufacturing processes. Compatibility with existing plastic processing equipment ensures seamless integration, offering a sustainable development pathway for manufacturers. As environmental sustainability awareness grows, PBAT stands out as a promising alternative to conventional plastics, biodegrading without harmful residues and mitigating plastic pollution, positioning it as crucial in the shift toward a sustainable future.

Application:

The application segment is further classified into Packaging, Consumer Goods, Textile, Agriculture & Horticulture, Fibers, and Others.  Among these, the packaging sub-segment is anticipated to show the fastest growth by 2032. Biodegradable packaging refers to materials that naturally decompose over time, encompassing both bio-based and fossil-based polymers, depending on the polymer chain's molecular structure. This market segment is primarily dominated by packaging due to rising environmental concerns and regulatory pressures. Consumer and industry demand for sustainable alternatives has led to increased innovation in material science and manufacturing technologies. Biodegradable packaging aligns with eco-conscious consumer preferences, driving market growth and promoting a more sustainable future for the packaging industry. While some materials like cellulose decompose quickly, others, such as wood, may take decades to break down.

Region:

The Biodegradable Plastics market in Europe is projected to show the fastest growth by 2032. Europe is emerging as a key player in the biodegradable plastic market due to stringent environmental regulations and a focus on sustainability. Governments have set ambitious targets to reduce single-use plastics, driving industries to adopt biodegradable options. This regulatory framework has fostered a conducive environment for bioplastics research, technological advancements, and product diversification. Consumer demand for eco-friendly products has surged, favoring biodegradable plastics over conventional ones for their lower environmental impact and recyclability. Additionally, Europe's robust waste management and recycling infrastructure facilitates the collection and composting of biodegradable materials, further supporting market growth.

Some of The Leading/Active Market Players Are-

  • BASF SE (Germany)
  • NatureWorks LLC (US)
  • Total Corbion PLA (Netherlands)
  • Novamont S.p.A. (Italy)
  • Biome Bioplastics (UK)
  • Mitsubishi Chemical Holding Corporation (Japan)
  • Toray Industries (Japan)
  • Plantic Technologies (Australia)
  • Danimer Scientific (US)
  • FKuR Kunststoff GmbH (Germany) and Other Active Players

Key Industry Developments

  • In May 2024, Integrated Forming Solutions (IFS) was a new partnership that entered the US thermoforming market. This collaboration included four European companies: WM Thermoforming Machines from Switzerland, T2 and MacDue from Italy, and Ausil Systems from Spain. The launch took place at the NPE event.
  • In April 2024, The Finnish Nordic Bioproducts Group (NBG) entered into a partnership with leading bioplastics producer PTT MCC Biochem Co. Ltd to combine their expertise and advance the development of high-performance, compostable bioplastic products. The collaboration aimed to expedite the adoption of bioplastics for manufacturing single-use items, such as coffee capsules, to displace traditional plastics.

Key Findings of the Study 

  • The packaging segment held the largest share of 46.89 % in 2023 of the total Biodegradable Plastics market in the Application Segment. 
  • The European region is expected to continue to lead the market followed by North America during the forecast period.
  • Biodegradable Plastics Market Size Was Valued at USD 5.72 Billion in 2023 and is Projected to Reach USD 15.86 Billion by 2032, Growing at a CAGR of 12 % From 2024-2032.
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