CAGR: 14%Current Market Size: USD 2 BillionFastest Growing Region: APAC
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global biobased biodegradable plastics market is expected to grow from USD 2 billion in 2022 to USD 5.7 billion by 2030, at a CAGR of 14% during the Projection period 2023-2030. The growth of the biobased biodegradable plastics market is mainly driven by the rising environmental concerns.
Renewable resources like corn, potatoes, rice, soy, sugarcane, wheat, and vegetable oil are used to make biodegradable biobased plastic. For instance, biobased polyethylene (bioPE) is made from sugar cane, whereas polyhydroxy butyrate (PHB) is created from microbial synthesis. Polylactic acid (PLA) is a biodegradable biobased plastic that is produced from starch. Additionally, it can cut greenhouse gas emissions by up to 35%. One of the main trends driving market expansion is governments banning the use of single-use plastic together with increased public awareness of the negative consequences of plastic waste. Additionally, it is projected that the growing usage of biodegradable plastics in packaging and agriculture will support the segment's growth. Plastics that don't break down are a worldwide problem. In order to combat this issue, governments all over the world are encouraging the use of biodegradable plastics and outlawing single-use plastics. Due to its eco-friendliness, people are also willing to pay more for biodegradable plastics. Collectively, the aforementioned elements are giving the market a boost. Despite their benefits for the environment, biodegradable polymers nevertheless have significant drawbacks. Since there is little distinction between normal plastics and biodegradable plastic, segregating them is a major problem. The decomposition process may be complicated if conventional plastic is disposed of with biodegradable plastic.
Sample Request: - Global Biobased Biodegradable Plastics Market
Market Dynamics:
Drivers:
The government's increasing efforts to reduce greenhouse gas emissions are anticipated to fuel market expansion. For instance, the Indian government declared in October 2015 that it would reduce its country's greenhouse gas emissions intensity by 33 to 35 percent of 2005 levels by 2030. Additionally, the UK passed laws in June 2019 that will prevent its contribution to global warming by 2050, making it the first major economy in the world to do so. The UK must achieve net-zero emissions of greenhouse gases by 2050 in order to meet the aim. Therefore, it is anticipated that increasing such activities to reduce greenhouse gas emissions will promote market growth.
Restraints:
The market expansion for biobased biodegradable plastic is expected to be constrained by the high cost of the material due to high manufacturing costs and a scarcity of raw ingredients. Furthermore, because composting slows down in cold weather and stops altogether in high humidity, the breakdown of biodegradable plastic is influenced by the weather. As a result, temperature and humidity are highly significant factors to consider when disposing of biobased plastic. Therefore, it is anticipated that these factors will impede the market expansion of biobased plastic.
Opportunities:
The food and beverage industry's growing demand for bio-based plastic to package food goods is anticipated to provide a sizable market potential. For instance, starch and PLA are two important biodegradable polymers used in food and beverage packaging. They are bio-based and contain no hazardous chemicals. Therefore, it is anticipated that during the course of the Projection period, increasing the use of bio-based plastic in the packaging sector will promote market expansion. Over the Projection period, expanding use of biobased plastic in the manufacture of water bottles is anticipated to present attractive potential opportunities. For instance, a global agreement to produce biodegradable bottles was launched in January 2019 by Nestlé and Danimer Scientific, a producer of biodegradable plastic goods.
Challenges:
Furthermore, because they need a particular environment in terms of moisture and temperature, not all biodegradable plastics rapidly break down in the natural environment. Some biodegradable plastics emit greenhouse gases as they break down, which is harmful to the environment. These elements will probably serve as roadblocks in the market's ascent.
Segmentation Analysis:
The global biobased biodegradable plastics market has been segmented based on product type, application, and region.
By Product Type
The product type segment is starch blends, polylactic acid, cellulose, polyester, polyhydroxyalkanoate, and others. The polyhydroxyalkanoate segment led the largest share of the biobased biodegradable plastics market with a market share of around 35% in 2022. The market for PHA is anticipated to increase as a result of the growing use of PHA in medical and other applications. PHA is mostly employed in healthcare applications including medication encapsulation and implantable medical devices. Tissue engineering, bone marrow scaffolds, and bone plates are other medical applications. PHA is employed in the manufacture of compost bags, agricultural foil, and films, as well as packaging for food and drink and consumer goods. These elements are anticipated to support PHA's expansion on a global scale.
By Application
The application segment is packaging, healthcare, fibers, agriculture, and others. The packaging segment led the largest share of the biobased biodegradable plastics market with a market share of around 30% in 2022. One of the most popular industries using biodegradable plastics is the packaging. Both rigid and flexible packaging use it. The biobased biodegradable plastics market is expanding as more and more conventional plastics are being replaced in food packaging materials such as boxes, wraps, cups, and plates.
Global Biobased Biodegradable Plastics Market - Sales Analysis.
The sale of the biobased biodegradable plastics market expanded at a CAGR of 11% from 2016 to 2022.
Petroleum and renewable raw materials including corn, wheat, bamboo, and sugarcane are used to make biodegradable polymers. They are broken down by bacteria, fungi, and other microorganisms into carbon dioxide, biomass, and water (CO2). They are therefore utilized in a number of applications, from flexible packaging for different food goods to extruded and injection-molded in conventional machinery. The adoption of biodegradable plastic alternatives is being driven by growing environmental concerns about plastic usage (since plastics contain hazardous contaminants that affect plants, animals, and people).
The demand for this industry is being driven up by the strict rules put in place by various governments and federal agencies with the aim of reducing plastic waste and promoting the use of biodegradable polymers in packaging. Regulations pertaining to eco-friendly packaging are expanding. As a result, many FMCG businesses must utilize biodegradable packaging to meet norms, which is fueling the expansion of this market.
Thus, owing to the aforementioned factors, the global biobased biodegradable plastics market is expected to grow at a CAGR of 14% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the biobased biodegradable plastics market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe region dominated the biobased biodegradable plastics market and held a 37% share of the market revenue in 2022.
Global Biobased Biodegradable Plastics Market - Country Analysis:
Germany's biobased biodegradable plastics market size was valued at USD 0.013 billion in 2022 and is expected to reach USD 0.015 billion by 2030, at a CAGR of 2.5% from 2023 to 2030. The use of certified bio-based and compostable biowaste plastic bags, on the other hand, has been encouraged in Germany since 2015.
China’s biobased biodegradable plastics market size was valued at USD 0.029 billion in 2022 and is expected to reach USD 0.040 billion by 2030, at a CAGR of 4.2% from 2023 to 2030. The market is expected to grow as a result of rising disposable income and rising living standards in developing nations like China.
India's biobased biodegradable plastics market size was valued at USD 0.025 billion in 2022 and is expected to reach USD 0.033 billion by 2030, at a CAGR of 3.6% from 2023 to 2030. Due to growing environmental concerns and strict regional laws on petroleum-based plastics, the market expansion in this region is linked to the increased demand for biodegradable plastics.
Key Industry Players Analysis:
To increase their market position in the global biobased biodegradable plastics market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
14% |
Market Size |
2 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Eastman Chemical Company, PTT MCC Biochem Co., Ltd., Biome Technologies plc, Danimer Scientific, BASF SE, Total Corbion PLA, Futerro, Cargill Incorporated, Novamont SpA, Synbra Technology BV, FkuR Kunststoff GmbH, NatureWorks LLC, Plantic Technologies Limited, and Trineso. |
By Product Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Biobased Biodegradable Plastics Market By Product Type:
Global Biobased Biodegradable Plastics Market By Application:
Global Biobased Biodegradable Plastics Market By Region:
Global biobased biodegradable plastics market is expected to reach USD 5.7 billion by 2030.
The biobased biodegradable plastics market is projected to have a CAGR of 14%.
Based on the product type, the biobased biodegradable plastics market is segmented into starch blends, polylactic acid, cellulose, polyester, polyhydroxyalkanoate, and others.
Over the course of the Projection period, the market expansion is anticipated to be boosted by the key manufacturer's increasing introduction of novel biobased plastic. For instance, LyondellBasell and Neste will announce the start of commercial-scale production of bio-based plastic made from renewable resources in June 2019. According to the firms, this is the first instance of commercially viable simultaneous production of bio-based low-density polyethylene and bio-based polypropylene. The market for biodegradable biobased plastic is therefore anticipated to increase as a result of increasing initiatives by major manufacturers to introduce bio-based plastic.
Leading market players active in the global biobased biodegradable plastics market are BASF SE, Natureworks, Biome Bioplastics., Toray Industries, Total Corbion PLA, Bio-On, Plantic Technologies, Danimer Scientific, Mitsubishi Chemical Corporation, and Novamont S.P.A. among other.
Political Factors- The profitability of the biobased biodegradable plastics market will be directly impacted by its entry into high-tax countries. High taxes impede exports and have an impact on global trade. biobased biodegradable plastics market has the ability to enter markets with low tax rates and gain high profits that can be put toward R&D. To understand the priorities and interest of the host government in emerging industries, the organisation may also investigate the taxation rules that are relevant to the industry. High trade barriers can further complicate the economic climate by hurting exports and ties with overseas trading partners. Furthermore, the significant danger of ideas being stolen will discourage entrepreneurs from investing in organisations if the government of the country in question is not serious about safeguarding the intellectual property rights of business organisations.
Economic Factors- Wage rates and the availability of skilled workers are influenced by the supply and demand of labour. To understand how it can attract exceptional individuals and utilise their abilities to increase business performance, the biobased biodegradable plastics market must research and Projection the state of the labour market. biobased biodegradable plastics market. may benefit from improved workforce productivity in flexible labour markets. Operating in restrictive labour markets, however, may result in labour wage challenges as well as other problems brought up by strong labour unions. The availability of qualified human capital should also be carefully considered by the biobased biodegradable plastics market, as a lack of skilled personnel can negatively impact corporate productivity and make it more difficult to attract and retain talent.
Social Factors- International marketing managers value culture as a key variable. Every civilization has unique norms and values that are crucial in determining how people behave as consumers. For the purpose of learning social attitudes and conventions and developing local teams and partnerships, the biobased biodegradable plastics market should do both. Only then can marketing strategies be tailored to the specific cultural context. For the biobased biodegradable plastics market, it's crucial to keep track of social class stratification. The biobased biodegradable plastics market will need to use niche marketing techniques to provide luxury goods at premium pricing to a market where the high-end market is significantly underrepresented. In areas with limited social class stratification, market segmentation based on social class may also be unsuccessful.
Technological Factors- To understand how new technologies affect the firm's value chain and current cost structure, the biobased biodegradable plastics market must take into account the micro and macro expenditures made by competitors. In a setting where creative disruption is prevalent, research and development efforts are crucial. To maximise earnings in such a situation, the biobased biodegradable plastics market should invest in disruptive technologies and reinvest the money in even more disruptive technologies in the future. The lifecycle of developing new products has been shortened by the adoption of new technology. New products are created swiftly today, and supply chain partners have more clout as well. It puts pressure on the biobased biodegradable plastics market to create new goods fast, diversify its product line, incorporate flexibility into the value chain, and cultivate positive commercial relationships with partners in the value chain.
Environmental Factors- The use of green/eco-friendly items is becoming more popular. biobased biodegradable plastics market may seize the chance and implement environmentally friendly corporate practices to gain the confidence of stakeholders. Priorities for product innovation are changing as a result of regulatory organisations' emphasis on ensuring conformity with environmental standards. It necessitates that the biobased biodegradable plastics market place more emphasis on selling their goods' environmental friendliness than on their usual value propositions. A negative reaction from the media, environmental protection organisations, customers, and the general public may result from the biobased biodegradable plastics market's excessive resource depletion. To learn which resources (such as water, energy, etc.) are regarded as scarce or which species are threatened with extinction due to excessive usage, the biobased biodegradable plastics market must research the country's unique environmental rules.
Legal Factors- The ethical and moral duty of the biobased biodegradable plastics market is to give its employees a secure working environment. In a similar vein, anti-discrimination laws (such as equal employment opportunity laws) also need to be carefully considered when developing human resource practises as discriminatory lawsuits against employers harm the organisational image and affect organisations' capacity to attract and retain talent. The privacy and security concerns of consumers have made data protection a crucial issue. To protect client data, the biobased biodegradable plastics market must research data protection laws. Laws are also in place to limit prices, guarantee a particular level of quality, and shield customers from deceptive marketing promises.
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