Biodegradable Plastics Market

Global Biodegradable Plastics Market Size (2024 to 2029)

The size of the global biodegradable plastic market is anticipated to be worth USD 18.9 billion by 2029 from USD 9.29 billion in 2024, growing at a CAGR of 15.25% from 2024 to 2029.

MARKET OVERVIEW

Biodegradable plastics are a type of plastic that can be broken down and decomposed by natural processes such as bacteria, fungi, and other living organisms. Unlike traditional plastics, which can take hundreds of years to degrade and accumulate in the environment, biodegradable plastics break down relatively quickly and do not leave behind harmful microplastics. Biodegradable plastics can be made from a variety of renewable resources, such as corn starch, sugarcane, and cassava, or from petrochemicals that are designed to break down through a controlled process. They are increasingly used in various applications, such as packaging, agriculture, consumer goods, and textiles, to provide sustainable and eco-friendly alternatives to traditional plastics.

MARKET DRIVERS

The biodegradable plastics market is being driven by a variety of factors, including growing environmental concerns and increasing demand for sustainable alternatives to traditional plastics.

As the negative impact of plastic waste on the environment becomes more apparent, consumers and businesses are increasingly seeking out environmentally friendly alternatives. Biodegradable plastics offer a solution to this problem, as they break down more quickly than traditional plastics, reducing their impact on the environment. In addition, government regulations and initiatives aimed at reducing plastic waste are also driving demand for biodegradable plastics. Many countries have implemented laws or regulations to limit the use of traditional plastics or promote the use of biodegradable alternatives. Furthermore, technological advancements in the development of biodegradable plastics have expanded their potential applications and improved their performance, making them a viable and attractive option for a wide range of industries. Overall, the biodegradable plastics market is poised for significant growth in the coming years as demand for sustainable and environmentally friendly products continues to increase.

MARKET RESTRAINTS

Despite the potential benefits of biodegradable plastics, there are also several challenges and restraints to their widespread adoption. One major issue is that the production of biodegradable plastics can be more expensive than traditional plastics. This cost may be passed on to consumers, who may not be willing to pay a premium for eco-friendly alternatives. There are also concerns about the actual biodegradability of these plastics. While some biodegradable plastics may break down more quickly than traditional plastics, they may not necessarily fully biodegrade and can leave behind microplastics that can still harm the environment. Furthermore, the infrastructure for the disposal of biodegradable plastics is not as widely available as that for traditional plastics, which can limit their usefulness. Proper composting facilities are necessary for biodegradable plastics to degrade fully, but many areas do not have access to such facilities. Overall, while biodegradable plastics offer potential benefits, addressing these restraints will be necessary for their successful adoption and widespread use.

MARKET OPPORTUNITIES

The biodegradable plastics market is expected to grow rapidly in the coming years due to increasing awareness about environmental sustainability and a shift towards eco-friendly products. The market offers opportunities for companies to develop new and innovative biodegradable plastics with improved properties, such as strength, durability, and flexibility. Additionally, the increasing demand for biodegradable plastics in various industries, such as packaging, agriculture, and automotive, presents a significant growth opportunity. Government regulations and policies promoting the use of biodegradable plastics also create a favorable environment for market growth. Overall, the biodegradable plastics market offers a promising future for companies looking to capitalize on the growing demand for sustainable products.

REPORT COVERAGE

DETAILED SEGMENTATION OF THE GLOBAL BIODEGRADABLE PLASTICS MARKET INCLUDED IN THIS REPORT

This research report on the global biodegradable plastics market has been segmented and sub-segmented based on material type, application, end-use industry, distribution channel, and region.

 Global Biodegradable Plastics Market By Material Type 

• PLA
• PHA
• Starch-based plastics
• Others

PLA (Polylactic Acid) has the highest demand among the biodegradable plastic materials mentioned above. PLA is made from renewable resources such as corn starch, sugarcane, and cassava and is used in a variety of applications, including food packaging, consumer goods, and textiles. It is biodegradable under certain conditions and has comparable properties to traditional plastics, making it a popular choice for companies looking for sustainable packaging options.

Global Biodegradable Plastics Market By Application

• Packaging
• Agriculture
• Textiles
• Consumer goods
• Others

Packaging is currently the largest application segment for the biodegradable plastics market and has the highest demand among the applications. The demand for the packaging segment is driven by the increasing awareness of environmental sustainability and the need for eco-friendly packaging solutions. Biodegradable plastics are used in food packaging, consumer goods packaging, and industrial packaging applications.

Global Biodegradable Plastics Market By End-Use Industry

• Food and beverage
• Healthcare
• Agriculture
• Others

The food and beverage industry has the highest demand for biodegradable plastics among the industries mentioned above. Biodegradable plastics are used in food packagings, such as bags, containers, and utensils, as they provide a sustainable alternative to traditional plastic packaging.

Global Biodegradable Plastics Market By Distribution Channel

• Direct sales
• Online sales
• Others

Online sales have seen a significant increase in demand for biodegradable plastics. This can be attributed to the growing trend of e-commerce and the ease and convenience of online shopping. Online sales channels provide a broader reach for companies and allow them to target a larger audience, including environmentally conscious consumers. Moreover, online sales provide better accessibility, convenience, and availability of a wide range of biodegradable plastic products, making it easier for consumers to switch to more sustainable products.

REGIONAL ANALYSIS

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia Pacific region is likely to experience the highest demand in the coming years due to the increasing adoption of eco-friendly materials and the growing population in the region. Additionally, the region is home to some of the largest biodegradable plastics manufacturers and has seen significant investment in biodegradable plastics production.

KEY MARKET PLAYERS

The major key players in the Global Biodegradable Plastics Market are NatureWorks LLC, BASF SE, Mitsubishi Chemical Corporation, Corbion NV, Biome Bioplastics Limited, Novamont S.p.A., Plantic Technologies Limited, Total Corbion PLA, FKuR Kunststoff GmbH, Danimer Scientific, Inc., and others.

RECENT HAPPENINGS IN THE MARKET

• In June 2022, Confoil and BASF collaborated to develop a certified compostable paper tray for ready-to-eat meals. The dual ovenable tray is made from paper and can be broken down into organic matter by natural processes, providing a sustainable packaging solution for the food industry.

• In Feb 2022, DURABIO™, a bio-based engineering plastic with high design flexibility and durability, was adopted for use in pilot ballpoint pens. The plastic is sustainable and provides an eco-friendly alternative to traditional petroleum-based plastics, demonstrating its potential for use in various industries.