Biodegradable Polymers Market

Global Biodegradable Polymers Market Size (2024 to 2029)

The biodegradable polymers market size is estimated to be USD 9.2 Billion in 2024 and is anticipated to reach USD 40.34 Billion by 2029 with a CAGR of 20.5% during the forecast period.

Current Scenario of the Biodegradable Polymers Market

The biodegradable polymers market has accounted for notable growth during the forecast period and is anticipated to have significant growth during the forecast period.

Biodegradable polymers are polymers that can be decomposed under aerobic or anaerobic conditions due to the presence of microorganisms or enzymes. Polymers with biodegradable properties are known as “green materials,” which have shorter lifetimes than synthetic polymeric materials. Even though the abundance of biopolymers is high, synthetic biodegradable polymers are being designed and synthesized to acquire physical and chemical properties, which have wide applications in cosmetics, wound dressings, enzyme immobilization, gene delivery, and other applications. The increasing adoption of sustainable and eco-friendly practices regarding packaging and reducing carbon emissions among various industries is augmenting market growth.

MARKET DRIVERS

The increasing environmental concerns and growing demand for sustainability are primary factors contributing to the global biodegradable market growth.

The growing awareness among consumers and rising initiatives towards a safer environment are driving the market growth. Consumers are becoming aware of the harmful effects of conventional plastics on people and the environment, fueling global market revenue growth. The escalating government regulations in many countries to reduce conventional plastics and enhance the utilization of biodegradable materials are augmenting the market growth opportunities. The increased consumer demand for eco-friendly alternatives to conventional plastics, especially in the packaging industry, where most industries opt for biodegradable materials to meet sustainability targets, propels the global biodegradable polymers market expansion.

The increasing adoption of biodegradable materials for mulch films, packaging crops, and soil erosion control is multiplying the growth opportunities in the global biodegradable polymers market.

The accelerating technological advancements drive innovations in biodegradable polymer production and formulations that enhance their performance and expand diverse applications, proliferating market growth opportunities. The increasing collaborations among research institutions, regulatory authorities, and major industry players will provide growth opportunities for biodegradable polymers. The expansion of the agricultural industry will positively influence the global market. Advancements in research and development activities regarding biodegradable polymers to enhance their properties by broadening their applications will propel market growth.  

MARKET RESTRAINTS

The higher price of biodegradable polymers compared to synthetic polymers is a significant factor restraining the growth of global biodegradable polymers. These involve renewable feedstocks, and the specialized manufacturing procedures with stringent regulations will increase production costs. This may hamper the market growth opportunities due to the limited adoption rate. Another factor is the limited production scale for biodegradable polymers compared to conventional plastics. This will upsurge the demand, leading to increased costs and limited supply, which will hinder the market growth rate. The limited availability of feedstock for the production of biodegradable polymers is estimated to act as a restraining factor for market growth. Small-scale businesses will hesitate to invest in biodegradable alternatives compared to conventional ones due to budget restrictions that impede market growth. The need for awareness among the underdeveloped regional population and proper disposal and recycling infrastructure challenges market growth. Due to complexity, stringent regulations regarding product launches and approval act as a challenge in expanding the market.   

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Biodegradable Polymers Market By Type

The polylactic acid (PLA) segment dominated the global biodegradable polymers market revenue in 2023.

Polylactic acid is sourced from plant sources such as sugarcane or cornstarch, which makes it an environmentally friendly substitute to conventional plastics. This is boosting the segment growth. The versatility of the PLA is enhancing its applications, such as food containers, packaging, and disposable cutlery, fueling the segment growth rate. The shifting preferences towards low carbon footprints, sustainable practices among various industries, and growing consumer awareness are escalating segment growth. The PLA's versatility and biocompatibility make it a popular choice in packaging, textiles, and biomedical industries, which drives the segment.

The starch-based segment has gained traction recently and is anticipated to grow significantly during the forecast period. Cost-effectiveness, wide availability, and durability are primary factors accelerating their adoption among people.  

Global Biodegradable Polymers Market By Application

The packaging segment held the most significant share of the global market due to enhanced demand for biodegradable plastics in the industry.

Biodegradable polymers play a crucial role in food packaging, such as containers, bags, wraps, trays, and bottles, which is driving the segment growth rate. Rising environmental concerns worldwide enhance the demand for biodegradable packaging initiatives, propelling the segment.

The agriculture segment is estimated to grow considerably and rapidly during the forecast period. In agriculture, biodegradable polymers are in high demand for mulch films, soil erosion control, and packaging, and sustainability initiatives in farming are augmenting the segment's growth.

The consumer goods segment is attaining market share growth due to rising demand for eco-friendly alternatives to single-use plastics for shopping bags, cutlery, and containers, which increase the market growth.

REGIONAL ANALYSIS

The Asia Pacific region dominated the global biodegradable polymers market with a prominent share and generated the highest revenue in 2023.

Large-scale manufacturing capabilities and the escalating demand for eco-friendly materials are the primary factors contributing to the largest share of the Chinese market. The growing government initiatives in promoting sustainable environment practices, large-scale industries, and the presence of key market players in the region are augmenting the market growth rate. The expanding industrial sectors and growing awareness among the people fuel the market growth in the regional countries. Japan is emerging with a significant market share due to escalating advanced technology and rising initiatives for environmental sustainability.

North American region held the second-largest market share globally, whereas the United States dominated the regional market.

The increasing adoption among the U.S and Canadian people owing to increased awareness across the region is fueling the market growth. The United States is one of the massive consumers of plastic bags and packaging, which is encouraging the government to take initiatives such as recycling targets, recovery of plastic waste, and regulations that propel the regional market growth.

The European region is projected to grow significantly during the forecast period.

The growing acceptance of plant-based products among consumers and extensive raw materials supply in Germany augment the market growth in the region. Germany is considered the region's critical producer of biodegradable polymers.

KEY MARKET PLAYERS

Key Players in the global Biodegradable Polymers Market are Biome Technologies, Borealis Group, Changsu, Evonik Health Care, Mitsubishi Chemical Corporation, NatureWorks LLC, Total Corbion PLA, Arkema, Braskem, Novament SPA, and others.

RECENT HAPPENINGS IN THE MARKET

• In March 2024, Beyond Plastics collaborated with CJ Biomaterials to produce a biodegradable plastic-based bottle cap. The cap is produced using polyhydroxyalkanoate (PHA), a biopolymer derived from natural sources. It is expected to provide the functional properties of conventional plastics along with environmental advantages.
• In February 2024, Balrampur Chini Mills Ltd announced its investment of approximately USD 267 Million in bioplastics and its plan to set up a PLA plant producing 75,000 tons per annum.
• In November 2023, Certain laboratories and research institutes teamed up to streamline the separation process and improve the environmental impact of the final product. The process is mentioned in detail in the One Earth publication. They developed a " one-pot technique,” which breaks down blends of petroleum-based and bio-based plastics using naturally sourced salt solutions and specific microbes.
• In September 2023, AIMPLAS, a subsidiary of the BioICEP project, announced its funding from the Horizon 2020 program to develop alternatives to conventional plastics. The project succeeded by combining chemical and biological methods, transforming fossil-based plastic waste into biodegradable substitutes for packaging in pharmaceutical industries.  

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

This research report on the global biodegradable polymers market has been segmented and sub-segmented based on type, application, and region.

By Type

• Starch-based
• Polylactic acid (PLA)
• Polyhydroxy Alkanoates (PHA)
• Polyesters
• Cellulose Derivatives

By Application

• Agriculture
• Textile
• Consumer Goods
• Packaging
• Healthcare
• Others

By Region

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