Polyhydroxyalkanoate (PHA) Market

Global Polyhydroxyalkanoate (PHA) Market Size (2024 to 2032)

The global polyhydroxyalkanoate (PHA) market is further expected to register a CAGR of 11.8% from 2024 to 2032 and be worth USD 178.47 million by 2032 from USD 73.12 million in 2024.

Current Scenario of the Global Polyhydroxyalkanoate (PHA) Market

Europe is the key market for PHAs worldwide, followed by North America and the APAC region. The worldwide polyhydroxyalkanoate market is predicted to grow significantly during the foreseen period.

Growing concern about greenhouse gas emissions, coupled with a positive regulatory framework that facilitates the consumption of bioproducts, is predicted to promote the expansion of the polyhydroxyalkanoate market in the near future. PHA is escalating being employed due to its biodegradable nature and thermosetting properties, allowing its use in food, cosmetic, pharmaceutical, and agricultural applications. Polyhydroxyalkanoates (PHAs) are typically produced by bacterial species, including Gram-positive and Gram-negative bacteria when placed under nutrient-limiting conditions. PHAs and their compounds have caught the attention of industries as they are a promising class of biodegradable and biocompatible plastics. The dynamics of the polyhydroxyalkanoate market have accelerated thanks to the growing call for bio-based plastics and lightweight and durable composites. The economically and environmentally sustainable production of PHA biocomposites has helped drive the advancement of the polyhydroxyalkanoate market.

MARKET DRIVERS

The growing prospect of renewable and biodegradable raw materials in the medical and packaging industries worldwide is contributing to the expansion of the global polyhydroxyalkanoate market.

The escalating use of PHA biocomposites as feeders in many applications is boosting prospects for PHA producers and vendors. The biodegradability of PHAs is a key aspect that has driven the preference for the latter over conventional polymers. The emergence of a new line of bio-composites has also boosted revenue generation in the polyhydroxyalkanoate market. PHA has been employed in fixation and orthopedic applications, tissue engineering, bioplastics production, food service, packaging, the pharmaceutical industry, and agriculture. PHA's innovative properties can add additional value to the applications in which they are employed. The advancement of the PHA industrialization process is predicted to increase the cost of PHA and make it an alternative to conventional plastic.

The opportunities that would contribute to the expansion of this market are rapid technological changes and increased investments in R&D from developed countries. The worldwide PHA market is driven by the growing call for renewable, environmentally friendly, and bio-based materials such as bagasse, zein, casein, vegetable starch, etc. Biomedical applications such as bone marrow scaffolds, cardiovascular patches, nerve repair devices, bones, etc. A strong call for packaging followed by catering is also contributing to market expansion. The wide availability of renewable and profitable raw materials such as bagasse, zein, casein, vegetable starch, and many others encourages the expansion of the market for polyhydroxyalkanoates. Also, with their biomedical applications, such as cardiovascular patches, nerve repair devices, and bone marrow scaffolds, they strengthen the market expansion. Government regulations and policies against single-use plastics are a major factor in the expansion of the polyhydroxyalkanoate market. The escalating consumption of products such as biological control agents, drug-bearing tissues, engineered biodegradable implants, memory enhancers, and anti-cancer agents will give a significant new boost to the polyhydroxyalkanoate market in the coming years. Strong expansion in R&D investments in the medical industry has led to the escalating development of biocompatible materials, which will further increase the size of the polyhydroxyalkanoate market in the coming years.

Danimer Scientific (USA) is the largest player in the polyhydroxyalkanoate market. The company is expanding its PHA business through expansion in countries such as APAC and North America and alliances with various end-user companies. The company primarily focuses on expansions and partnerships to strengthen its position in the market. As an expansion strategy, the company has already started to build a new factory for PHA production, which will not only increase its production capacity but also strengthen its market position. It has also partnered with Nestlé to produce biodegradable water bottles that will expand the company's product portfolio.

MARKET RESTRAINTS

However, the high cost of the raw material compared to conventional polymers, with fewer R&D facilities, will act as a drag on the market for polyhydroxyalkanoates. The manufacturing technology is still in the early stage of development and the factor is acting as a challenge for the Polyhydroxyalkanoates market during the foreseen period. R&D facilities and the high cost of raw materials, which is 20-80% higher than the cost of raw materials of conventional plastics, are just some of the challenges faced by this market.

MARKET OPPORTUNITIES

The extensive adoption of PHAs in pharmaceutical and packaging industry is creating growth opportunities to the polyhydroxyalkanoate market. The PHAs have wide applications in medical industry where in anticancer agents, biocontrol agents, drug carriers, tissue engineering and memory enhancers is driving the market revenue. The increasing government support initiatives for reduction of non-degradable wastes is propelling the PHAs market with opportunities in the coming years.

• For Instance, the plastic waste amendment rules of 2021, Indian government forbid the use of single-use plastics with a thickness of 50 to 75 microns by 2022.

The rising utilisation of novel raw materials such as raw materials derived from non-food sources or waste residues is escalating the PHAs market with growth opportunities. The adoption of these alternative raw materials helps with the wate management concerns along with reduction of reliance on food crops which is influencing positively on the global market growth. The rising concerns with the plastics to human health and safety due to potential risks is enhancing the adoption of efficient and eco-friendly plastic materials which contributes to substantial market growth.

MARKET CHALLENGES

The poor thermal properties of PHAs are prominent factor acting as challenge in the market growth. The unstable material properties and necessity of advanced manufacturing technology are significant challenges restricting the market growth rate. The increased cost of PHAs is acting as major challenge for its utilisation in commercial applications which impedes the global market growth. The high cost is due to high-sterilization, slow growth of microorganisms, discontinuous production processes and complication in downstream processing which hinders the market expansion.   

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Polyhydroxyalkanoate (PHA) Market By Type

The short-chain segment dominated the global polyhydroxyalkanoate market with significant share and is expected to maintain the domination during the forecast period. The shorter carbon chains, which are widely gaining traction due to their unique characteristics such as increased solubility, biodegradability and lower melting points leading to segment revenue growth. These efficient properties of the short-chain are making them ideal for utilisation in various applications such as biomedicals for implants and controlled-release drug carriers.  

The medium-chain segment is projected to record considerable growth during the forecast period with notable CAGR. The increasing demand for tailored and versatile biopolymer solutions and the middle-chain are ranging from 6 to 12 carbon atoms which drives the segment growth.

Global Polyhydroxyalkanoate (PHA) Market By Production Method

The packaging segment accounted with the largest share in the global market and is anticipated to record substantial growth during the forecast period. The increased utilisation of plastics in packaging industry is enhancing the segment growth rate.

• For Instance, according to report produced by United Nations Environment Programme on plastic waste, where the packaging contributes to 42% of total global plastic waste generated.

The food segment is predicted to register notable growth in the coming years owing to increased adoption of PHA products in food service industry. The expanding food service industry is creating growth opportunities for the PHA market.

• For Instance, according to 2022 report, the online food delivery is expected to have nearly 24% user penetration rate and by 2027, it is estimated to have nearly 2615 million customers.

REGIONAL ANALYSIS

Asia Pacific and Latin America are witnessing high value-added opportunities for producers and sellers in the worldwide polyhydroxyalkanoate market.

The growth prospects for biodegradable plastics and bioplastics in packaging and the medical industry are creating many opportunities in these regional markets. Europe dominates the market for polyhydroxyalkanoates (PHA) and is predicted to see significant expansion during the foreseen period, driven by the escalating call for biodegradable plastics and bioplastics due to growing environmental concerns and trends such as sustainability and the circular economy.

The North American polyhydroxyalkanoate market is predicted to see significant gains in the coming years.

Due to the strict regulations imposed by regional regulatory bodies for the consumption of bio-based packaging materials. For example, the EPA has strict laws on reducing toxic waste to preserve the environment. Additionally, major players in the US medical industry are investing heavily in the development of biocompatible materials for healthcare applications such as drug delivery, implants, and the like, further facilitating the growing call for products in the US. next years. years.

Europe is predicted to be one of the largest markets for the next six years.

The growing importance of biodegradable plastics coupled with regulatory support should promote market expansion in Europe. The Asia Pacific region is predicted to emerge as a promising market in the near future. Low cost of production compared to North America and Europe, coupled with growing applications in agriculture, food, beverage, and cosmetics as China and India are predicted to have a positive impact on the polyhydroxyalkanoate market in the near future.

KEY PLAYERS IN THE GLOBAL POLYHYDROXYALKANOATE (PHA) MARKET

Companies playing a prominent role in the global polyhydroxyalkanoate (PHA) market Meredian, Inc., Tianan Biologic Materials Co. Ltd., PolyfermVanada, Inc., Shenzhen Ecomann Biotechnology Co, Ltd., LIC PHB Industrial S.A., Newlight Technologies, BioMatera, Inc., Metabolix Inc., Biomer, Biomatera, Kaneka Corporation., and Others.

RECENT HAPPENINGS IN THE MARKET

• In September 2023, Lummus Technology announced the Joint Development and Commercial Cooperation Agreement (JDCCA) with RWDC Industries for expansion of manufacturing and global licensing of polyhydroxyalkanoates.
• In May 2023, Bluepha Co., Ltd. a leading synthetic biology company announced the collaboration with TotalEnergies Carbion, a global leader in PLA technology have signed

DETAILED SEGMENTATION OF THE POLYHYDROXYALKANOATE (PHA) MARKET INCLUDED IN THIS REPORT

This research report on the global polyhydroxyalkanoate (PHA) market has been segmented and sub-segmented based on type, production method, and region.

By Type

• Short-Chain Length
• Medium-Chain Length

By Production Method

• Packaging
• Bio-Medical
• Food
• Agriculture
• Others

By Region

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