Biobased Biodegradable Plastics Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

Biobased Biodegradable Plastics Market size is forecast to reach $15.7 billion by 2030, after growing at a CAGR of 20.2% during 2024-2030. With a rise in the consumption of eco-friendly products and wide usage of Biobased Biodegradable Plastics in various industries such as pharmaceutical, transportation, and food industries, the Biobased Biodegradable Plastics market is witnessing an increase in its demand. Biobased Biodegradable Plastics composites reduce landfill wastes, release much lower carbon footprint, and decrease volatile organic compound emissions. In addition, government and environmental governing bodies around the world have imposed various policies to encourage the use of bio-based products which fuels the growth of Biobased Biodegradable Plastics market.

The Biobased Biodegradable Plastics industry is experiencing a robust upward trend, fueled by a growing global emphasis on sustainable and eco-friendly materials. With an increasing awareness of environmental issues and a desire to reduce dependence on traditional plastics derived from fossil fuels, bioplastics have emerged as a viable solution. As consumers prioritize eco-conscious choices, the versatility and eco-friendly attributes of Biobased Biodegradable Plastics position them as a key player in the drive toward a more sustainable and circular economy. Another trend is the ban on the use of single-use plastics. The restrictions on single-use plastics, driven by environmental concerns and the desire to reduce plastic pollution, create a favorable environment for the adoption of alternative materials such as bioplastics. These factors contribute to a positive outlook for the Biobased Biodegradable Plastics industry. 

The report: “Biobased Biodegradable Plastics Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Biobased Biodegradable Plastics Industry. 

                                              

By Type:  Polyhydroxyalkanoate (PHA), Polylactide Acid (PLA), Polybutylene Succinate (PBS), Polybutylene Adipate Terephthalate (PBAT), Starch Blends, and Others

By End-Use Industry: Packaging, Textile, Agriculture, Transportation, Building & Construction, Electrical & Electronics, Consumer Goods, and Others.

By Geography - North America (U.S, Canada, Mexico), South America (Brazil, Argentina, Chile and others), Europe (Germany, UK, France, Italy, Spain, Netherlands, Denmark and Others), APAC (China, Japan India, South Korea, Australia and Others), and RoW (Middle east and Africa).

• Europe dominates the Biobased Biodegradable Plastics market owing to policies imposed by the government in the region such as Extended Producer Responsibility (EPR), which encourages the use of Biobased Biodegradable Plastics in various end-use industries.

• Biobased Biodegradable Plastics are an environmentally friendly alternative to petroleum-based plastics such as polypropylene plastic (PP) and polystyrene plastic (PS) and possess comparable better characteristics. 

• The Biobased Biodegradable Plastics are being developed to work in the existing injection molding equipment and are likely to aid in the Biobased Biodegradable Plastics market growth. Polycaprolactone (PCL), Polyhydroxyalkanoates (PHAs), Polybutylene adipate terephthalate (PBAT), and Polylactic acid (PLA) are the biodegradable polymers broken down into tiny granules suited for injection molding.

• Increasing adoption of sustainable and environmentally friendly products and implementation of stringent government regulations will increase consumer consideration which will lead to market demand for Biobased Biodegradable Plastics in the near future.

The non-biodegradable plastics segment held the largest share in the bio-plastic market in 2023, owing to the increasing usage of non-biodegradable Biobased Biodegradable Plastics in food packaging, automotive parts, consumer goods, and more. They are widely used to manufacture products such as carry bags, bottles, electronic equipment, and automotive housings. In addition, they are being used as a substitute for high-performance glass components. Also, the weight of Bio-PET is much less than conventional PET. In August 2023, Mitsubishi Corporation, Suntory Holdings Limited, and ENEOS Corporation partnered on commercial-scale, sustainable PET bottle production using bio-PX derived from bio-naphtha. Non-biodegradable plastics are preferred over biodegradable Biobased Biodegradable Plastics by the industrial manufacturers due to its superior properties such as high strength and durability, which is the major factor driving the growth of Biobased Biodegradable Plastics market during the forecast period.

The packaging industry held the largest share in the Biobased Biodegradable Plastics market in 2023 and is growing at a CAGR of 15.4%, owing to increased demand for biopolymers such as Biobased Biodegradable Plastics for manufacturing packaging products. Biobased Biodegradable Plastics possess characteristics such as gloss, barrier effect, antistatic behavior, and printability, which make them suitable for packaging bottles, cups, cans, corrugated cases, boxes, and others. Thermoset plastics (soy polyurethanes and unsaturated polyester resins) and thermoplastics (PLA, starch blends, PBS, PHA, and cellulose) are the two types of biodegradable plastics mainly used in the packaging industry. Packaging products made from these plastics are mainly used in the packaging of fresh food, dried snacks & candy, bakery goods, water & juice bottles, meat trays, and others. Thus, the growing adoption of Biobased Biodegradable Plastics by the packaging sector is driving the Biobased Biodegradable Plastics market during the forecast period.

Europe held the largest share in the Biobased Biodegradable Plastics market in 2023 up to 38%, owing to regulations enforced by the government, rising consumption of bio-based commodities and public awareness in the region. In November 2022, the European Commission released a future policy framework specifically concerning biobased, biodegradable and compostable plastic. In the November 2022 EU proposal on packaging legislation, the EU said it wants to prioritise bio-based plastics made from waste byproducts, whether urban waste or from agricultural processing. Survey results published in Plan For Plastics, a report launched by Veolia and plastics experts, RECOUP in January 2024, reveals that the vast majority of Brits (93%) think plastic bottles should contain recycled content and most are also willing to pay an average of 2.5p more for it. Additionally, with the region’s goals towards Net Zero, brands are also committed to reducing plastic. For instance, PepsiCo’s goal is to achieve 50% recycled plastic (rPET) by 2030 across Europe, and consumer trials of 100% recyclable or renewable snack packaging which began in 2022 in line with the company’s new goal of eliminating virgin fossil-based plastic in crisp and chip bags by 2030. All these initiatives are influencing bio-plastic market growth in the region.

Worldwide Governments are trying to find a sustainable way to be environment friendly for which a series of policies are published in accordance with the usage of Biobased Biodegradable Plastics rather than conventional plastics. India banned the manufacture, distribution, stocking, sale and use of selected 19 single-use plastic items with effect from July 1, 2022. Hong Kong’s lawmakers passed a law to ban single-use plastic items in October 2023. This new plan will come into effect on April 22, 2024. Upon discovering flouting of the Hong Kong plastic ban, the environmental protection department will issue a warning letter with a $2,000 penalty and the fine could reach a maximum of $10,000. In Nigeria, The Federal Ministry of Environment and the Lagos State government both announced bans on single-use plastics in January 2024. Starting 1 March 2024, the single-use plastics ban in Solomon Islands targets the importation, manufacturing, distribution, and sale of certain single-use plastic items. As such almost 127 countries have adopted some legislation to regulate the usage of standard plastics and have unlatched the door for Biobased Biodegradable Plastics economy. 

The inception of new technologies along with a rise in e-commerce, changing lifestyles, urbanization and increased personal health awareness has boosted the growth of the packaging industries in various regions. Another factor that has provided a substantial stimulus to the packaging machinery industry is the rapid growth of imports and exports, which requires superior packaging standards for the international market. With this, the need for adopting better packaging methods, materials, and machinery to ensure quality has become very important for businesses. According to the All India Food Processors Association, the Indian food and beverage packaging industry is growing by 14.8% annually and is expected to reach $86 billion in 2029, following rapid urbanisation, rising disposable incomes and evolving consumption patterns. According to the Japanese Ministry of Economy, Trade, and Industry’s Production Status Survey, the combined production quantity of the four primary packaging materials from January to October 2022 reached 2.5 million tons. Thus, the increasing packaging industry coupled with the favorable government initiatives act as a driver for the Biobased Biodegradable Plastics market during the forecast period.

Biobased Biodegradable Plastics are currently more expensive than standard plastics because of the complex process involved in the conversion of corn or sugarcane into the building blocks for PLA (polylactic acid).  In addition, owing to the limited availability and higher raw material cost the biodegradable plastics such as Biobased Biodegradable Plastics are more expensive than petroleum-based non-biodegradable counterparts such as polypropylene plastic (PP) and polystyrene plastic (PS). According to IfBB Hanover, the price of bioplastics is somewhat higher than the price of conventional plastics. For example, PET or PE based on sugar cane or bio-ethanol, ranges at about 20% above the price of conventional plastics. Therefore, it is anticipated that the higher price of Biobased Biodegradable Plastics limits market growth during the forecast period.

 

                                         

                                                            For More Details on This Report - Request for Sample