Biodegradable Plastic Market Overview:
As per the Plastic Oceans Organization, more than 8 million tons of plastic are dumped into the oceans every year and the production rate of plastic per year is approximately 300 million tons. Owing to such alarming circumstances, UN has launched a campaign #CleanSeas to eliminate marine litter by 2022. Growing consumer awareness regarding global warming and government legislation such as ban on plastic bags has escalated the worldwide application for biodegradable plastics. Plastics manufactured by renewable raw materials found in agricultural plant or animal products, that decay to carbon dioxide and water, aided by bacteria and microbes is known as biodegradable plastics. As per the IndustryARC business intelligence report, biodegradable plastics market through endless governmental campaigns and regulations has managed to divert a substantial chunk of traditional plastic consumers into its own domain. Such epidemic movements has augmented the global biodegradable market size to be around $8billion as of 2018. The analyst of the report has tracked the opportunities in the biodegradable plastic market to be growing at a CAGR of around 11% during the forecast period of 2019-2025.
Biodegradable Plastic Market Outlook:
As per the product type biodegradable plastics or bioplastic is mainly segmented into polyhydroxyalkanoates (PHA), polylactic acid (PLA), polybutylene succinate (PBS) and polycaprolactone (PCL). Further analysis of the application segment indicates the packaging industry to be the lead employer of biodegradable plastics. Increasing demand of biodegradable plastics owing to stringent regulations as a major packaging equipment in food & beverage, fabrics, pharmaceuticals and consumer products is all set to stroke the market with abundant demand. Such demands coupled with ecological awareness to implement biodegradable plastics has supplemented the packaging segment to be growing at a CAGR of around 9% going through 2025.
Biodegradable Plastic Market Growth Drivers and Trends:
‘Lightweighting’ is a trending subject for the automotive industry to reduce carbon footprints and the foremost reason for plastics been employed as a replacement for heavier materials such as metals. As per the International Energy Agency’s latest report, the Global Energy and CO2 Status Report, 2017, the carbon emissions stretched at a historical high of 32.5 gigatonnes in 2017. Thus the automotive industry in an emergent need for lightweight materials and at the same time to keep a check on carbon footprints and maintain environment conservationism has been enforced to let go of the petroleum plastic and adapt biodegradable plastics in its operations.
Japanese automotive giant Toyota is a leader in adopting bioplastics which is accustomed to employ biobased polyesters, biobased PET, and PLA-blends in its manufacturing procedure. Toyota has fixed an objective of substituting 20 percent by weightiness of all petroleum plastics for automotive by bioplastics. The Toyota SAI and Toyota Prius models already feature a number of bioplastic applications such as headliners, sun visors, or floor mats. Up to 60 percent of the interior fabrics are made of biobased polyesters.
Owing to its rapidly innovating automotive sector and robustly growing packaging sector catering F&B and pharmaceuticals industries, APAC has established itself as the leading region in terms of biodegradable plastic demand. It hosts more than 35% of the global demand under its own territory. Indian and Chinese economy with a huge chunk of global population is disrupting pharmaceutical and automotive sector and consumer products demand. Employment of plastics and packaging as an integral part of these sectors is all set to poise the market towards exponential growth.
Biodegradable Plastic Market Challenges:
One of the most prominent factor obstructing the biodegradable plastic market is the high price of biodegradable plastics. The intricate engineering processes along with the instability of raw materials employed for the fabrication of biodegradable plastics is the motivation behind the augmented prices.
But, the governments in various economies are taking determined steps to eradicate non-biodegradable plastics from the environment. Numerous organizations have been established to confirm that there is negligible plastic waste disposed in the environment, and biodegradable plastics are recycled in majority of the sectors.
Biodegradable Plastic Market Players Perspective:
Some of the leading players operating in the biodegradable plastic market profiled in this business intelligence report are Cargill Incorporated, Mitsubishi Chemical Corporation and NatureWorks.
To cater the demand for biodegradable plastics emerging from the F&B sector, Japan Paper and Pulp Co., Ltd. has decided to sell paper cups made with Mitsubishi Chemical Corporation (MCC) BioPBS. BioPBS, developed and patented by MCC, is plant-derived and biodegradable plastic.
Biodegradable Plastic Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Biodegradable Plastic Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of products in the Biodegradable Plastic Market, and their specific applications in different phases of operations.
Biodegradable Plastic Market Report: Industry Coverage
By Type: PLA, PBS, PHAs, PCL, PET and Others
By End-User: Food & Beverages, Pharmaceuticals, Sports & Leisure, Consumer Goods and Others
The Biodegradable Plastic Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Biodegradable Plastic Market Report
1. Is the market for Biodegradable Plastic growing? How long will it continue to grow and at what rate?
2. Which type of Biodegradable Plastic presents the major growth opportunities?
3. Is there a possibility for change in the market structure over time?
4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
6. What is the current status of Biodegradable Plastic application in different countries?
7. Which are the major relevant product segments within Biodegradable Plastic?
8. Which type of segment will witness heavy adoption in the near future?
9. What are the short-term, long-term, and medium-term growth drivers for the market?
10. What are the short-term, medium-term, and long-term challenges for the market?
11. What are the short-term, medium-term, and long-term opportunities for the market
12. Who are the top players/companies of the market?
13. What are the recent innovations in the market?
14. How many patents have been filed by the leading players?
15. What are the types of patents filed by the leading players?
16. What is the futuristic scenario for the adoption of Biodegradable Plastic?
17. What is our Vision 2030 Biodegradable Plastic Market?
A few focus points of this Research are given below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future biodegradable products during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures
IndustryARC Research Best Practices
The Biodegradable Plastic Market size is evaluated based on the number of products per organization type along with the varying price points pertaining to specific applications. These were identified as key informational conjectures for market estimation in 2017/2018.
The Biodegradable Plastic Market share is thoroughly checked against all data points that have been incorporated and rechecked against various data sources. Various C-level executives and key opinion leaders are contacted for verification of the data.
The Biodegradable Plastic Market forecast and growth rate are achieved by applying the time series forecasting methodology on the various factors. The market forecast and growth rate are further backed with historical trends of the market along with a regressive mathematical model that assesses the value based on factors such as capital expenditure, equipment lifespan, R&D investments, and so on.
The Biodegradable Plastic Market demand has been researched taking into account the prominent economies across the different geographic regions to understand their corresponding impact on the market.
The Biodegradable Plastic Market drivers are evaluated for short-term, medium-term, and long-term based on the different market dynamics impacting the market.
The Biodegradable Plastic Market challenges are evaluated for short-term, medium-term, and long-term based on the different market dynamics impacting the market.
The Biodegradable Plastic Market trends have been analyzed taking into consideration the micro and macro trends prevalent in various geographies.
The Biodegradable Plastic Market outlook provides a brief overview of the market performance and anticipated change in market dynamics.
The Biodegradable Plastic Market analysis also involves the identification of new companies that have entered the market scenario and their impact on the market dynamics in the future.