Bio Plasticizer Market - Industry Analysis, Market Size, Share, Trends , Application Analysis, Growth and Forecast 2024 - 2030

Bio Plasticizer Market Overview

Bio Plasticizer market size is forecast to reach US$5.1 billion by 2030, after growing at a CAGR of 9.4% during 2024-2030. Bio plasticizers are bio-based substances added to polymers to make them more pliable and workable. The side effects associated with traditional plasticizers, specifically phthalates, concerns over plastic pollution and growing demand from end use industries drive the bio plasticizer market. Moreover, government and environmental governing bodies imposed various policies to encourage the use of bio-based products which boosts the growth of bio plasticizer market
A major trend in the market is the growing focus on sustainability. With an increasing awareness of environmental issues and a need to reduce dependence on traditional plastics due to plastic pollution, bioplastics have emerged as a viable solution necessitating a demand for bio plasticizers. As consumers prioritize eco-conscious choices, the versatility and eco-friendly attributes of bio 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 the need reduce plastic pollution creates a favorable environment for the adoption of alternative materials such as bioplastics and bio plasticizers. 

Market Snapshot:

Bio Plasticizer Market - Report Coverage:

The “Bio Plasticizer Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Bio Plasticizer Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• Due to COVID, all the end use industries were heavily impacted. Before the pandemic consumers preferred reusable packaging as it helped them decrease their carbon footprint. This trend was overturned due to COVID-19 as the pandemic drove demand for single-use packaging that was easy to dispose, this was because consumers were afraid that the packaging may be contaminated with the virus and could infect them.
• The Russia-Ukraine conflict impacted the Bio Plasticizer market. The conflict disrupted supply chains and led to increased energy prices. Additionally, the war has also led to inflation, further straining the market. Additionally, the demand for vegetable oils as feedstock has been impacted due to Ukraine being a major supplier.

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Key Takeaways

Epoxidized Soybean Oil the Largest Segment

The epoxidized soybean oil (ESBO) segment held the largest share in the bio plasticizers market in 2020. It is a vegetable oil extracted from soybean seeds that is commonly used in plasticizers as a stabilizer and an additive. Due to the epoxidation process of carbon-carbon double bonds found in vegetable oil, the reactivity of plasticizers increases after the addition of ESBO. ESBO is used in the manufacture of plastic seals for glass containers. As per a poll by the Glass Packaging Institute, 92% of respondents said they would feel positively towards a company that offered more glass packaging because of its lower environmental impact than other materials. As consumers continue to prioritize environmental responsibility, there is an increased demand for glass packaging which also drives the demand for ESBO plasticizers.

Packaging is the Largest Segment

Packaging is the largest segment in the Bio Plasticizer market, in terms of application. driven by the increasing demand for sustainable and flexible materials. Bio plasticizers enhance the mechanical properties of bioplastics used in packaging, ensuring durability, flexibility and longevity. Estimates suggest that global consumer demand for sustainable packaging materials will surge by approximately 11 million tons by 2030. Furthermore, a significant 78% of consumers prioritise brands with sustainability efforts, and in the US, 56% prefer fiber-based cartons over plastic in food packaging. With growing consumer awareness about eco-friendly packaging, industries are adopting bioplastic-based solutions, making packaging the most significant application area for bio plasticizers.

Europe Dominates the Market

Europe dominates the Bio Plasticizer market with a share of 38% in 2023 owing to the extensive adoption of bioplastics in the region. The growing concerns about the environmental impact of plastics and the interest to shift towards renewable materials has increased the interest in bio plastics even more. The region is very environmentally conscious and implemented the Single Use Plastics Directive, European Green Deal 2020 & the Circular Economy Action Plan with the aim to completely reduce the use of traditional plastics. According to the European Bioplastics, the total bioplastics production is forecasted to reach approximately 2.43 million tons in 2024. The European Union’s Packaging and Packaging Waste Directive acknowledges that bio-based and recycled materials are equally viable solutions to make packaging more sustainable and member states are encouraged to promote the use of bio-based recyclable packaging and bio-based compostable packaging. The growth of bioplastics in the region also boosts the demand for bio plasticizers. 

Growig Demand for Bioplastics to Drive the Market

The rising demand for eco-friendly alternatives has fueled the growth of bioplastics, driving the need for bio plasticizers. As per a 2023 Sustainability and the Consumer report by Drapers, 81% of UK consumers are demanding sustainable packaging. Consumers and industries alike are seeking eco-friendly materials that reduce carbon footprints, leading to an increased preference for bioplastics in packaging, automotive and medical applications. Also, according to an independent survey of Finnish customers carried out in 2024, regarding packaging materials for food, beverages and household goods, 67% wanted to see fiber-based, paper-based or cardboard-based materials being used in packaging. This surge in bioplastics adoption directly boosts the demand for bio-based plasticizers, which are essential in enhancing the flexibility and durability of these materials.

High Costs Compared to Traditional Plasticizers to Hamper Growth

One of the major challenges in the bio plasticizer market is the high cost compared to traditional plasticizers. Bio-based plasticizers often involve complex manufacturing processes and higher raw material costs which can limit their widespread adoption especially in cost-sensitive industries. This price disparity presents a barrier to market growth particularly in regions where budget constraints play a significant role in material selection.            

Key Market Players

Global Bio Plasticizer top 10 companies include:

1. Cargill Inc.
2. Evonik Industries
3. LANXESS AG
4.  BASF SE
5. Emery Oleochemicals
6.  PolyOne Corporation
7. Matrìca S.p.A.
8. Eastman Chemical Company
9. DIC Corporation
10. Perstorp Group

Scope of the Report: