Global Biodegradable Plastic Market Report by Material Type (PBAT, PBS, PLA, PHA, Starch Blends and Others), Applications (Packaging, Agriculture, Consumer Goods and others), Countries and Company Analysis, 2024-2032

Driving Forces of Global Biodegradable Plastic Market

Growing usage in applications for biodegradable bags and packaging:

One of the sectors in the world with the quickest growth is packaging. A National Geographic study estimates that packaging, which is used just once before being thrown away, accounts for about 40.0% of the plastic generated.

Furthermore, 500 million plastic bags are used globally each year. However, the ecology is seriously threatened by the growing usage of plastics. Since the introduction of digital media, producers and consumers have changed their preferences to include recyclable and environmentally friendly materials. The European Union adopted the Packaging and Packaging Waste Directive with the dual goals of minimizing the negative effects of packaging waste on the environment and assisting in the prevention of trade barriers. Comparably, the US FDA has strict guidelines for recycling plastics that come into touch with food.  It is anticipated that all of these rules will present chances for biodegradable plastics to expand.

Single-use plastic usage is prohibited, and public awareness is growing:

The main drivers of the market expansion are the ban on single-use plastic and the general increase in public awareness of the damaging impact of plastic waste on the environment. Plastics that don't break down encourage other kinds of pollution. Governments throughout different regions have prohibited the use of non-biodegradable plastics in attempt to address this issue, encouraging the usage of biodegradable plastics instead. The eco-friendliness of biodegradable plastics also makes consumers willing to pay a premium for them, which will increase demand for them in the near future.

Challenges in this Market

High Production Costs

One of the key risk in the biodegradable plastic industry is the high cost that is involved when manufacturing these materials. Biodegradable plastics are generally known to use relatively complex and sophisticated raw materials as well as manufacturing techniques than the normal plastics. This implies that such costs may lead to higher prices of biodegradable products making it reluctant for the manufacturer and the consumer to embrace such products. Also, the advanced manufacturing techniques to create and process the biodegradable plastics are not up to par with those used in the ordinary plastics which increases the cost. On the other hand, there is a growing market with a realistic likelihood of future technological progression that is capable of revolutionizing production and bringing economies of scale for the business in the future.

Limited Infrastructure for Composting

One of the issues arising from the use of biodegradable plastics is the inadequate facilities for composting these products. Although these materials are expected to decompose much faster than traditional plastics, they fail to do it unless placed under the appropriate conditions like in industrial composting facilities. Several areas also lack adequate capacity in collecting and processing biodegradable plastics adequately. For that matter, these products may go to the landfill and never perform their intended role of biodegradation. Availability of bins for composting and efficiency of waste handling are key factors that must be adopted in order to ensure biodegradable plastics work as intended.

North America Biodegradable Plastic Market

The market for biodegradable plastic in the United States is anticipated to increase substantially during the forecast period due to the growing demand in the food and consumer goods sectors for packaging made of biobased materials. Compared to ordinary plastic, biobags and bio-based plastic are more convenient to use, have a better tensile strength, and are environmentally benign.

Additionally, during the forecast period, it is expected that the demand for bio-based or compostable bags used in the collection of food leftovers and other organic waste material will increase due to growing composting infrastructure and increased government efforts to reduce landfilling, such as the U.S. 2030 Food Loss and Waste Reduction Goal.

The U.S. market has experienced a notable increase in demand due to the growing utilization of the product for medical purposes. Masks, face shields, and other medical equipment are among the personal protection items (PPE) made with biodegradable plastic, such as PLA.

Furthermore, growing government measures to minimize greenhouse gas emissions and growing environmental concerns are credited with contributing to the emergence of biodegradable plastics. In January 2022, for example, the U.S. Department of Energy (DOE) announced financing of USD 13.4 million for next-generation plastics technology to lower the energy consumption and carbon emissions of single-use plastics.

Europe Biodegradable Plastics Market

The market for biodegradable plastic in Europe is growing at a very fast rate, primarily because of the increasing awareness of the environment and the promulgation of rules and policies to that effect. The market of Informational kiosks is showing growth and Germany and the Netherlands are prominent players in this new market.

Germany has led the European market in the consumption of biodegradable plastics primarily because of its focus on following environmental standards and cutting on waste. The country has put into place measures that require parties to undertake environmentally friendly practices such as use of environmentally friendly material. It is worthy to note however that German industries are still involved in research and development when it comes to the development of biodegradable plastics. All of this innovation by these companies are used in many applications such as packaging, agriculture and consumer goods to help in the fight against plastic waste and pollution.

The Netherlands is also in the process of developing more use of biodegradable plastics. Thanks to government support in the form of such policies and subsidies, the Dutch government has contributed greatly to this aspect by helping the companies innovate and adapt to biodegradable systems. Nowadays, the Netherlands itself count several new biodegradable material inventing startups and research institute companies. Most of these developments are closely realized in the packaging industry where the Netherlands is one of the leading adopters of compostable plastics to cut on the landfill issue.

Saudi Arabia's biodegradable plastic market

Saudi Arabia is making move into biodegradable plastic market as part of its plans to develop an economy not so dependent on oil. Expanding on Saudi Vision 2030 that focuses on sustainability and development the kingdom invests in the production of biodegradable plastics to conserve the environment and minimize wastage. The government measures and policies help in using environment friendly material in packaging and other areas. Local firms are embracing the technology to produce biodegradable plastics in a bid to capture the market trend and consumers new-found preference for environmentally friendly products. As we shall see, this move aligns with Saudi Arabia’s environmental conservation and its bid to diversify its economy.

Global Biodegradable Plastic Company Analysis:

Some leading Biodegradable Plastic companies are Total Corbion, Mitsubishi Chemical Holding Corporation, Toray Industries, BASF SE, Green Dot Bioplastics, Amcor Limited.

Global Biodegradable Plastic Company News:

June 2023: To assist local clients in achieving their sustainability and circularity goals, BASF has announced the official establishment of a Biodegradation and Microplastic Center of Excellence at its Michigan location. Understanding the biodegradation of innovative chemicals, obtaining new information on microplastics, and comprehending the disintegration performance of compostable materials will be the main topics of focus.

May 2023: An agreement was inked by TotalEnergies Corbion and Bluepha Co. Ltd. to expedite the adoption of PLA/PHA-based solutions in the Chinese market. The collaboration aims to combine Bluepha Polyhydroxyalkanoates (PHA) with Luminy Polylactic Acid (PLA) technology from the former to accelerate the development of various high-performance biopolymer solutions.

May 2023: For the purpose of growing the PLA industry, TotalEnergies Corbion and Xiamen Changsu Industrial Pte Ltd. have partnered. The businesses' main goals will be to develop new technologies and applications for BOPLA (biaxially oriented polylactic acid) and to promote their products in the market.

February 2023: An event was held by NatureWorks to commemorate the building of the company's Ingeo PLA manufacturing site in Thailand. With an annual capacity of 75,000 tons, the plant, located in the Nakhon Sawan Biocomplex (NBC) in Nakhon Sawan Province, will serve as a production location for lactide, lactic acid, and polymer.

Material Type – Market & Volume have been covered from 6 viewpoints:

1. PBAT
2. PBS
3. PLA
4. PHA
5. Starch Blends
6. Others

Applications – Market have been covered from 4 viewpoints:

1. Packaging
2. Agriculture
3. Consumer Goods
4. Others

Geography – Market Breakup of 23 countries -

•    North America

•    United States
•    Canada
•    Colombia

•    Europe

•    France
•    Germany
•    Italy
•    Spain
•    United Kingdom
•    Netherlands

•    Asia Pacific

•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Malaysia
•    Indonesia

•    Latin America

•    Brazil
•    Mexico
•    Argentina

•    Middle East & Africa

•    South Africa
•    Saudi Arabia
•    UAE

•    Israel

•    Rest of the World

Company Insights:

• Overview
• Recent Development
• Product Portfolio
• Revenue

Key Players Analysis:

1. Total Corbion
2. Mitsubishi Chemical Holding Corporation
3. Toray Industries
4. BASF SE
5. Green Dot Bioplastics
6. Amcor Limited

Report Details: