Global Biodegradable Plastic Market Report and Forecast 2024-2032

Global Biodegradable Plastic Market Outlook

The global biodegradable plastic market stood at a value of USD 2.50 billion in 2023. The market is further expected to grow at a CAGR of 14.2% in the forecast period of 2024-2032 to attain USD 8.25 billion by 2032.

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Packaging Segment to Bolster the Growth of the Global Biodegradable Plastic Industry

The packaging segment is estimated to account for a substantial share in the global biodegradable plastic industry during the forecast period. It is one of the fastest-growing industries that utilises biodegradable plastics for packaging various goods, including wrapping papers, cups, and boxes for food items, among others. This increase can be attributed to the increased eco-consciousness of the consumers and the stringent laws put in place by the government to control the increasing pollution levels globally. According to a report published by Greenpeace dated December 2020, eco-friendly approaches taken by multiple retailers in their packaging, such as Carrefour utilising tapioca based plastic bags in Malaysia and Singapore, Costco replacing all plastic straws in the US with paper straws, and 7-11 using half petroleum and half plant-based plastic coverings for onigiri in Japan, among others, are providing new growth opportunities to the market.

The Asia Pacific Region Estimated to Hold a Significant Market Share of the Global Biodegradable Plastic Industry

The Asia Pacific region is expected to hold a significant share of the global biodegradable plastic industry. This surge can be attributed to the high production and development capacity of biodegradable plastics in this region. According to a report issued by European Bioplastics, Asia accounted for 46% of the biodegradable plastics produced in the world in 2020. Meanwhile, Europe is expected to lead in the research and development sector globally.

Biodegradable Plastic: Market Segmentation

Plastic products are readily available and preferably used in everyday life by people worldwide. This is due to their pocket-friendly and multi-purpose serving nature. However, this increased usage has led to an escalating environmental crisis due to which manufacturers around the world are seeking eco-friendly alternatives to plastic. In this regard, biodegradable plastic is increasingly being promoted, as it is made from plant-based and organic raw materials and, therefore, can be decomposed by microorganisms into water, carbon dioxide, and mineral salts within a set period. Biodegradable plastics can be utilised in the packaging and agriculture sector as pots for plants, among others.

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By type, the market is divided into:

• Polylactic Acid (PLA)
• Polybutylene Adipate Terephthalate (PBAT)
• Polybutylene Succinate (PBS)
• Polyhydroxyalkanoates (PHA)
• Starch Blends
• Other

Based on application, the industry can be categorised into:

• Packaging 
• Agriculture
• Consumer Durable
• Textile
• Others

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Heightened Environmental Concerns to Augment the Growth of the Global Biodegradable Plastic Industry

The primary factor driving the global biodegradable plastic industry is the increased environmental awareness among consumers and resultant preference for sustainable alternatives. As a result, manufacturers globally are investing in research and development of sustainable production of goods to meet consumer demands while also reducing their carbon footprints. Biodegradable plastics, in this regard, offer an ecologically safe option. In addition, countries worldwide are implementing stringent regulations and restrictions on the usage of traditional plastic variants, thus, promoting the use of biodegradable plastics. These factors are expected to provide a major thrust to the biodegradable plastic industry.

According to an article published by the World Economic Forum dated January 2020, Thailand has introduced a ban on microbeads, cap seals, and oxo-degradable plastics. Moreover, France has banned single-use plastic items, such as cups, plates, and "single-use" cotton buds, among others in the region. Such initiatives are expected to significantly contribute to the market growth over the forecast period.

Key Industry Players in the Global Biodegradable Plastic Market

The report gives a detailed analysis of the following key players in the global biodegradable plastic market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• BASF SE
• Eastman Chemical Company
• Mitsubishi Chemical Holdings Corp. 
• Biome Technologies plc
• Corbion N.V.
• Others

The comprehensive EMR report provides an in-depth assessment of the industry based on the Porter's five forces model and SWOT analysis.

Key Highlights of the Report