Global Biodegradable Plastic Market to Grow at a CAGR of 13.5% During 2023–2031

Biobased and biodegradable plastics are the ideal replacement for conventional plastic, even though they are currently more expensive than petroleum-based plastics. As consumer awareness of biobased products grows, there are more opportunities for growth in the biodegradable plastic market. PHA, one of the biodegradable plastic varieties, has yet to be widely commercialized because of high price issues. Several producers are currently implementing various strategies to lower the cost of PHA and maintain steady demand. Only 15 to 20 manufacturers operating in this market; most take care of the initial raw material processing. Due to the high demand for biodegradable plastic, these manufacturers' production capacities are changing quickly, and similar trends are anticipated throughout the forecast period. The majority of biobased/biodegradable plastics are produced in Asia-Pacific. With rising demand, it is anticipated that the cost of biodegradable plastics will fall. The largest market for biodegradable plastic in the world is that of packaging. Manufacturers are under pressure from regulatory organizations to create creative, efficient prepackaging strategies. Market Dynamics Growth In The Use Of Biodegradable Plastics By Consumers And Eco-Friendly Nature Biodegradable plastic has the potential to reduce carbon dioxide emissions by 30% to 70% when compared to conventional synthetic plastic. However, the substance has no adverse environmental effects because it is non-toxic and quickly degrades. Additionally, the breakdown of bioplastic emits very little greenhouse gas. Biodegradable plastic has a 42% lower carbon footprint. Due to these cutting-edge technical characteristics and functionalities, major corporations like Coca-Cola, Nestle, Nike, and Ford are interested in producing and using biobased biodegradable plastic materials in various applications. Using bio-based and biodegradable plastics is becoming more popular as consumers become more aware of the importance of using sustainable products to address urgent environmental problems like global warming. Users favor bioplastics in various industries, such as catering, packaging, agriculture, and automotive. Natural-degrading plastics are suitable for organic farming. Agricultural and horticultural professionals use biodegradable mulching films. The Rise in CSR Activities and Decreasing Dependence on Petroleum Resource As consumer environmental concerns grow, businesses use sustainable and environmentally friendly alternatives to develop and strengthen their brand image. For instance, leading companies like Coca-Cola and PepsiCo focus on using bio-based PLA, PSA, and other bottles for beverage packaging. The fluctuating price of crude oil, which raises the cost of heteroblastic, can be the solution to this issue. This issue can be resolved by enhancing R&D and reducing reliance on petroleum resources. The sector is anticipated to use a forward integration strategy to create its value chain because it has a robust infrastructure and capital base. PepsiCo’s “green” PET bottle is entirely composed of biomaterials and shares the same molecular structure. A shift in focus from petroleum to biobased resources is anticipated to present several growth opportunities over the ensuing years. Regional Analysis Europe is the highest contributor to the global biodegradable plastic market and is anticipated to grow at a CAGR of 12.7% during the forecast period. For proper waste management, Europe switches from conventional plastic to bioplastics. Promoting sustainable and biodegradable policies by European associations to the government and environment is a significant factor driving the growth of the biodegradable plastic market in Europe. The demand for bioplastic products among European consumers is rising, encouraging the expansion of biobased goods in this region. European consumers favor bioplastic products over conventional plastic ones due to their environmental benefits. Because of this, Europe controls a sizable portion of the global biodegradable market's revenue. European legal frameworks and strategies, which also provide growth prospects for the biodegradable market there, promote the widespread use of biobased plastics. Government policies that are helpful to producers of bioplastics are another significant factor driving the expansion of the European market. North America is expected to grow at the fastest CAGR of 13.7% during the forecast period. The North American market is rapidly growing due to the addition of new manufacturing facilities. Supportive government regulations and policies for the production and consumption of sustainable products, as well as the rise in consumer environmental awareness, influence manufacturers of synthetic plastics to favor the production of bio-based plastic materials. Consumers prefer bio-based and degradable plastic packaging due to growing environmental concerns about the non-degradability of synthetic plastic packaging materials. Additionally, it is anticipated that a legal and regulatory environment and educated consumers with significant purchasing power will support the growth of the North American biodegradable plastic market. In North America, the PLA and starch blend markets will continue to expand steadily due to their expanding use in the packaging industry. Key Highlights The global biodegradable plastic market was valued at USD 2.23 billion in 2022. It is projected to reach USD 6.97 billion by 2031, growing at a CAGR of 13.5% during the forecast period (2023–2031). Based on type, the global biodegradable plastic market is bifurcated into PLA (POLYLACTIC ACID), PBAT (POLYBUTYLENE ADIPATE TEREPHTHALATE), PBS (POLYBUTYLENE SUCCINATE), PHA (POLYHYDROXYALKANOATES), Starch Blends, Others. The Starch Blends segment is the highest contributor to the market and is anticipated to grow at a CAGR of 13.6% during the forecast period. Based on application, the global biodegradable plastic market is bifurcated into packaging, agriculture, consumer durable, textile, and others. The packaging segment owns the highest market share and is forecasted to grow at a CAGR of 13.2% during the forecast period. Europe is the highest contributor to the global biodegradable plastic market and is expected to grow at a CAGR of 12.7% during the forecast period. Competitive Players The global biodegradable plastic market’s major key players are Biome Technologies plc, Dow, Inc., Mitsubishi Chemical Holdings Corporation, Eastman Chemical Company, Kuraray Co., Ltd., Cargill Incorporated, PTT MCC Biochem Co., Ltd., Biome Technologies plc, Plantic Technologies Limited, BASF SE, Total Corbion PLA, Synbra Technology BV, Futerro, Novamont SpA, NatureWorks LLC, Eastman Chemical Company, Trinseo, Danimer Scientific, FKuR Kunststoff GmbH. Market News In November 2022, A Master Collaboration Agreement (MCA) between NatureWorks, an advanced materials company and the world's top producer of polylactic acid (PLA), and CJ Biomaterials, Inc., a division of South Korean company CJ CheilJedang, calls for the two companies to work together on the development of sustainable materials solutions based on NatureWorks' IngeoTM biopolymer and PHACTTM Biodegradable Polymers from CJ Biomaterials. In March 2022, Genomatica, a leader in sustainable materials, and Asahi Kasei, a global manufacturer with a Japanese base, recently announced a strategic alliance to commercialize nylon made from Genomatica's bio-based HMDA (hexamethylenediamine) building block. Global Biodegradable Plastic Market: Segmentation By Type PLA (POLYLACTIC ACID) PBAT (POLYBUTYLENE ADIPATE TEREPHTHALATE) PBS (POLYBUTYLENE SUCCINATE) PHA (POLYHYDROXYALKANOATES) Starch Blends Others By Application Packaging Agriculture Consumer Durable Textile Others By Regions North America Europe Asia-Pacific LAMEA