Polybutylene Succinate (PBS) Market

Market Overview

The global polybutylene succinate (PBS) market size was valued at USD 399.4 million in 2023 and is projected to reach USD 2.0 billion by 2032, registering a CAGR of 20.2% during the forecast period (2024-2032). The Polybutylene Succinate (PBS) Market share is expected to increase due to increased demand from end-use sectors such as food packaging, pharmaceuticals, agriculture, and consumer products. 

Polybutylene Succinate (PBS) is a biodegradable polyester resin from the aliphatic polyester family. It is produced by the condensation polymerization of succinic acid with 1,4-butanediol. PBS is noted for its biodegradability, mechanical characteristics, and thermal stability, making it an adaptable material with numerous possible applications.

The chemical industry has experienced significant growth in recent years. Furthermore, polybutylene succinate is widely used in the packaging, pharmaceutical, and food and beverage industries, which will drive market expansion during the projection period. Moreover, it is emerging as an alternative for polypropylene (PP) and polyethylene terephthalate (PET), accelerating market expansion. The market for this biopolymer remains constrained by production capacity and product pricing. However, this industry will likely expand as the global need for biodegradable plastics rises.

Highlights

• Bio-based accounts for the largest share of the market by type.
• Packaging is a significant contributor to the market by application.

Market Dynamics

Market Drivers:

Increasing Environmental Concerns

Growing concern about environmental issues like plastic pollution and climate change is boosting demand for sustainable materials like PBS. As governments, industry, and consumers seek alternatives to traditional plastics, the market for biodegradable polymers such as PBS expands significantly.

According to the Plastic Overshoot Day research, worldwide short-life plastic manufacturing is anticipated to exceed 159 Megatons by 2023. The BAU scenario predicts global annual plastic pollution emissions will reach 50.5 MT/year in 2023 and 66.1 MT/year by 2050. However, much plastic trash is in landfills or the environment, causing pollution and ecosystem damage. Surveys and studies show that people are becoming more aware of the environmental impact of plastic garbage. For example, a Nielsen survey indicated that 81% of global respondents strongly believe businesses should improve the environment, showing a shift in customer preferences toward sustainable products and packaging materials.

Furthermore, governments worldwide enact legislation and policies to combat plastic pollution and promote renewable materials. The EU also intends to reduce the usage of other single-use plastics through awareness-raising efforts. Microplastics will be banned from the market on October 17, 2023, whether on their own or purposely added to items. This includes plastic glitter unless it's biodegradable or soluble. In July 2023, France and India announced a mutual commitment to reduce single-use plastic pollution, including a ban on plastic products with poor usefulness and high littering potential. 

Additionally, in November 2023, 175 countries agreed to negotiate legally enforceable agreements on plastic pollution by 2024, including creating a Global Plastics Treaty. In May 2023, WWF urged governments to embrace global bans and phase-outs of the "most high-risk and unnecessary" single-use plastics. These include plastic cutlery, e-cigarettes, and microplastics in cosmetics.

Thus, as awareness grows and regulatory pressures increase, the market for PBS is projected to expand dramatically, providing long-term solutions to global environmental concerns. 

Market Restraints:

Price Competitiveness

Due to raw material and manufacturing process costs, PBS production costs are often higher than traditional plastics such as polyethylene (PE) and polypropylene (PP). This price gap can make it difficult for PBS makers to compete with conventional plastics, particularly in price-sensitive areas like packaging and consumer goods.

In addition, biodegradable plastics, such as Poly(Butylene Succinate) (PBS), are typically more expensive than traditional plastics, costing 20-80% more to manufacture. This is primarily owing to increased polymerization costs, as most techniques are still being developed and have yet to achieve economies of scale. High R&D expenditures, high raw material costs, and low production quantities all contribute to the increased cost. For example, standard plastic resin typically costs USD 1.2/Kg, but biodegradable resin costs around USD 3/Kg.

Moreover, price sensitivity among consumers and industries may limit PBS adoption, especially when cost is a significant factor in purchase decisions. For example, in the packaging business, where margins are frequently limited, manufacturers may choose cost-effective solutions over sustainable options such as PBS if the price difference is significant. Furthermore, competition from other biodegradable polymers, such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), which may have lower manufacturing costs or superior performance attributes in specific applications, exacerbates PBS's price competitiveness dilemma.

Market Opportunity:

Sustainable Packaging Solutions

With rising environmental concerns and governmental pressure to reduce plastic waste, there is a greater need for sustainable packaging alternatives. PBS, biodegradable and created from renewable resources, allows manufacturers to offer eco-friendly packaging alternatives to traditional plastics. Creating novel PBS-based packaging materials for various uses, including food packaging, disposable containers, and bags, can benefit from this opportunity while meeting the needs of ecologically conscious customers and businesses.

In addition, primary food and beverage firms also switch to biodegradable packaging materials to decrease plastic waste and improve brand image. Nestlé, for example, has ambitions to move to 100% recyclable or reusable packaging by 2025, and some of its products currently use biodegradable packaging. Similarly, PepsiCo has pledged to use 100% recyclable, compostable, or biodegradable packaging by 2025. Furthermore, The Coca-Cola Company intends to use at least 50% recycled material in its packaging by 2030. BlueTriton Brands plans to make 100% beverage packaging from an average of 50% recycled or renewable material by 2030. 

Moreover, PBS-based packaging materials have numerous advantages, including biodegradability, compostability, and compatibility with existing packaging machines. They can be utilized for various packaging applications, including flexible films, rigid containers, trays, and bags, meeting the diversified needs of the food and beverage industry. Collaborations and partnerships among PBS manufacturers, packaging businesses, and food producers are accelerating innovation in sustainable packaging solutions. By collaborating to develop PBS-based packaging materials that meet performance, cost, and environmental criteria, stakeholders can speed up the adoption of biodegradable packaging and contribute to a more sustainable future.

Regional Analysis

The global polybutylene succinate (PBS) market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global polybutylene succinate (PBS) market shareholder and is estimated to grow at a CAGR of 19.9% over the forecast period. Asia-Pacific had the most important revenue share, about 40%, in 2023. The considerable revenue share is due to increased demand for the product from several end-use sectors in China, Japan, South Korea, and Thailand, which have the most significant growth and profitability potential. The expansion is driven by rising disposable income, increased usage of plastics, changing consumer lifestyles, and the expanding packaging sector. The causes above have fueled demand for bio-degradable and non-toxic PET bottles, disposable syringes, food containers, and other consumer goods in growing countries. 

Additionally, the PBS market sentiment in Asia-Pacific was positive in the first quarter of 2022. The first quarter of 2022 saw an increase of around 11% over the fourth quarter (Q4) of 2021, owing to the increasing demand in the pharmaceutical business caused by the Omicron virus in China and other Asian nations. Furthermore, geopolitical tensions between Russia and Ukraine have boosted raw material prices, raising the cost of making PBS and interrupting supplies in international markets.

Furthermore, several factors are expected to promote growth in the Chinese industry. These include quickly transitioning to biodegradable packaging materials and rising demand for packaged food goods. Rapid population expansion and changing lifestyles drive demand for packaged food products throughout China. This, in turn, is predicted to increase sales of polybutylene succinate, which is commonly used to manufacture various food packaging goods such as films, bottles, and trays. Furthermore, the Japanese government has implemented stringent measures to decrease plastic usage, particularly single-use plastics.

Europe is anticipated to exhibit a CAGR of 20.3% over the forecast period. Europe is predicted to have relatively low petro-based PBS demand because of consumers' rising preference for bio-based PBS as a drop-in alternative. Europe's expanding healthcare and agriculture industries are anticipated to impact the market favorably. Increasing vehicle production bases in the region will likely boost the automotive industry, driving demand for lightweight components. This factor is projected to boost the PBS market in the coming years. 

On the other hand, several factors contribute to the growth of the polybutylene succinate market in the United Kingdom. These include increased demand for sustainable and bio-based products and the expansion of businesses in the fields of packaging and medicine. Growing environmental concerns over rising levels of plastic pollution are forcing businesses across the United Kingdom to switch to bioplastics. While PBS is bio-based and biodegradable, it is becoming an attractive option for businesses and consumers.

North America, including the United States, Canada, and Mexico, is seeing increased demand for sustainable and biodegradable materials across various businesses, pushing PBS adoption in the region. According to Statista, the United States is one of the world's top packaging material markets, with the food and beverage, pharmaceutical, and consumer goods industries driving demand. The use of biodegradable packaging materials such as PBS is gaining traction in the region, owing to sustainability measures and consumer preferences for environmentally friendly products.

Segmental Analysis

The global polybutylene succinate (PBS) market is segmented based on type and application.

The market is further segmented by type into bio-based and petro-based.

The bio-based type dominated the market, accounting for 55% of total revenue. Bio-based PBS is made from renewable biomass sources such as plant feedstocks, agricultural leftovers, and bio-based succinic acid. Bio-based PBS manufacturing involves using natural resources and bio-based feedstocks, reducing reliance on fossil fuels and lowering carbon footprint. Bio-based PBS has environmental benefits such as biodegradability and reduced greenhouse gas emissions compared to petro-based PBS. It connects with sustainability objectives and aids in the transition to a bio-economy by encouraging using renewable resources in polymer manufacturing.

Furthermore, its significant share can be attributed to its increasing use in packaging materials due to its low cost, non-reactivity, and low toxicity, making it environmentally safe. In the packaging sector, they are commonly used to create boxes, films, and bags. Bio-based PBS is gaining popularity among businesses as a substitute for traditional plastic as consumers seek greener, less environmentally harmful items. Consumer preference for sustainable packaging, combined with rising global carbon footprint concerns, is driving increased demand for bio-based types in industrial packaging, food and beverage packaging, and household care product packaging, which is expected to drive growth over the forecast period.

Petroleum-based PBS is more pure than its bio-based counterpart. Petro-based PBS, also called fossil-based PBS, is made from petrochemical raw materials such as fossil fuels and petroleum derivatives. PBS is produced by converting petrochemical feedstocks into succinic acid and then polymerizing it. 

Moreover, product manufacture employing petro-based raw materials is a continuous process best suited for commercial applications requiring significant product quantities. Furthermore, the petro-based variety is more efficient than bio-based. Such considerations are driving global usage of petroleum-based kinds. 

The market can be bifurcated by application into Mulch Films, Packaging, and Tissue Engineering.

Packaging applications generated the most income, accounting for 45%. PBS is widely employed in packaging applications across various sectors due to its biodegradability, mechanical characteristics, and thermal stability. PBS makes multiple packaging items, including flexible films, rigid containers, trays, and bags. PBS packaging aids the environment by being compostable or biodegradable after use, decreasing plastic waste and pollution. Furthermore, PBS packaging materials have outstanding barrier qualities against gases and moisture, maintaining packaged goods' quality and shelf life. PBS-based packaging solutions meet the growing demand for sustainable packaging options in the food, beverage, personal care, and other consumer goods industries.

In addition, its large proportion is due to the rising use of bioplastic packaging, which provides an environmentally beneficial alternative while improving the finished product's appearance. Increasing bioplastics usage in flexible packaging will likely drive market expansion. One of the primary causes driving demand for flexible packaging is rising food demand as the world's population grows. Furthermore, the packaged food sector in the United States and Europe has expanded rapidly in recent years.

In tissue engineering and biomedical applications, PBS is a biocompatible, biodegradable scaffolding and implant material. PBS scaffolds offer a three-dimensional environment for cell development and tissue regeneration in regenerative medicine and tissue engineering applications. PBS-based scaffolds have several advantages, including programmable mechanical qualities, controlled breakdown rates, and compatibility with cell adhesion and proliferation. 

Furthermore, tissue engineering demand for the product in mulch film applications is predicted to increase significantly during the forecast period. This is because PBS-based mulch film is commonly utilized to provide ideal circumstances for plants, increasing agricultural productivity while addressing key challenges such as soil pollution, water conservation, and climate change. 

Recent Developments

• February 2024 - Mitsubishi Chemical Group (MCG Group) used DURABIO™, a plant-derived bioengineering plastic, in the handle of Sunstar Group's Ora2 Premium Smooth Fit Toothbrush. The toothbrush is the first in the domestic market to get the biomass plastic mark certification.