Biodegradable Plastic Market Size, Share & Trends Report

Biodegradable Plastic Market Size, Share & Trends Analysis Report By Type (Starch-based, PLA, PHA, PBAT, PBS), By End Use (Packaging, Consumer Goods, Agriculture), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Mar, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-2-68038-410-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 102

Report Overview

The global biodegradable plastic market size was estimated at USD 3.27 billion in 2019 and is expected to expand at a revenue-based CAGR of 9.4% during the forecast period. Governments prohibiting the use of single-use plastic coupled with rising awareness among the public regarding ill-effects of plastic waste are among the key trends stimulating the market growth. Additionally, increasing the use of biodegradable plastics in packaging and agriculture is anticipated to supplement the market growth.

Non-decomposable plastics are a global issue. Governments around the world are tackling this problem by banning single-use plastics and promoting use of biodegradable plastics. Moreover, consumers are willing to pay more for biodegradable plastics owing to their eco-friendly nature. The aforementioned factors, cumulatively, are providing a major boost to the market growth.

U.S. biodegradable plastic market

Despite environmental advantages, biodegradable plastics also have some shortcomings. Segregation of conventional plastics and biodegradable plastic is a big drawback as there is no distinct difference between them. The inclusion of conventional plastic in biodegradable plastic landfills can cause complications in the decomposition process.

Moreover, not all biodegradable plastics readily decompose in the natural environment, as they require a specific environment in terms of moisture and temperature. Some of the biodegradable plastics release greenhouse gases during decomposition, which is counterproductive to the environmental cause, thus restraining the market growth.

Type Insights

On the basis of type, the market is divided into starch-based,Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoate (PHA), and others. The starch-based segment is projected to dominate the market in terms of revenue as well as volume throughout the forecast period. Starch-based plastics are used in end-use industries such as packaging, automobiles, and agriculture. The segment is poised to expand at a revenue-based CAGR of 10.4% during the same period in terms of revenue. The PLA type plastics are also rapidly gaining their ground in the arena. Inexpensive cost of PLA compared to any other type is a major factor driving the segment growth.

PHA is projected to register significant growth during the forecast period owing to the increasing use of PHA in medical and other applications. PHA is majorly used in medical applications such as drug encapsulation and medical implants. Other medical uses include tissue engineering, bone marrow scaffolds, and bone plates. Other than medical, PHA is also used in the production of compost bags, agriculture foil and films, packaging for food and beverages, and consumer products, thereby fueling the growth of PHA globally.

End-use Insights

Packaging is one of the leading end-use segments for biodegradable plastics and is used in both rigid packaging and flexible packaging. Replacement of conventional plastics by these products in food packagings such as boxes, wraps, cups, and plates is gaining momentum, which is supporting the growth of the biodegradable plastic market.

Global biodegradable plastic market

The agriculture sector also held a significant share in the market. The use of biodegradable mulch film ensures conservation of water in the soil, suppression of weed growth, and soil temperature maintenance in order to facilitate faster crop development. Developed economies are also witnessing the increasing use of biodegradable plastics in consumer goods.

Regional Insights

Europe was the largest regional market for biodegradable plastics in 2019. High awareness among people toward plastic waste coupled with European Union ban on single-use plastics is estimated to propel the market over the forecast period. On the other hand, Asia Pacific is expected to emerge as the fastest growing market in the global arena. Rising disposable income and improving the standard of living in developing countries such as China and India are anticipated to augment the market growth in the region. Central and South America is projected to register a revenue-based CAGR of 9.4%during the forecast period and is emerging as a promising region owing to the availability of cheap raw materials.

Biodegradable Plastic Market Share Insights

Competition in the market varies from low to medium from region to region. Competition in Europe and North America is medium owing to a large number of players present in these regions. On the flip side, competitive rivalry in Asia Pacific is low due to fewer market players. However, the demand for biodegradable plastic is poised to increase in both developed and developing markets.

Key market players are investing in research and development to introduce novel biodegradable plastic products, which are strong and readily degradable in the natural environment. Major players in the industry include BASF SE, NatureWorks LLC, Mitsubishi Chemical Corporation, Carbion, and Biome Technologies plc.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Volume in Kilotons, Revenue in USD Million, and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, China, India, Japan, South Korea, Brazil, Saudi Arabia

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global biodegradable plastic market report on the basis of type, end use, and region:

  • Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Starch-based

    • PLA

    • PBS

    • PBAT

    • PHA

    • Others

  • End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Packaging

    • Agriculture

    • Consumer Goods

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

Pricing & Purchase Options

Service Guarantee

  • Quality assurance

    Insured Buying

    This report has a service guarantee. We stand by our report quality.

  • Information security

    Confidentiality

    We are in compliance with GDPR & CCPR norms. All interactions are confidential.

  • grand view research PCI DSS complaint grand view research gdpr verified
  • Custom research service

    Custom research service

    Design an exclusive study to serve your research needs.

  • Research support

    24/5 Research support

    Get your queries resolved from an industry expert.

Buy Chapters or Sections

Avail customized purchase options to meet your exact research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities