Biodegradable Plastic Market Size, Share & Trends Analysis Report By Product (Starch Based, PLA, PHA, PBAT, PBS), By Application (Packaging, Consumer Goods, Agriculture), And Segment Forecasts, 2022 - 2030

Report Overview

The global biodegradable plastic market size was estimated at USD 4.1 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 9.7% during the forecast period. Governments prohibiting the use of single-use plastic coupled with rising awareness among the public regarding the ill effects of plastic waste are among the key trends stimulating market growth. Additionally, the increasing use of biodegradable plastics in packaging and agriculture is anticipated to supplement the growth of the segment. Non-decomposable plastics are a global issue. Governments around the world are tackling this problem by banning single-use plastics and promoting the 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 fillip to the market.

Despite environmental advantages, biodegradable plastics have some shortcomings too. 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 biodegradable plastics release greenhouse gases during decomposition, which is counterproductive to the environmental cause. These factors are likely to act as stumbling stones in the upward climb of the market.

Product Insights

Starch-Based was the largest product segment for biodegradable plastics in 2021 with a revenue share of more than 40.0%. Based on product, the market is divided into starch-based, PLA, PBAT, PBS, PHA, and others. The starch-based segment is projected to dominate the market in terms of value as well as volume throughout the forecast horizon. Starch-based plastics are used in application industries such as packaging, automobiles, and agriculture. The PLA Product plastics are also rapidly gaining their ground in the arena. The inexpensive cost of PLA compared to any other Product is a major driving factor for the segment.

PHA is projected to register significant growth during the forecast period. The increasing use of PHA in medical and other applications is expected to fuel the growth of the PHA segment in the market. 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 & films; and packaging for food & beverages and consumer products. These factors are expected to fuel the growth of PHA globally.

Application Insights

Packaging was the largest application segment for biodegradable plastics in 2021 with a revenue share of more than 60.0%. Packaging is one of the leading application sectors for biodegradable plastics. It is used in both rigid and flexible packaging. Replacement of conventional plastics by these plastics in food packaging such as boxes, wraps, cups, and plates is gaining momentum, which is supporting the growth of the 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 conducive soil temperature maintenance to facilitate faster crop development. The surging use of biodegradable plastics in consumer goods is also evident in developed economies.

Regional Insights

Europe was the largest regional market for biodegradable plastics in 2021 with a revenue share of more than 43.0%. High awareness among people toward plastic waste coupled with European Union ban on single-use plastics is estimated to propel the regional market during r 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 in the region.

The Central & South America region also emerged as a promising destination in the market. The availability of cheap raw materials is likely to augur well for the market in the region. The region is projected to register a CAGR of 9.6% during the forecast period.

The U.S. market is expected to rise significantly during the forecast period on account of the growing demand for bio-based packaging in the food and consumer goods sectors. Bio bags and bio-based plastics have higher tensile strength, are eco-friendly, and are convenient for use as compared to conventional plastics. As a result, the demand for biodegradable plastics is further projected to propel during the forecast period

The Europe market is anticipated to witness substantial growth over the coming years owing to various factors such as the presence of stringent environment-friendly laws, increasing environmental concerns among consumers, and rising R&D investments in the bioplastics sector by private as well as public organizations. In addition, government initiatives such as the decision of the EU to minimize the overall consumption of single-use plastic products by about 80% in the region by 2019 are anticipated to propel the demand for biodegradable plastics during the forecast period

Key Companies & 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. On the flip side, competitive rivalry in the 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 pouring hefty funds into research & development to introduce novel biodegradable plastic products, which are strong and readily degradable in the natural environment.

• 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

• Trineso

• Danimer Scientific

• FKuR Kunststoff GmbH

Biodegradable Plastic Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2019 to 2030.Grand View Research has segmented the global biodegradable plastic market report based on Product, application, and region:

• Product Outlook (Volume, Kilotons, Revenue, USD Million, 2019 - 2030)

  • Starch Based

  • PLA

  • PBS

  • PBAT

  • PHA

  • Polycaprolactone

• Application Outlook (Volume, Kilotons, Revenue, USD Million, 2019 - 2030)

  • Packaging

  • Agriculture

  • Consumer Goods

  • Others

• Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2019 - 2030)

  • 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