Poly (Butylene Adipate-Co-Terephthalate) Market Size, Share & Trends Analysis Report By Grade (Extrusion Grade, Thermoforming Grade), By Application (Composite Bags, Mulch Films), By End-use (Packaging, Agriculture, Bio-medical), By Region, And Segment Forecasts, 2025 - 2030

Poly (Butylene Adipate-Co-Terephthalate) Market Summary

Poly (butylene adipate-co-terephthalate) (PBAT) is a type of biopolymer that offers excellent biodegradability, flexibility, and processability, making it an ideal grade for various end uses, particularly in packaging and agriculture. The primary drivers of the poly (butylene adipate-co-terephthalate) industry include the increasing demand for biodegradable and compostable grades, driven by environmental concerns and government regulations. The packaging industry, in particular, is a major driver, with consumers and businesses seeking sustainable alternatives to conventional plastics. The agriculture sector is also adopting poly (butylene adipate-co-terephthalate) for end uses, such as mulch films, which help reduce plastic waste in farming. Moreover, the advancements in poly (butylene adipate-co-terephthalate) application technologies and the development of cost-effective manufacturing processes are expected to further boost market growth.

The growing consumer preference for eco-friendly applications has led to a surge in the adoption of PBAT-based applications. Major companies are investing in the development of innovative PBAT formulations to meet the specific requirements of different end uses. The market also benefits from the collaboration between raw-grade suppliers and industries to ensure a consistent supply of high-quality poly (butylene adipate-co-terephthalate).

Market Concentration & Characteristics

The growth stage of the market is medium, and the pace of market growth is accelerating. The degree of innovation within the poly (butylene adipate-co-terephthalate) industry is notable, with ongoing advancements in production technologies, material properties, and the exploration of new applications such as agricultural films, medical products, and 3D printing filaments, indicating a strong drive towards enhanced functionality and broader utility.

The level of merger and acquisition within the Poly (Butylene Adipate-Co-Terephthalate) market is moderate, with companies primarily focusing on strategic alliances, collaborations, and partnerships to foster innovation and expand market reach. For instance, in In January 2022, Kolon Industries and SK Geo Centric formed a partnership to introduce polybutylene adipate-co-terephthalate (PBAT), an environmentally friendly, biodegradable plastic. This collaboration is poised to significantly boost the PBAT market by expanding product availability and fostering innovation, potentially leading to increased merger and acquisition activities within the segment as companies compete for market share and technological advancements.

The impact of regulations is significant and positive, with increasing government support and stringent environmental policies promoting the adoption of biodegradable plastics like PBAT across various regions, thereby driving market growth and creating a favorable environment for sustainable materials. In June 2022, the State Administration of Market Regulation and the State Standardization Administration in China jointly introduced new national recommended standards for biodegradable plastics. These standards, officially titled "Degradability and Identification Requirements of Biodegradable Plastics and Products" (GB/T 41010-2021), were put into effect in the same month.

Grade Insights

The extrusion grade segment accounted for the highest market share of 45.4% of the global revenue in 2024. The extrusion grade PBAT is widely used in the manufacturing of films and sheets due to its excellent processability and mechanical properties. For instance, in May 2023, BASF expanded its ecovio product line for extrusion coating applications on paper and board, introducing a new grade, ecovio 70 PS14H6. This formulation is certified for both home and industrial composting, making it suitable for cold and hot food packaging. This development is particularly beneficial for the extrusion grade segment as it offers a highly functional, sustainable solution that meets stringent performance and regulatory requirements for food packaging.

The thermoforming grade segment is projected to grow at a significant CAGR from 2025 to 2030, supported by the rising demand for sustainable packaging materials in the food and beverage industry. Other grades of PBAT are gaining traction in specialized end uses, providing manufacturers with the flexibility to develop customized solutions.

Application Insights

The composite bags segment dominated the global market in 2024. The composite bags segment emerged as the leading application in poly (butylene adipate-co-terephthalate) industry, driven by their compelling combination of biodegradability and strength, making them ideal for diverse packaging needs. Beyond composite bags, bin bags, and mulch films also represent significant applications for PBAT, underscoring their role in sustainable waste management and agricultural practices.

The market for mulch films made from poly (butylene adipate-co-terephthalate) (PBAT) is expected to grow at the fastest CAGR during the forecast period 2025 to 2030, driven by an increasing global emphasis on sustainable agricultural practices and the urgent need to mitigate plastic waste in farming. PBAT is a key biodegradable polymer in this sector, offering a viable, eco-friendly alternative to conventional polyethylene mulch films. Its inherent biodegradability and compostability allow it to break down naturally in soil, reducing labor costs associated with film removal after harvest and preventing the accumulation of plastic residues in agricultural land. Notably, BASF offers certified soil-biodegradable mulch films, specifically its ecovio M 2351 biopolymer, which can be tilled directly into the soil after mechanical harvesting. This solution offers several key advantages: it is certified by the European standard EN 17033, enhances plant resistance to fungal diseases, and has been shown to increase crop yields and facilitate earlier harvests.

End-use Insights

The packaging segment accounted for the largest revenue share in 2024. The packaging industry is the largest consumer of PBAT, driven by the demand for biodegradable and compostable packaging materials. For instance, in August 2024, India's Defence Research and Development Organisation (DRDO) developed a novel biodegradable packaging solution utilizing PBAT, a polymer synthesized from either petroleum derivatives or plant-based oils. This advanced technology is designed to naturally decompose within a three-month timeframe, leaving behind no harmful residues. This development significantly benefits the packaging industry within the poly (butylene adipate-co-terephthalate) market by offering a high-performance, environmentally responsible alternative that addresses growing sustainability demands and regulatory pressures.

The agriculture segment is expected to grow at a significant CAGR from 2025 to 2030. The growth of the agriculture segment is driven by the need for eco-friendly agricultural practices. This trend directly benefits the Poly (butylene adipate-co-terephthalate) market, as PBAT is a biodegradable polymer suitable for various agricultural applications such as mulch films. The adoption of biodegradable plastics like PBAT helps reduce plastic waste in agricultural fields and supports healthier soil management practices.

Regional Insights

The North America poly (butylene adipate-co-terephthalate) market is expected to grow at a significant CAGR from 2025 to 2030. This expansion is primarily fueled by increasing consumer awareness regarding sustainable materials and robust regulatory support for eco-friendly products. The packaging sector remains a key driver, demonstrating a notable shift towards biodegradable alternatives. Furthermore, the agricultural industry is increasingly adopting PBAT for applications such as mulch films, contributing to the rising demand. Leading companies in the region are actively investing in expanding their PBAT production capacities to meet the growing market need for environmentally conscious products.

U.S. Poly (Butylene Adipate-Co-Terephthalate) Market Trends

The U.S. Poly (Butylene Adipate-Co-Terephthalate) PBAT market is a leading force in North America as of 2024. This prominence is largely attributed to stringent environmental regulations and a robust commitment from both consumers and businesses to sustainability. The packaging and agriculture industries are primary drivers of PBAT demand, fueled by the increasing need for biodegradable packaging solutions and sustainable agricultural practices. Furthermore, continuous innovations in PBAT formulations and increased investment in research and development activities are significantly contributing to the market's expansion within the U.S.

Europe Poly (Butylene Adipate-Co-Terephthalate) Market Trends

The poly (butylene adipate-co-terephthalate) market in Europe is expected to grow at a significant CAGR from 2025 to 2030. Europe is a significant market for PBAT, driven by stringent environmental policies and a strong emphasis on sustainability. Countries such as Germany, France, and the UK are leading the adoption of PBAT, particularly in the packaging and agricultural sectors. The European Union's regulations on single-use plastics and the increasing demand for compostable materials are major factors contributing to the market growth. In addition, collaborations between PBAT manufacturers and industries are fostering innovation and market expansion.

Asia Pacific Poly (Butylene Adipate-Co-Terephthalate) Market Trends

The poly (butylene adipate-co-terephthalate) market in Asia Pacific accounted for the largest revenue share of 41.2% in 2024. The region's large consumer base and rapid industrialization are driving the demand for PBAT. Moreover, government initiatives to reduce plastic waste and promote eco-friendly alternatives are expected to further accelerate market growth in APAC. The Asia-Pacific region is witnessing the fastest growth in the PBAT market, fueled by increasing environmental awareness and regulatory measures promoting biodegradable materials. China and India are key markets, with substantial investments in sustainable packaging solutions and agricultural applications.

The poly (butylene adipate-co-terephthalate) industry in China accounted for the highest revenue share in 2024. This market is experiencing robust growth driven by significant policy support and increasing environmental awareness, positioning China as a major global producer and consumer of biodegradable plastics. Technological development is a key focus, with innovations aimed at improving the cost-effectiveness and performance of PBAT, including the development of flexible and moldable composites. In June 2023, Johnson Matthey, a global leader in sustainable technologies, supplied Fujian Zhongjing Petrochemical Group with its advanced butanediol (BDO) technology. This crucial component facilitates the production of bio-degradable plastics, specifically PBAT, aligning with China's accelerated efforts to phase out single-use plastics and combat pollution.

Key Poly (Butylene Adipate-Co-Terephthalate) Company Insights

Some of the key players operating in the poly (butylene adipate-co-terephthalate) market include BASF SE, Novamont S.p.A., Hangzhou Peijin Chemical Co., Ltd., and JinHui Zhaolong High Technology Co., Ltd. These organizations are focusing on increasing the customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers & acquisition, capacity expansion, and product enhancement to align with changing regulations.

• BASF SE develops, produces, and markets its line of poly (butylene adipate-co-terephthalate) under the brand names ecoflex and ecovio. These products have applications in various sectors, including packaging, agriculture, waste management, and other industries.

• Novamont S.p.A. is a significant producer of Poly (butylene adipate-co-terephthalate) through its MATER-BI product line. The application of MATER-BI is into packaging, agriculture and consumer goods.

Recent Developments

• In June 2024, BASF SE, a chemical company introduced a biomass-balanced ecoflex PBAT variant called ecoflex F Blend C1200 BMB. This expansion in companies biopolymers portfolio aims to use renewable feedstock derived from residual and waste biomass instead of petroleum-based raw materials in the production process, reducing fossil resource usage and lowering the product's carbon footprint by 60% compared to the standard ecoflex F Blend C1200.

• In May 2024, SK Leaveo officially began construction on the biodegradable material plant in Hai Phong City, Vietnam. This facility is expected to have an annual production capacity of 70,000 tons of PBAT and is expected to be operational by the third quarter of 2025. This development significantly boosts global PBAT supply, supporting the growing demand for sustainable plastic alternatives.

• In November 2023, for new 200,000-ton per annum maleic anhydride (MA) production facility in Lianyungang, China, Jiangsu Shenghong Petrochemical Co., Ltd. chose Clariant's SynDane 3142 LA catalyst. This facility is expected to produce MA, a vital intermediate in the production of PBAT, a biodegradable plastic. This initiative is anticipated to strengthen the PBAT supply chain and support its market expansion.

Poly (Butylene Adipate-Co-Terephthalate) Market Report Scope

Global Poly (Butylene Adipate-Co-Terephthalate) Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global poly (butylene adipate-co-terephthalate) market report based on grade, application, end-use, and region.

• Grade Outlook (Revenue, USD Million, 2018 - 2030)

  • Extrusion Grade

  • Thermoforming Grade

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Composite Bags

  • Bin Bags

  • Mulch Films

  • Cling Films

  • Stabilizers

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Packaging

  • Agriculture

  • Bio-medical

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia