Polybutylene Succinate Market Size, Share & Trends Analysis Report By Type (Bio-based, Petro-based), By Application (Mulch Films, Packaging, Medicine), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global polybutylene succinate market was valued at USD 276.51 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 19.7% from 2022 to 2030. The rise in demand for (Polybutylene Succinate) PBS from end-use industries such as food packaging, pharmaceutical, agriculture, and consumer goods, among others, is estimated to contribute to the growth. PBS is a biodegradable synthetic aliphatic polyester with properties similar to Polyethylene Terephthalate (PET). It is one of the widely used biopolymers and is produced by combining petroleum-based succinic acid and 1,4-BDO, which are derived from maleic anhydride. The market for this biopolymer is still limited by production capacity and product price. However, this market is expected to grow as the demand for biodegradable plastics increases globally.

The rise in demand for the product is attributed to the growing preference for packaged food and increasing demand for personal protective equipment owing to the COVID-19 pandemic. PBS is now increasingly used in the production of various 3D filaments, 3D printing face shields, and face masks owing to their easily disposable and environment-friendly nature. Companies such as Benvic and NatureWorks LLC are focusing on developing biodegradable plastics with antibacterial properties that can be used for various packing and medical equipment, which are likely to be in contact with human body skin, to contain the spread of viruses and other bacterial infections.

The use of PBS as a substitute for PET is expected to be a key driver for its surging global demand over the projected period. Extensive usage of bio-based PBS to reduce carbon footprint along with a positive regulatory policy to increase awareness about risks associated with the usage of petroleum-based chemicals is expected to supplement the industry’s growth during the forecast period.

Rising awareness among manufacturers regarding exhausting crude oil reserves and risks associated with the excessive carbon dioxide in the air is expected to drive the global demand for bio-based chemicals. Extensive research & development related to the manufacturing process by various companies for reducing production costs of bio-based PBS and increasing efficiency are expected to offer new growth opportunities for market players over the forecast period.

Type Insights

Bio-based type dominated the market with the highest revenue share of 57.4% in 2021. Its high share is attributable to its increasing use in packaging materials on account of their low cost, non-reactivity, and low toxicity, making them environmentally friendly. They are widely used for making boxes, films, and bags in the packaging industry.

Petroleum-based PBS, when compared to its bio-based counterpart, is relatively pure. In addition, product production using petro-based raw materials is a continuous process and is best suited for commercial purposes where the product is required at a large scale. Moreover, the petro-based type is more efficient as compared to bio-based. Such factors are driving the consumption of petro-based types in the global industry.

However, bio-based PBS is gaining importance among companies as an alternative to conventional plastic with consumers increasingly looking for products that are green and less hazardous for the environment. The preference of consumers toward sustainable packaging and the rising carbon footprint issue across the globe is leading to rising demand for bio-based type in industrial packaging, food & beverage packaging, and household care products packaging and is expected to drive growth over the forecast period.

Application Insights

Packaging application held the highest revenue share of 40.3% in 2021. Its high share is attributable to the increasing usage of bioplastic packaging, as it provides an environment-friendly solution and helps in enhancing the appearance of the final product. The growing use of bioplastics in flexible packaging is expected to fuel market growth. Growing demand for food, on account of the increasing global population, is one of the key factors augmenting the demand for flexible packaging. Moreover, the packaged food industry in the U.S. and Europe has grown tremendously in recent years.

• Tissue Engineering

The demand for the product in mulch film applications is expected to rise significantly during the forecast period. This is because PBS-based mulch film is widely used to give the plants favorable conditions which help to increase agricultural yield and cater to major issues such as soil pollution, water conservation, and climatic change. As mulch films are used to boost plant growth by conserving soil moisture, increasing soil temperature, and controlling weed growth.

In plasticizers, PBS is used in its formulation and has its application in many different industries, including the production of PVC, wire and cable, footwear, packaging, wall coverings, and paints. To increase the fluidity and flexibility of the materials, PBS is added to plasticizers. Furthermore, the PVC market is anticipated to be driven by rising infrastructure spending in emerging nations like Brazil, China, and India. Additionally, the expanding use of PVC in automobiles and medical equipment is also anticipated to fuel the expansion of the plasticizers market, which will indirectly propel the product demand at a global level.

Regional Insights

Asia Pacific held the highest revenue share of nearly 37% in 2021. The high revenue share is attributed to the rise in demand for the product by various end-use industries in China, Japan, South Korea, and Thailand appear to offer the most growth and profitability potential. The growth is driven by the growing disposable income, surging use of plastics, changing consumer lifestyle, and growing packaging industry. The aforementioned factors have triggered the demand for bio-degradable & non-toxic PET bottles, disposable syringes, food containers, and other consumer goods in emerging economies across the region.

The PBS market sentiments in Asia Pacific were upbeat in the initial quarter of 2022. The first quarter of 2022 saw an increase of about 11% compared to that of the fourth quarter (Q4) of 2021, because of the strong demand in the pharmaceutical industry brought on by the Omicron virus in China and other Asian nations. Furthermore, the geopolitical tension between Russia and Ukraine also increased the prices of raw materials, driving up the cost of producing PBS and disrupting supplies in international markets.

Europe is expected to witness relatively low petro-based PBS demand on account of the growing preference for bio-based PBS by consumers as a drop-in replacement. The growing healthcare and agricultural sectors in Europe are expected to have a positive impact on the market Increasing automobile manufacturing bases in the region are expected to promote the growth of the automotive industry, thus propelling the demand for lightweight automotive components. This is expected to positively impact the PBS market over the coming years.

Key Companies & Market Share Insights

Companies dominate the polybutylene succinate market with their continuous focus on manufacturing bio-based PBS. The key players are involved in joint ventures to manufacture bio-based PBS. For instance, PTT MCC Biochem Company ltd. is a joint venture between Mitsubishi Chemical Corporation (MCC) and PTT Global Chemical Public Company Limited (GC). The joint venture is focused on manufacturing Bio-PBS.

Major players are investing in various R&D activities, especially regarding the use of bio-based PBS in multiple industrial applications, on the account of increasing demand for bio-based and natural products across multiple industries. Furthermore, due to aggressive industry competitiveness and vast scope for development in the field of biotechnology, there have been enhanced attempts to achieve product differentiation. Some prominent players in the global polybutylene succinate market include:

• PTT MCC Biochem Co., Ltd.

• Anhui Sealong Biotechnology Co., Ltd.

• Vizag Chemicals

• Shandong Fuwin New Material Co., Ltd.

• Shandong LanDian Biological Technology Co., LTD.

• Xinjiang Blue Ridge Tunhe Sci. &Tech. Co., Ltd.

• Shangdong Life Chemical Co., Ltd.

Polybutylene Succinate Market Report Scope

Global Polybutylene Succinate Market Segmentation

This report forecasts revenue and volume growth at the 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 polybutylene succinate market report based on type, application, and region:

• Type Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)

  • Bio-based

  • Petro-based

• Application Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)

  • Mulch Films

  • Packaging

  • Tissue Engineering

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa