Americas Biodegradable Plastic Market To Reach $3.50 Billion By 2030

Americas Biodegradable Plastic Market Growth & Trends

The Americas biodegradable plastic market size is anticipated to reach USD 3.50 billion by 2030, growing at a CAGR of 9.4% during the forecast period, according to a new report by Grand View Research, Inc. The Americas biodegradable plastics industry is experiencing growth driven primarily by rising due to growing consumer preference for sustainable alternatives to conventional plastics. Urban buyers are particularly influenced by increasing awareness of plastic waste's environmental impact, leading to shifts in purchasing decisions. Industries such as packaging, agriculture, and consumer goods are adopting biodegradable plastics to align with evolving consumer expectations.

In retail and consumer goods, biodegradable plastics are prioritized for packaging applications like food containers, shopping bags, and single-use items. Brands leverage eco-certifications and sustainability labels to appeal to environmentally conscious consumers, many of whom are willing to pay a premium for such products. Similarly, corporate buyers in agriculture and food service sectors are adopting biodegradable solutions such as mulch films and compostable ware to meet functional needs and sustainability goals while ensuring regulatory compliance.

The biodegradable plastics market in the Americas presents significant growth opportunities, with each region offering unique dynamics. North America, particularly the U.S. and Canada, has seen rapid adoption due to strict regulations on single-use plastics. In South America, cost-sensitive buyers favor biodegradable plastics derived from local raw materials like sugarcane or cassava, which offer affordability and compatibility with regional agricultural practices. However, the higher costs of biodegradable plastics and limited composting infrastructure in many regions remain challenges for widespread adoption.

Biodegradable plastics generally have higher production costs compared to conventional plastics, mainly due to the sourcing of raw materials and manufacturing processes. Foreign manufacturers not only have to compete with local producers but also with established petrochemical companies that dominate the traditional plastic market.

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Americas Biodegradable Plastic Market Report Highlights

• Based on material, the starch-based segment accounted for a revenue share of 41.7% in 2024. Starch-based bioplastics are gaining traction, due to their biodegradability and cost-effectiveness. These blends are commonly used in disposable items like cutlery, bags, and packaging materials. The agricultural sector utilizes starch blends for mulch films, which help reduce plastic pollution in the soil.

• Based on end use, the packaging segment accounted for the largest revenue share of 54.0% of the Americas biodegradable plastics industry in 2024. Biodegradable plastics are widely utilized in packaging applications, including films, sheets, household care items, food & beverage packaging, and packaging for personal care goods.

• In addition, owing to escalating waste issues in the Americas and consumer trends toward sustainable packaging, local regulatory bodies are mandating manufacturers to employ biodegradable plastics in packaging.

• North America accounted for the largest revenue share of 76.2% in 2024. Certain key factors such as stringent government regulations and clean-up initiatives taken by the EPA, like short-term cleanups of National Priorities List (NPL) sites, waste sites, or sites with the possibility of release of hazardous materials, are likely to drive product demand in the coming years.

• The market for bioplastics is consolidated owing to the presence of key companies, such as Cargill Incorporated, PTT MCC Biochem Co., Ltd., Biome Technologies plc, Plantic Technologies Limited, BASF SE  and others. These companies have adopted various strategies, such as new product launches, partnerships, capacity expansions, and collaborations, to expand their market presence.

• For instance, in June 2024, BASF SE launched a new biopolymer product called ecoflex F Blend C1200 BMB, which is a biomass-balanced variant of polybutylene adipate terephthalate (PBAT). This innovative product aims to replace fossil raw materials with renewable feedstock sourced from waste and residual biomass, utilizing a certified mass balance approach.

Americas Biodegradable Plastic Market Segmentation

Grand View Research has segmented the Americas biodegradable plastic market based on material, end use, and region:

Americas Biodegradable Plastic Material Outlook (Revenue, USD Million, 2018 - 2030)

• Starch Based

• PLA

• PBAT 

• PBS

• PHA

• Others

Americas Biodegradable Plastic End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Packaging

  • Food Packaging

  • Non-Food Packaging

• Agriculture

• Textiles

• Consumer Goods

• Others

Americas Biodegradable Plastic Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Central & South America

  • Brazil

  • Argentina

  • Chile

List of Key Players in Americas Biodegradable Plastic Market

• Novamont S.p.A

• PTT MCC Biochem Co., Ltd.

• Biome Technologies plc

• Plantic Technologies Limited

• BASF SE

• TotalEnergies Corbion

• NatureWorks LLC

• FKuR Plastics Corp.

• Trineso

• Danimer Scientific