Poly (Butylene Adipate-Co-Terephthalate) Market To Reach $2.91 Billion By 2030

Poly (Butylene Adipate-Co-Terephthalate) Market Growth & Trends

The global poly (butylene adipate-co-terephthalate) market size is anticipated to reach USD 2.91 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 9.0% from 2025 to 2030. This growth is driven by increasing demand for biodegradable and compostable plastics as a sustainable alternative to conventional polymers.

Poly (butylene adipate-co-terephthalate) (PBAT) is a bio-based copolymer synthesized from adipic acid, 1,4-butanediol, and either terephthalic acid or dimethyl terephthalate. This versatile material finds extensive application in packaging, coatings, and foams, as well as across the textile, agriculture, and other end-use industries. A key advantage of PBAT is its compostable nature, which often provides a favorable alternative to polylactic acid (PLA) in certain disposal scenarios. Positioned between PLA and polyhydroxyalkanoates (PHA) in terms of cost, PBAT offers a competitive pricing point. The market for PBAT is primarily expanding due to heightened global environmental awareness, increasingly stringent regulations on single-use plastics, and a growing consumer preference for environmentally responsible packaging and agricultural products. Its compostable and biodegradable characteristics, coupled with mechanical properties comparable to those of low-density polyethylene (LDPE), enable its widespread adoption across diverse applications.

While the Asia Pacific region currently holds the largest market share due to its extensive manufacturing capabilities and increasing adoption of sustainable practices, North America and Europe are experiencing considerable growth driven by robust regulatory frameworks and consumer awareness. The adaptability and ecological advantages of poly (butylene adipate-co-terephthalate) establish it as a crucial material in the progression towards a more circular economy.

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

• In terms of grade, the extrusion grade segment held the largest revenue share of over 45% in 2024, attributed to the growing use as biodegradable mulch films in agriculture

• Based on applications, the composite bags held the largest share in 2024 in the poly (butylene adipate-co-terephthalate) industry

• Mulch films segment is expected to grow at the fastest CAGR during the forecast period

• Based on end use, the packaging segment accounted for the largest share in 2024. This was primarily driven by the excellent biodegradability and compostability of Poly (Butylene Adipate-Co-Terephthalate), which has made it a favored environmentally friendly substitute for traditional plastics in numerous packaging applications.

• Asia Pacific dominated the global market in 2024 due to its large-scale manufacturing capabilities, increasing environmental awareness, and strong government support for biodegradable polymers.

• Key players are pursuing mergers and acquisitions to gain a competitive advantage. For instance, in Sep 2021, LG Chem and TK CHEMICAL CORPORATION formalized a memorandum of understanding (MOU) to establish a production line for poly (butylene adipate-co-terephthalate). This collaborative effort aims to increase the supply and market availability of poly (butylene adipate-co-terephthalate), a biodegradable plastic.

Poly (Butylene Adipate-Co-Terephthalate) Market Segmentation

Grand View Research has segmented the global poly (butylene adipate-co-terephthalate) market on the basis of grade, application, end-use, and region:

Poly (Butylene Adipate-Co-Terephthalate) Grade Outlook (Revenue, USD Million, 2018 - 2030)

• Extrusion Grade

• Thermoforming Grade

• Others

Poly (Butylene Adipate-Co-Terephthalate) Application Outlook (Revenue, USD Million, 2018 - 2030)

• Composite Bags

• Bin Bags

• Mulch Films

• Cling Films

• Stabilizers

Poly (Butylene Adipate-Co-Terephthalate) End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Packaging

• Agriculture

• Bio-medical

• Others

Poly (Butylene Adipate-Co-Terephthalate) Region Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • South Korea

• Central & South America

  • Brazil

  • Argentina

• Middle East & Africa

  • South Africa

  • Saudi Arabia

List of Key Players in the Poly (Butylene Adipate-Co-Terephthalate) Market

• BASF

• Novamont S.p.A

• Willeap

• Kingfa Sci.&Tech. Co.,Ltd.

• Hangzhou Peijin Chemical Co.,Ltd.

• Zhejiang Biodegradable Advanced Material Co. Ltd

• ANHUI JUMEI BIOLOGICAL TECHNOLOGY CO., LTD

• GO YEN CHEMICAL INDUSTRIAL CO LTD

• Jinhui Zhaolong Advanced Technology Co. Ltd

• Mitsui Plastics, Inc

• Chang Chun Group