PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1730722
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1730722
Biodegradable Plastics Market size was valued at US$ 12,930.43 Million in 2024, expanding at a CAGR of 22.90% from 2025 to 2032.
Biodegradable plastics are a type of plastic that breaks down more quickly than traditional plastics due to microbial activity. These plastics are designed to degrade naturally in the environment, reducing long-term pollution and waste. Biodegradable plastics, rather than petroleum-based products, are typically made from renewable resources like corn starch, sugarcane, or plant oils. There are two main types: bioplastics, which are made from plant-based materials, and oxo-degradable plastics, which include additives to accelerate degradation. While biodegradable plastics offer environmental benefits, they still require specific conditions (like moisture and temperature) to break down completely. They are often used in packaging, disposable items, and agricultural films.
Biodegradable Plastics Market- Market Dynamics
Growing adoption of biodegradable plastics in packaging to propel market demand
The growing adoption of biodegradable plastics in packaging and agriculture is expected to drive significant growth in the segment. The global challenge posed by non-decomposable plastic waste has prompted governments worldwide to take action, with many implementing bans on single-use plastics and actively encouraging the use of biodegradable alternatives. This shift is further supported by increasing consumer demand, as many individuals are willing to pay a premium for products made from biodegradable plastics due to their environmental benefits. The combination of regulatory support, rising consumer awareness, and the need for sustainable solutions is creating a favourable environment for expanding the biodegradable plastics market, ultimately accelerating its growth.
Biodegradable Plastics Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 22.90% over the forecast period (2025-2032)
Based on Material Type segmentation, starch-based was predicted to show maximum market share in the year 2024
Based on application segmentation, packaging was the leading application in 2024
On the basis of region, North America was the leading revenue generator in 2024
The Global Biodegradable Plastics Market is segmented on the basis of Material Type, Application, End user, and Region.
The market is divided into six categories based on Material Type: Starch Based, PBS, PHA, PLA, PBAT, and Others. In 2024, the starch-based segment led the biodegradable plastics market, capturing the largest revenue share. This dominance can be attributed to starch-based plastics' eco-friendly properties and versatility. Derived from renewable resources such as corn, potatoes, and wheat, these plastics are an appealing alternative to conventional plastics. They are widely used in various applications, including packaging, agriculture, and disposable items like cutlery and plates. Notably, starch-based plastics naturally decompose in the environment, which helps reduce pollution and waste. Additionally, their production is relatively cost-effective, making them an attractive option for manufacturers seeking to meet sustainability goals and comply with stringent environmental regulations. Overall, starch-based biodegradable plastics provide a practical, environmentally friendly solution to combating plastic pollution.
The market is divided into five categories based on application: Packaging, Textiles, Agriculture, Consumer Goods and Others. The packaging segment also dominated the market in 2024, capturing the largest revenue share. The increasing shift towards eco-friendly alternatives to traditional plastic packaging drives this growth. Biodegradable packaging materials, such as starch, PLA, and other plant-based polymers, naturally break down, reducing pollution and waste in landfills. These materials are used in various products, including food containers, shopping bags, and product wraps. The growing demand for biodegradable packaging is fueled by heightened environmental awareness, stricter regulations on plastic use, and corporate sustainability initiatives.
Biodegradable Plastics Market- Geographical Insights
In 2024, North America accounted for the largest share of the biodegradable plastics market's revenue. The region benefits from a strong manufacturing infrastructure and a rising demand for sustainable products. Key players in the U.S. and Canada focus on innovation and environmentally friendly practices, further driving market growth across packaging, agriculture, and textiles. This regional shift towards sustainability is expected to continue supporting the expansion of the biodegradable plastics market.
Companies in the biodegradable plastics market are taking a more collaborative and innovation-driven approach to stay ahead. Many are investing heavily in research to develop better-performing materials that break down more quickly and work well across different uses, from packaging to everyday products. To speed up development and bring these materials to market faster, firms are teaming up with biotech companies, research labs, and major brands. These partnerships also open the door to using new, more sustainable raw materials like algae or farm waste. Some companies are going a step further by managing the entire production process themselves from sourcing materials to making the final product, to keep things efficient, cost-effective, and environmentally friendly.
In April 2024, researchers from the University of California San Diego (UC San Diego), in collaboration with the materials science company Algenesis, developed a new algae-based plastic that completely biodegrades, including at the microplastic level, in under seven months.
In March 2024, Beyond Plastic revealed a partnership with CJ Biomaterials to develop a biodegradable plastic bottle cap. This cap is produced using polyhydroxyalkanoate (PHA), a biopolymer sourced from natural materials, improving traditional plastics' performance while providing environmental benefits.