Global Polybutylene Adipate Terephthalate Market - 2022-2029

Market Overview

The global polybutylene adipate terephthalate (PBAT) market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 7.3% within the forecast period (2022-2029).

PBAT (Polybutylene Adipate Terephthalate) is a fossil-based synthetic and 100% biodegradable polymer. Poly(Butylene Adipate-co-Terephthalate), Polybutyrate-Adipate-Terephthalate or Polybutyrate is another name.

It is widely advertised as a fully biodegradable alternative to Low-density Polyethylene, with many similar features like durability and strength, allowing it to be utilized in various applications, including plastic bags and wraps.

Moreover, PBAT has Young's modulus of 20-35 MPa, tensile strengths of 32-36 MPa and elongation at break of 20-35 MPa, which makes it more versatile than other biodegradable Polyesters like Polybutylene Succinate and Polypropylene Succinate. The characteristics are equivalent to Low-density Polyethylene (LDPE). They make PBAT a viable biodegradable material for packaging, medical devices and agricultural films, among other applications.

Because of its versatile properties and eco-friendly nature, PBAT is widely used in packaging, consumer goods, agriculture, fishery and coatings. The packaging business is the greatest plastic consumer and classic non-biodegradable polymers are frequently utilized in this industry due to their appealing features.

Market Dynamics

Rising demand for biodegradable packaging from different packaging industries drives the polybutylene adipate terephthalate (PBAT) market.

Rising demand for biodegradable packaging from different packaging industries drives the polybutylene adipate terephthalate (PBAT) market

PBAT (Polybutylene Adipate Terephthalate) is a synthetic, 100% biodegradable polymer derived from fossil fuels. Most of today's conventional plastics are made from petroleum-based materials, making them non-decomposable.

Biodegradable polymer production is growing fast as polymer manufacturing businesses are under constant scrutiny due to the environmental impact of non-degradable plastics. On the other hand, material makers have had difficulty designing new biodegradable polymers to keep the anticipated material qualities.

PBAT is classed as Polyester when compared to other polymers. Because of the ester linkages in the soft chain section of the polymer, aliphatic Polyesters biodegrade quickly. Hydrolysis breaks down the ester linkages, making the polymer biodegradable in practically any environment.

PBAT combines the best features of both synthetic and bio-based polymers. It can easily be generated on a large scale as a synthetic polymer. It has the physical qualities needed to make flexible films that rival those made from traditional polymers.

After decades of nurturing a market, companies such as BASF SE of Germany and Novamont of Italy see greater demand. Over a half-dozen Asian producers have joined them, predicting good business in the polymer as regional governments fight for sustainability.

PBAT is widely used in manufacturing compostable refuse bags for food service and household collection of food and yard waste. Bags from companies like BioBag, which Novamont recently acquired, have been available at retailers for years.

The presence of substitutes, particularly Polylactic Acid (PLA), in the market hamper the growth of the polybutylene adipate terephthalate (PBAT) market

PLA is a thermoplastic aliphatic Polyester synthesized from renewable resources such as maize starch, tapioca roots, chips or sugarcane. Polylactic acid is the most common bio-based polymer by volume. PLA is biocompatible, making it an ideal material for medical implants meant to be absorbed by the body. PLA takes anything from six months to two years to be absorbed by the human body. When PLA breaks down, it forms lactic acid, which is non-toxic to humans.

PLA production in the globe is estimated to be over 240 thousand tons per year. NatureWorks (ingeo) is a joint venture between Cargill and PTT that produces around 135 kt/yr. PLA demand has risen in response to rising demand for bioplastic, for example, and new capacity has been announced. According to Martin Stephan, Carbios' deputy CEO, the sector has a bright future ahead of it and demand will continue to rise.

Furthermore, PHAs are another market-available alternative. They can be found in nature. When bacteria don't have enough nutrients to increase, they use them to store energy. Scientists have discovered more than 150 PHAs with various polymer architectures. Sugars, starches, glycerin, triglycerides or methane are bacteria and the foods they eat. PHAs degraded in natural habitats, including the ocean.

COVID-19 Impact Analysis

Plastic items, especially personal protective equipment (PPE), have shielded humans against the COVID-19 virus. On the other hand, poor plastic waste management has resulted in a distressing buildup of plastic in soil and aquatic habitats. In 2020, for instance, it was anticipated that 1.56 billion face masks have ended up in the oceans.

As a result, highlighting sustainable plastic management for an economy is essential and critical. Therefore, many civil society organizations and significant media players made a strong, almost consistent drive against plastics in 2019 and politicians mostly shifted to this viewpoint.

Before the COVID-19 epidemic, industry groups expressed concerns about whether the Single-use Plastics Directive (SUPD) limits would have detrimental consequences for hygiene and consumer safety. During the epidemic, it was clear that not all plastic is harmful since protective packaging can provide safety and convenience.

The bioplastics sector fully supports the European Union's goal of reducing packaging and waste and the push to design packaging that can be reused and recycled. The European Commission (EC) has banned or considerably curtailed many single-use plastic applications when no suitable equivalents are available.

Aside from bio-based or biodegradable alternatives to single-use plastics, the bioplastics sector contributes significantly to other aspects of the COVID-19 pandemic fight. One of the most important applications for bioplastics is 3D printing medical equipment. Many EUBP members are actively involved in offering assistance.

Segment Analysis

The global polybutylene adipate terephthalate (PBAT) market is segmented by application, end-user and region.

The packaging industry is one of the largest consumers of plastic materials and traditional non-biodegradable polymers are widely used due to their desired features

Based on end-user, the global Polybutylene Adipate Terephthalate (PBAT) market is segmented into agriculture, fishery, packaging, consumer goods, coatings and others. The packaging industry is one of the largest consumers of plastic materials and traditional non-biodegradable polymers are widely used due to their desired features.

However, due to their limited biodegradability, they become a substantial source of garbage after usage. Reusing and recycling plastics has long been a popular solution, but it has several drawbacks and behaves like regular plastic in landfills. On the other hand, compostable home alternatives are even better since fewer items are in landfills as more people compost at home.

Due to their good qualities and low cost compared to other packaging materials, conventional plastic packaging is widely employed in various consumer goods and rubbish collection applications. In the last 10 years, around 14 million tons of traditional plastic packaging trash have been generated annually, with just 1.6 million tons being recycled and the rest ending up in landfills.

As a response, using biodegradable polymers for packaging applications is an efficient technique for decreasing plastic disposal concerns by reducing the amount of plastic waste sent to landfills and facilitating bio-waste collection and organic recycling.

PBAT is made up of aromatic and aliphatic chains that are biodegradable. PBAT distinguishes among biodegradable polymers for its great ductility and flexibility, making it ideal for packaging applications. Its application has been limited because of its weak rigidity, low transparency and low seal strength. In this case, melt blending PBAT with another bioplastic could be a cost-effective and efficient solution to increase its characteristics while preserving its biodegradability.

Geographical Analysis

Asia-Pacific saw the fastest growth, owing to growing investments in reducing plastic pollution and rising adoption of biobased products such as PBAT

According to the Globe Bank's What A Garbage 2.0 report, plastic pollution in South Asia has entered a tipping point, with the region leading the world in open dumping of plastic and all waste, accounting for 75 percent of the region's 334 million metric tons each year. Plastic accounts for 40 million metric tons per year (MMTY). Without intervention, South Asia's unmanaged garbage would quadruple to 661 MMTY by 2050, earning the unwelcome distinction of being the world's fastest-growing waste and plastic pollution.

The World Bank developed and launched the Bank's first-ever regional project to address the problem of plastic pollution in collaboration with the South Asia Cooperative Environment Programme (SACEP) and Parley for the Oceans. South Asia's Plastic-Free Rivers and Seas initiative aims to reduce marine plastic pollution and increase eco-innovations to rethink plastic use and manufacture.

Moreover, South Australia's ban on single-use plastics commenced on March 1, 2021, including single-use plastic straws, drink stirrers and cutlery. From March 1, 2022, Polystyrene food & beverage containers and oxo-degradable plastics products will also get banned.

Therefore, bioplastics are a positive and important innovation in numerous industries. Asia continues to be in the lead regarding the actual production of bioplastics and regional capacity development. For instance, in 2020, 46% of bioplastics were produced in Asia.

Competitive Landscape

The global polybutylene adipate terephthalate (PBAT) market is highly competitive with local and global key players. The key players contributing to the market's growth are BASF SE, Lotte Fine Chemical Co., Ltd, GO YEN CHEMICAL INDUSTRIAL CO LTD (GYC Group), Jin Hui Zhao Long High Tech Co., Ltd, WILLEAP, Jiangsu Torise Biomaterials Co., Ltd, Novamont SpA, FillPlas Co. Ltd, Chang Chun Group, Green Science Alliance among others.

The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the polybutylene adipate terephthalate (PBAT) market.

• In September 2021, LG Chem, a chemical industry giant, signed an MOU with TK Chemical, a Korean company specializing in chemical fibers, to create a PBAT production line and a 50,000-ton production facility to commence production in the second half of 2022.
• On August 2021, LG Chem intended to invest US$ 2.2 million till 2028 to construct ten (10) production plants within South Korea that manufacture biodegradable materials such as PBAT and POE. The company intends to improve its product portfolio by the addition o high-value-added, eco-friendly materials.

BASF SE

Overview: BASF SE is a global chemical company that produces chemicals for many industries. It is one of the world's largest publicly listed companies, with over 700,000 investors. Transportation, electronics & electrical, energy & resources, chemicals, construction, furniture & wood, home care and cleaning, agricultural and other industries are supplied by the company's items, classified into 13 categories. More than 30 BASF SE Group companies are headquartered in Ludwigshafen. BASF SE operates 6 global locations and 241 additional industrial sites in over 90 countries.

Product Portfolio: ecoflex: BASF SE ecoflex is the first fossil-based biodegradable and certified compostable polymer composed of Polybutylene Adipate Terephthalate. The product is uniquely blended for bioplastics-certified compostable and biodegradable elastic and offers extensive water and tear resistance. Further, the ability to be processable on conventional blown film machines further boosts its market demand.

Key Development

• In October 2021, BASF SE partnered with WPO Polymers to increase its position in the rapidly increasing Spanish and Portuguese markets by selling BASF's ecovio film product line, which includes certified biodegradable shopping bags, organic waste bags, fruit and vegetable bags and other items. With this collaboration, the company hopes to improve its position to expand its business.

Why Purchase the Report?

• Visualize the global polybutylene adipate terephthalate (PBAT) market segmentation by application, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the Polybutylene Adipate Terephthalate (PBAT) market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global polybutylene adipate terephthalate (PBAT) market-level 4/5 segmentation points.
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The global polybutylene adipate terephthalate (PBAT) market report would provide approximately 53 market data tables,47 figures and 201 pages.

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