Global Polybutylene Succinate Market - 2022-2029

Market Overview

The global polybutylene succinate (PBS) market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 8.2% during the forecast period (2022-2029).

PBS is a thermoplastic polymer resin with a polyester base. PBS is an aliphatic polyester with characteristics similar to polypropylene and is biodegradable. GsPLA, BioPBS and Bionolle (Showa Denko) are examples of some of the major brands.

The biopolymer, which gives plastic producers a building block for biopolymer compounds, is composed of succinic acid condensation and 1-4 butanediol (BDO). PBS is an aliphatic polyester that degrades naturally and has qualities similar to polypropylene. As per U.S. Department of Energy, it is among the top 12 chemical bio-based building blocks for the future.

Market Dynamics

The increasing demand for biodegradable polymers globally is expected to boost the market share of PBS in the forecast period. However, fluctuation in raw material pricing could be a major market restraint.

Increasing demand for biodegradable polymers globally is expected to boost the market share of PBS in the forecast period

PBS is a perfect biopolymer with versatility, heat resistance and biodegradability. Compared to other bio-based building blocks, it has a high biomass consumption efficiency (BUE). Mixing it with other polymers can tailor its efficiency to particular applications. The World Economic Forum has launched a new New Plastic Economic program promoting biopolymers like PBS. Several chemical processing firms are switching from petrochemical-based PBS to bio-based PBS.

Furthermore, Environmentally-friendly packaging is not just about recycling. Packaging's sustainability can also be improved via the manufacturing method and the raw materials used. Bio-based polymers allow for the creation of more environmentally friendly packaging with improved performance. It is hard to reuse or recycle; Polybutylene Succinate (PBS) is an excellent contender for improving end-of-life solutions and lowering disposal costs. For instance, Roquette, a global leader in plant-based ingredients, is offering BIOSUCCINIUM bio-succinic acid, which can be used to make Polybutylene Succinate (PBS), a biodegradable polymer. PBS compounds provide several advantages, including heat resistance and well-balanced mechanical characteristics, which are useful in various applications.

Modern BIOSUCCINIUM-based bio-based polymers decompose fully in compost or soil. Compostable plastics provide an alternate disposal option when it's difficult to collect and recycle products at the end of their lives. Due to contamination with soil and agrochemicals, it is often difficult to recycle fossil-based PE mulch films. Thus Biodegradable mulch films are gaining popularity since they perform just as well as traditional mulch films and maybe plowed into the soil to decompose into water and carbon dioxide.

For instance, In April 2021, Mitsubishi Chemical Corporation company have to Develop the Marine-Biodegradable Form of BioPBS. The company is ensuring that its BioPBS range of plant-derived Polybutylene Succinate (PBS) products is successful.

Fluctuation in raw material pricing

Succinic acid and 1,4-butanediols obtained from petroleum feedstock are the main components of polybutylene succinate. Therefore, the price of raw materials for Polybutylene Succinate is mostly affected by changes in the price of crude oil. According to the BP Statistical Review of World Energy, crude oil's price volatility has increased during the past 12 months. Crude oil's price fluctuated from 98.95 to 52.39 dollars per barrel in 2014 to 43.73 dollars per barrel in 2016, 71.31 dollars per barrel in 2018 and 64.21 dollars per barrel in 2019 before dropping to 64.21 dollars per barrel in 2019.

Because of the volatility in crude oil prices, the cost of polybutylene succinate also increased. As a result, over the projection period, producers of polybutylene succinate are expected to face significant challenges related to the volatility in crude oil prices. Since PBS is so expensive, many researchers have used other materials, like natural fibers, to replace some.

Additionally, reinforcement materials contribute to the material's increased strength. Additionally, combining biodegradable polymers decreases the material's overall cost while its desirable properties and rate of degradation are changed. As a result, the alternative approach has recently reduced the product's overall market share. In the upcoming years, increased research on polybutylene succinate's highly cost-effective building material will put PBS's market share under pressure.

PBS is a biodegradable polymer that can replace present synthetic polymers in many applications, which will also help solve environmental concerns. But it hasn't reached the customer since there isn't as much knowledge about how synthetic polymers affect the environment. Consequently, the low demand for biodegradable polymers could lead to a huge market price.

COVID-19 Impact Analysis

Before COVID-19 broke out, the PBS sector was expanding significantly. PBS's strong resilience and fiber compatibility make it suitable for the packaging, biomedical and agricultural industries. Polybutylene Succinate is frequently used in food packaging, including paper cups and disposable dinnerware, due to its high gas barrier properties.

However, the total demand for the commodity has abruptly changed due to the sudden COVID-19 outbreak. In the upcoming years, the damage is anticipated to be repaired. Due to the coronavirus (COVID-19) pandemic's enforced lockdown, numerous packaging plants and food and pharmaceutical plants were compelled to close across the nation for a brief period and only a small number of enterprises were permitted to carry production.

However, the large increase in takeaway orders was significantly influenced by the COVID-19 pandemic. It is significant to notice that disposable plastic dinnerware usage soars throughout the summer. Thus, the rise in demand for ready-to-eat takeout meals during the epidemic has contributed to the expansion of the industry.

Additionally, there has been a huge need for masks throughout the pandemic and businesses are developing new materials to meet the rising demand. A biodegradable and moisture-resistant mask filter manufactured from Polybutylene Succinate (PBS), a biodegradable plastic resin coated with chitosan nanowhiskers, is described in a published study in Advanced Science. The pandemic situation is still unpredictable, so if additional lockdowns or industry shutdowns occur, the market for that industry could decline even lower. Although the global vaccination rate is rising, especially in populous nations like India, this trend is more likely to benefit the market during the projection period.

Segment Analysis

The global polybutylene succinate (PBS) market is classified based on type, process, manufacturing process, end-user and region.

Low cost, high versatility and post-extrusion manipulation

The extrusion manufacturing process dominates the global market of Polybutylene Succinate (PBS) owing to its increasing demand in different packaging industries. The extrusion segment accounted for about 62.88% market share in 2020 and is expected to grow to 65.18% by 2028 in the global Polybutylene Succinate (PBS) market.

Extrusion molding has a low cost compared to other molding methods. It offers much versatility in creating products with uniform cross-sections and it stays hot after it leaves the extruder, allowing for post-extrusion manipulation, among other benefits. All the mentioned benefits associated with extrusion grade Polybutylene Succinate drive demand for extrusion grade Polybutylene Succinate during the packaging industry in the forecast period.

Geographical Analysis

Rising demand for food and drinks in North America

Packaging companies have a significant chance to gain market share with the rising demand for food and drinks in North America. Most regional food producers attempt to improve consumer engagement by using sustainable and biodegradable packaging.

Furthermore, soft drink consumption is decreasing in U.S., with people opting for healthier alternatives, including water, health drinks and energy drinks. Soda companies such as Coke and Pepsi rely on smaller box sizes and premium packaging to boost margins in developed nations. Furthermore, non-carbonated drinks now account for a considerable portion of their revenue, necessitating reformulation. Therefore, the growing demand for packaged foods and beverages has resulted in bio-plastic packaging, including PBS. For instance, in March 2020, Starbucks trialed a new prototype BioPBS cup. The cup is currently being tested in stores for a limited period and has a revolutionary cup liner made of the bioplastic bio-PBS, making it compostable and recyclable. In addition, Starbucks is currently working with Closed Loop Partners, the Consortium and other businesses to test and validate the recyclability of the various challenge winners, including the BioPBS cup. The company is also continuing its work with key stakeholders in the recycling industry to advocate for increasing the overall recyclability of cups and ensure they are ultimately accepted within municipalities.

Furthermore, Cargill and Helm recently announced their intention to establish a 65,000 metric tonne per year plant at Cargill's maize refining location in Iowa to produce green PBS using renewable feedstock. The technology to convert sugars to PBS is provided by Genomatica. Genomatica would be the second company to hold such a license, with the first held by Novamont in Italy since 2016.

Competitive Landscape

The global polybutylene succinate (PBS) market is huge and is becoming increasingly competitive due to the presence of major players such as BASF SE, Merck KGaA, Lotte Fine Chemical Co., Ltd., Chang Chun Group, GO YEN CHEMICAL INDUSTRIAL CO LTD (GYC Group), PTT MCC Biochem Co., Ltd, Green Science Alliance, Hangzhou Peijin Chemical Co., Ltd., SOLTECT*SOLCHEMICAL and Roquette Freres. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

PTT MCC Biochem Co., Ltd

Overview: PTTMCC was formed as a strategic joint venture between Mitsubishi Chemical Corporation and PTT Global Chemical Public Company Limited. The company has planned to become the global representative of compostable bioplastic material with fast-tracking solutions for vast applications.

The company offers its products to bring advancements in paper coating, flexible packaging, compounding and fiber & non-woven applications. The company offers products under the trade name BioPBS suitable for processing by coating, blown film extrusion and injection molding. The bio-based products are used for hot beverage cups, paper coatings, sealants in flexible packaging, boxes and utensils for freshly cooked food.

Product Portfolio:

• FZ71PM/PB: The company offers bio-based PBS used in the Injection for the coffee capsule.

Key Development:

• On May 31, 2021, Mitsubishi Chemical Corporation and Futamura Chemical Co., Ltd. announced that the outer bag of SHISEIDO's Clear Suncare Stick would be made of Futamura Chemical's cellulose film AZ-1 and Mitsubishi Chemical's biodegradable resin BioPBS.

Why Purchase the Report?

• To visualize the global polybutylene succinate (PBS) market segmentation based on type, process, manufacturing process, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global polybutylene succinate (PBS) market by analyzing trends and co-development.
• Excel data sheet with numerous data points of polybutylene succinate (PBS) market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global polybutylene succinate (PBS) market report would provide approximately 69 tables, 72 figures and almost 282 pages.

Product Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies