PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1777447
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1777447
Global Poly (Butylene Adipate-Co-Terephthalate) Market to Reach US$2.4 Billion by 2030
The global market for Poly (Butylene Adipate-Co-Terephthalate) estimated at US$1.7 Billion in the year 2024, is expected to reach US$2.4 Billion by 2030, growing at a CAGR of 6.3% over the analysis period 2024-2030. Extrusion Grade, one of the segments analyzed in the report, is expected to record a 5.5% CAGR and reach US$1.4 Billion by the end of the analysis period. Growth in the Thermoforming Grade segment is estimated at 7.2% CAGR over the analysis period.
The U.S. Market is Estimated at US$460.6 Million While China is Forecast to Grow at 9.7% CAGR
The Poly (Butylene Adipate-Co-Terephthalate) market in the U.S. is estimated at US$460.6 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$494.6 Million by the year 2030 trailing a CAGR of 9.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 6.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.
Global Poly (Butylene Adipate-Co-Terephthalate) (PBAT) Market - Key Trends & Drivers Summarized
Why Is PBAT Gaining Popularity in Sustainable Plastics?
Poly (Butylene Adipate-Co-Terephthalate) (PBAT) is emerging as a leading biodegradable and compostable polymer in the global shift toward sustainable plastics. As governments and industries work to reduce plastic pollution, PBAT has become a preferred alternative to traditional petroleum-based plastics, particularly in single-use packaging, agricultural films, and consumer goods.
PBAT is known for its high flexibility, excellent biodegradability, and mechanical properties similar to conventional low-density polyethylene (LDPE). This makes it an ideal material for compostable plastic bags, mulch films, food packaging, and disposable tableware. Unlike conventional plastics, PBAT decomposes under industrial composting conditions, breaking down into water, carbon dioxide, and biomass without leaving microplastic residues.
The rising global bans on non-biodegradable plastics and regulations promoting compostable alternatives have significantly accelerated PBAT adoption. Countries such as China, India, and EU nations have implemented strict policies restricting single-use plastics, driving demand for biodegradable polymers like PBAT. Additionally, corporate sustainability commitments, particularly from brands in packaging, FMCG, and agriculture, are further fueling market growth.
How Are Innovations in PBAT Production Improving Market Potential?
Technological advancements in PBAT synthesis, copolymerization techniques, and material engineering are expanding its applications and enhancing cost efficiency, mechanical strength, and biodegradation performance.
One of the major innovations is the development of bio-based PBAT, where manufacturers are exploring bio-derived feedstocks to replace fossil-based components. Traditionally, PBAT is synthesized from butanediol, adipic acid, and terephthalic acid, which are petrochemical derivatives. However, recent R&D efforts focus on producing PBAT using renewable biomass sources, reducing carbon footprints and fossil fuel dependency. Companies like BASF, Novamont, and SK Chemicals are investing in bio-based PBAT to cater to the rising demand for fully sustainable plastic alternatives.
Another critical advancement is the blending of PBAT with other biodegradable polymers such as Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), and Starch-based Plastics. These blends enhance PBAT’s properties, making it stronger, more heat-resistant, and cost-effective while retaining its biodegradability. The integration of nanotechnology and reinforcement fillers is further improving PBAT’s mechanical performance and processability in industrial applications.
Additionally, advancements in composting technology and enzymatic degradation studies are accelerating the commercial viability of PBAT-based materials. Research into microbial enzymatic degradation of PBAT in marine and soil environments aims to develop next-generation biodegradable plastics that break down in various natural ecosystems, addressing concerns about plastic waste pollution.
Why Is Demand for PBAT Rising Across Key Industries?
The demand for PBAT is experiencing rapid growth across packaging, agriculture, medical, and consumer goods sectors, driven by environmental regulations and increasing sustainability commitments.
The e-commerce boom and sustainable logistics have also increased PBAT demand for compostable mailing bags, void-fill packaging, and protective films, as companies move toward eco-friendly shipping materials.
What Factors Are Driving the Growth of the PBAT Market?
The growth in the PBAT market is driven by stringent environmental regulations, increasing corporate sustainability initiatives, technological advancements, and consumer demand for eco-friendly alternatives.
With ongoing innovations in PBAT technology, expanding industrial applications, and strong regulatory support for biodegradable plastics, the PBAT market is poised for significant expansion. As governments, businesses, and consumers accelerate the transition toward sustainable materials, PBAT will play a pivotal role in reducing plastic pollution and advancing global sustainability efforts.
SCOPE OF STUDY:
The report analyzes the Poly (Butylene Adipate-Co-Terephthalate) market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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