The bio-based resins market is expected to record a CAGR of over 16%, during the forecast period. The major factors driving the growth of the market studied are the increasing demand for the packaging sector, from the eco-friendly products, and government regulations on synthetic resins. On the flip side, the need for change in cost structure is one of the major stumbling blocks in for the market studied.
- The packaging segment dominated the market. It is likely to grow during the forecast period, owing to the growing environmental concerns related to the disposal of packaging materials, and the need for eco-friendly packaging.
- The availability of cheaper alternatives is likely to provide opportunities for the market studied, during the forecast period.
Key Market Trends
Flexible Packaging Segment to Dominate the Market Demand
- Bioplastics made from bio-based resins provide the packaging industry with a renewable sustainable option, for a variety of uses. Within packaging, rigid packaging accounts for the larger share of the market.
- The large share is due to its usage in a large variety of products, including bottles, jars, canisters, cups, buckets, containers, trays, and clamshells.
- A majority of bio-based rigid packaging products are made of bio-based, non-biodegradable PE and PET. Additionally, PLA, PBS, and PHA plastics can offer an add-on functionality of biodegradability to rigid packaging applications.
- For instance, bio-PLA's application in flexible packaging offers properties, such as high clarity, stiffness, and excellent printability. These properties make it highly suitable for applications in flexible packaging films made from bio-PLA resin.
- The growing food and beverage companies and innovation in the packaging industry have been driving the growth of the flexible packaging market, owing to its lightweight, comparatively lower cost than rigid packaging, and ease in changing the packaging sizes.
- Regions, such as North America and Europe, have stringent regulations for the packaging industry, in order to avoid the usage of harmful materials in packaging. Owing to this, the use of bio-based materials has been increasing in the packaging industry, in these regions.
- Moreover, in the Asia-Pacific region, the flexible packaging industry has been witnessing strong growth, due to the robust growth of e-retail, growing manufacturing sector, and increased adoption of flexible packaging, due to its lightweight.
- Asia-Pacific has been facing severe issues related to the disposal of petroleum-based, non-biodegradable packaging materials, which is further leading to a shift toward eco-friendly raw materials, such as bio-based resins, for application in the packaging industry.
- Hence, all such factors are likely to drive the demand for bio-based resins from the flexible packaging market, during the forecast period.
Germany to Dominate the Europe Region
- Germany dominated the Europe market share. The growth of bio-based resins market is expected to be driven by the growing demand from industries, such as packaging, electronics, consumer goods, agriculture, etc.
- Germany is expected to lead the market demand for bio-based resins owing to the growing application and demand from various end-user industries.
- The packaging industry in Germany has been growing at a rapid pace, owing to the huge increases in domestic e-commerce and rising foreign exports. In addition, the increasing preference for packaged food and beverages has also led to the growth of the packaging industry. Hence, the positive development in the packaging industry is expected to contribute to the demand for bio-based resins market.
- The German electronics industry is Europe's biggest of its kind, and the fifth-largest, worldwide. The electrical and electronics industry accounted for about 11% of the total German industrial production. Besides, electronic production is also expected to increase in countries such as the United Kingdom, France, and Italy, which is likely to add to the demand for bio-based resins market.
- In Germany, the construction sector has been witnessing growth due to rising residential construction and government spending on infrastructure development, which is further expected to drive the demand for bio-based resins market in the coming years in the region.
- Hence, all such market trends are expected to drive the demand for bio-based resins market during the forecast period.
The bio-based resins market is fragmented in nature, with numerous players holding an insignificant share of the market, to individually affect the market dynamics. Some of the noticeable players in the market include Ashland Performance Materials, BASF SE, Braskem, Arkema, and DuPont, among others.
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