U.S. Bioplastic Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

The U.S. bioplastic market is projected to grow significantly from USD 4.1 billion in 2024 to USD 17.7 billion by 2032, expanding at a CAGR of 20.2%. This rapid growth is primarily driven by increasing demand for eco-friendly and sustainable materials across industries, spurred by government regulations and consumer demand for biodegradable alternatives. Bioplastics, made from renewable resources like plants and vegetable oils, are gaining popularity in sectors such as packaging, textiles, and automotive due to their environmental benefits compared to traditional plastics. Despite higher production costs, bioplastics offer a significant opportunity for businesses aiming to align with sustainability goals.

Key Insights

The U.S. bioplastic market is expected to reach USD 17.7 billion by 2032, driven by a 20.2% CAGR.

Packaging is the largest and fastest-growing application segment, holding 35% of the market share in 2024, fueled by the growing shift towards sustainable packaging materials in response to plastic bans and consumer demand.

The biodegradable bioplastics category is growing rapidly at a CAGR of 15.4%, driven by the demand for PLA and PHA materials in packaging, textiles, and consumer goods.

Non-biodegradable bioplastics, such as bio-PE and bio-based PET, dominate the market, holding 65% of the share in 2024, largely due to their use in durable products like automotive components and protective packaging.

The Midwest region holds 40% of the market share in 2024 and is expected to grow at the highest CAGR of 16.0%, benefiting from the availability of bio-based feedstocks like corn and soybeans, essential for bioplastic production.

Regulatory support from the U.S. government, including subsidies and tax credits, is accelerating the growth of bioplastics, especially through programs like the USDA BioPreferred Program and the EPA's National Strategy to Prevent Plastic Pollution.

Higher production costs remain a challenge, as bioplastics can be 80% more expensive than petroleum-based plastics, limiting adoption primarily to larger companies with significant resources.

The growing trend towards sustainability, along with technological advancements in bioplastic materials, is enhancing their performance, making them stronger competitors to conventional plastics.

Consumer goods and the textile sector are also adopting bioplastics, albeit at a slower pace, due to the increasing awareness of their environmental impact and benefits.