Market Research Report
Biodegradable Plastics Market Forecasts to 2028 - Global Analysis By Type (Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch Blends), End User (Injection Molding, Food & Beverages, Pharmaceuticals) and By Geography
|Biodegradable Plastics Market Forecasts to 2028 - Global Analysis By Type (Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch Blends), End User (Injection Molding, Food & Beverages, Pharmaceuticals) and By Geography|
Published: March 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
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According to Stratistics MRC, the Global Biodegradable Plastics Market is accounted for $8.62 billion in 2021 and is expected to reach $36.31 billion by 2028 growing at a CAGR of 22.8% during the forecast period. Biodegradation is process that can convert a material partially or completely into CO2, water, and biomass through the reaction of microorganisms like bacteria and fungi. Biodegradable or compostable plastic are the materials degraded by living organisms especially microbes into CO2 or methane, biomass, and water under specific conditions. Biodegradable plastics are generally manufactured with petrochemicals, micro-organisms, and renewable raw materials. Due their environmentally friendly nature, biodegradable plastics are widely used in several applications especially packaging.
Improving consumer awareness regarding sustainable plastic solutions and increasing efforts to eliminate the use of non-biodegradable conventional plastics contribute to the market growth of biodegradable plastics. Traditionally used petroleum-based plastics take decades to break down or degrade and lay in the landfills for a long period. Biodegradable plastics break down faster when they are discarded and are absorbed back into the natural system. In addition, the rate of decomposition of biodegradable plastics by the activities of microorganisms is much faster than that of traditional plastics.
The higher cost of biodegradable plastics than that of traditional polymers restrains the market's growth in many application segments. Generally, the production cost of biodegradable plastics is 20-80% higher than that of conventional plastics. This is primarily due to the high polymerization cost of biodegradable plastics as most of the processes are still in the development stage and hence, have not achieved economies of scale. For example, PHAs, which have various applications in binders, synthetic papers, medical devices, electronic parts, food packaging, and agriculture, have high production costs, low yields, and limited availability. PLAs, which have a much lower production cost than PHAs, are still more expensive than petroleum-based PE and PP.
With the increasing focus on sustainability and favorable government regulations for green procurement policies, biodegradable plastic manufacturers have significant opportunities in the new end-use industries such as electronics, medical, and automotive. The manufacturers are investing heavily in R&D activities for the use of biodegradable plastics in various applications in the medical industry, such as stitching materials, screws, and implants. Biodegradable plastics such as PLA and bio-PBS are used for manufacturing medical devices & equipment. Biodegradable plastics are used in tires with starch-based materials in the automotive industry to reduce fuel consumption. They are also used for making electrical equipment more efficient and cost-effective.
Low barrier properties to air, water, and oxygen and low resistance to heat are some of the major performance issues related to biodegradable plastics. This restricts its penetration in various industries, including electronics and automotive. In addition, poor mechanical properties such as low impact & tensile strength and process capabilities are restricting the penetration of biodegradable plastics in various applications. These performance limitations of biodegradable plastics act as a major challenge for the growth of the market.
The polylactic acid (PLA) segment is growing at the highest CAGR in the market. Growing utilization of PLA for several applications like packaging and agriculture due to it being made of renewable raw materials and producing less greenhouse gases compared with traditional plastics.
The starch blends segment is expected to be the largest share during the forecast period. Starch blends can be utilized to minimize the carbon footprint of conventional resigns because it is the best alternative for petroleum-based polymers, which is estimated to foster market growth in the review time.
Asia Pacific is projected to hold the largest share in the market. The growth of the biodegradable plastics market in APAC is attributed to the easy availability of raw materials used to manufacture biodegradable plastics. The future growth of biodegradable plastics in APAC highly depends on the awareness about the use of biodegradable plastics as a viable alternative to traditional plastics and price reduction.
Europe is projected to have the highest CAGR in the market. Strong regulations implemented by the European Union on fossil fuel-based plastics to reduce carbon footprint in the environment are estimated to propel the market growth in the review time.
Some of the key players profiled in the Biodegradable Plastics Market include BASF SE, Biome Technologies plc, BIO-ON, Cardia Bioplastics Limited, Cereplast Inc, Danimer Scientific, Dow, Eastman Chemical Company, FKuR Kunststoff GmbH, Mitsubishi Chemical Holdings Corporation, NatureWorks LLC, Novamont SpA, Plantic Technologies Ltd, TORAY INDUSTRIES, INC., and Total Corbion.
In April 2021: NatureWorks announced a new strategic partnership with IMA Coffee, which is a market leader in coffee handling processing and packaging. This partnership aims at increasing the market reach for high-performing compostable K-cup in North America.
In February 2020: BASF and Fabbri Group (Italy) formed a joint venture to develop a sustainable solution for cling film used in fresh-food packaging. The film will be used in wrapping meat, seafood, and fresh fruits & vegetables. It will be made by the Fabbri group with BASF's Ecovio bioplastic and will boost the demand for biodegradable plastics in packaging applications.
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Table13 Global Biodegradable Plastics Market Outlook, By Regenrative Cellulose (2020-2028) ($MN)