PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308700
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308700
According to Stratistics MRC, the Global Biodegradable Plastics Market is accounted for $5.24 billion in 2023 and is expected to reach $11.38 billion by 2030 growing at a CAGR of 11.7% during the forecast period. Plastics made from renewable resources like plants, algae, or microorganisms are known as biodegradable plastics, compostable plastics, or eco-friendly plastics. Biodegradable plastics, as opposed to conventional plastics made from fossil fuels, can decompose naturally through biological processes into harmless elements like water, carbon dioxide, and biomass. Due to this quality, they are very desirable for a variety of applications, including packaging, agriculture, automotive, and consumer goods.
According to data published by the European Environment Agency in January 2021, nearly 40% of respondents said they planned to adopt more sustainable behavior in the future.
Global demand for biodegradable plastics is being driven by the overuse of disposable single-use plastics and their detrimental effects on the environment and human health. Being made of petroleum, plastics take decades to degrade and end up in landfills, making them one of the most urgent environmental concerns. Biodegradable plastics are absorbed into the environment and break down quickly. Biodegradable plastics also decompose more quickly than conventional plastics. As a result, growing environmental concerns are anticipated to fuel the market for biodegradable plastics.
The market's growth is constrained by biodegradable plastics' higher price compared to traditional polymers. Plant-based materials, like corn starch or sugarcane, are frequently used as the raw materials for biodegradable plastics. In comparison to the extraction and refinement of fossil fuels used in conventional plastics, the production and processing costs of these renewable resources can be higher. In comparison to conventional plastics, the production of biodegradable plastics may require extra steps or specialized machinery. This may raise production costs and drive up the price of the manufacturing process as a whole.
Future years are expected to bring about a wealth of investment opportunities due to the continuous adoption of new technologies in the production of biodegradable plastics. Antimicrobial technology is now being incorporated into the production of biodegradable materials to create materials with longer shelf lives and to prolong the preservation of packaged goods, particularly food items. Additionally, antimicrobial packaging is used to stop microbial growth and guarantee chemical and microbiological food safety.
The cost of plastics is influenced by changes in oil prices. In the long term, this would be difficult. With the dynamics of supply and demand, oil prices may decrease. This may lead to a drop in the cost of traditional plastics, which would hinder the demand for biodegradable plastics.
Due to disruptions in supply chains and production services around the world, the COVID-19 pandemic had a negative effect on the production of biodegradable plastics globally. Additionally, millions of people discarded single-use plastic items like gloves, masks, sanitizer bottles, and aprons during the pandemic, producing a significant amount of plastic waste. The use of biodegradable plastics in PPE and other products has increased as a result of this factor. The market trend for biodegradable plastics is also anticipated to grow favorably following the coronavirus pandemic due to company developments.
Packaging accounted for the largest market share of biodegradable plastics in 2022 and is anticipated to continue to hold this position throughout the forecast period. It is utilized in both rigid and flexible packaging and is expanding as more and more conventional plastics are being replaced in food packaging materials like boxes, wraps, cups, and plates. In addition, new uses for biodegradable plastics in the medical field are becoming more common for drug encapsulation and surgical procedures.
Over the forecast period, the PLA segment is anticipated to grow rapidly. Because it is made of renewable raw materials and emits fewer greenhouse gases than traditional plastics, PLA is increasingly used in a variety of industries, including agriculture and packaging. These factors are anticipated to fuel market growth over the upcoming years.
Because of the rising demand for biodegradable plastics across a variety of end-use industries, including packaging, agriculture, consumer goods, and textiles, Europe is anticipated to hold the largest revenue share in the global market. The European Commission acknowledged that bioplastics play a crucial role in the bioeconomy and have the potential to hasten the transition to a circular economy. Furthermore, during the forecast period, market growth in the region is anticipated to be boosted by rising initiatives, policy establishment, and the availability of subsidies regarding the use of biodegradable plastics for the development of a circular bioeconomy.
Due to the growing use of biodegradable plastics in the packaging industry, Asia Pacific is anticipated to post a strong growth rate during the forecast period. Due to the region's convenient access to feedstock purchases, affordable labor, and availability of cost-effective raw materials, businesses operating in Europe and the United States are moving their manufacturing operations to Asia-Pacific, which is boosting the region's market.
Some of the key players profiled in the Biodegradable Plastics Market include API S.p.A., Arkema S.A., BASF SE, Biome Technologies plc, Bio-On S.p.A., Cardia Bioplastics Limited, Cargill Incorporated, Corbion N.V., Danimer Scientific, Inc., Eastman Chemical Company, FKuR Kunststoff GmbH, Futerro, Innovia Films Limited, Kingfa Sci. & Tech. Co., Ltd., Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont S.p.A., Plantic Technologies Limited, PTT MCC Biochem Co., Ltd., Solanyl Biopolymers Inc., Synbra Technology BV, Tianan Biologic Material Co., Ltd., Total Corbion PLA and Trineso.
In June 2023, Arkema broadens its range of high performance polymers with the acquisition of a controlling stake in PI Advanced Materials. Proposed acquisition of Glenwood Private Equity's 54% stake in the listed South Korean company PI Advanced Materials (PIAM), for €728m enterprise value. The company will be fully consolidated in Arkema's accounts.
In December 2022, Futerro plans to set up Europe's first vertically integrated biorefinery in Normandy to produce PLA and recycle it. Following the construction of its first PLA (poly-lactic acid) plant in China in 2021, Futerro's ambition is to set up a new fully integrated biorefinery in the industrial and port area of Port-Jerome, in the Caux Seine agglomeration (commune of Saint-Jean-de-Folleville), located on the Seine axis between Rouen and Le Havre.