Biodegradable Plastics Market Report
Biodegradable Plastics Market by Material Type (Starch Blends, PLA, PBAT, PBS, and Others), Application (Packaging & Bags, Consumer Durables, Agriculture & Horticulture, Textiles, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021 –2028
pandemic has shown to have an enormous impact
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Impact of covid-19 on Biodegradable Plastics Market
Global Biodegradable Plastics Market Analysis
According to the global biodegradable plastics market forecast, the market is expected to reach up to $8,940.5 million by 2028, surging from $4,276.9 million in 2020 at a noteworthy CAGR of 9.5%.
Rising utilization of bio-based products in packaging and agriculture applications is estimated to fuel the biodegradable plastics market growth.
However, the higher cost of the products is a restricting factor for the market growth.
Based on regional investigation of the market, the Asia-Pacific biodegradable plastics market is anticipated to grow at a CAGR of 9.3% CAGR by generating a revenue of $4,133.1 million in the review time.
Biodegradable Plastics Overview
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.
COVID-19 Impact on Biodegradable Plastics Market
The COVID-19 pandemic had a negative impact on the global biodegradable plastics manufacturing owing to disturbance of supply chains and production services globally. Also, during the pandemic, millions of people discarded single use plastic materials such as gloves, masks, sanitizer bottles and aprons and created huge plastic waste. This aspect has increased the utilization for biodegradable plastics in PPE (personal protective equipment) and other similar products. Also, some of the major leaders in the market are continuously taking several initiatives such as partnerships and joint ventures to strengthen their presence in the overall industry. For instance, in November 2020, Danimer Scientific, a leading biotechnology company, and Eagle Beverage, a beverage manufacturer, produced biodegradable drinking straws for quick service restaurants. Eagle Beverage will produce the straws by Danimer Scientific’s biopolymer technology with Nodax PHA and the straws are predicted to be available for Eagle Beverage customers from 2021. Through this initiative, both the companies aim to create awareness about the benefits of biodegradable products and enhance customer base. Due to such company developments, the biodegradable plastics market trends is expected to witness positive growth after coronavirus pandemic.
Wide Utilization of Biodegradable Plastics in Packaging Application are Estimated to Drive the Market
Rising utilization of biodegradable plastics majorly in food packaging is a major driver for the growth of the market in the forecast period. This growth is majorly owing to biodegradable polyesters being the best alternatives to plastics. Thus, rise in usage of food packaging, bottles, and disposable tableware and government support for biodegradable materials with strict regulations on plastics usage to minimize environmental pollution are factors expected to enhance the market growth in the forecast time. For example, in 2020, Germany government announced a ban on the sale of single use plastic products such as cutlery, straws, food containers and other similar products from July 2021 to minimize plastic waste across the country. According to The German Association of Local Utilities estimates, every year there is rise of common plastic items waste by 10% to 20%, which is majorly from single use plastic products. Also, the government is taking initiatives to create awareness about biodegradable items and supporting the manufacturers to deliver high quality products. Such factors are estimated to impel the biodegradable plastics market Growth, in the analysis period.
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High Production Cost is Expected to Restrain the Market Growth
Higher cost of the biodegradable plastic products due to high raw material cost as well as limited availability of raw materials is estimated to be major restraints for the biodegradable plastics market growth, in the forecast time.
Rising Incorporation of New Technologies to Create Growth Prospects
Constant incorporation of new technologies in biodegradable plastics manufacturing is estimated to create ample invest opportunities for the market in the future years. For example, there has been incorporation of antimicrobial technology in biodegradable materials manufacturing to develop materials with longer shelf life and to extend preservation of the packaged products especially food items. Also, antimicrobial packaging is used to prevent deterioration and ensure microbiological & chemical food safety by averting microbial growth.
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Biodegradable Plastics Market
By Material Type
By material type, the global industry has been segmented into Starch Blends, PLA, PBAT, PBS, and others. Among these sub-segments, Starch Blends material type accounted for major share in 2020 and PLA material type is expected to most lucrative sub-segment during the analysis time.
Source: Research Dive Analysis
The starch blends sub-segment generated a major market share in 2020, is estimated to account for $3,054.7 million by 2028, and anticipated to grow at a noteworthy rate of 9.0% CAGR during the analysis 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.
The PLA sub-segment is anticipated to have profitable growth and is estimated to reach a revenue of $2,122.0 million by 2028, with a CAGR of 10.4%. 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. Such aspects are estimated to propel the market growth in the forecast time.
Biodegradable Plastics Market
By application, the global industry has been segmented into packaging & bags, consumer durables, agriculture & horticulture, textiles, and others. In these, packaging & bags sub-segment generated evident revenue share in the past year and is estimated to grow at a notable rate in the analysis time.
Source: Research Dive Analysis
The packaging & bags sub-segment of the global biodegradable plastics market accounted for evident market size of over $2,410.4 million in 2020 and is expected to garner $5,171.8 million by 2028, with a notable CAGR of 9.8% during the analysis time. There is wide utilization of biodegradable plastics for packaging application. In addition, novel product introduction may also create positive impact on the subsegment. For example, EnviGreen, an Indian innovative startup firm manufactures edible and 100% biodegradable plastic bags. An ‘EnviGreen bags’ have capability to break down completely in the 15 seconds if placed in the boiling water. Also, continuous utilization of biodegradable plastics for packaging of several products like foods and other similar products due its eco-friendly nature is estimated raise the market size in the review time.
Biodegradable Plastics Market
The biodegradable plastics market was investigated across North America, Europe, Asia-Pacific, and LAMEA.
Source: Research Dive Analysis
The Market for Biodegradable Plastics in Asia-Pacific to be the Most Dominant
The Asia-Pacific biodegradable plastics market accounted $2,003.8 million in 2020 and is further projected to surpass $4,133.1 million by the year 2026. This dominance is majorly accredited to strong economic growth for biodegradable plastics usage in packaging sector and growing consumer positive outlook towards its utilization to minimize plastic pollution. Growing economies like China and India have implemented severe regulations on conventional plastics utilization and major manufacturers in these countries are introducing sustainable packaging solutions like bio-based products, which is estimated to drive the market growth in the review time.
The Market for Biodegradable Plastics in Europe to be the Fastest Growing
The share of Europe biodegradable plastics market is anticipated to grow at a notable CAGR of 10.8%, and the market estimated to account for $2,563.2 million by the end of 2028. 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.
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Competitive Scenario in the Global Biodegradable Plastics Market
Product launches and mergers & acquisitions are the most common strategies followed by the leading players in the market.
Source: Research Dive Analysis
The key global biodegradable plastics market players are Eastman Chemical Company, TORAY INDUSTRIES, INC., Dow, Biome Technologies plc, Novamont SpA, Danimer Scientific, Mitsubishi Chemical Holdings Corporation, Total Corbion and BASF SE.
Porter’s Five Forces Analysis for Biodegradable Plastics Market:
- Bargaining Power of Suppliers: Biodegradable plastics market has a high number of suppliers. Further, growing demand for eco friendly plastic bags and accessibility of replacements are delivering the bargaining power of suppliers to be moderate.
- Bargaining Power of Consumers: Biodegradable plastics market has a huge number of customers and product dependence is expected to be high. But, high cost of the products, users still using low-cost conventional plastic products.
These aspects are generating moderate negotiation power of consumers.
- Threat of New Entrants: The market needs high investments for the developing of cost-effective bio-based products but, high brand dependence among the customers is a high risk factor for the new entrants.
These aspects resulting moderate for the new entrants into the industry.
- Threat of Substitution: Huge availability of the alternatives for the bio-based products like highly commercialized conventional plastics are resulting a high risk of substitutes.
- Competitiveness in the industry: Biodegradable plastics industry contains a huge number of major industry players. These participants are concentrating on new product launches to rise their market share in the global industry.
Thereby, the competition in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Material Type
Segmentation by Application
Key Countries covered
U.S., Canada, Germany, UK, Italy, Spain, Japan, China, India, South Korea, Australia, Latin America, Middle East and Africa
Key Companies Profiled
Q1. What is the size of biodegradable plastics market?
A. The global biodegradable plastics market size was over $4,276.9 million in 2020 and is further anticipated to reach $8,940.9 million by 2028.
Q2. Which are the leading companies in the biodegradable plastics market?
A. BASF SE, Total Corbion, Danimer Scientific, Novamont SpA and Dow are some of the key players in the global Biodegradable Plastics market.
Q3. Which region possesses greater investment opportunities in the coming future?
A. Europe possesses great investment opportunities for the investors to witness the most promising growth in the coming years.
Q4. What is the growth rate of the Europe market?
A. The Europe biodegradable plastics market is anticipated to grow at 10.8% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Product development and collaborations are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Total Corbion, Danimer Scientific and Novamont SpA are investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
1.5.Data Material Types
2.2.Material Type trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.8.Market value chain analysis
4.Biodegradable Plastics Market, by Material Type
4.1.1.Market size and forecast, by region, 2020 - 2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.1.Market size and forecast, by region, 2020 - 2028
4.2.2.Comparative market share analysis, 2020 & 2028
4.3.1.Market size and forecast, by region, 2020 - 2028
4.3.2.Comparative market share analysis, 2020 & 2028
4.4.1.Market size and forecast, by region, 2020 - 2028
4.4.2.Comparative market share analysis, 2020 & 2028
4.5.1.Market size and forecast, by region, 2020 - 2028
4.5.2.Comparative market share analysis, 2020 & 2028
5.Biodegradable Plastics Market, by Application
5.1.Packaging & Bags
5.1.1.Market size and forecast, by region, 2020 - 2028
5.1.2.Comparative market share analysis, 2020 & 2028
5.2.1.Market size and forecast, by region, 2020 - 2028
5.2.2.Comparative market share analysis, 2020 & 2028
5.3.Agriculture & Horticulture
5.3.1.Market size and forecast, by region, 2020 - 2028
5.3.2.Comparative market share analysis, 2020 & 2028
5.4.1.Market size and forecast, by region, 2020 - 2028
5.4.2.Comparative market share analysis, 2020 & 2028
5.5.1.Market size and forecast, by region, 2020 - 2028
5.5.2.Comparative market share analysis, 2020 & 2028
6.Biodegradable Plastics Market, by Region
6.1.1.Market size and forecast, by Material Type, 2020 - 2028
6.1.2.Market size and forecast, by Application, 2020 - 2028
6.1.3.Market size and forecast, by country, 2020 - 2028
6.1.4.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.2.1.Market size and forecast, by Material Type, 2020 - 2028
6.2.2.Market size and forecast, by Application, 2020 - 2028
6.2.3.Market size and forecast, by country, 2020 - 2028
6.2.4.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
6.2.10.Rest of Europe
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.3.1.Market size and forecast, by Material Type, 2020 - 2028
6.3.2.Market size and forecast, by Application, 2020 - 2028
6.3.3.Market size and forecast, by country, 2020 - 2028
6.3.4.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Product, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
6.3.10.Rest of Asia Pacific
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.4.1.Market size and forecast, by Material Type, 2020 - 2028
6.4.2.Market size and forecast, by Application, 2020 - 2028
6.4.3.Market size and forecast, by country, 2020 - 2028
6.4.4.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Material Type, 2020 - 2028
220.127.116.11.Market size and forecast, by Application, 2020 - 2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Material Type, 2020 - 2028
126.96.36.199.Market size and forecast, by Application, 2020 - 2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
7.1.4.Recent strategic moves & developments
7.2.4.Recent strategic moves & developments
7.3.4.Recent strategic moves & developments
7.4.Mitsubishi Chemical Holdings Corporation
7.4.4.Recent strategic moves & developments
7.5.4.Recent strategic moves & developments
7.6.4.Recent strategic moves & developments
7.7.Biome Technologies plc
7.7.4.Recent strategic moves & developments
7.8.4.Recent strategic moves & developments
7.9.TORAY INDUSTRIES, INC.
7.9.4.Recent strategic moves & developments
7.10.Eastman Chemical Company
7.10.4.Recent strategic moves & developments
Biodegradable plastics are produced or tainted by microbes into water, biomass and carbon dioxide under quantified conditions.
Short term applications of biodegradable plastic include:
- Food packaging
- Disposable tableware
- Horticulture sector
- Agriculture sector
- Collection and alteration of organic waste
The biodegradable plastic gets its highest amount of usage in the packaging industry because of its eco-friendly properties. Because of growing carbon emission in the environment and its harmful effects on human and environment, many countries has banned and imposed strict restrictions on the daily use of plastic bags. Apart from that, people are giving preference to things which are “green” and “eco-friendly”. The demand of disposable tableware has also been increased in recent years. These factors are definitely going to enhance the growth of the global market of the biodegradable plastic in upcoming years.
Recent Trends of the Market
According to a report published by Research Dive, the topmost players of the global biodegradable plastics market include Danimer Scientific, Mitsubishi Chemical Holdings Corporation, Dow, Total Corbion, BASF SE, Toray Industries, Inc., Biome Technologies plc, Novamont SpA, Eastman Chemical Company, among others.
These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology.
Some of the recent developments of the market are as follows:
- As per a press release, in January 2021, Novamont, an Italy-based global leader in the development and production of biochemicals and compostable bioplastics, completed its acquisition of BioBag Group, a Norwegian low-impact waste collection and packaging solution provider.
The acquisition is expected to help Novamont take advantage of BioBag’s highly specialised independent distribution, expanding its global footprint.
- As per a report, in April 2020, Mitsubishi Chemical America, Inc. inked a conclusive agreement to acquire all of the issued and remaining shares of Gelest Intermediate Holdings, Inc., the parent company of Gelest, a world-leader and trendsetter in material science and technology.
- Biome, a polymer manufacturing company, signed the SME Climate Commitment in March 2021. This program has been designed for small and medium-sized enterprises in India to align their operations according to the latest climate science, as stated in the report.
Impact Analysis of Covid-19 on the Market
The Covid-19 pandemic has impacted almost all the manufacturing companies posing threat for the global economy. Many companies were temporarily shut down, while others were closed forever. Biodegradable plastics market was no exception. Because of year-long lockdown and restrictions on supply chain, the industry had to witness a drastic downfall. The manufacturing industries along with the end-use industries were also shut down resulting in revenue loss for the market. However, the pandemic effect on the industry was not all bad. As thousands of PPE kit equipment were disposed by the healthcare professional during the peak of the pandemic posed a threat to the environment. This aspect has created huge demand for biodegradable plastic for manufacturing the PPE kit. This will help the market to revive from the hit of the pandemic. Additionally, the top players of the market are relentlessly working on the development of newer strategies such as merger, acquisition, partnership, product development etc which will help the industry to flourish in no time once the pandemic is over.
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