Bioplastic Market Report
Bioplastic Market by Product (Biodegradable and Non-biodegradable), Application (Packaging, Agriculture, Consumer goods, Textile, Automotive & Transportation, Building & Construction, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Bioplastics are a kind of plastic material derived from renewable sources such as plants, vegetable oils, starches, or even bacteria. Unlike usual plastics that are made from fossil fuels, bioplastics offer a more sustainable and environmentally friendly alternative. These materials are designed to have similar houses and performance to conventional plastics whilst minimizing their effect on the environment. Bioplastics can be labeled into two primary types: bio-based plastics and biodegradable plastics. Bio-based plastics are made from renewable resources and can be partially or entirely derived from biomass. Biodegradable plastics, on the other hand, can degrade and decompose under specific conditions, lessening their impact on the environment.
Global Bioplastic Market Analysis
The global bioplastic market size was $11,784.66 million in 2022 and is predicted to grow with a CAGR of 18.8%, by generating a revenue of $61,172.74 million by 2032.
COVID-19 Impact on Global Bioplastic Market
The outbreak of the COVID-19 pandemic has a significant impact on the global bioplastic market. During the preliminary phase of the pandemic, lockdown measures and restrictions on non-essential activities led to a decline in demand for bioplastics. Industries such as packaging, consumer goods, and automotive, which are predominant consumers of bioplastics, witnessed a slowdown in production and sales. This resulted in decreased orders and delayed projects, affecting the typical demand for bioplastic materials. Moreover, the disruption in global supply chains caused by travel restrictions and logistical challenges affected the availability of raw materials for bioplastic production. Many bioplastic producers depend on agricultural feedstocks or by-products from other industries, and the disruptions in these supply chains had a cascading impact on bioplastic production.
As the pandemic progressed, certain elements contributed to a recovery in the bioplastic market. During the pandemic, there was a heightened emphasis on sustainability and environmental consciousness among customers and corporations. This renewed emphasis on lowering plastic waste and adopting more eco-friendly substances unlocked opportunities for the bioplastic market to rebound.
Increasing Awareness and Adoption of Sustainable Practices by Businesses and Consumers to Drive the Market Growth
One of the key drivers boosting growth of the global bioplastic market is the increasing awareness and adoption of sustainable practices by businesses and consumers. As the harmful effects of ordinary plastics on the environment become increasingly apparent, there is an increasing demand for biodegradable, renewable materials with a lower carbon footprint.
A variety of factors are driving the push for sustainable practices and an emphasis on the environment. Firstly, governments and regulatory bodies around the world are enforcing stronger rules and policies to restrict plastic waste and promote the use of environmentally friendly products. This includes single-use plastic prohibitions or restrictions, as well as encouragement for the usage of bioplastics. These guidelines foster a favorable situation for bioplastic makers, encouraging demand and propelling the market forward.
High Cost of Production to Restrain Market Growth
One primary factor of the global bioplastic market is the cost of production and the price competitiveness of bioplastic materials compared to normal petroleum-based plastics. Bioplastics usually needs specific production processes and the procurement of raw materials, which might result in higher production costs. The higher cost of bioplastics might present hurdles for producers and limit their adoption, particularly in price-sensitive industries. Another issue is the limited availability and scalability of bioplastic feedstock. In general, bioplastics are created from renewable resources such as plant-based materials, agricultural leftovers, or waste biomass. However, these feedstocks can be scarce, and scaling up production to meet rising demand can be difficult. This limitation may cause supply chain interruptions and pricing changes, influencing the bioplastics market growth.
Advancements in Technology to Drive Excellent Opportunities
One of the key technological developments is the advancement of bioplastic production techniques. Researchers and producers are exploring new ways to improve the efficiency, scalability, and cost-effectiveness of bioplastic materials. These advancements enable larger-scale production, making bioplastics commercially viable and competitive with traditional plastics. Another area of technical progress is the enhancement of bioplastic qualities. Researchers are continually attempting to improve bioplastics' mechanical, thermal, and barrier properties to match or exceed those of ordinary plastics. This includes the creation of new polymer blends, composites, and additives that improve strength, flexibility, and chemical & heat resistance. These improvements broaden the range of applications for bioplastics, allowing them to be used in industries such as packaging, automotive, electronics, and others.
Global Bioplastics Market Share, by Product, 2022
The biodegradable sub-segment accounted for the major market share in 2022. Biodegradable products play an enormous role in the world bioplastic market, offering environmentally pleasant alternatives to conventional plastics. Biodegradable bioplastics are designed to degrade naturally via organic processes, such as microbial degradation or composting, reducing their environmental impact and conceivable for waste accumulation. One of the key benefits of biodegradable bioplastics is their ability to minimize plastic pollution. These compounds can degrade into harmless resources over time, reducing their environmental persistence. Biodegradable bioplastics are particularly useful in applications that include single-use or non-permanent use, such as packaging, disposable cutlery, and agricultural films.
Global Bioplastics Market Share, Application, 2022
The packaging sub-segment accounted for the major market share in 2022. Bioplastics offers an eco-friendly alternative to traditional plastics for a number of packaging needs. The packaging industry has been under growing pressure to minimize its environmental footprint and locate sustainable options to tackle plastic waste and pollution. Bioplastics used in packaging purposes provides several advantages. They are derived from renewable resources such as plant-based feedstocks, consisting of corn starch, sugarcane, or cellulose. These substances can be processed to form films, bottles, trays, and different packaging products with properties similar to standard plastics.
Global Bioplastics Market Share, by Region, 2022
The Asia Pacific region held a massive market share in the global bioplastic market in 2022. This is because the region is witnessing a rapid boom in quite a number of sectors, such as packaging, automotive, patron goods, and agriculture, which are boosting the demand for bioplastics. One of the key factors contributing to the dominance of the Asia Pacific market is the growing awareness and implementation of environmental guidelines and sustainability initiatives with the aid of governments and organizations. Countries such as China, Japan, South Korea, and India are actively promoting bioplastics as a sustainable alternative to conventional plastics. Government insurance policies and incentives are encouraging the use of biodegradable and compostable materials, which is fueling regional demand for bioplastics.
Competitive Scenario in the Global Bioplastic Market
The competitive landscape of the global bioplastic market is characterized by partnerships, collaborations, and strategic alliances amongst key players. These agreements aid in expanding product ranges, improving technological capabilities, and achieving a larger customer base. To differentiate themselves in the market, businesses are also investing in sustainable production methods, investigating new feedstock choices, and focusing on product innovation.
Some of the major players in the global bioplastic industry are TEIJIN LIMITED, TORAY INDUSTRIES, INC., Toyota Tsusho Corporation, Avantium, PTT MCC Biochem Co., Ltd., An Phat Holdings, NatureWorks LLC, SABIC, BASF SE, and Futerro. These organizations are actively involved in the research, development, and commercialization of bioplastics to meet the growing demand for sustainable and environmentally friendly materials.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Product
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the bioplastic market?
A. The size of the bioplastic market was over $ 11,784.66 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 18.8% from 2023 to 2032.
Q2. Which are the major companies in the Bioplastic market?
A. NatureWorks LLC, SABIC, and BASF SE are some of the key players in the global Bioplastic market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Strategic acquisitions & partnerships and geographic expansion & market penetration are the two key strategies opted by the operating companies in this market.