The global biodegradable plastics market size is predicted to hit USD 15.13 billion by 2032 from USD 3.92 billion in 2022, growing at a CAGR of 15% from 2023 to 2032.
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The Europe biodegradable plastics market size was valued at USD 1.72 billion in 2022 and is expected to reach USD 6.83 billion by 2032, poised to grow at a CAGR of 14.80% from 2023 to 2032.
In 2022, Europe was a front-runner in terms of revenue in the global biodegradable plastics market. Rising consumer awareness along with the government of Europe has banned the usage of non-degradable plastics are the key factors that fuel the market growth in the region. Rising soil & environment depletion because of the rising usage of plastics has triggered the need for a shifting trend towards bio-based materials that can be reused and are environment friendly.
On the other side, the Asia Pacific exhibits the fastest growth over the forecast period owing to a large consumer base along with escalating growth of agriculture and the food & beverage industry in the region. Asia Pacific is considered an agricultural land. As per the Food and Agriculture Organization of the United Nations (FAO), the Asia Pacific occupy nearly one-fifth of the world’s agricultural land. The above-mentioned factor significantly propels the agricultural application of biodegradable plastics. Furthermore, the large population in the region has projected the region as a leader in the demand for consumer goods again attributes positive towards the market growth.
Prohibition on the use of single-use plastic along with rising awareness among people related to the ill effects of plastic waste on the environment are the key factors that stimulate the market growth. Non-decomposable plastics stimulate various types of pollution. In order to tackle this problem governments of various regions have banned the use of non-degradable plastics, thereby promoting the application of biodegradable plastics. Moreover, consumers are also willing to pay more for biodegradable plastics due to their eco-friendly nature which boosts the demand for biodegradable plastics in the near future.
Despite numerous advantages, biodegradable plastics have several shortcomings. There is no particular difference between conventional and biodegradable plastics that creates problems while segregating them. Also, the inclusion of conventional plastics in biodegradable plastics landfills causes problems in the decomposition process.
Moreover, not every biodegradable plastic is decomposable in the natural environment. Besides this, they require a specific environment in terms of temperature and moisture for degradation. Further, some of them release harmful gases such as greenhouse gases while decomposition is counterproductive to the environmental cause and restricts their growth in the near future.
| Report Highlights | Details |
| Market Size in 2023 | USD 4.31 Billion |
| Market Size by 2032 | USD 15.13 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 15% |
| Largest Market | Europe |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Vehicle Class, Architecture, Region |
| Companies Mentioned | Biome Technologies plc, Mitsubishi Chemical Corporation, BASF SE, Plantic Technologies Limited, Yield10 Bioscience, Inc., Corbion, Eastman Chemical Company, Dow Inc., NatureWorks LLC, Danimer Scientific, Toray Industries, Inc., TianAn Biologic Materials Co., Ltd. |
Starch-based plastics are predicted to dominate the global biodegradable plastics market for both revenue and volume and garnered nearly 10.5% of growth rate in terms of revenue during the forecast period. Increasing application of starch-based plastics in end-use industries such as automobiles, packaging, and agriculture attributed to the significant growth of the segment. They are largely helpful in reducing the carbon footprint of conventional resins and encounter significant demand in the agriculture and flexible packaging sectors. Further, starch-based biodegradable plastics are less toxic as they are made up of plant-based materials. The packaging industry is one of the major consumers of starch-based plastics owing to their versatile behavior.
Polyhydroxyalkanoate (PHA) is anticipated to register the fastest growth over the analysis period. This is attributed to the increasing use of PHA in medical and other applications. PHA is prominently used in medical implants, drug encapsulation, bone marrow scaffolds, tissue engineering, and bone plates. Apart from medical applications, PHA is also used in the packaging of food & beverages, agriculture foil and films, compost bags, and consumer products. The aforementioned factors are expected to fuel the growth of the segment in the coming years.
In 2022, packaging is the leading end-use segment in the global biodegradable plastics market. This is mainly attributed to the shifting consumer trend from synthetic to bio-based products. In food packaging, biodegradable plastics offer promising functionality and are used in numerous applications such as wraps, cups, boxes, and plates. The foregoing trend has gained momentum in the recent past, thus driving the demand for biodegradable plastics. Further, the rising preference for packaged food in accordance with the changing lifestyle positively influences the demand for biodegradable plastics in packaging applications.
On the contrary, agriculture witnessed the fastest growth in the global biodegradable plastics market during the analysis period. This is mainly because of the increasing application of mulch films in agriculture application. Biodegradable mulch film offers greater decomposition compared to other bio-plastics in soil and estimated that nearly 75-80% of the content is renewable thus propelling the market growth of the segment.
The global biodegradable plastic market experience a versatile competitive level depending on the region. For instance, in North America and Europe, the competition level is medium because of the large number of regional and international market players present in the regions. However, in the Asia Pacific, the level of competition is quite low due to less number of industry players dominating in the region.
Some of the prominent players in the biodegradable plastic market include:
Segments Covered in the Report
This research study encompasses a comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligence and prospects of the market. This report presents the categorization of a market into foremost and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2020 to 2032. This report comprises the market division and its revenue valuation by categorizing it based on type, end-use, and region:
By Type
By End-User
By Regional Outlook
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