Biodegradable Plastic Market Size, Share, and Trends

Biodegradable Plastic Market Size and Growth 2024 to 2033

The global biodegradable plastics market size was valued at USD 4.31 billion in 2023 and is anticipated to reach around USD 17.23 billion by 2033, growing at a CAGR of 15.28% from 2024 to 2033.

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Biodegradable Plastic Market Key Takeaways

• Europe led the market with the biggest market share of 42.14% in 2023.
• Asia Pacific is estimated to expand at the fastest CAGR during the forecast period.
• By Type, the starch-based segment registered the maximum market share in 2023.
• By Type, the Polyhydroxyalkanoate (PHA) segment is expected to expand at the fastest CAGR over the projected period.
• By End-use, the packaging segment has held a major revenue share in 2023.
• By End-use, the agriculture segment is anticipated to grow at a fastest CAGR between 2024 and 2033.

Biodegradable Plastic Market Size in the Europe 2024 to 2033

The Europe biodegradable plastic market size was estimated at USD 1.82 billion in 2023 and is predicted to be worth around USD 7.49 billion by 2033, at a CAGR of 15.65% from 2024 to 2033.

In 2023, 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.

Biodegradable Plastic Market Size in North America 2023 to 2033

The North America biodegradable plastic market size was calculated at USD 1.18 billion in 2023 and is projected to expand around USD 5.00 billion by 2033, poised to grow at a CAGR of 15.92% from 2024 to 2033.

Biodegradable Plastic Market Growth Factors

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.

Biodegradable Plastic Market Scope 

Biodegradable Plastic Market Dynamics

Driver:

Reduction in Plastic Waste

The intended breakdown speed of biodegradable polymers is faster than that of conventional plastics. They greatly reduce the long-term waste in landfills and natural ecosystems by breaking down into natural substances like water, carbon dioxide, and biomass through the action of microorganisms. Waste management systems can function more efficiently when biodegradable polymers are used. These products move waste from landfills to composting facilities, where they can be converted into beneficial soil supplements, as they are frequently compatible with composting procedures. When compared to traditional plastics, the manufacture and decomposition of biodegradable polymers typically result in fewer greenhouse gas emissions. This is because they frequently need less energy to make and because the process of their decomposition prevents the production of methane, a strong greenhouse gas that conventional plastics frequently generate as they decompose in anaerobic landfill environments.

Restraint:

Limited Degradation Conditions

For biodegradable polymers to break down efficiently, temperatures above 50°C, which are usually seen in commercial composting facilities, are necessary. The biodegradation process requires a sufficient amount of microbial presence. If the right bacteria are not present in the environment, the degradation process will either proceed much more slowly or not at all. Depending on where they are disposed of, biodegradable plastics might have varying degrees of effectiveness. Inadequate natural decomposition can result in pollution of the environment akin to that produced by traditional plastics. To make sure biodegradable plastics are disposed of properly and may breakdown as intended, waste management systems should be improved and industrial composting facilities should be expanded. maximizing the environmental advantages of biodegradable plastics by educating customers about proper disposal techniques.

Opportunity:

Brand Differentiation and Corporate Responsibility

Businesses can set themselves apart by funding R&D to produce cutting-edge biodegradable plastic products. These might include materials that perform better overall, like stronger materials or materials that deteriorate more quickly. Businesses can set a higher priority for suppliers who adhere to strict environmental and social responsibility guidelines and put policies in place to cut down on the amount of energy and trash produced during operations. Customers' sense of responsibility can be increased by informing them about the advantages of biodegradable plastics and the significance of safe disposal procedures. Corporate social responsibility can be exhibited by a firm through its philanthropic support of environmental conservation initiatives and active involvement in local communities.

Type Insights

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.

End-use Insights

In 2023, 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.

Biodegradable Plastic Market Recent developments

• In December 2023, with the introduction of a new end-to-end licensed technology called CAPSULTM for the continuous manufacturing of polycaprolactone (PCL), a biodegradable polyester frequently used in the packaging, textile, agricultural, and horticultural industries, Swiss technology company Sulzer is broadening its line of bioplastics.
• In February 2024, leading South Korean chemical manufacturer LG Chem Ltd. and food and biotechnology company CJ CheilJedang Corp. have partnered to establish an environmentally friendly bio-nylon joint venture in an effort to reduce carbon emissions and generate new revenue. The CEOs of the two companies, LG Chem and CJ CheilJedang, announced on Thursday that they had inked a head of agreement (HOA) to construct a joint venture plant that would manufacture environmentally friendly nylon using PMDA, or bio-materials made from fermenting corn, sugarcane, and other crops.

Biodegradable Plastic Market Companies

• 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.
• p.A.
• TianAn Biologic Materials Co., Ltd.

Segments Covered in the Report

By Type

• Starch-based
• PBS
• PLA
• PHA
• PBAT
• Others

By End-User

• Consumer Goods
• Agriculture
• Packaging
• Others

By Regional Outlook

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World