The global sales of algae-based bioplastics are estimated to be worth USD 110 million in 2024 and are anticipated to reach a value of USD 175.8 million by 2034. Sales are projected to rise at a CAGR of 4.8% over the forecast period between 2024 and 2034. The revenue generated by Algae-Based Bioplastics in 2023 was USD 105 million. The industry is anticipated to exhibit a Y-o-Y growth of 4.6% in 2024.
Algae-based polyethylene (PE) is anticipated to reach USD 45.1 million in 2024 and will reach USD 71.4 million by the end of 2034. Algae-based polyethylene (PE) is widely preferred due to its flexibility and durability which makes it ideal for various products such as plastic bags, bottles, and films.
Global Algae-Based Bioplastics Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 105 million |
| Estimated Size, 2024 | USD 110 million |
| Projected Size, 2034 | USD 175.8 million |
| Value-based CAGR (2024 to 2034) | 4.8% |
Packaging applications to utilise most of the algae-based bioplastics are growing at a CAGR of 5.5% during the assessment period and are expected to reach a market valuation of USD 49.9 million in 2024. The packaging sector utilizes algae-based bioplastics due to their faster biodegradability compared to other materials that align with the sustainability goals.
Macroalgae (Seaweed) is projected to offer an incremental opportunity of USD 21.3 million and is expected to gain an incremental expansion of 1.6x times the total market value. The macroalgae (Seaweed) based bioplastics offer excellent resistance properties to moisture and oxygen making it ideal for various packaging products.
East Asia region is predicted to lead among other regions in the algae-based bioplastics market gaining approx. 1/3rd of the total market share in 2024 and reaching a market valuation of USD 36.3 million in 2024. The expansion of various industries such as the automotive sector and the packaging required for it that meet rising regulations to drive the market in the region.
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The below table presents the expected CAGR for the global algae-based bioplastics market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.5%, followed by a slightly higher growth rate of 5.2% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 4.5% (2023 to 2033) |
| H2 | 5.2% (2023 to 2033) |
| H1 | 4.6% (2024 to 2034) |
| H2 | 5.0% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.6% in the first half and decrease to 5.0% in the second half. In the first half (H1) the market witnessed an increase of 10 BPS while in the second half (H2), the market witnessed a decrease of 20 BPS.
Environmental Sustainability in Algae-Based Bioplastics to Drive the Market
The algae-based bioplastics are gaining popularity due to the various benefits gained with the use of products made from algae. The increasing focus towards reducing the use of plastics is one of the major factors pushing the manufacturers towards opting sustainable options for producing the packaging and various other products.
Many manufacturers are increasing their focus on the use of algae-based bioplastics due to the environmental benefits gained such as the algae do not require fresh water or any pesticides to produce it, algae also absorb CO2 during their growth thus cultivating this helps manufacturers with zero carbon emission that aligns with the sustainability goals.
Further, the bans imposed for limiting the use of certain plastics by various governments to promote circular economy is driving the demand for algae-based bioplastics.
Collaborations & Partnerships with End-Use Manufacturers to Accelerate the Commercialization of Algae-Based Bioplastics
With the continuous innovation in the materials that are being used for the packaging to meet sustainability algae-based bioplastics are gaining popularity in various industries. These algae-based bioplastics are cost-effective solutions. Industry experts to expand this newly formed material are focusing towards collaborating and forming strategic partnerships with the various manufacturing industry players.
This move of forming partnerships and collaboration will create new opportunities into developing cutting-edge technologies and products based on it. This formation will also benefit in the deep understanding of the problems faced by the manufacturing industries with the use of existing products.
For example, many brands in the food industry are exploring these new algae-based solutions further boosting their promotion of sustainability and visibility. These partnerships between the brands and the algae-based bioplastic manufacturers may accelerate the commercialization of algae-based bioplastics.
Limited Awareness Among Consumers to Pose Challenges for the Market
There are many new materials developed in the bioplastics that are derived from on ground agriculture sources which are proving their capabilities as alternatives to traditional plastics. Algae-based bioplastics despite the environmental benefits and the cost-effectiveness in products developed using this material are foreseeing limited acceptance even in the packaging sectors where plastic material dominates over others due to its abundance benefits.
This limited acceptance or the transition to bio-based solutions is slow due to certain doubts related to the durability, scalability, and the long term performance of algae-based bioplastics compared to the established bioplastics such as the starch based plastics or polylactic acid (PLA). Further, many manufacturers in the industry are even unaware about these developments made using algae-based in bioplastics that may hamper the market growth.
Principal Consultant
The global algae-based bioplastics industry recorded a CAGR of 4.3% during the historical period between 2019 and 2023. The growth of the algae-based bioplastics industry was positive as it reached a value of USD 105 million in 2023 from USD 87 million in 2019.
Algae-based bioplastics with the algae as their main raw material can be cultivated in any environment i.e. in the freshwater, salty water and waste water which makes it a highly renewable source. These algae-based bioplastics are biodegradable in nature thus reducing the dependence on the fossil fuels and contributing to lowering the carbon footprint making them a sustainable alternative to the traditional plastics.
These algae-based bioplastics can easily be molded into flexible or rigid forms making them suitable for diverse applications such as food packaging, containers, and films. These materials also offer resistance to moisture and oxygen making it ideal for the maintaining the shelf life of products and their degradability compared to the traditional plastics is faster contributing to the limit the use of plastics and the waste generated through it.
The recent development of this material and the technology required to build various products and leverage its benefits is still under development phase which can be the challenge for this industry to grow. The cost of production can be high compared to established plastics initially.
The continuous innovations in the cultivation of these algae and the production of bioplastics are improving the cost effectiveness. With the rise in the regulations set by governments with the use of plastics may drive the demand for the algae-based bioplastics.
Tier 1 company leaders are characterized by high production capacity and a wide product portfolio. These market leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include Notpla Limited, evoware, BZEOS, FlexSea, and BLOM.
Tier 2 companies are characterized by a strong presence overseas and strong market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in Tier 2 include Eranova, Sway Innovation Co, and PT Seaweedtama Biopac Indonesia.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment. They are small-scale players and have limited geographical reach.
Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis of the algae-based bioplastics market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided. The United States is anticipated to remain at the forefront in North America, with a CAGR of 2.7% through 2034. In East Asia, China is projected to witness a CAGR of 5.7% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.7% |
| Germany | 2.5% |
| Italy | 2.9% |
| Spain | 3.4% |
| India | 5.5% |
| China | 5.7% |
| Thailand | 4.3% |
China is one of the leading exporter of agriculture products to the USA exporting worth value of USD 35.9 billion in 2024 according to the data by the International Trade Administration.
The growing exports of agricultural products particularly the food exports are pushing the suppliers to adopt the sustainability options for its packaging with the growing regulations for limiting the use of certain plastics.
This push forced the suppliers to explore the alternate materials such as algae based bioplastics due to its fast biodegradability compared to the traditional plastics is expected to drive the market for algae based bioplastics in agriculture sector. Further, the durability and flexibility offered by the algae based bioplastics to boost the demand for these bioplastics.
The Indian packaging industry is growing at a rate of 2.8% and will reach at USD 1.5 trillion by the end of 2024 according to the projections made by the Invest India.
This increase in the packaging industry in India is due to the rise in the consumer demand for eco-friendly and sustainable packaging options. This rise in demand for sustainability is pushing manufacturers of the food, consumer goods, and e-commerce industries to explore new packaging options that meet these demands.
The growing regulations by the governments is further pushing this demand for the sustainability. Algae-based bioplastics are biodegradable and renewable that offers attractive opportunities for manufacturers to explore thus driving the market in packaging industry.
The section contains information about the leading segments in the industry. Algae-based polyethylene segment is estimated to grow at a CAGR of 4.7% throughout 2024 to 2034. Additionally, Europe’s market algae-based bioplastics is projected to expand at 5.8% during the assessment period.
| Application | Packaging |
|---|---|
| Value Share (2034) | 46.9% |
Packaging is set to offer an incremental opportunity worth USD 38 million in coming decade and is expected to gain an incremental expansion of 1.7x times the total market value.
Packaging applications utilizes the most of the plastics among others. With the growing regulations by the governments limiting the use of certain plastics forcing these manufacturers to explore sustainable options including algae-based bioplastics for producing its products.
These algae-based bioplastics due to their faster biodegradability, and lower environmental impact are expected to be preferred more for products like flexible packaging, rigid containers, and films for packaging of food, beverages and consumer goods. This shift is boosting the use of sustainable materials and limiting the single-use plastics.
| Feedstock | Macroalgae (Seaweed) |
|---|---|
| Value Share (2034) | 29.6% |
Macroalgae (Seaweed) algae-based bioplastics to dominate the market and is predicted to reach a market valuation of USD 30.8 million in 2024 growing with a CAGR of 5.1% during the forecasted period.
Macroalgae which is also known as Seaweed is widely used for production of bioplastics due to its abundant availability near coastal regions and it is very easy to cultivate macroalgae as it does not require fertilizers or freshwater for its growth thus becoming a cost-effective raw material for producing bioplastics. This raw material is widely preferred by manufacturers as it absorbs CO2 which helps in reducing or lowering their carbon footprint.
Key players operating in the algae-based bioplastics market are investing in innovation and development of new materials an alternate to traditional plastics and also entering into partnerships. Key algae-based bioplastics providers have also been acquiring smaller players to grow their presence to further penetrate the algae-based bioplastics market across multiple regions.
Recent Industry Developments in the Algae-Based Bioplastics Market
In terms of product type, the industry is divided into algae-based polyethylene (PE), algae-based polypropylene (PP), algae-based polyvinyl chloride (PVC), and other.
In terms of application, the industry is segregated into packaging, textiles and fibers, automotive, agriculture, cosmetics and personal care, and consumer goods.
The industry is classified by feedstock as Microalgae and Macroalgae (Seaweed).
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and the Middle East & Africa have been covered in the report.
The global algae-based bioplastics industry is projected to witness a CAGR of 4.8% between 2024 and 2034.
The global algae-based bioplastics industry stood at USD 105 million in 2023.
The global algae-based bioplastics industry is anticipated to reach USD 175.8 million by 2034 end.
East Asia is set to record the highest CAGR of 5.8% in the assessment period.
The key players operating in the global algae-based bioplastics industry include Notpla Limited, evoware, BZEOS, FlexSea, BLOM.
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Algae-Based Bioplastics Market
