The Biobased Biodegradable Plastic Market is projected to be worth USD 5.2 billion in 2023. The market is further expected to surge at a CAGR of 10% from 2023 to 2033 and reach USD 13.6 billion by 2033.
Market Trends Analysis
| Attributes | Key Insights |
|---|---|
| Biobased Biodegradable Plastic Market Estimated Size in 2023 | USD 5.2 billion |
| Projected Market Value in 2033 | USD 13.6 billion |
| Value-based CAGR from 2023 to 2033 | 10% |
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The scope for biobased biodegradable plastic rose at a 9.5% CAGR between 2018 and 2022. The global market for biobased biodegradable plastic is anticipated to expand at a significant CAGR of 10% over the forecast period between 2023 and 2033.
| Report Attribute | Details |
|---|---|
| Market Value in 2018 | USD 3.5 billion |
| Market Value in 2022 | USD 5.2 billion |
| CAGR from 2018 to 2022 | 9.5% |
The biobased biodegradable plastic market experienced substantial growth between 2018 and 2022. Increasing environmental concerns and stringent regulations against traditional plastic increased the demand.
Research and development efforts focused on improving biodegradable materials' quality, performance, and cost-effectiveness during this period. Industries such as packaging, agriculture, and consumer goods witnessed a significant shift toward these eco-friendly alternatives.
Government incentives and rising awareness among consumers and businesses further accelerated market expansion.
Looking forward to the forecast period from 2023 to 2033, the biobased biodegradable plastic market is expected to continue its upward trajectory. Advancements in technology and manufacturing processes are likely to lead to a broad range of applications, including in the automotive and electronics sectors.
The emphasis on sustainable practices, along with the global push for a circular economy, is likely to fuel innovation. Bioplastic derived from renewable sources, coupled with increased recycling efforts, are estimated to contribute to market growth.
Collaboration between the public and private sectors is expected to fuel research, ensuring a continuous stream of innovative biodegradable products. Market penetration in emerging economies, coupled with heightened environmental consciousness is going to underpin the market's expansion.
Increasing awareness about plastic pollution and its adverse impact on the environment has led to a surge in demand for biobased biodegradable plastic. Consumers and businesses are seeking sustainable alternatives to reduce plastic waste and minimize ecological harm.
Stringent regulations and government policies are banning single-use plastic and promoting the use of biodegradable materials globally. Compliance with these regulations is a key driver, encouraging industries to adopt biobased biodegradable plastic in various applications.
Many companies are adopting biobased biodegradable plastic as part of their corporate social responsibility initiatives. Emphasizing environmental sustainability in business practices enhances brand image and meets the demands of eco-conscious consumers.
Continuous research and development in bioplastic technology are leading to the creation of innovative and cost-effective biodegradable materials. Advancements in processing techniques and material formulations have expanded the practical applications of biobased biodegradable plastic.
Changing consumer preferences and a growing eco-conscious consumer base are significant dynamics. Consumers are choosing products and packaging made from biodegradable plastic, influencing manufacturers to invest in these materials, thereby driving market growth.
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Inadequate composting and recycling facilities hinder the efficient disposal of biodegradable plastic, leading to potential environmental impact if not disposed of properly.
Balancing biodegradability with the required durability and versatility for various applications remains a challenge. Some biodegradable plastic may not meet the performance standards needed for specific industries, limiting their adoption.
Biobased biodegradable plastic often have high production costs compared to traditional plastic. While demand is rising, cost competitiveness remains a challenge, hindering widespread adoption, especially in price-sensitive markets.
The below table showcases revenues in terms of the top 5 leading countries, spearheaded by the United States and China. These two countries are expected to lead the market through 2033, with values of USD 1.2 billion and USD 1.4 billion.
Expected Market Values in 2033
| The United States | USD 1.2 billion |
|---|---|
| China | USD 1.4 billion |
| The United Kingdom | USD 400 million |
| Japan | USD 1 billion |
| South Korea | USD 510 million |
Forecast CAGRs from 2023 to 2033
| The United States | 10.2% |
|---|---|
| China | 10.1% |
| The United Kingdom | 9.6% |
| Japan | 9% |
| South Korea | 9.2% |
The United States is expected to reach USD 1.2 billion by 2033, expanding at a CAGR of 10.2%.
The biobased biodegradable plastic market in the United States is witnessing significant growth driven by environmental concerns, stringent regulations, and consumer demand for sustainable alternatives.
The United States government and various states have implemented regulations promoting the use of biodegradable plastic, incentivizing companies to adopt eco-friendly materials. Increasing public awareness of plastic pollution and a growing emphasis on corporate sustainability practices have further accelerated the market.
The United States agriculture sector plays a vital role, providing raw materials for biodegradable plastic, such as corn-based PLA (polylactic acid). PLA, being one of the most common biodegradable plastic, finds extensive use in various applications.
The Circular Economy initiatives and advancements in composting and recycling infrastructure further boost the market. The United States biobased biodegradable plastic market is poised for continuous growth, fueled by environmental consciousness, regulatory support, and technological innovations.
The market in the United Kingdom is projected to increase at 9.6% CAGR from 2023 to 2033. The biobased biodegradable plastic market in the United Kingdom is likely to total USD 400 million by 2033.
In the United Kingdom, the biobased biodegradable plastic market is experiencing substantial growth due to environmental consciousness, stringent regulations, and a shift toward sustainable practices.
There is a rising demand for eco-friendly alternatives in packaging, agriculture, and various consumer products with increasing public awareness about plastic pollution. The United Kingdom's active participation in Circular Economy models is driving the development of bioplastic recycling infrastructure, creating new opportunities in the market.
Key retailers and manufacturers are transitioning to biodegradable packaging solutions, bolstering the market's growth.
Collaborations between government bodies, research institutions, and private enterprises are fostering innovations in bioplastic technology.
The United Kingdom's commitment to reducing carbon emissions and plastic waste aligns with the market's growth. Consequently, it has become an essential hub for biobased biodegradable plastic in Europe.
The market for biobased biodegradable plastic in the United Kingdom is set to expand further as consumer preferences continue to shift toward sustainable products.
The biobased biodegradable plastic market in China is expected to reach a value of USD 1.4 billion. The market in China is poised to expand at a CAGR of 10.1% through 2033.
In China, the biobased biodegradable plastic market is experiencing significant growth due to a combination of environmental concerns, government initiatives, and a burgeoning eco-conscious consumer base.
The market is witnessing a surge in research and development activities, leading to innovations in bioplastic materials and processing technologies. Companies in China are investing hugely in the production of biodegradable plastic derived from renewable sources like corn starch and sugarcane.
The e-commerce boom in China has increased the demand for eco-friendly packaging solutions, driving the adoption of biobased biodegradable plastic in the packaging sector.
China continues to address environmental challenges and promote sustainable practices. As a result, the biobased biodegradable plastic market is poised for significant expansion, making it a key player in the global shift towards eco-friendly materials.
The biobased biodegradable plastic market in Japan is set to experience positive growth and is expected to reach USD 1 billion by 2033. The country is likely to register a 9% CAGR until 2033.
In Japan, the biobased biodegradable plastic market is growing steadily, driven by environmental concerns, stringent regulations, and technological innovations.
Japan's advanced technology sector plays a vital role in the development of innovative biobased biodegradable plastic. Research and development efforts focus on creating bioplastic with enhanced properties, suitable for various applications, including packaging, agriculture, and automotive sectors.
The country's strong focus on recycling and waste management aligns with the growth of biodegradable plastic, especially in single-use items like packaging and disposable products.
The Biobased biodegradable plastic market in Japan is projected to expand further, as eco-consciousness continues to rise.
The biobased biodegradable plastic market in South Korea is anticipated to rise at a 9.2% CAGR until 2033. A valuation of USD 510 million is expected by 2033.
In South Korea, the biobased biodegradable plastic market is steadily growing. The government of South Korea has implemented policies and regulations to encourage the use of biodegradable plastic, particularly in single-use items. This has created a favorable environment for the development and adoption of eco-friendly materials.
South Korea's export-oriented economy is driving the production of biodegradable plastic to meet global demand. The market in South Korea is expected to continue expanding as environmental awareness grows and consumers seek sustainable products. It further contributes to the global effort to reduce plastic waste and pollution.
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The below table highlights how starch blends are projected to lead the market in terms of product type, developing at a 9.9% CAGR through 2033. It held a CAGR of 4.3% from 2018 to 2022.
The packaging segment is likely to spearhead sales based on application and is anticipated to witness a CAGR of 9.8% through 2033.
| Category | CAGR from 2023 to 2033 |
|---|---|
| Starch Blends | 9.9% |
| Packaging | 9.8% |
The starch blends segment is poised to increase with a CAGR of 9.9% from 2023 to 2033.
Starch blends were the leading product type for biobased biodegradable plastic with a sales share of more than 42% in 2022. The starch blends segment is expected to lead the market in terms of value in the coming years.
Plastic made from starch are utilized in sectors including packaging, vehicles, and agriculture. PLA product plastic are also gaining traction in the market. The low cost of PLA in comparison to other products is an important contributor to the industry.
Packaging was the most significant application segment with a sales share of more than 60.3% in 2022. Packaging is one of the most important applications for biobased biodegradable polymers. It is utilized in stiff as well as adaptable packaging.
The use of recyclable plastic in food wrapping including cartons, wraps, cups, and dishes is gaining traction, which is fueling the expansion of the biobased biodegradable plastic market.
The market is fragmented and characterized by the presence of both large and small-scale companies. Key strategies that large firms follow include many growth methods such as technological advancement, diversification, and mergers and acquisitions to increase market share, accessibility, and profit.
| Attributes | Details |
|---|---|
| Estimated Market Size in 2023 | USD 5.2 billion |
| Projected Market Valuation in 2033 | USD 13.6 billion |
| Value-based CAGR 2023 to 2033 | 10% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value in USD billion |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Market Segments Covered | Product type, Application, Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel |
| Key Companies Profiled | BASF SE; Plantic Technologies; Toray Industries; Total Corbion PLA; Natureworks; Biome Bioplastic.; Bio-On; Mitsubishi Chemical Corporation; Danimer Scientific; Novamont S.P.A. |
The market is expected to reach USD 5.2 billion in 2023.
The market for biobased biodegradable plastic is set to expand at a CAGR of 10% by 2033.
The industry is predicted to reach USD 13.6 billion by 2033.
China is likely to be the top-performing market, accounting for USD 1.4 billion in 2033.
Starch blends are the leading product type with a 9.9% CAGR through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Polyester 5.2. Starch Blends 5.3. Poly Lactic Acid (PLA) 5.4. Cellulose 5.5. Polyhydroxyalkanoate (PHA) 5.6. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Packaging 6.2. Fibres 6.3. Healthcare 6.4. Agriculture 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. BASF SE 17.2. Plantic Technologies 17.3. Toray Industries 17.4. Total Corbion PLA 17.5. Natureworks 17.6. Biome BioPlastic 17.7. Bio-On 17.8. Mitsubishi Chemical Corporation 17.9. Danimer Scientific 17.10. Novamont S.P.A. 18. Assumptions & Acronyms Used 19. Research Methodology
Automotive
February 2024
REP-BR-81
306 pages
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Biobased Biodegradable Plastic Market
