Plant Based Plastic Market

Plant Based Plastic Market Outlook from 2024 to 2034

The global sales of plant-based plastic are estimated to be worth USD 1.9 billion in 2024 and are anticipated to reach a value of USD 5.1 billion by 2034. Sales are projected to rise at a CAGR of 10.2% over the forecast period between 2024 and 2034. The revenue generated by plant-based plastic in 2023 was USD 1.7 billion. The industry is anticipated to exhibit a Y-o-Y growth of 7.4% in 2024.

Plant-based plastics are made from organic sources like sugar, starch, and other plant-based materials. Polylactic acid (PLA) is the most used material in the plant-based plastic market. PLA is a biodegradable and compostable material which makes it more preferred option for the manufacturers.

The material is also less cost effective which reduces the raw material and production of comparatively. A wide variety of applications including disposable tableware, medical devices, 3D printing, packaging, etc. increase its versatility. PLA has excellent operational properties which makes them easily replace traditional plastics material.

Global Plant Based Plastic Industry Assessment

Attributes	Key Insights
Historical Size, 2023	USD 1.7 billion
Estimated Size, 2024	USD 1.9 billion
Projected Size, 2034	USD 5.1 billion
Value-based CAGR (2024 to 2034)	10.2%

Corn starch is a widely adopted raw material for producing plant-based plastic material in the bioplastic industry. Corn is a readily available material and most highly grown crops in the global market. They form a very inexpensive source of starch.

Corn starch can be easily converted by using technology that is efficient and established in the manufacturing sector. Corn starch can be used for producing materials like PLC, and starch blends, and it is suitable for wide applications.

Plant-based plastic as highly used in the food and beverage industry for manufacturing different types of packaging products to meet the regulatory standards and sustainability issues. Different types of packaging such as wrappers, containers, bottles, etc. help brands to identify consumer changing preferences.

Plant-based plastic is being highly adopted by the beverage industry for making water bottles, and other drink packaging. Biodegradable forks, knives, and straws are gaining popularity in cutlery and utensils which is also boosting the demand for plant-based plastic.

The plant based plastic industry is set to experience moderate growth during the forecast period. It is projected to create an incremental opportunity of USD 3.2 billion and is predicted to rise 2.7 times the current market value through 2034.

Semi Annual Market Update

The below table presents the expected CAGR for the global plant based plastic market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 10.1%, followed by a slightly lower growth rate of 10.6% in the second half (H2) of the same year.

Particular	Value CAGR
H1	10.1% (2023 to 2033)
H2	10.6% (2023 to 2033)
H1	10.4% (2024 to 2034)
H2	10% (2024 to 2034)

Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 10.4% in the first half and remain relatively moderate at 10% in the second half. In the first half (H1) the market witnessed an increase of 30 BPS while in the second half (H2), the market witnessed a decrease of 60 BPS.

Key Industry Highlights

Importance of Sustainable Alternatives over Traditional Plastic

Plant-based plastics are becoming an essential part of reducing the adverse effects of traditional plastics over the traditional. Plant-based plastics are sourced from renewable materials such as cellulose, corn starch packaging, sugarcane, etc. which makes them highly compostable and biodegradable.

The use of plant-based material will reduce the impact of non-biodegradable plastic on the marine life and ecosystem. It will also reduce the plastic waste going into landfill and oceans causing pollution in the environment and increasing the global warming effects.

Plant-based plastic production has the potential to reduce the carbon footprint because it needs low energy and releases less greenhouse gases into nature compared to traditional plastics. Plant-based plastic offers economic benefits by creating new markets for agricultural products and reducing the dependence on non-renewable resources.

The plant-based plastic has some limitations but still has a promising potential for plastic waste reduction and carbon footprint sequestration resulting in a sustainable alternative to traditional plastics.

Elevated Demand for Plant Based Plastic for Niche Markets

The trend of sustainability has been putting pressure on textile manufacturers to manage the environmental impact of their production. Biopolymers and bio-based plastics are found to have the potential for sustainable fabrication in the textile industry. The fashion industry is transformed by ongoing research in material research and manufacturing for addressing and sequestering the carbon footprint.

Companies and brands are exploring ecofriendly materials rather than relying on traditional synthetic fibres. As a result, plant-based plastic is anticipated to foster growth in the textile industry and open up new growth opportunities for the material.

Traditional synthetic fabrics including nylon, polyester, and other materials are difficult to decompose and stay in the environment for hundreds of years while plant-based materials take only a couple of months. Plant-based plastic reduces the dependency on fossil fuels and provides ecofriendly textile production.

Considerable amount of microfiber waste entering into rivers despite wastewater treatment initiatives which is further increasing demand for plant-based plastic materials due to green credits associated with them.

2019 to 2023 Global Plant Based Plastic Sales Outlook Compared to Demand Forecast from 2024 to 2034

The global plant based plastic industry recorded a CAGR of 7.4% during the historical period between 2019 and 2023. The growth of the plant based plastic industry was positive as it reached a value of USD 1.7 billion in 2023 from USD 1.3 billion in 2019.

Plant-based plastic is derived from sources that are renewable resources including sugarcane, corn starch, potato starch, and others. They are not derived from traditional petroleum-based material which makes compostable and biodegradable. This results in its more preferred sustainable choice for packaging and other plastic-based products.

Plant-based plastic has an impact on reducing the environmental impact of plastic production and disposal. Plant-based plastics are prominently reducing the carbon footprint over traditional plastic production. It offers a more sustainable alternative to single-use plastic.

Plant-based plastics have more permeability to water vapor which makes them more appropriate for the food and beverage industry. The plant-based plastic packaging can help to maintain the freshness of the packaged food without condensation. The plant-based plastic also does not change the food taste and provides a safe and convenient option for the food packaging industry.

The growing trend of 100 percent biodegradable and plant-based packaging is being adopted by manufacturing companies and businesses all over the world. It is anticipated to drive investment in the plant-based plastic market.

The world is going through crisis of a climate change and supplementing reuse, recycling, and thinking of compostable material options by industries for reduced carbon footprint. Consumers and businesses are Shifting focus from both to sustainable manufacturing has pushed the plant-based plastic market in historic years.

Fast-moving consumer goods (FMCG), quick meals, and beverages consumption have been increasing in the recent period which is generating a huge amount of plastic waste. This has pushed the companies to strive for eco-friendly business alternatives like plant-based plastics for supplementing circular economy concerns.

Market Concentration

Tier 1 companies in the global plant based plastic industry include BASF SE, NatureWorks LLC, Toray Industries Inc., Arkema Global, Biome Bioplastics Limited., BIOTEC, Plantic Technologies Ltd., Mitsubishi Chemical Holdings Corporation, with market revenue above USD 50 million.

These manufacturers are market leaders in plant based plastic within global industry having extensive production capacity, different product offerings, and extensive manufacturing expertise. These companies are capturing around 10% to 20% of global market share in the plant based plastic industry.

Tier 2 of the global plant based plastic industry incorporates companies like FUTERRO S.A., Danimer Scientific., Eastman Chemical Company, Polymateria Ltd, TIPA Corp Ltd, EuP Group with revenue of USD 10 to 50 billion. They have limited presence, and well-maintained knowledge but may not have expertise and advanced manufacturing technology.

These manufacture have mostly limited regional presence having knowledge and demand of regional market dynamics.

Tier 3 category in the global plant based plastic market includes the small-scale players of the region with revenue below USD 10 million. These companies fulfil the local market demand and are recognized as an unorganized market. They have a country level presence, limited manufacturing facilities, and expertise in local market needs. They are well established in local market and fulfill the local market demands.

Country-wise Insights

The section below covers the industry analysis of the plant based plastic market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, South Asia & Pacific, East Asia, Western Europe, Eastern Europe, and others, is provided. North America and Europe are leading in the market with maximum market share.

South Asia Pacific, East Asia, and MEA has anticipated to record high growth rate during forecast period.

Countries	Value CAGR (2024 to 2034)
USA	8.7%
Germany	8.1%
UK	8.6%
Canada	8.3%
India	11.7%
China	10.9%
Japan	8.8%
Australia	9.6%

Implementation of Stringent Regulations in Germany to Reduce Greenhouse Emissions to Elevate Sales

Germany dominates the European plant-based plastic industry with an estimated market with 25% of value share in 2024. The sales of plant-based plastic across Germany are expected to rise at a growth rate of 8.1% during the assessment period owing to rising demand for eco-friendly and reusable packaging, implementation of stringent emission regulations, and the presence of leading plant-based plastic companies.

The Federal Government of Germany stated that the country aims to reduce its emissions of greenhouse gases by at least 65% by 2030 compared to 1990 levels, as reported by Clean Energy Wire. The German Federal Government has set up yearly reduction targets to achieve greenhouse gas emission neutrality by 2045.

The plant-based plastic is derived from renewable resources and fulfils the circular economy goals of the government without causing environmental damage. The growing adoption of plant-based plastic by several Germany-based industries to reduce emission levels will aid in the expansion of the market over the next ten years.

Strict Regulatory Framework Banning Single-use Plastics Creating Excellent Growth Prospects

Plant-based plastic industry in Australia is projected to reach a valuation of USD 3.5 million expanding 1.6 times its current market value by the end of 2034. Victorian Government reported that the government of Australia has banned the usage of problematic single-use plastics including plastic straws, cutlery, stirrers, plates, cotton buds sticks, EPS food service items and drink containers.

The government also plans to introduce mandatory requirements for compostable and reusable alternatives to single-use plastics.

Pollution of waterways and harm to marine life has become a key issue in Australia, it is estimated that around 130,000 tons of plastic waste end up in the environment each year, with single-use plastics being a significant contributor. The demand for sustainable packaging solutions is rising remarkably in Australia due to escalating environmental concerns.

The shift towards the use of biodegradable and compostable packaging materials in Australia is pushing the demand for plant-based plastic.

Category-wise Insights

The section contains information about the leading segments in the industry.

Sugarcane is Prominent Source for Plant Based Plastic

Source	Sugarcane
Value Share (2034)	41.2%

Sugarcane is more prominently used raw material for making plant-based plastic since it is primarily used for producing ethanol. It is an important source for creating plant-based plastics including Bio PET and Bio PE. Sugarcane is a very efficient source of plant-based plastic as it has maximum biomass crop yield when compared to other source materials.

Many countries are effectively producing sugarcane in large amounts and thus have a well-established infrastructure for processing and cultivation for mass production of plant-based plastics. Sugarcane has a consistent supply and is a reliable alternative for producing plant-based plastics which makes it more preferred option for manufacturers. Sugarcane is estimated to reach USD 2.2 billion in sales revenue by the end of 2034.

Bio PE is Mostly Used Material

Material	Bio PE
Value Share (2034)	34.1%

Bio PE is one of the most used materials in the global market of plant-based plastic because of its numerous properties. The material is largely available in the market compared to others. The material can be easily produced from sugarcane and has a very well-established process and infrastructure for expansion.

Bio PE can be used in numerous applications like packaging, bags, and containers. Bio PE is mostly similar to the traditional oil-based PE showcasing similar properties which makes it the most appropriate choice for the manufacturer. Bio-PE has generated significant popularity due to its direct replacement for conventional PE.

It offers an easy transition for manufacturers and consumers. Bio PE is estimated to capture 37.3% of market share by the end of 2034.

Competitive Landscape

Several prominent players in the plant based plastic market are significantly investing in innovation, research, and development to discover new applications and enhance their offerings. Manufactures prioritize safety, product quality, and customer satisfaction to expand their customer base.

Key manufacturers of plant based plastic are focusing on developing recycled material packaging and developing packaging solutions to meet sustainability demand. They are adopting a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs.

Recent Industry Developments in Plant Based Plastic Market

• In June 2024, BASF is expanding its biopolymer portfolio to increase the use of renewable feedstock. It is creating certified compostable biopolymers to include a biomass-balanced (BMB) ecoflex®, a polybutylene adipate terephthalate (PBAT) that is frequently used in the compounding of biopolymers.
• In March 2024, TIPA has announced that its fully compostable and recyclable packaging tray line made from rice waste achieved Cradle to Cradle Certified® Silver, which evaluates and recognizes products for their environmental and social impacts.
• In December 2023, The Mitsubishi Chemical Group has announced that its plant-derived compostable polymer BioPBS™ acquired certification in November 2023 as a marine biodegradable biomass plastic under the marine biodegradable plastic identification and labelling system established by the Japan BioPlastics Association (JBPA).

Key Players of Plant Based Plastic Industry

• BASF SE
• NatureWorks LLC
• Toray Industries Inc.
• Arkema Global
• Biome Bioplastics Limited.
• BIOTEC
• Plantic Technologies Ltd.
• Mitsubishi Chemical Holdings Corporation.
• FUTERRO S.A.
• Danimer Scientific.
• Eastman Chemical Company
• Polymateria Ltd
• TIPA Corp Ltd
• EuP Group
• TotalEnergies Corbion
• Neste Oyj

Key Segments of Plant Based Plastic Industry

By Material:

Plant based plastic industry is divided into Polylactic Acid (PLA), Bio-Polyethylene Terephthalate (Bio-PET), Bio-Polyethylene (Bio-PE), and Starch Blends.

By Source:

Plant based plastic industry is segregated into Corn Starch, Sugarcane, Cassava, Beet Pulp, Cellulose, and Others (Soy, Potato, Algae).

By Application:

The industry is classified by Food & Beverage, Personal Care & Beauty, Healthcare & Medical, Automotive, Electronics & Electrical, and Others (Textile, Aerospace, Agriculture, etc.).

By Region:

Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia & Pacific, East Asia, and Middle East and Africa (MEA), have been covered in the report.

Frequently Asked Questions

What is the future of global plant based plastic industry?

The global plant based plastic industry is projected to witness CAGR of 10.2% between 2024 and 2034.

What was the worth of the global plant based plastic industry in 2023?

The global plant based plastic industry stood at USD 1.7 billion in 2023.

What will the worth of global plant based plastic industry by 2034 end?

The global plant based plastic industry is anticipated to reach USD 5.1 billion by 2034 end.

Which region to showcase the highest CAGR during forecast period?

South Asia and Pacific is set to record the highest CAGR of 11.5% in the assessment period.

Who are the key manufacturer of global plant based plastic industry?

The key players operating in the global plant based plastic industry include includes BASF SE, NatureWorks LLC, Toray Industries Inc., Arkema Global, Biome Bioplastics Limited., BIOTEC, Plantic Technologies Ltd., and Mitsubishi Chemical Holdings Corporation.