Bioplastics Market

Market Perspective

The global Bioplastics Market was valued at USD 13.04 billion in 2022 and is projected to reach USD 45.72 billion by 2030, growing at a CAGR of 17.43% from 2023 to 2030.

The global market for bioplastics is expanding steadily, driven by the increasing global awareness of environmental issues and a growing demand for eco-friendly alternatives to traditional plastics. Bioplastics, which can be categorized into biodegradable and non-biodegradable types, are made from renewable resources, and thus, they are considered a more sustainable choice. The market outlook is positive, with the CAGR expected to remain robust in the coming years. Factors such as government regulations promoting the use of bioplastics, rising consumer consciousness about environmental concerns, and a surge in applications across various industries are expected to contribute to this growth.

Analyst’s Review on Bioplastics Market

Key growth-influencing trends in the bioplastics market include the increasing adoption of biodegradable plastics, particularly in the packaging and consumer goods sectors, as well as the development of advanced materials like polylactic acid (PLA) and polyhydroxyalkanoates (PHA). These trends are expected to continue driving market growth in the forecast years.

However, challenges like higher production costs compared to traditional plastics and limited infrastructure for bioplastics recycling need to be addressed for sustained growth. The shift toward sustainable and environmentally friendly materials is expected to keep the bioplastics market on a favorable growth trajectory.

Market Definition

Bioplastics are a type of plastics that are made from renewable sources, to minimize the negative impact on the environment caused by traditional petroleum-based plastics. These plastics can be classified into two main categories: biodegradable and non-biodegradable. Biodegradable bioplastics, such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), can decompose naturally over time, resulting in reduced pollution in the long run. These bioplastics are commonly used in industries such as the packaging, agriculture, and medical sectors.

On the other hand, non-biodegradable bioplastics, including bio-based polyethylene (PE) and polypropylene (PP), offer a more environmentally friendly alternative to traditional plastics. These types of bioplastics are extensively utilized in various industries, such as automotive and consumer goods.

The regulations governing bioplastics differ from region to region. Some countries provide incentives and implement regulations to encourage the use of bioplastics, while others have specific standards in place to ensure biodegradability and compostability. Bioplastics provide a sustainable solution to traditional plastics, reducing environmental harm and offering viable alternatives in multiple industries.

Market Dynamics

One major factor that is driving the growth of the bioplastics market is the growing recognition of environmental concerns and the demand for sustainable alternatives to regular plastics. Both governments and consumers are increasingly advocating for the use of eco-friendly materials, leading to a surge in the demand for bioplastics. The increasing awareness and demand for sustainable materials are expected to continue driving the growth of the bioplastics market, as more efforts are being made to improve production efficiency and reduce costs.

However, a significant restraint faced by the market is the higher production cost associated with bioplastics compared to traditional plastics. The production of bioplastics often requires specialized facilities and specific raw materials, which can result in increased manufacturing expenses. This cost disparity can hinder the wider adoption of bioplastics, particularly in markets where price sensitivity is high.

A significant opportunity in the bioplastics industry is its increasing scope of application across different sectors, including automotive, electronics, and construction. As these industries strive to minimize their impact on the environment, bioplastics provide a sustainable alternative.

On the other hand, a major challenge faced by the industry is the limited availability of comprehensive recycling infrastructure for bioplastics. Although bioplastics are designed to be more environmentally friendly, recycling and composting them often requires specialized facilities that are not widely accessible.

Segmentation Analysis

The global bioplastics market is segmented based on product type, material type, application, feedstock, and geography.

Based on product type, the market is bifurcated into biodegradable and non-biodegradable. The biodegradable segment is expected to experience significant growth at a CAGR of 18.23% over the forecast period. This growth is set to be driven by the increasing global awareness of environmental issues and the need for sustainable alternatives to traditional plastics. Biodegradable bioplastics, such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), are gaining popularity in various applications, particularly in packaging and single-use items, due to their ability to decompose naturally, reducing long-term pollution and environmental impact.

Based on material type, the bioplastics market is classified into polylactic acid (PLA), starch blends, polyethylene (PE), polyamide (PA), polyethylene terephthalate (PET), polypropylene (PP), polyhydroxyalkanoates (PHA), polybutylene succinate (PBS), and others. In 2022, the polylactic acid (PLA) segment emerged as the leader in the market, securing the largest market share of 22.71%. This notable market dominance can be attributed to several factors. PLA is a biodegradable and bioactive thermoplastic made from renewable resources, primarily derived from corn starch or sugarcane. It has gained significant attention and adoption due to its versatility and environmentally friendly properties, which are aiding segment expansion.

Based on application, the market is categorized into packaging, buildings & construction, automotive & transport, consumer goods, agriculture & horticulture, fibers, coatings & adhesives, electrics & electronics, and others. The packaging segment dominated the bioplastics market in 2022, boasting an impressive valuation of USD 4.11 billion. This substantial revenue can be attributed to the increasing adoption of bioplastics in the packaging industry, driven by both consumer demand for sustainable packaging solutions and regulatory measures promoting eco-friendly materials.

Based on feedstock, the market is divided into sugarcane, corn, potato, microorganisms, algae, and others. The microorganisms segment is poised to exhibit remarkable growth in the bioplastics market, with an impressive CAGR of 27.20% over 2023-2030. This extraordinary growth rate is slated to be attained due to the increasing interest and research in harnessing the capabilities of microorganisms for bioplastic production.

Geographical Analysis

Based on region, the global bioplastics market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America dominated the bioplastics market in 2022 with the highest valuation of USD 4.84 billion. Factors like a strong focus on sustainability, strict environmental regulations, and a growing preference for eco-friendly products among consumers and businesses are propelling market expansion in the region. The region has witnessed significant investments in bioplastics research and development, particularly in the United States and Canada. Additionally, well-established packaging and consumer goods industries in North America have been driving the demand for biodegradable and non-biodegradable bioplastics.

Asia-Pacific is the fastest-growing region in the bioplastics market, with the highest projected CAGR of 23.72% over the assessment period. The growing population, rapid industrialization, and rising environmental awareness in countries like China, India, and Japan are driving the regional market growth. As these nations seek sustainable alternatives to traditional plastics, the demand for bioplastics has surged across various industries, including packaging, automotive, and agriculture. Government initiatives and incentives to promote bioplastics usage are further contributing to regional market expansion.

Competitive Landscape

The global bioplastics market study will provide valuable insight with an emphasis on the fragmented nature of the sector. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market The major manufacturers in the market are

• NatureWorks LLC
• Novamont S.p.A.
• Braskem S.A.
• Arkema S.A.
• TotalEnergies SE
• Corbion N.V.
• Mitsubishi Chemical Corporation
• Evonik Industries AG
• Biome Technologies plc
• BASF SE

Key Developments

• March 2023 (Investment): Amazon made an investment in Genecis, a bioplastics company that specializes in transforming organic waste into high-performance materials. The partnership was purposed to accelerate the development of sustainable packaging solutions and reduce the environmental impact of plastic waste. This investment was aligned with Amazon's commitment to achieve net-zero carbon emissions by 2040 and support the circular economy.
• August 2023 (Product Launch): Braskem, a leading Brazilian petrochemical company, partnered with SCG Chemicals, a Thai chemical company, to develop bioplastics. The collaboration was intended to leverage SGS Chemicals' expertise in research, development, and production to develop sustainable solutions for the plastics industry, contributing to a more environmentally friendly future.

The global Bioplastics Market is segmented as:

By Product Type

• Biodegradable
• Non-Biodegradable

By Material Type

• Polylactic Acid (PLA)
• Starch Blends
• Polyethylene (PE)
• Polyamide (PA)
• Polyethylene Terephthalate (PET)
• Polypropylene (PP)
• Polyhydroxyalkanoates (PHA)
• Polybutylene Succinate (PBS)
• Others

By Application

• Packaging
• Buildings & Construction
• Automotive & Transport
• Consumer Goods
• Agriculture & Horticulture
• Fibers
• Coatings & Adhesives
• Electrics & Electronics
• Others

By Feedstock

• Sugarcane
• Corn
• Potato
• Microorganisms
• Algae
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America