Advanced Materials and Chemicals

Bioplastics Market is Expected to Reach USD 45.72 Billion by 2030

Mar 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, 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 bioplastics market is projected to experience significant growth in the forthcoming years due to growing environmental concerns and the rising demand for sustainable alternatives to traditional plastics. Governments and consumers are the primary drivers of demand for eco-friendly materials, particularly in sectors such as automotive, electronics, and construction. The biodegradable sector shows promising growth potential, fueled by increasing global awareness of environmental concerns. Overall, the bioplastics market is advancing positively.

Key Insights

  • Based on product type, the biodegradable segment held the largest market share of 51.50% in 2022
  • Based on material type, the polylactic acid (PLA) segment generated the highest revenue of USD 2.96 billion in 2022
  • Based on application, the packaging segment led the market with the largest share of 34.54% in 2022.
  • Based on feedstock, the microorganisms segment is set to grow at a robust CAGR of 27.20% over the forecast period
  • Based on region, North America accounted for the largest market share of 37.15% in 2022

LG Chem and ADM Collaborate on Corn-Based Bioplastics Factory in Joint Venture

September 2021: South Korean company LG Chem and U.S.-based Archer Daniels Midland (ADM) signed a Heads of Agreement for a joint venture to establish a factory for corn-based bioplastics production. LG Chem was the first Korean company to build a Poly Lactic Acid (PLA) plant in the U.S., with integrated production from raw materials to end products. The joint venture aimed to meet the increasing demand for biodegradable plastics and contribute to the development of sustainable solutions.

Growing Emphasis on Environmental Concerns to Drive Market Growth

The global bioplastics market expansion is being driven by the growing focus on environmental concerns. Governments, businesses, and consumers are becoming increasingly aware of the detrimental impact of traditional plastics on the environment, which includes pollution and non-biodegradability. This increased awareness has led to a strong demand for sustainable alternatives, thereby propelling the bioplastics industry's development. Regulatory measures and consumer preferences are aligning with eco-friendly materials, creating a conducive environment for bioplastic growth. As a result, the bioplastics market is witnessing increased investments in research and development, innovations in biodegradable materials such as polylactic acid (PLA) and polyhydroxyalkanoates (PHA), and expanded scope of applications in various industries.

Increasing Applications Across Diverse Sectors to Present Significant Growth Opportunities

One significant market opportunity in the bioplastics industry is the increasing number of applications across different sectors. Industries such as automotive, electronics, and construction are actively seeking ways to reduce their environmental impact. Bioplastics provide a sustainable alternative to traditional plastics, offering eco-friendly solutions for various applications. For instance, in the automotive sector, bioplastics can be used in interior components, reducing the carbon footprint of vehicles. Similarly, in the electronics industry, bioplastics can replace conventional plastics in casings and housings. As these sectors increasingly adopt bioplastics, the market is presented with a substantial growth opportunity. Companies investing in research and development to create innovative bioplastic materials tailored to these industries are likely to capitalize on this growing market trend.

Asia Pacific to Emerge as the Fastest-Growing Region Exhibiting a CAGR of 23.72% Over the Forecast Period

Asia-Pacific is positioned as the fastest-growing region in the bioplastics market and is projected to depict a CAGR of 23.72% over 2023-2030. The region's rapidly increasing population and industrialization have created a strong demand for sustainable alternatives to traditional plastics. Countries such as China, India, and Japan are at the forefront of this shift toward eco-friendly materials. Rising environmental awareness and growing concerns about plastic pollution are driving the adoption of bioplastics in various industries, including packaging, automotive, and agriculture. Moreover, government initiatives and incentives to promote the usage of bioplastics are further contributing to the considerable expansion of the regional market.

Major Companies to Forge Agreements to Strengthen Industry Foothold

The global bioplastics market is fragmented with key players such as NatureWorks LLC, Novamont S.p.A., Braskem S.A., BASF SE, Arkema S.A., TotalEnergies SE, Corbion N.V., Mitsubishi Chemical Corporation, Evonik Industries AG, Biome Technologies plc, and others. Companies in the sector are employing a variety of strategic measures, including acquisitions, mergers, partnerships, product introductions, and collaborations, to expand their business globally and strengthen their competitive position.

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