Biodegradable Plastics - Global Strategic Business Report

The global market for Biodegradable Plastics was valued at US$23.8 Billion in 2024 and is projected to reach US$76.8 Billion by 2030, growing at a CAGR of 21.5% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Biodegradable Plastics market.

Global Biodegradable Plastics Market - Key Trends and Drivers Summarized

What Are Biodegradable Plastics, and Why Are They Essential?

Biodegradable plastics are a groundbreaking category of materials designed to decompose naturally over time through the action of microorganisms, ultimately transforming into harmless byproducts like water, carbon dioxide, and biomass. This natural degradation process stands in stark contrast to conventional plastics, which are petroleum-based and can persist in the environment for hundreds of years, contributing significantly to global pollution. As public awareness of the ecological impact of plastic waste grows, biodegradable plastics offer a promising alternative, one that addresses the environmental footprint of traditional plastics. These materials are crafted from renewable resources, including corn starch, sugarcane, and various other forms of biomass, and are specifically engineered to decompose under the right conditions - often within industrial composting facilities. The growing need for biodegradable plastics reflects a broader commitment across governments, businesses, and consumers to reduce plastic waste accumulation, particularly in oceans, landfills, and natural ecosystems. Unlike conventional plastics, which contribute to persistent microplastic pollution and harm wildlife, biodegradable plastics break down more fully, thus posing a lower risk to both terrestrial and marine environments. As society pushes for a transition to sustainable practices, the shift to biodegradable plastics represents a critical step in reducing reliance on fossil fuels, conserving resources, and fostering a circular economy where materials are reused or regenerated rather than left to pollute indefinitely.

How Are Biodegradable Plastics Produced, and What Are Their Unique Applications?

The production of biodegradable plastics can follow two primary pathways: bio-based synthesis using renewable sources such as corn, sugarcane, and vegetable oils, or modifying petrochemical-based plastics with additives that accelerate their degradation. Among bio-based options, polylactic acid (PLA), polyhydroxyalkanoates (PHA), and polybutylene succinate (PBS) are the most prominent. PLA, produced by fermenting sugars derived from plants, is a versatile and cost-effective material widely used in applications like food packaging, disposable tableware, and even 3D printing. Its biodegradability under composting conditions makes it particularly appealing for short-term use products. PHA, produced by bacterial fermentation of organic materials, is prized for its biocompatibility and degradability within the human body, making it suitable for medical applications such as sutures, drug delivery systems, and biocompatible implants. PBS, known for its flexibility and durability, is favored in agricultural films and biodegradable packaging where strength is essential. Oxo-biodegradable plastics, meanwhile, incorporate additives that enable breakdown upon exposure to environmental conditions like sunlight and oxygen, facilitating faster degradation in various settings. Together, these diverse biodegradable plastics cater to a wide range of industries - from packaging and agriculture to medical devices and consumer goods - enabling more sustainable material options across sectors traditionally reliant on non-degradable plastics. By offering solutions tailored to different environmental and functional needs, biodegradable plastics present a viable approach to reducing waste and encouraging environmentally responsible production practices.

What Challenges Are Associated with Biodegradable Plastics?

Despite the advantages of biodegradable plastics, their production and adoption face significant challenges, particularly in terms of cost, disposal infrastructure, and consumer awareness. The cost of producing biodegradable plastics is generally higher than that of traditional plastics due to the expense of raw materials and the more complex manufacturing processes involved. This cost disparity can make it challenging for biodegradable options to compete with conventional plastics, particularly in industries where margins are tight and pricing is sensitive. Additionally, while biodegradable plastics are designed to break down more quickly than conventional plastics, they typically require specific environmental conditions - such as controlled temperature, humidity, and microbial presence found in industrial composting facilities - to fully decompose. Unfortunately, the availability of such composting facilities is limited in many regions, resulting in biodegradable plastics often ending up in landfills, where they may not degrade as intended. Consumer understanding also presents a barrier, as many people mistakenly believe that biodegradable plastics will decompose in any environment. This misconception can lead to improper disposal, where biodegradable plastics are discarded as litter or mixed with recyclables, complicating waste management processes. Addressing these challenges will require investment in infrastructure for composting and disposal, standardized labeling to educate consumers on proper disposal practices, and ongoing research to make biodegradable plastics more affordable and capable of decomposing in a wider range of environments. These steps are crucial for maximizing the environmental benefits of biodegradable plastics and ensuring they fulfill their potential in reducing plastic pollution and promoting sustainability.

What Factors Are Fueling the Growth of the Biodegradable Plastics Market?

The growth of the biodegradable plastics market is driven by a convergence of factors, including heightened environmental awareness, supportive regulatory measures, and advancements in biopolymer technology. As concerns about plastic pollution intensify, governments and environmental bodies around the world are implementing regulations aimed at reducing single-use plastics, spurring demand for biodegradable alternatives in sectors like packaging, food service, and retail. Businesses, facing both regulatory pressure and rising consumer demand for sustainable options, are increasingly turning to biodegradable plastics to replace traditional materials and support environmentally responsible practices. This trend is reinforced by corporate social responsibility initiatives and green certification standards, which encourage companies to adopt sustainable practices and respond to the expectations of eco-conscious consumers. Technological advancements are also propelling market growth, as innovations in the production and utilization of biopolymers make biodegradable plastics more cost-effective and efficient. For example, research into second-generation feedstocks, such as agricultural byproducts and algae, is helping to reduce reliance on food-based resources like corn and sugarcane, improving the sustainability of biodegradable plastics and alleviating potential competition with food production. As composting infrastructure expands and waste management systems adapt, the practical benefits of biodegradable plastics become increasingly accessible, fostering broader adoption across industries. These factors collectively underscore the market’s rapid growth trajectory, establishing biodegradable plastics as a key solution in addressing the global plastic waste crisis and paving the way for a future that prioritizes circular, sustainable materials.

Report Scope

The report analyzes the Biodegradable Plastics market, presented in terms of units. The analysis covers the key segments and geographic regions outlined below.

Segments: Type (Starch Blends, PLA, PBS, PBAT, PHA, Other Types); End-Use (Packaging, Consumer Goods, Textile, Agriculture & Horticulture, Other End-Uses).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Starch Blends segment, which is expected to reach US$24.4 Billion by 2030 with a CAGR of a 21.8%. The PLA segment is also set to grow at 23.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $6.9 Billion in 2024, and China, forecasted to grow at an impressive 20.9% CAGR to reach $11.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Biodegradable Plastics Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Biodegradable Plastics Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Biodegradable Plastics Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as API S.P.A, BASF SE, Bio-Fed, Biome Bioplastics, Bio-On and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 62 companies featured in this Biodegradable Plastics market report include:

• API S.P.A
• BASF SE
• Bio-Fed
• Biome Bioplastics
• Bio-On
• Carbiolice
• Clondalkin
• Danimer Scientific
• Fkur Kunststoff GmbH
• Green Dot Bioplastics

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry