Biodegradable Plastics Global Market Opportunities And Strategies To 2031

This report describes and evaluates the global biodegradable plastics market. It covers 2016-2021, termed the historic period, 2021-2026 forecast period, and 2026-2031 forecast period.

The global biodegradable plastics market reached a value of nearly $4397.1 million in 2021, having increased at a compound annual growth rate (CAGR) of 7.4% since 2016. The market increased from $4,397.1 million in 2021 to $9,134.5 million in 2026 at a rate of 15.7%. The market is expected to grow to $18,771.4 million in 2031 at a compound annual growth rate (CAGR) of 15.5%.

Growth factors in the historic period include growing concerns for the environment, increasing use of biodegradable plastic and emerging markets growth. Factors that negatively affected growth in the historic period were challenges due to high cost, alternative products and pollution caused by bioplastics.

Going forward, new product launches, a rise in environmental awareness and government initiatives will drive the market for Biodegradable plastics. Factors that could hinder the growth of the biodegradable plastics market in the future include extra land required to produce bioplastics, a shift towards packaging free products, inability to replicate traditional plastics and reduction in free trade.

The biodegradable plastics market is segmented by type into polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), polyhydroxyalkanoates (PHA), starch blends and other types. The polybutylene adipate terephthalate (PBAT) market was the largest segment of the biodegradable plastics market segmented by type, accounting for 25.3% of the total in 2021 and going forward the polybutylene adipate terephthalate (PBAT) market is expected to be the fastest growing segment in the Biodegradable plastics market, at a CAGR of 16.9.

The biodegradable plastics market is segmented by end-user into packaging, agriculture, consumer goods and others. The packaging market was the largest segment of the biodegradable plastics market segmented by type, accounting for 52.2% of the total in 2021 and going forward the agriculture market is expected to be the fastest growing segment in the Biodegradable plastics market, at a CAGR of 17.3%.

North America was the largest region in the global biodegradable plastics market, accounting for 31.4% of the total in 2021. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the Biodegradable plastics market will be Asia-Pacific, and North America, where growth will be at CAGRs of 19.1% and 16.5% respectively. These will be followed by Western Europe and South America, where the markets are expected to grow at CAGRs of 15.0% and 12.6% respectively.

The biodegradable plastics market is highly fragmented, with a large number of large players dominating the market. Major players in the market include BASF SE, Mitsubishi Chemical Holding Corporation, Kaneka Corporation, Novamont SpA, Corbion N.V. (Total Cobion PLA), Eastman Chemical Company, Danimer Scientific, NatureWorks LLC, Biome Technologies Plc, Fkur Kunstsoff and others.

The top opportunities in the biodegradable plastics market segmented by type will arise in the polybutylene adipate terephthalate (PBAT) market segment, which will gain $1,315.7 million of global annual sales by 2026.

The top opportunities in the biodegradable plastics market segmented by end-user will arise in the packaging market segment, which will gain $2,449.2 million of global annual sales by 2026.

Market-trend-based strategies for biodegradable plastics market include product innovation, integrating antimicrobial technology in biodegradable polymers, use of biodegradable plastics lightweighting, increasing mergers and acquisitions, use of artificial intelligence and upcycled packaging materials.

Player based strategies include focus on investing in new product launches, geographical expansions and strategic collaborations and partnerships to strengthen their product offerings.

To take advantage of the opportunities, the publisher recommends the biodegradable plastics companies to focus on launching innovative products, integrate antimicrobial technology in biodegradable polymers, increase focus on upcycled packaging materials, expand in emerging markets, focus on strategic partnerships and collaborations, offer competitive pricing, continue to use B2B promotions, continue to participate in events and conferences and focus on fast-growing end-users.