Biodegradable Plastics Global Market Report 2024

The biodegradable plastics market size has grown rapidly in recent years. It will grow from $5.8 billion in 2023 to $6.83 billion in 2024 at a compound annual growth rate (CAGR) of 17.7%. Historically, the growth in biodegradable plastics was fueled by rising environmental concerns, increased adoption of biodegradable materials, and the growth of emerging markets.

The biodegradable plastics market size is expected to see rapid growth in the next few years. It will grow to $12.88 billion in 2028 at a compound annual growth rate (CAGR) of 17.2%. The expected rise in biodegradable plastics is due to new products, environmental awareness, and government initiatives. Trends include innovation, antimicrobial tech integration, lightweighting, mergers, AI use, and upcycled packaging.

The increasing concerns for environmental sustainability are anticipated to drive the growth of the biodegradable plastics market. Plastics, being a major environmental concern, have led to a heightened focus on adopting more sustainable alternatives. In January 2021, data from the European Environment Agency revealed significant changes in plastic consumption, waste, and production due to the COVID-19 pandemic. A survey conducted by BCG across eight countries indicated a shift in public sentiment towards addressing environmental challenges, with nearly 40% of respondents expressing a commitment to engage in more sustainable behavior in the future. This growing environmental awareness is expected to fuel the demand for biodegradable plastics.

Government initiatives aimed at fostering the development of bioplastics are poised to play a pivotal role in propelling the biodegradable plastics market in the forecast period. An illustrative example is the decision by the Indian Government in August 2021 to implement a ban on most single-use plastics by July 2022, with the goal of reducing pollution and mitigating adverse environmental impacts. Additionally, government institutions have been actively providing funding to companies focused on bioplastics to promote the use of environmentally friendly alternatives. These ongoing initiatives underscore the role of government support in driving the growth of the biodegradable plastics market.

The adoption of product innovations is a prominent trend gaining traction in the biodegradable plastics market, with numerous organizations introducing cost-effective and sustainable alternatives. In July 2021, the Defense Research and Development Organization (DRDO) in India unveiled biodegradable packaging products crafted from plant-based food-grade materials. These packaging solutions, known for their water-resistant properties, decompose within three months, offering an ocean-safe substitute for single-use plastics. This initiative exemplifies a commitment to eco-friendly practices, emphasizing both cost-effectiveness and sustainability.

Companies within the biodegradable plastics market are harnessing the power of Artificial Intelligence (AI) to revolutionize their manufacturing processes and reduce plastic waste. AI and machine learning technologies are instrumental in accelerating the development of materials, including plastics, designed for rapid disintegration without causing environmental harm. These technologies contribute to the creation of super-strong, lightweight plastics suitable for various applications, such as satellites and aircraft. AI's capabilities extend to waste elimination in design processes by leveraging engineering data to identify and eliminate repetitive and inefficient development cycles. Furthermore, AI streamlines packaging operations, optimizing dimensions and weight to enhance sustainability and reduce shipping costs. Notably, companies such as L’Oréal, a French cosmetics company, are utilizing AI to ensure that plastic packaging is either recycled or bio-based by 2030. The implementation of predictive tools aids in estimating the performance of product and packaging designs more efficiently, thereby minimizing material usage and maximizing sustainability in each product.

In January 2021, Novamont, an Italian biodegradable bioplastics manufacturer, acquired BioBag Group, a Norway-based company, for an undisclosed sum. This acquisition strengthens Novamont's marketing and distribution capabilities, enabling better partnerships with retailers and improving organic waste collection and composting systems.

Major companies operating in the biodegradable plastics market report are BASF SE, Mitsubishi Chemical Holding Corporation, Kaneka Corporation, Novamont SpA, Corbion N.V. (Total Corbion PLA), Eastman Chemical Company, Danimer Scientific, NatureWorks LLC, Biome Technologies PLC, Fkur Kunstsoff, BioPak, UFlex, EsselPropack, Balson Industries, Kingfa Sci. & Tech Co. Ltd., GuangDong Huazhilu Biological Material Co. Ltd., Plantic Technologies Limited, Huhtamaki, Greatview Aseptic Packaging, Shanghai PRECISE Packaging Co, Qingdao Likang Packing, Tidetron, CB Material, Red Avenue New Materials, Bio-On, RadiciGroup, Tetra Pak, GOGLIO, Biochemtex, Mondi Group, Gualapack Group, NOVAMONT S.p.A, AVANTIUM N.V, SULAPAC, AMSilk GmBH, CARBIOS, Amcor, Sealed Air, Plastic Suppliers, International Paper, Smurfit Kappa, DS Smith, Green Dot Bioplastics, Kruger Inc., Klabin SA, BioBag, Nova Envirocom Inc., Braskem, Biocycle, Minima, Brazilian Plastics, Rotopak LLC, Gulf East Paper and Plastic Industries LLC, Arabian Packaging LLC, Amber Packaging Industries LLC, Diamond Packaging Industries LLC, Corys Packaging LLC, Astrapak Ltd (RPC Group), Nampak Ltd., Mpact Pty Ltd., Bonpak (Pty) Ltd., bioplastics Egypt, Al Ahram Plastic Co.

North America was the largest region in the biodegradable plastics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biodegradable plastics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biodegradable plastics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary varieties of biodegradable plastics available include polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), polyhydroxyalkanoates (PHA), starch blends, and others. Polylactic Acid (PLA), a thermoplastic biopolymer, forms biodegradable plastic sheets, providing a foundation for manufacturing eco-friendly plastic products. Key industries utilizing biodegradable plastics include packaging, agriculture, consumer goods, and various other sectors.

The biodegradable plastics market research report is one of a series of new reports that provides biodegradable plastics market statistics, including biodegradable plastics industry global market size, regional shares, competitors with a biodegradable plastics market share, detailed biodegradable plastics market segments, market trends, and opportunities, and any further data you may need to thrive in the biodegradable plastics industry. This biodegradable plastics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The biodegradable plastics market consists of sales of biodegradable plastics, including hydro-biodegradable and oxo-biodegradable plastics. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.