Polybutylene Adipate Terephthalate (PBAT) Market Report and Forecast 2025-2034

The global polybutylene adipate terephthalate (PBAT) market size attained a value of 407.22 KMT in 2024. The market is expected to grow at a CAGR of 13.70% between 2025 and 2034, reaching almost 1470.39 KMT by 2034.

Polybutylene adipate terephthalate (PBAT) is a notable biodegradable and compostable polymer, garnering attention for its eco-friendly characteristics and wide-ranging applications. Derived from butylene glycol, adipic acid, and terephthalic acid, PBAT offers exceptional biodegradability and mechanical strength, making it a viable substitute for traditional plastics. Its compostable properties enable decomposition into natural elements, diminishing environmental harm.

As per the global polybutylene adipate terephthalate (PBAT) market, it serves various sectors, including packaging, agriculture, and disposables, aligning with global sustainability. Its versatility, eco-friendliness, and functional properties position PBAT as a promising contender in the pursuit of greener materials.

Global plastic trade involves various plastic products, from toys to electronics, and raw materials like fossil fuels, including waste shipment. UN states that 75% of plastic produced since 1950 becomes waste. This boosts the demand for PBAT for its eco-friendly features.

GLOBAL EXPORTS OF PLASTICS OR GOODS MADE FROM PLASTIC FROM 2005 TO 2021, IN MILLION METRIC TONS

Key Trends and Developments

The global polybutylene adipate terephthalate (PBAT) market growth is driven by end-user demand, diverse positive attributes, cost-effectiveness, and government initiatives.

October 2023

The pioneering ecoflex polybutylene adipate terephthalate (PBAT) by BASF celebrated its 25th anniversary, having been launched to the market in 1998 as the world's initial biodegradable, compostable polymer.

September 2023

SKC intended to establish the world's largest biodegradable plant in Vietnam, having secured an investment certificate, with an annual target of 70,000 tons of PBAT production.

July 2023

Fujian Zhongjing Petrochemical Group is building a plant capable of producing 600,000 tons annually of biodegradable PBAT for compostable packaging.

June 2023

Wanhua Chemical is advancing a green industrial chain, introduced Waneco® PBAT/PLA degradable solution, broadening its applications in various sectors to reduce carbon footprint.

End User Demand

The rising acceptance of polybutylene adipate terephthalate (PBAT) in various industries such as packaging, agriculture, medical research, and consumer goods is projected to fuel polybutylene adipate terephthalate (PBAT) market development. PBAT's adaptability extends to consumer goods, athletic equipment, coatings, electronics, and beyond.

Diverse Positive Attributes

PBAT boasts various benefits such as high melting points, flexibility, and adaptability for blending with other biodegradable polymers. Rising awareness of waste disposal and the increasing adoption of biodegradable products are fuelling the growth of the PBAT market.

Cost-Effectiveness

Recent technological advancements have enhanced both the properties and cost-effectiveness of PBAT through ongoing research and development efforts. Improved polymer blending and compounding techniques have led to enhanced performance and processability, expanding PBAT's application potential and market acceptance.

Government Initiatives

Governments worldwide are implementing stringent regulations to reduce plastic waste and promote biodegradable materials, thereby impacting the polybutylene adipate terephthalate (PBAT) market outlook. Measures such as banning single-use plastics and promoting compostable packaging create a favourable market environment for PBAT and other biodegradable polymers, aligning with efforts to enhance sustainability in various industries.

Global Polybutylene Adipate Terephthalate (PBAT) Market Trends

The global rise of the circular economy aims to reduce waste by encouraging material reuse and recycling. PBAT, compostable and recyclable, aligns with this approach, reducing reliance on fossil fuel-derived plastics for a more sustainable resource economy.

The packaging sector is a major user of PBAT, driven by the rising demand for eco-friendly packaging solutions. PBAT's biodegradability and composability meet this demand, making it ideal for various packaging needs, including food, disposable bags, and films.

Market Segmentation

Global Polybutylene Adipate Terephthalate (PBAT) Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology

• Extrusion
• Injection

Market Breakup by Application

• Flexible Packaging (Plastics Bags)
• Films
• Coating
• Others

Market Breakup by Distribution Channels

• Direct
• Indirect

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

The extrusion technology is propelling the polybutylene adipate terephthalate (PBAT) market growth

PBAT's transparent and biodegradable properties make it suitable for injection and extrusion processes. Injection moulding compresses polymer granules under high pressure and heat to create the desired shape. Extrusion moulding deforms material under pressure and passes it through a die to shape it.

Based on application, the global polybutylene adipate terephthalate (PBAT) market share is led by flexible packaging

The flexible packaging sector is experiencing notable growth because PBAT offers a lower carbon footprint compared to petroleum-based alternatives. Furthermore, the expanding fast-food industry is driving demand for biodegradable plastic bags.

Similarly, the film sector is growing steadily, spurred by environmental concerns and government efforts to reduce soil pollutants. PBAT coatings are employed to waterproof object surfaces.

Global Polybutylene Adipate Terephthalate (PBAT) Market Analysis by Region

Asia Pacific, particularly China and India, represents the largest and fastest-growing economies within polybutylene adipate terephthalate (PBAT) market. Factors such as industrialisation, urbanisation, and environmental awareness drive the adoption of eco-friendly materials like PBAT.

According to the Packaging Industry Association of India (PIAI), the packaging sector is experiencing rapid growth in India, expanding at a rate of 22-25% annually, making the country an increasingly favoured destination for the packaging industry and driving the growth of the PBAT market.

INDIA PACKAGING MARKET GROWTH, 2023, IN

Moreover, industry expansion is observed in regions like North America and Europe due to heightened awareness of plastic pollution and the availability of sustainable alternatives.

Competitive Landscape

The companies are building several plants to produce huge amounts of PBAT to stay ahead in the market.

BASF SE

BASF SE was established in 1865 and based in Germany, is a leading European multinational corporation and the world's foremost chemical manufacturer. Its operations span six segments, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions, with a primary emphasis on sustainability, innovation, and digitization.

Reliance Industries Ltd

Reliance Industries Ltd was founded in 1957 and is based in India. From the exploration and extraction of oil and gas to the production of petroleum derivatives, polyester goods, plastics, chemicals, synthetic textiles, and fabrics.

LG CHEM Ltd

LG CHEM Ltd, founded in 1947 and headquartered in South Korea, is a key player in the global automotive industry, supplying batteries for electric and hybrid vehicles to numerous automakers across the United States, Europe, and China. Additionally, LG Chem collaborates on battery development initiatives and also specializes in electronic components such as polarizers for liquid crystal display panels.

An Phat Holdings

An Phat Holdings, established in 2002, is a Vietnamese firm specialising in the plastics sector, providing services such as research, manufacturing, and advancement of biodegradable and eco-conscious materials and goods.

Other global polybutylene adipate terephthalate (PBAT) market key players are Xinjiang Blue Ridge Tunhe Sci.&Tech. Co., Ltd, Henan Longdu Torise Biomaterials Co., Ltd, Ningbo Changhong Polymer Scientific and Technical Inc., SKC, and GYC Group, among others.