Biodegradable Plastics Market Report 2026

The biodegradable plastics market size has grown rapidly in recent years. It will grow from $7.89 billion in 2025 to $9.28 billion in 2026 at a compound annual growth rate (CAGR) of 17.6%. The growth in the historic period can be attributed to increasing environmental awareness, expansion of organic waste management programs, growth of food packaging applications, rising restrictions on single-use plastics, availability of biodegradable polymer technologies.

The biodegradable plastics market size is expected to see rapid growth in the next few years. It will grow to $17.3 billion in 2030 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to increasing government support for sustainable materials, rising demand for eco-friendly packaging, expansion of biodegradable plastics in emerging markets, growing investments in biopolymer innovation, increasing adoption across consumer goods industries. Major trends in the forecast period include increasing adoption of compostable packaging materials, rising use in agricultural applications, growing demand for sustainable consumer goods, expansion of bio-based polymer blends, enhanced focus on regulatory compliance and waste reduction.

The increasing consumer demand for sustainable products is anticipated to drive the growth of the biodegradable plastics market in the future. Sustainable products are defined as goods that are designed, produced, and utilized in a manner that minimizes their environmental impact, conserves resources, and fosters social responsibility throughout their lifecycle - from sourcing to disposal. This rising consumer demand for sustainable options stems from heightened awareness of environmental issues, ethical concerns, and a desire to lessen carbon footprints while supporting eco-friendly practices. Biodegradable plastics serve as sustainable products because they decompose naturally, reducing environmental pollution and lessening the strain on landfills and ecosystems. For example, in April 2024, a survey conducted by PDI Technologies, a US-based software development company, with 1,200 US consumers indicated that the percentage of consumers willing to pay a premium for sustainable products increased from 68% in 2023 to 80% in 2024. Thus, the growing demand for sustainable products is expected to fuel the biodegradable plastics market.

Major companies in the biodegradable plastics market are concentrating on developing innovative solutions, such as production conversion technology, to improve the efficiency and quality of biodegradable plastics. This production conversion technology allows traditional plastic manufacturing systems to efficiently create eco-friendly, compostable alternatives without the need for significant equipment overhauls. For example, in December 2023, Sulzer, a US-based engineering and manufacturing company, introduced SULAC Technology, a groundbreaking process for converting lactic acid into lactide, which is a crucial precursor for the production of polylactic acid (PLA), a type of biodegradable plastic. This technology enhances both the efficiency and quality of lactide production, enabling PLA manufacturers to incorporate new capabilities into their processes. By facilitating the production of sustainable bioplastics, SULAC Technology aligns with global sustainability objectives and the growing demand for eco-friendly materials, thereby reinforcing Sulzer's leadership in the bioplastics sector.

In October 2023, Versalis SpA, an Italy-based chemical company, acquired Novamont for an undisclosed sum. The purpose of this acquisition is to strengthen Versalis's renewable chemistry strategy by merging the portfolios of both companies. This integration utilizes unique technology platforms and broadens a low-carbon product portfolio, aligning with Versalis's objectives to promote sustainable bioplastics and assist Eni in its energy transition journey. Novamont is an Italy-based manufacturer of biodegradable bioplastics.

Major companies operating in the biodegradable plastics market are NatureWorks LLC, BASF SE, TotalEnergies Corbion, Novamont S.p.A., Mitsubishi Chemical Corporation, Danimer Scientific, Kaneka Corporation, Toray Industries, Inc., SK Chemicals Co., Ltd., Avantium N.V., Braskem S.A., PTT MCC Biochem Company Limited, Zhejiang Hisun Biomaterials Co., Ltd., Anhui BBCA Biochemical Co., Ltd., Kingfa Sci & Tech Co., Ltd., TianAn Biologic Materials Co., Ltd., CJ Biomaterials, Inc., Futerro S.A., Biome Bioplastics Limited, Plantic Technologies Limited.

North America was the largest region in the biodegradable plastics market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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