The global market for Poly (Butylene Adipate-Co-Terephthalate) was estimated at US$1.7 Billion in 2024 and is projected to reach US$2.4 Billion by 2030, growing at a CAGR of 6.3% 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 Poly (Butylene Adipate-Co-Terephthalate) market.
PBAT is known for its high flexibility, excellent biodegradability, and mechanical properties similar to conventional low-density polyethylene (LDPE). This makes it an ideal material for compostable plastic bags, mulch films, food packaging, and disposable tableware. Unlike conventional plastics, PBAT decomposes under industrial composting conditions, breaking down into water, carbon dioxide, and biomass without leaving microplastic residues.
The rising global bans on non-biodegradable plastics and regulations promoting compostable alternatives have significantly accelerated PBAT adoption. Countries such as China, India, and EU nations have implemented strict policies restricting single-use plastics, driving demand for biodegradable polymers like PBAT. Additionally, corporate sustainability commitments, particularly from brands in packaging, FMCG, and agriculture, are further fueling market growth.
One of the major innovations is the development of bio-based PBAT, where manufacturers are exploring bio-derived feedstocks to replace fossil-based components. Traditionally, PBAT is synthesized from butanediol, adipic acid, and terephthalic acid, which are petrochemical derivatives. However, recent R&D efforts focus on producing PBAT using renewable biomass sources, reducing carbon footprints and fossil fuel dependency. Companies like BASF, Novamont, and SK Chemicals are investing in bio-based PBAT to cater to the rising demand for fully sustainable plastic alternatives.
Another critical advancement is the blending of PBAT with other biodegradable polymers such as Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), and Starch-based Plastics. These blends enhance PBAT’s properties, making it stronger, more heat-resistant, and cost-effective while retaining its biodegradability. The integration of nanotechnology and reinforcement fillers is further improving PBAT’s mechanical performance and processability in industrial applications.
Additionally, advancements in composting technology and enzymatic degradation studies are accelerating the commercial viability of PBAT-based materials. Research into microbial enzymatic degradation of PBAT in marine and soil environments aims to develop next-generation biodegradable plastics that break down in various natural ecosystems, addressing concerns about plastic waste pollution.
The e-commerce boom and sustainable logistics have also increased PBAT demand for compostable mailing bags, void-fill packaging, and protective films, as companies move toward eco-friendly shipping materials.
With ongoing innovations in PBAT technology, expanding industrial applications, and strong regulatory support for biodegradable plastics, the PBAT market is poised for significant expansion. As governments, businesses, and consumers accelerate the transition toward sustainable materials, PBAT will play a pivotal role in reducing plastic pollution and advancing global sustainability efforts.
Segments: Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
The report analyzes the Poly (Butylene Adipate-Co-Terephthalate) market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 44 Featured\):
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.
Global Poly (Butylene Adipate-Co-Terephthalate) (PBAT) Market - Key Trends & Drivers Summarized
Why Is PBAT Gaining Popularity in Sustainable Plastics?
Poly (Butylene Adipate-Co-Terephthalate) (PBAT) is emerging as a leading biodegradable and compostable polymer in the global shift toward sustainable plastics. As governments and industries work to reduce plastic pollution, PBAT has become a preferred alternative to traditional petroleum-based plastics, particularly in single-use packaging, agricultural films, and consumer goods.PBAT is known for its high flexibility, excellent biodegradability, and mechanical properties similar to conventional low-density polyethylene (LDPE). This makes it an ideal material for compostable plastic bags, mulch films, food packaging, and disposable tableware. Unlike conventional plastics, PBAT decomposes under industrial composting conditions, breaking down into water, carbon dioxide, and biomass without leaving microplastic residues.
The rising global bans on non-biodegradable plastics and regulations promoting compostable alternatives have significantly accelerated PBAT adoption. Countries such as China, India, and EU nations have implemented strict policies restricting single-use plastics, driving demand for biodegradable polymers like PBAT. Additionally, corporate sustainability commitments, particularly from brands in packaging, FMCG, and agriculture, are further fueling market growth.
How Are Innovations in PBAT Production Improving Market Potential?
Technological advancements in PBAT synthesis, copolymerization techniques, and material engineering are expanding its applications and enhancing cost efficiency, mechanical strength, and biodegradation performance.One of the major innovations is the development of bio-based PBAT, where manufacturers are exploring bio-derived feedstocks to replace fossil-based components. Traditionally, PBAT is synthesized from butanediol, adipic acid, and terephthalic acid, which are petrochemical derivatives. However, recent R&D efforts focus on producing PBAT using renewable biomass sources, reducing carbon footprints and fossil fuel dependency. Companies like BASF, Novamont, and SK Chemicals are investing in bio-based PBAT to cater to the rising demand for fully sustainable plastic alternatives.
Another critical advancement is the blending of PBAT with other biodegradable polymers such as Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), and Starch-based Plastics. These blends enhance PBAT’s properties, making it stronger, more heat-resistant, and cost-effective while retaining its biodegradability. The integration of nanotechnology and reinforcement fillers is further improving PBAT’s mechanical performance and processability in industrial applications.
Additionally, advancements in composting technology and enzymatic degradation studies are accelerating the commercial viability of PBAT-based materials. Research into microbial enzymatic degradation of PBAT in marine and soil environments aims to develop next-generation biodegradable plastics that break down in various natural ecosystems, addressing concerns about plastic waste pollution.
Why Is Demand for PBAT Rising Across Key Industries?
The demand for PBAT is experiencing rapid growth across packaging, agriculture, medical, and consumer goods sectors, driven by environmental regulations and increasing sustainability commitments.- Packaging Industry: PBAT is widely used in biodegradable shopping bags, compostable food packaging, and single-use cutlery. Leading retailers and brands, including Unilever, Nestlé, and Coca-Cola, are replacing conventional plastics with PBAT-based flexible films and bioplastic alternatives to align with their net-zero and circular economy goals.
- Agriculture Sector: PBAT is a key material in mulch films, seed coatings, and controlled-release fertilizers. Unlike traditional polyethylene mulch films, which contribute to soil contamination and microplastic accumulation, PBAT-based films degrade naturally in soil, reducing environmental impact. Countries like China and India, where agricultural plastic waste is a major issue, are actively promoting biodegradable mulch films, driving PBAT adoption.
- Medical & Healthcare: The medical sector is increasingly using PBAT for biodegradable drug delivery systems, compostable surgical tools, and eco-friendly packaging for medical disposables. Given the rising concerns about plastic waste in hospitals, PBAT-based medical products offer a sustainable alternative to conventional non-recyclable plastics.
- Consumer Goods: PBAT is being used in biodegradable diapers, wipes, hygiene products, and 3D printing filaments. The growing awareness of eco-friendly personal care products and green consumer trends has driven demand for PBAT-based materials in the hygiene and fashion industries.
The e-commerce boom and sustainable logistics have also increased PBAT demand for compostable mailing bags, void-fill packaging, and protective films, as companies move toward eco-friendly shipping materials.
What Factors Are Driving the Growth of the PBAT Market?
The growth in the PBAT market is driven by stringent environmental regulations, increasing corporate sustainability initiatives, technological advancements, and consumer demand for eco-friendly alternatives.- Government Regulations on Single-Use Plastics: Bans and restrictions on non-biodegradable plastics in regions like the EU, China, India, and the U.S. are pushing industries to shift to PBAT-based alternatives. The EU’s Single-Use Plastics Directive (SUPD) and China’s plastic restriction policies are among the key regulatory drivers.
- Corporate Sustainability Commitments: Global brands are integrating PBAT into their sustainable packaging strategies to meet ESG (Environmental, Social, and Governance) goals. Companies are investing in compostable bioplastics to replace traditional polyethylene and polypropylene packaging.
- Advancements in Biopolymer Manufacturing: Innovations in cost-effective PBAT synthesis, bio-based raw materials, and enhanced processing techniques are making PBAT more competitive with conventional plastics. Increased investments in bioplastic refineries and large-scale PBAT production plants are reducing costs and improving market scalability.
- Rising Consumer Preference for Green Products: Consumers are increasingly choosing eco-friendly, biodegradable products, leading to higher demand for PBAT in food packaging, personal care, and consumer goods. The shift toward circular economy practices and compostable packaging solutions is further driving market expansion.
- Partnerships & Industry Collaborations: Companies are forming strategic partnerships to expand PBAT production capacity and develop next-generation biodegradable materials. Collaborations between chemical manufacturers, packaging companies, and recycling firms are fostering PBAT market growth.
With ongoing innovations in PBAT technology, expanding industrial applications, and strong regulatory support for biodegradable plastics, the PBAT market is poised for significant expansion. As governments, businesses, and consumers accelerate the transition toward sustainable materials, PBAT will play a pivotal role in reducing plastic pollution and advancing global sustainability efforts.
Report Scope
The report analyzes the Poly (Butylene Adipate-Co-Terephthalate) market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Extrusion Grade segment, which is expected to reach US$1.4 Billion by 2030 with a CAGR of a 5.5%. The Thermoforming Grade segment is also set to grow at 7.2% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $460.6 Million in 2024, and China, forecasted to grow at an impressive 9.7% CAGR to reach $494.6 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Poly (Butylene Adipate-Co-Terephthalate) Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Poly (Butylene Adipate-Co-Terephthalate) Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Poly (Butylene Adipate-Co-Terephthalate) Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ 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 Packaging Industry: PBAT is widely used in biodegradable shopping bags, compostable food packaging, and single-use cutlery. Leading retailers and brands, including Unilever, Nestlé, and Coca-Cola, are replacing conventional plastics with PBAT-based flexible films and bioplastic alternatives to align with their net-zero and circular economy goals.
- Agriculture Sector: PBAT is a key material in mulch films, seed coatings, and controlled-release fertilizers. Unlike traditional polyethylene mulch films, which contribute to soil contamination and microplastic accumulation, PBAT-based films degrade naturally in soil, reducing environmental impact. Countries like China and India, where agricultural plastic waste is a major issue, are actively promoting biodegradable mulch films, driving PBAT adoption.
- Medical & Healthcare: The medical sector is increasingly using PBAT for biodegradable drug delivery systems, compostable surgical tools, and eco-friendly packaging for medical disposables. Given the rising concerns about plastic waste in hospitals, PBAT-based medical products offer a sustainable alternative to conventional non-recyclable plastics.
- Consumer Goods: PBAT is being used in biodegradable diapers, wipes, hygiene products, and 3D printing filaments. The growing awareness of eco-friendly personal care products and green consumer trends has driven demand for PBAT-based materials in the hygiene and fashion industries.
The e-commerce boom and sustainable logistics have also increased PBAT demand for compostable mailing bags, void-fill packaging, and protective films, as companies move toward eco-friendly shipping materials.
What Factors Are Driving the Growth of the PBAT Market?
The growth in the PBAT market is driven by stringent environmental regulations, increasing corporate sustainability initiatives, technological advancements, and consumer demand for eco-friendly alternatives.
- Government Regulations on Single-Use Plastics: Bans and restrictions on non-biodegradable plastics in regions like the EU, China, India, and the U.S. are pushing industries to shift to PBAT-based alternatives. The EU’s Single-Use Plastics Directive (SUPD) and China’s plastic restriction policies are among the key regulatory drivers.
- Corporate Sustainability Commitments: Global brands are integrating PBAT into their sustainable packaging strategies to meet ESG (Environmental, Social, and Governance) goals. Companies are investing in compostable bioplastics to replace traditional polyethylene and polypropylene packaging.
- Advancements in Biopolymer Manufacturing: Innovations in cost-effective PBAT synthesis, bio-based raw materials, and enhanced processing techniques are making PBAT more competitive with conventional plastics. Increased investments in bioplastic refineries and large-scale PBAT production plants are reducing costs and improving market scalability.
- Rising Consumer Preference for Green Products: Consumers are increasingly choosing eco-friendly, biodegradable products, leading to higher demand for PBAT in food packaging, personal care, and consumer goods. The shift toward circular economy practices and compostable packaging solutions is further driving market expansion.
- Partnerships & Industry Collaborations: Companies are forming strategic partnerships to expand PBAT production capacity and develop next-generation biodegradable materials. Collaborations between chemical manufacturers, packaging companies, and recycling firms are fostering PBAT market growth.
With ongoing innovations in PBAT technology, expanding industrial applications, and strong regulatory support for biodegradable plastics, the PBAT market is poised for significant expansion. As governments, businesses, and consumers accelerate the transition toward sustainable materials, PBAT will play a pivotal role in reducing plastic pollution and advancing global sustainability efforts.
SCOPE OF STUDY:
The report analyzes the Poly (Butylene Adipate-Co-Terephthalate) market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Grade (Extrusion Grade, Thermoforming Grade, Other Grades); Application (Composite Bags, Bin Bags, Mulch Films, Cling Films, Stabilizers); End-Use (Packaging, Agriculture, Bio-medical, Others)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 44 Featured\):
- Anhui Jumei Biotechnology Co., Ltd., BASF SE, Chang Chun Group, Cheer Young, Dawn Group and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 44 Featured):
- Anhui Jumei Biotechnology Co., Ltd.
- BASF SE
- Chang Chun Group
- Cheer Young
- Dawn Group
- Eastman Chemical Company
- Far Eastern New Century Corporation
- Go Yen Chemical Industrial Co., Ltd.
- Hangzhou Peijin Chemical Co., Ltd.
- Jiangsu Torise Biomaterials Co., Ltd.
- Jinhui Zhaolong High Technology Co., Ltd.
- Kingfa Sci. & Tech. Co., Ltd.
- Lotte Fine Chemical Co., Ltd.
- Mitsui Plastics, Inc.
- Novamont S.p.A
- Polyrocks Chemical Co., Ltd.
- Sinochem Donghua Tianye New Materials Co.
- SK Chemicals
- Zhejiang Biodegradable Advanced Material Co.
- Zhuhai Wango Chemical Co., Ltd.
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
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Anhui Jumei Biotechnology Co., Ltd.
- BASF SE
- Chang Chun Group
- Cheer Young
- Dawn Group
- Eastman Chemical Company
- Far Eastern New Century Corporation
- Go Yen Chemical Industrial Co., Ltd.
- Hangzhou Peijin Chemical Co., Ltd.
- Jiangsu Torise Biomaterials Co., Ltd.
- Jinhui Zhaolong High Technology Co., Ltd.
- Kingfa Sci. & Tech. Co., Ltd.
- Lotte Fine Chemical Co., Ltd.
- Mitsui Plastics, Inc.
- Novamont S.p.A
- Polyrocks Chemical Co., Ltd.
- Sinochem Donghua Tianye New Materials Co.
- SK Chemicals
- Zhejiang Biodegradable Advanced Material Co.
- Zhuhai Wango Chemical Co., Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 74 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 1.7 Billion |
| Forecasted Market Value ( USD | $ 2.4 Billion |
| Compound Annual Growth Rate | 6.3% |
| Regions Covered | Global |
