Bioplastics Market Segmentation By Product Type - Bio-Degradable [PBAT, PHA, Biodegradable Starch Blend, PLA,PBST] | Non-Biodegradable [Bio PE, Bio-PET, Bio PA, Polytrimethylene Terephthalate, PEF]
Industry: Chemicals and Materials
Published Date: December-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 275
Report ID: PMRREP33239
Persistence Market Research estimates the global bioplastics market at US$ 8.98 Bn for 2022. Sales of bio-based plastics are expected to increase at a CAGR of 11.3% and top a market valuation of US$ 26.2 Bn by the end of 2032. Demand for bio-based plastics is predominantly influenced by sustainability development, macroeconomic trends, and a strong focus on innovation.
Substantial growth in the demand for petroleum-based conventional plastic in the past decades has provided a foundation for the growth of bio-based plastic demand. With the global consumption of 372 million tons of plastics, bio-based plastic is witnessing substantial demand growth owing to the rising trend of sustainability. Bioplastic consumption is expected to account for around 0.7% share of the overall demand for plastic.
The East Asia region is expected to remain a key market owing to significant plastic consumption and substantial growth of key end-use industries. Government initiatives and sustainability goals will add on to market growth over the forecast period.
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Bioplastics Market Size (2021A) |
US$ 8.1 Bn |
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Market Estimation (2022E) |
US$ 8.98 Bn |
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Market Projection (2032F) |
US$ 26.2 Bn |
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Value CAGR (2022-2032) |
11.3% |
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Collective Value Share: Top 3 Countries (2022E) |
42.9% |
Worldwide demand for bio-based plastic increased at 5.3% CAGR over the past four years. Demand during the forecast period is estimated to surge at around 11.3% CAGR in terms of value. Low growth during the historical period is due to the pandemic crisis, which has resulted in negative growth for the market in 2020.
Year-over-year growth for the decade is set at double digits owing to significant adoption by key end users, rise in production volumes, decrease in pricing, and rising focus on a circular economy.
With the rise of hazardous waste of plastic materials all over the world, governments along with market participants are focusing on reducing plastic pile-ups in landfills, and utilizing bio-based plastics will reduce landfill issues as these plastics are decomposable. Further rise in the trend of a greener environment and using green chemicals and materials, along with green technology adoption by end-use industries will remain a key trend in the market during the forecast period.
Plastics are widely used for packaging, automotive, etc., due to their high molding ability and lightweight features. High consumption of conventional plastics creates disposal issues. As a result, governments are concerned about sustainability and are therefore taking initiatives.
Governments are promoting bioplastics that will reduce carbon footprint. Bioplastics have competitive features that can easily replace normal plastics. Bioplastic materials, when used for packaging, keep products safe, have barrier properties & mechanical strength, and can stay proper under changing climatic conditions as well.
All these features make bioplastics the preferred material for packaging product manufacturers. Also, bioplastics are biodegradable and recyclable and can thus reduce greenhouse emissions. Bioplastics also require fewer resources such as land and water. Policy makers are viewing bioplastics as an evolutionary material that has great scope for reducing waste.
Consumers in various regions, especially emerging economies, are focusing on cheap products over costlier ones as per-person spending is lower as compared to developed regions. Bioplastics are costlier due to the production cost of resins. As plastic packaging machinery is incompatible with bioplastics, there is a requirement for advanced machinery. The processing and labor cost of bioplastic package products is comparatively higher than regular plastic.
All these costs increase the overall cost of the packaging product. Bioplastic-packed products face high on-shelf competition from conventional plastic-packed products. Urban consumers that are well aware of the rising landfilling issues are preferring eco-friendly products such as jute bags, plates made from banana leaves, and bamboo furniture. In a country like India, bioplastic packaging still faces low adoption issues.
Thailand is becoming a hub for producing bioplastic resins. Thailand is a major exporter of cassava and accounts for the high production of sugarcane. Cassava and sugarcane are the raw materials required for the production of bioplastic resins.
Ethanol extracted from sugarcane is the major product used for the production of bioplastics. As bioplastic resins are costlier than plastic resins and an extra cost is included with importing, packaging manufacturers are emphasizing cheaper materials. As such, the Thailand government is supporting bioplastic resin manufacturers by providing incentives through exemptions from taxes.
Bioplastic resin production requires advanced manufacturing techniques as well as costly machines. Thailand was ranked 2nd for exporting plastics by the ASEAN International Trade Center. The country has great scope to develop bioplastic resins. Bioplastic packaging manufacturers here get raw materials at a lower cost compared to regions such as Europe and North America.
What is the Growth Outlook for Bioplastics in Germany?
Europe remains one of the key markets for bioplastics with a rise in investments for the expansion of the market and high focus on sustainable development. With the presence of prominent market participants and government and public initiatives for alternative products of conventional plastics, Germany will remain a prominent market in Europe and is expected to create around US$ 1.13 Bn of incremental business opportunities in the market.
Emergence of new players along with new product types will propel the market growth outlook for the decade. Germany was one of the early adopters of bioplastics; increasingly over the years, the German government has introduced stringent regulations advocating the use of bioplastics. These regulations ensure the reduction of waste landfill areas, ban on single-use shopping bags, and other various eco-friendly benefits.
What is the Supply Outlook for Bioplastics in the ASEAN Region?
Regulations related to the use of plastics in the ASEAN region are diverse. However, the challenges related to technology are holding back governmental initiatives in these countries, and governments are slightly reluctant to enforce the use of high-priced alternative materials. Thailand is expected to emerge as a leading feedstock producer in the ASEAN bioplastics market.
With the availability of the agricultural source for the production of bio-based plastics in ASEAN countries, significant investments by overseas players are expected in these countries, which will make ASEAN a key supplier of bioplastics all over the globe. The ASEAN market is expected to witness a high CAGR of 12.4% over the forecast period.
Why is Demand for Biodegradable Plastics Rising Rapidly?
Biodegradable plastic is expected to gain significant market share over the forecast period and remain a key product type. The segment is expected to gain around 150 BPS by the end of 2032 and gain more traction from suppliers as well as end consumers.
Biodegradable plastics are decomposable, whereas, non-biodegradable plastics are not decomposable, which is making them a suitable choice for various applications owing to the high focus on sustainability.
With an increase in the production of various types of biodegradable plastics, the segment will witness substantial growth over the coming years.
Will the Surging Packaging Industry Benefit Suppliers of Bioplastics?
Plastics are significantly used in the packaging industry; one-third demand for conventional plastics comes from the packaging sector. However, around 50% of bioplastic consumption is seen in the packaging sector. As global demand for food, beverage, personal care, and other product packaging gains traction, bioplastic consumption in the packaging industry is also witnessing a significant rise.
Owing to the flexible nature of bioplastics, key end users in the packaging industry are adopting bio-based plastics for their applications. Further, the rise in government regulations on petroleum-based conventional plastic applications in the packaging industry is driving the adoption of bioplastics.
Key market participants are investing a significant amount in R&D for the development of bio-based plastics, covering a wide range of applications. Market players are focusing on increasing their product offerings to cater to the growing demand from key end-use industries.
Industry players are also investing in the expansion of their production capacity and geographical presence to enhance their market share. Companies are also focusing on reducing the production cost of bioplastics to increase their market penetration across regions.
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Details |
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Forecast Period |
2022-2032 |
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Historical Data Available for |
2017-2021 |
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Market Analysis |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available Upon Request |
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The global bioplastics market is estimated at US$ 8.98 Bn in 2022 and is expected to reach US$ 26.2 Bn by 2032.
Bioplastic demand is anticipated to surge at 11.3% CAGR from 2022 to 2032 in terms of value.
BASF SE, Braskem, Mitsubishi Chemical Corporation, Evonik Industries AG, and Corbion are key manufacturers of bioplastics, accounting for 48% market share.
China, the U.S., Germany, South Korea, and Japan lead the consumption of bioplastics.
The market in North America is predicted to expand at a CAGR of 10.3% through 2032.
Germany accounts for 24.6% share of the European market.
China, the U.S., Germany, and Japan are the largest producers and exporters of bioplastics.
China accounts for 21% share of the global market for bioplastics.
