Bioplastics Market

SKU: DMMA436 | Last Updated On: Sep 15 2022 | Available Formats

> Global Bioplastics Market Expected to reach a high CAGR By 2029: DataM Intelligence

Bioplastics Market By Product (UR (Polyurethanes), PET (Polyethylene terephthalate) PE (Polyethylene), PA (Polyamides), Starch Blends, PLA (Polylactic Acid), Others (PBS, PEF, and PBAT), By  Application(Packaging (Flexible & Rigid), Consumer goods, Automotive )and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029.

Bioplastics Market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 29.5% during the forecast period (2022-2029).

Bioplastics Market Scope

Metrics

Details

Market CAGR

29.5%

Segments Covered

By Type, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Bioplastic is a sustainable material extracted from renewable feedstocks and is an excellent alternative to petroleum-based plastics. It can lower carbon dioxide emissions by 30% to 70%. It translates to a 42% reduction in carbon footprints. Bioplastic uses 65% less energy to manufacture than regular petroleum plastic. 

Companies focus on improving and consolidating R&D operations, boosting manufacturing capacity in the global bioplastics market. Bioplastic has become increasingly popular in various applications because of its outstanding technical qualities and capabilities. Due to favorable legislation adopted by multiple governments globally, the demand for bioplastics has exploded in various plastic applications. 

Market Dynamics

The bioplastics market is driven by the growing shift towards eco-friendly and energy-efficient packaging methods and a ban on single-use plastic. However, the high production cost of bioplastics will negatively impact the market.

Growing shift toward eco-friendly and energy-efficient packaging methods 

Environmental friendliness, high consumer acceptance of bio-based products, regulatory support for biodegradable packaging materials and readily available renewable raw material sources for bioplastics manufacturing are some key characteristics that have influenced consumers' shift toward bioplastics.

Bioplastic manufacturing uses 65% less energy than traditional plastic production, making it an energy-efficient process. Bioplastics disintegrate swiftly and with little toxicity. As a result, they have no impact on the environment or the soil. Furthermore, bioplastic emits little greenhouse gas throughout the decomposition process and has a carbon footprint reduction of 42%.

Therefore, due to bioplastics' excellent technical features and capabilities over conventional packaging methods, leading corporations such as Coca-Cola, Nestle, Nike and Ford are interested in manufacturing. The use of bioplastic materials in various applications has escalated the market's popularity in various developing regions.

Ban on single-use plastic to augment the market growth

Several major countries' ban on single-use plastic has generated a great demand for alternative materials. Bioplastic has become one of the most promising solutions to overcome the rising demand for raw materials from different industries. To curb the spread of plastic waste, the European Parliament issued a rule in 2019. The 'Single-Use Plastics Directive,' passed on July 3, 2021, proposes to ban ten of the most prevalent plastic kinds seen on European beaches by 2021 and cut the number of plastic cups and containers drastically by the end of 2028. 

As a result, it is part of the EU Plastics Strategy, which aims to make all plastic packaging recyclable by 2030, guaranteeing that plastic products are recycled and developed with pollution control in mind. Furthermore, in countries like India, China, Thailand and New York, Rawada has already banned single-use plastic and has shifted to other materials, including bioplastics. In contrast, many other countries plan to implement their shift in the forecast period. 

High costs of production

Two key challenges that will hamper the growth of the bioplastics market during the projected period are the high final cost of bioplastic products and their limited performance compared to petroleum plastics. Compared to conventional petroleum plastics, bioplastics cost more than twice as much. The high cost of R&D, the high cost of polymer plant construction, the high cost of raw materials and the small production scale are all contributing factors. The price of standard PET resin on the market is US$ 2.1 per Kg, while Bio-PET resin costs US$ 2.3 per Kg. Reduced manufacturing costs will lower the final cost of bioplastic packaging, resulting in increased bioplastic market growth over the forecast period.

Furthermore, Because of the complicated process necessary to transform corn or sugarcane into the building blocks for PLA, PLA can be 20 to 50 percent more expensive than equivalent materials. However, as researchers and businesses create more efficient and environmentally acceptable techniques for creating bioplastics, prices are expected to fall in the forecast period. Bioplastics' market share is currently in its infancy, accounting for only one percent of the global plastics market. There is a long way to go in normalizing bioplastics, which acts as a major driving factor in the expensive behavior of bioplastics.

COVID-19 Impact Analysis

The COVID-19 pandemic has been a public health concern since December 2019. Several countries have placed harsh economic restrictions. Over one-third of the world's total population is quarantined during this pandemic. The outbreak has strained various businesses, including hospitals, data centers, communication and the food supply chain. Out of various industries, bioplastic has also seen ups and down's across the globe. Due to the quick spread of the pandemic, no new plastic bags, including biodegradable bags, were used. 

To prevent further spread, customers are bringing their old fabric and plastic bags and retail businesses and small stores are not issuing new plastic bags. Thus reducing the market demand and hence market share for bioplastics during COVID-19. Furthermore, Before the outbreak of COVID-19, several major corporations, including Danone, Coca-Cola and Nestlé, pledged to use biodegradable plastics in response to consumer and activist pressure. However, following the COVID-19 pandemic, governments globally changed their disposable and single-use plastics rules to prevent the virus from spreading further. For instance, Maine has postponed its ban on plastic bags until January 2021, negatively influencing industry growth.

Segment Analysis

By Type, the bioplastics market is segmented into biodegradable and bio-based.

PBAT to drive the biodegradable segment’s growth

Biodegradable plastics are defined as plastics that decompose through biological actions under the influence of environmental variables such as temperature, location, substance and application. The biodegradability of polymers is determined by their molecular weight, shape and crystallinity. Biodegradable plastics mostly include PBAT, PBS, PLA, PHA, starch blends, cellulose films and others. The demand for the respective products is expected to explode by 2026, with PBAT dominating the sector due to the stringent rules imposed by various governments and federal agencies to reduce plastic waste and promote biodegradable plastics in packaging.

Further, food packaging, plates and cutlery are a big market for the respective products since they can be composted with food waste without being separated. It greatly benefits waste management and minimizes food waste and package disposal in landfills. Increasing regulations and customer demands motivate retailers and manufacturers to search and opt for biodegradable items and materials.

Geographical Analysis

The rise in energy consumption in Asia-Pacific

Asia-Pacific is a rapidly industrializing region experiencing strong economic growth over the last three decades. Due to the concentration of manufacturing industries, it has become known as the world's factory. Strong economic growth has increased disposable incomes and led to the emergence of a large middle-class population. It has, in turn, led to increasing demand for modern conveniences such as consumer electronics, automobiles, fast food and digital services. 

The explosive growth in consumer demand has led to capacity expansion, increased production in various industrial sectors and increased demand for packaging materials. Plastic is a widely used packaging material due to its durability and low cost. Asia-Pacific has become the largest e-commerce market. Although the e-commerce market is not as mature as that of developed regions like South America, it generates humungous volumes due to rapid growth and the large population of India and China. It is one of the principal drivers of demand for plastic packaging materials.

Competitive Landscape 

The global bioplastics market is highly competitive with several international and local markets. Product diversification, revenue generation and opportunities intensify the market competition. For instance, BASF SE and Red Avenue New Materials Group inked a partnership agreement on May 28, 2020, granting Red Avenue New Materials Group the license to develop and market certified compostable aliphatic-aromatic co-polyester (PBAT) following high BASF quality requirements.

Major global bioplastics market companies include Biotec, Arkema SA, Trinseo PLC, Braskem, Corbion N.V, Danimer Scientific, Minima, NatureWorks LLC, Novamont S.p.A. and Sukano.

Trinseo PLC 

Overview: Trinseo PLC is a global materials company and manufacturer of plastics and latex binders, focusing on delivering innovative and value-creating products that are intrinsic to daily lives. The company's products are incorporated into a wide range of customer products globally, including automotive applications, consumer electronics, medical devices, packaging, building & construction, appliances, footwear, carpet, paper & board and wellness. Trinseo owns and operates 67 production units at 26 sites globally. In addition, the company source products from 14 production units at 7 joint venture sites. In 2017, Trinseo completed the acquisition of API Applicazioni Plastiche Industriali S.p.A, an Italian company specializing in the production of bioplastics. 

Product Portfolio: The company provides bioplastics under four main brands, i.e., APILON 52 BIO grades, APIGO BIO, APINAT BIO Biodegradable TPC Compounds and MEGOL BIO Bio-based TPS-SEBS Compounds.

Key Development: In May 2021, BASF SE and Trinseo announced the intention to expand their businesses by producing styrene-based circular feedstock.

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