The Global PBSA market is Segmented By Application(Bags, Ropes, Fibers, Bottles, Others), By End-User(Food &Beverages, Textile, Retail, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Share, Size, Demand Insights
The Global "PBSA market" size is estimated to reach at a high CAGR 10.5% during the forecast period 2024-2031.
Market Scope and Summary
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Metrics |
Details |
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Market CAGR |
10.5% |
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Segments Covered |
By Application, By End-User, and By Region |
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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 vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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PBSA or Polybutylene Succinate-Co-Adipate is a polymeric, biodegradable resin that finds applications in various packing and retail products such as bags, bottles, and others. The manufacture of PBSA (PBSA) involves the condensation of succinic acid as well as adipic acid with 1-4-butanediol. PBSA is a semi-crystalline polyester semi-crystalline polyester and is extremely biodegradable as the raw materials used could be easily obtained from renewable feedstock without utilizing plasticizers.
The mechanical properties of PBSA are desirable as its service temperature. As a result, it widely replaces biopolymers such as polylactic acid (PLA), PBAT, and PBH., among others. Because of its extreme flexibility, it is used in food packaging, mulch film, and fishing nets, among others.
Market Dynamics and Trends
Extensive growth in the food & beverages industry and immediate environmental concerns tend to boost the global PBSA market demand. Nonetheless, the extremely few manufacturers present in the market limit the market potential of the respective market.
Extensive growth in the food and beverages market
The food and beverages market is a million-dollar industry and is further expanding with immense potential. As a result of this massive expansion, the requirement of flexible and safe packaging required by the industry is expected to multiply several folds. Since PBSA is one of the best food packaging materials available currently, the market demand for PBSA also tends to grow with the expansions in the food and beverages market.
For instance, the revenue generated by the fast-food market alone globally is over US$ 750 million, with around US$110 million in revenue generation in the U.S. alone. The expected growth rate of the fast-food industry is around 7.5% every year. Similarly, due to the enormous population expansion the world over, a similar rising trend is witnessed in the entire food and beverages sector.
With the growth in the food market, the requirement for stable, strong, and flexible packaging solutions to supply products to customers also rises exponentially. Since PBSA is top-notch in terms of strength and flexibility, with the added advantage of biodegradability, adopting PBSA-based food packaging would rapidly rise, boosting the global PBSA market.
Limited production, less number of manufacturers, and fluctuations in raw material prices
The growth of any market remains stagnant as long as the demand-supply dynamics of the respective market area are in equilibrium. Though the demand for the PBSA market experiences rapid growth, due to the limited availability of manufacturers, the development of the global PBSA market is minimal. Since PBSA is a new chemical, many manufacturers have yet to identify the potential of the market and have to enter the market. Even the production rate of most current manufacturers is niche. As a result, the market potential of the global PBSA market is extremely constricted.
Further, since PBSA is manufactured from petroleum-based feedstock, crude oil prices affect the PBSA market extensively. Since crude oil prices are extremely fluctuating, extreme fluctuations are expected in the PBSA market. For instance, the price of crude oil was US$ 56.99 in 2019, which went down as low as US$ 39.68 in 2020. However, the price of crude oil again witnessed a steep rise to US$ 65.66 in 2021. From the data, the volatility of crude oil prices could be easily understood. Since fluctuations in raw material prices could fluster the global PBSA market, the respective factor could also be considered a major market restraint.
COVID-19 Impact on PBSA Market Growth
Similar to other chemical markets, the impact of COVID-19 was devastating to the global PBSA market. The pandemic excreted its effect on the market in the following ways:
- First and foremost, the impact of the pandemic was on the production of PBSA. The lockdown associated with the pandemic closed down many production facilities due to the requirement of social distancing. Even in those facilities that remained in production, the production rate was almost halved due to governmental norms and the unavailability of workers
- Secondly, the supply chain of the raw materials, as well as finished products, was drastically infected by the pandemic and lockdown of global as well as regional borders. As a result, the availability of the raw materials required for production is substantially reduced, thereby affecting production. Further, the unavailability of raw materials creates a fluctuation in raw materials as well as final products, which hurt the global PBSA market.
- Finally, the pandemic had a horrendous effect on the food and beverages industry, which is one of the primary end-users of PBSA. As the demand in the food and beverages industry decreases, a similar effect could be witnessed with packaging materials such as PBSA.
Market Segment and Shares Analysis
The global PBSA market is segmented based on the application and end-user.
The extreme growth of the food & beverages industry.
The food & beverages segment dominates the end-user segment of the global PBSA market since enormous quantities of biodegradable packing bags are required by the respective industry, which are manufactured utilizing colossal quantities of PBSA. Further, the growing concerns regarding environmental issues such as growing waste deposits in landfills, among others, amplified the demand for the respective market as the industry's need for sustainable and green packaging rose, thereby boosting the respective segment of the market.
Further, since plastic-based food & beverage packets such as PET tend to inflict health issues such as cancer, food poisoning, and degradation of food stored, food quality improves the manufacturing and demand or PBSA in the respective market segment. The high mechanical strength and flexibility of PBSA also enable it to be a better alternative for other polymers used as packaging in the respective market.
Market Geographical Analysis
Asia-Pacific is expected to dominate the PBSA market due to population and food and beverages market growth in the region
The Asia-Pacific market is expected to dominate the global PBSA market due to the population explosion of the region combined with the growth of the food and beverages industry in the region. As the population rates explode, the demand for food also rises rapidly in the region. Since the food and beverages market requires sustainable, flexible, and strong packaging material, the need for PBSA is expected to grow with it.
Additionally, several new high-capacity industrial units are being built in the region by global and local market players due to favorable government regulations in the area. As the number of such highly capable facilities rises in the market, the ability of Asia-Pacific to manufacture and supply PBSA globally rises enormously, helping the region dominate in the respective market.
Market Companies and Competitive Landscape
The PBSA market is a niche market with a limited number of local and global companies. Some prime companies contributing to the market's growth are MCPP France SAS, Sukanof AG, Merck KGaA, Shandong Fuwin New Material Co., Ltd, Bionolle, and others.
The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the growth of the PBSA market globally.
- For instance, In January 2019, MCCPP France SAS participated in the K portal trade fair plastics and rubber, hosted in Dusseldorf, Germany. The company intended to exhibit its diverse portfolio in the exhibition and improve its sales.
Sukanof AG
Overview: Sukanof AG is a privately held one of the major leaders in the manufacture of additives such as color, additives, masterbatches, and polymer resins. The company was founded in 1988 and employed around 200 employees word wide. The company mostly sells various polymers such as PBS, and PBSA, among others
Product Portfolio: The Company product portfolio of PBSA is:
- PBSA: PBSA, or Polybutylene Succinate-Co-Adipate, is a polymeric, biodegradable resin that finds use in a variety of packaging goods as well as retail products such as bags and bottles. PBSA is very biodegradable since the basic ingredients utilized may be easily produced from renewable feedstock without the use of plasticizers.
Key Development
• For instance, in January 2019, Sukanof attended the K portal trade show plastics and rubber, which was held in Dusseldorf, Germany. The firm wanted to display its wide range and increase sales during the expo.
