PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615257
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615257
The biobased biodegradable plastic market entails the arena of plastics that not only derive from renewable sources but are also designed to decompose naturally, reducing environmental harm. These plastics, often made from plant-based materials like corn starch, sugarcane, and cassava, emerge as alternatives to conventional plastics, providing tangible solutions in a world grappling with plastic pollution. Biobasedbiodegradable plastic market is estimated to grow at a CAGR of 9.8% from 2024 to 2032.
Biobased Biodegradable Plastic Market Dynamics
Driver: The Escalating Global Concern Over Plastic Pollution
One of the most pressing drivers behind the shift towards biobased biodegradable plastics is the escalating global concern over plastic pollution. The aftermath of plastic waste is evident in terrestrial habitats, waterways, and oceans. Environmentalists frequently highlight the plight of marine animals: whales with bellies full of plastic and turtles mistaking plastic bags for jellyfish. A testament to the magnitude of this issue is the Great Pacific Garbage Patch, a colossal vortex of plastic debris in the Pacific Ocean, spanning three times the size of France. Governments globally are being pressed into action. The European Union's pledge to ensure that all plastic packaging within the member states is recyclable by 2030 is a case in point. Furthermore, the alarming fact that traditional plastics can take up to 1,000 years to decompose accentuates the urgency to transition to sustainable alternatives.
Opportunity: Expansion into the Food and Beverage Packaging Industry
The food and beverage sector provides a ripe opportunity for the integration of biobased biodegradable plastics. As consumers become more eco-conscious, there's a palpable demand for sustainable packaging. Leading coffee chains, cognizant of the environmental damage caused by non-biodegradable coffee cups, are already experimenting with biodegradable alternatives. Similarly, fast-food chains are transitioning away from plastic straws, exploring options made from materials like seaweed. A report from the Ellen MacArthur Foundation highlighted that, by weight, there could be more plastic than fish in the ocean by 2050, intensifying the call for industries to shift to biodegradable packaging. This forecast, while unsettling, underscores the enormous potential the food and beverage industry holds for biobased biodegradable plastics.
Restraint: Higher Production Costs
Despite the clear environmental advantages, one primary restraint in the widespread adoption of biobased biodegradable plastics is their higher production cost relative to conventional plastics. Petroleum-based plastics, having been entrenched in the industry for decades, benefit from established, large-scale production methods. In contrast, biobased variants, still in their relative infancy, face challenges in sourcing raw materials and refining production techniques. An analysis in "The Guardian" pointed out that biodegradable bags cost approximately three times more to produce than their plastic counterparts. This cost disparity often trickles down to the consumer, making biodegradable options less appealing from a price perspective.
Challenge: Lack of Composting Infrastructure
A significant challenge in the journey of biobased biodegradable plastics is the lack of appropriate composting infrastructure in many regions. For these plastics to degrade effectively, specific conditions, often achievable only in industrial composting facilities, are required. However, many municipalities lack such facilities. A study by the University of Plymouth revealed that biodegradable plastic bags could still carry groceries after being exposed to the natural environment for three years. This durability, while initially seeming positive, highlights the challenge: without the right infrastructure, biodegradable plastics might not degrade any faster than conventional ones.
Market Segmentation by Product
Spanning products like Polyester, Starch blends, Poly lactic acid (PLA), Cellulose, Polyhydroxyalkanoate (PHA), and other biobased biodegradable plastics, this market's expanse is vast. In 2023, Poly lactic acid (PLA) generated the highest revenue, attributed to its versatility and wide application range, especially in the packaging sector. Meanwhile, the Polyhydroxyalkanoate (PHA) segment registered the highest CAGR, drawing attention to its potential. Derived from bacterial fermentation of sugar or lipids, PHA's biodegradability even in marine environments positions it as a compelling choice for the future.
Market Segmentation by Application
From packaging to fibres, healthcare, agriculture, and more, biobased biodegradable plastics have permeated various sectors. In 2023, the packaging segment reigned supreme in terms of revenue. With rising eco-conscious consumer behaviour and stringent regulations against non-biodegradable plastics, packaging has become a focal point for the adoption of sustainable materials. However, the agriculture sector, with products like biodegradable mulch films, showcased the highest CAGR, hinting at a sector ripe for disruptive growth in the coming decade.
Regional Insights
The market's geographic footprint is undoubtedly global. In 2023, Europe emerged as the frontrunner in revenue generation, driven by proactive environmental policies, subsidies for bioplastics, and a robust industrial landscape fostering innovation. On the flip side, the Asia-Pacific region, buoyed by countries like China and India, is anticipated to exhibit the highest CAGR from 2024 to 2032. Rapid industrialization, growing awareness about sustainable practices, and emerging regulations against conventional plastics set the stage for Asia-Pacific's meteoric rise.
Competitive Trends and Strategies
The competitive panorama of the biobased biodegradable plastic market is dynamic, with several key players charting the course. In 2023, companies like BASF SE, Plantic Technologies, Toray Industries, Total Corbion PLA, Natureworks, Biome Bioplastic., Bio-On, Mitsubishi Chemical Corporation, Danimer Scientific, Novamont S.P.A. dominated the market in terms of revenue. These behemoths have consistently invested in R&D, facilitating a stream of innovative products. Furthermore, strategic mergers, acquisitions, and partnerships have been quintessential for companies to expand their reach and diversify their product portfolios. As we gaze into the future, from 2024 to 2032, it's expected that companies will delve deeper into collaborative approaches, furthering their engagement with end-users and adapting swiftly to evolving market demands.
Historical & Forecast Period
This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Biobased Biodegradable Plastic market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Biobased Biodegradable Plastic market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.
Market Segmentation
Product
Application
Region Segment (2022-2032; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Biobased Biodegradable Plastic market?
What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2032.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Biobased Biodegradable Plastic market?
Which is the largest regional market for Biobased Biodegradable Plastic market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Biobased Biodegradable Plastic market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Biobased Biodegradable Plastic market worldwide?
FIG. 9Market Positioning of Key Biobased Biodegradable Plastic Market Players, 2023
FIG. 10Global Biobased Biodegradable Plastic Market - Tier Analysis - Percentage of Revenues by Tier Level, 2023 Versus 2032