Global Biopolymer Market - 2024-2031

Overview

Global Biopolymer Market reached US$ 17.52 billion in 2023 and is expected to reach US$ 36.03 billion by 2031, growing with a CAGR of 9.43% during the forecast period 2024-2031.

Biopolymers, a category of synthetic materials, are produced from plant-derived substances such as residual wood and timber, in addition to agricultural commodities like sugarcane and corn. Biopolymers are inherently biodegradable, unlike traditional polymers or plastics, which exacerbate numerous environmental problems such as pollution and global warming.

The market expansion is primarily ascribed to the increasing demand for PHA-based biodegradable polymers. In response to the increased demand for sustainable packaging across diverse end-use sectors, leading packaging and plastics manufacturers are transitioning to biodegradable goods. Biopolymers are utilized in several applications, including biomedical, pharmaceutical, and food sectors. Due to their superior recovery properties, they are much sought after in biomedical applications, since they facilitate the healing of wounds of various forms and dimensions.

The Ellen MacArthur Foundation (EMF) reports that 78 million tons of single-use plastic packaging are produced annually, with less than 2% being effectively recycled. Remarkably, 32% of this product is discharged into the natural environment due to inadequate processing and trash collection facilities. In light of this truth, policymakers, manufacturing firms, and worldwide brands are exploring methods to eliminate the harmful pollution caused by leakage and to enhance recycling rates. Consequently, there has been a significant effort to promote packaging that is recyclable in many end-of-life contexts. Consequently, the demand for the product is poised to increase substantially.

Dynamics

A Sustainable Alternative To Petrochemical Plastics

Biopolymers are polymeric substances derived from raw materials such as sugarcane, corn, residual wood, and standing lumber. Biopolymers are biodegradable, unlike conventional polymers or plastics, which contribute to global warming and pollution. The anticipated increase in the perception of bio-based polymer utilization is forecasted. Consequently, biopolymers are considered a more sustainable alternative to conventional petroleum-based plastics, as they can be decomposed through natural processes and do not threaten the ecosystem.

Consumers are increasingly conscientious about their carbon footprint and are requesting more environmentally sustainable items. Governments worldwide are implementing strategies to reduce plastic waste by imposing restrictions on single-use plastics and promoting natural packaging alternatives. This trend is anticipated to persist throughout the projected period, as enterprises and consumers increasingly recognize the ecological repercussions of traditional petrochemical-derived plastics.

Strategic Initiatives Fueling Growth In The Emerging Regions

Market participants in bioplastics and biopolymers are actively utilizing both organic and inorganic techniques to stimulate their growth. Recent years have observed substantial strategic advancements in the Asia-Pacific rising economies. In 2019, Total-Corbion inaugurated a PLA facility in Rayong, Thailand, with a manufacturing capacity of 75,000 tons per annum. Mitsubishi Chemical Holding Corporation (Japan) and Lenovo Group Limited (China) established a joint venture to manufacture bioplastic-based smartphone components.

Moreover, Indonesia is investigating bioplastic substitutes, including seaweed. Local entity Evoware provides proprietary packaging derived from seaweed, anticipating a rise in environmental restrictions that will elevate the need for bioplastics in Asia-Pacific nations. Moreover, Southeast Asia possesses ample bio-based feedstock, guaranteeing a sustained supply of raw materials for bioplastic manufacturing. Thus, regulatory advancements and the accessibility of feedstock are expected to maintain the need for bioplastics in the region.

Higher Prices Of Biodegradable Plastics

The expansion of the market across various application areas is constrained by the elevated cost of biodegradable plastics relative to conventional polymers. The production cost of biodegradable polymers is generally 20-80% greater than that of traditional plastics. This difference mostly arises from the high polymerization costs of biodegradable polymers, as most methods remain in the developmental stage and have not attained economies of scale.

For example, PHAs, used in binders, synthetic papers, medical devices, electronic components, food packaging, and agriculture, face elevated production costs, low yields, and restricted availability. Despite having a lower production cost than PHAs, PLAs are nevertheless more costly than petroleum-derived PE and PP. In general, bio-based materials remain in the developmental phase and have not been commercialized to the same degree as their petrochemical equivalents.

Elevated research and development, as well as production expenses stemming from limited-scale manufacturing, coupled with substantial price disparities relative to conventional petroleum-based plastics, are primary issues impeding the widespread adoption of biodegradable plastics across diverse industries.

Segment Analysis

The global biopolymer market is segmented based on product, application, end-user, and region.

The Need for Biopolymers in Packaging Rises Due to Environmental, Regulatory, and Consumer-Driven Pressures

The need for biopolymers in packaging is rising due to environmental, regulatory, and consumer-driven issues. Biopolymers are frequently sourced from renewable resources like plants or microbes, rendering them a more sustainable option compared to conventional petroleum-based plastics. The ecological consequences of conventional plastics, especially regarding pollution and prolonged breakdown periods, have spurred heightened interest in sustainable alternatives.

Biopolymers are increasingly popular in consumer goods due to many factors, reflecting a wider movement towards sustainability and environmental responsibility in the consumer product industry. Governments and regulatory agencies worldwide are implementing initiatives to reduce plastic waste and promote the use of more sustainable materials. This has created a regulatory framework that promotes the incorporation of the commodity into consumer goods.

Geographical Penetration

Government Regulations and Market Dynamics Driving Bioplastics and Biopolymers Expansion in Asia-Pacific

Government laws in the Asia-Pacific area that prohibit plastic bags and advanced attempts to address global warming are fostering market expansion. The elevated costs of bioplastics and biopolymers relative to traditional petroleum-based resins constitute a substantial obstacle to market growth in the region. Nonetheless, the diminished living standards and disposable money in the Asia-Pacific region are anticipated to result in a decline in the pricing of bioplastics and biopolymers.

The rising regulations in the plastics sector and the emphasis on sustainable development create potential for substituting plastics with bioplastics in Asia-Pacific. Increasing consumer awareness of sustainable plastics and retailer pressure are driving the need for bioplastics.

Competitive Landscape

The major global players in the market include Biopolymer Industries, BASF SE, Solanyl Biopolymers, BioPolymer GmbH & Co. KG, Ecovia Renewables Inc., BiologiQ, Inc., ADM, DuPont, Novamont, BIOTEC

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict has profoundly affected the biopolymer sector, chiefly due to the disruption of manufacturing and supply networks. The departure of more than 300 prominent Western corporations, along with the closure of packaging and manufacturing plants in Ukraine and Russia, has impeded the supply of critical raw materials for biopolymer manufacture.

Petrochemical facilities such as Karpatneftekhim, Ukraine's largest PET plant, were compelled to cease operations due to the imposition of martial law, while glass and packaging manufacturers like Vetropack suspended output, exacerbating supply chain difficulties. The uncertainty regarding the war's longevity, coupled with manufacturing delays, has compelled some enterprises to either diminish or entirely halt activities in the region.

The extensive closures and damage to infrastructure, including the loss of Vetropack's glass factory in Kyiv, have resulted in an uncertain business environment. This has compelled biopolymer manufacturers to explore alternate production centers and reorganize supply chains, especially in Europe and Asia-Pacific, to alleviate the effects on production and distribution.

Product

• Bio-PE
• Bio-PET
• PLA
• PHA
• Biodegradable Plastics
• Other

Application

• Films
• Bottle
• Fibers
• Seed Coating
• Vehicle Components
• Medical Implants
• Other

End-User

• Packaging
• Consumer Goods
• Automotive
• Textiles
• Agriculture
• Other

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, NatureWorks launched the newest 'Ingeo' biopolymer solution, enhancing strength and softness in biobased nonwovens for hygiene applications.
• In November 2022, Total Energies Corbion announced a long-term partnership with BGF, concentrating on application development and the provision of Luminy PLA.
• In October 2022, Braskem declared its intention to augment its I'm greenTM biopolymer production capacity by 30%, allocating US$ 60 million for the initiative. This development, in collaboration with SOG Chemicals, seeks to double the existing capacity for I'm greenTM products.

Why Purchase the Report?

• To visualize the global biopolymer market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of biopolymer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global bioploymer market report would provide approximately 62 tables, 62 figures, and 224 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies