PUBLISHER: Grand View Research | PRODUCT CODE: 1679502
PUBLISHER: Grand View Research | PRODUCT CODE: 1679502
The Americas biodegradable plastic market size is anticipated to reach USD 3.50 billion by 2030, growing at a CAGR of 9.4% during the forecast period, according to a new report by Grand View Research, Inc. The Americas biodegradable plastics industry is experiencing growth driven primarily by rising due to growing consumer preference for sustainable alternatives to conventional plastics. Urban buyers are particularly influenced by increasing awareness of plastic waste's environmental impact, leading to shifts in purchasing decisions. Industries such as packaging, agriculture, and consumer goods are adopting biodegradable plastics to align with evolving consumer expectations.
In retail and consumer goods, biodegradable plastics are prioritized for packaging applications like food containers, shopping bags, and single-use items. Brands leverage eco-certifications and sustainability labels to appeal to environmentally conscious consumers, many of whom are willing to pay a premium for such products. Similarly, corporate buyers in agriculture and food service sectors are adopting biodegradable solutions such as mulch films and compostable ware to meet functional needs and sustainability goals while ensuring regulatory compliance.
The biodegradable plastics market in the Americas presents significant growth opportunities, with each region offering unique dynamics. North America, particularly the U.S. and Canada, has seen rapid adoption due to strict regulations on single-use plastics. In South America, cost-sensitive buyers favor biodegradable plastics derived from local raw materials like sugarcane or cassava, which offer affordability and compatibility with regional agricultural practices. However, the higher costs of biodegradable plastics and limited composting infrastructure in many regions remain challenges for widespread adoption.
Biodegradable plastics generally have higher production costs compared to conventional plastics, mainly due to the sourcing of raw materials and manufacturing processes. Foreign manufacturers not only have to compete with local producers but also with established petrochemical companies that dominate the traditional plastic market.