Biodegradable Plastic Market to Hit $10.0 Billion by 2030 at CAGR of 9.7%: Grand View Research, Inc.

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23 Nov, 2022, 10:31 GMT

SAN FRANCISCO, Nov. 23, 2022 /PRNewswire/ -- The global biodegradable plastic market size is anticipated to reach USD 10.0 billion by 2030, as per a new report by Grand View Research, Inc., advancing at a steady CAGR of 9.7% during the forecast period. Biodegradable plastics can be decomposed, via actions of microbes as well as other living organisms, into carbon dioxide, water, and biomass. As the number of companies looking to have 'Green' credentials grows substantially, the production and demand for this type of plastic is expected to progress at a fast rate. Governments across the globe have been implementing strict regulations regarding the use of conventional plastics, while consumers in several developed and developing economies have become aware of the environmental harms of this product. Subsequently, various initiatives and projects to support sustainability have been established in recent years, which is a positive factor driving market growth.

Key Industry Insights & Findings from the report:

Biodegradable plastics, prepared from renewable raw materials, undergo environmental decomposition within a reasonable time period. These plastics generally require the presence of biodegradable additives for enhancing the decomposition process, with some also requiring a specific environment for disintegration.
As per the UN Environment Programme, 400 million tons of plastic waste is produced annually. The production of conventional plastics is done mainly using fossil fuels, and GHG emissions due to the production, usage, and disposal of such plastics are poised to rise to 19% of the worldwide carbon budget by 2040. This has given an urgency to eco-friendly alternatives, driving the growth of the biodegradable plastics industry.
In terms of product, starch-based biodegradable plastics accounted for over 40% of revenue share in 2021, as it is inexpensive and is being used widely in areas such as agriculture, packaging, and automobiles.
Based on application, the agriculture segment accounts for a substantial share of the market revenue, as biodegradable mulch films offer benefits such as water conservation in soil, minimizing weed growth, and enabling faster development of crops by maintaining optimal soil temperature.
The United States is a notable revenue generator in the biodegradable plastic market. The food and consumer goods sectors have massively aided in driving the demand for biodegradable packaging and product in the region. Furthermore, the passage of laws to phase out single-use plastics has also played a part in market growth. For instance, lawmakers in California passed a law in June 2022 to phase out the usage of such products in the state.
Key companies are banking on research & development activities, partnerships, and capacity expansions to drive sales and enhance growth. For instance, in November 2022, TotalEnergies Corbion and Be Good Friends (BGF) announced a long-term collaboration to develop and supply Luminy PLA in Korea.

Read 102-page market research report, "Biodegradable Plastic Market Size, Share & Trends Analysis Report By Product (Starch Based, PLA, PHA, PBAT, PBS), By Application (Packaging, Consumer Goods, Agriculture), And Segment Forecasts, 2022 - 2030", published by Grand View Research.

Biodegradable Plastic Market Growth & Trends

Single-use plastics have been extensively used in food packaging, as well as in manufacturing straws, water bottles, and carry bags. However, they are generally disposed off haphazardly, and their accumulation leads to environmental degradation. According to EARTHDAY.ORG, human beings use 1.2 million plastic bottles every minute; additionally, around 50% of the annual worldwide plastic production is done keeping single-use products in mind, while 91% of the plastic used is not recycled. As a result, the promotion of biodegradable plastics in place of conventional ones has been going on at full swing across many leading nations, with eco-conscious consumers willing to pay a higher amount for these products. Biodegradable plastics can be prepared from a variety of raw materials that include starch, polyhydroxyalkanoates (PHA), polybutylene adipate terephthalate (PBAT), polylactic acid (PLA), and polybutylene succinate (PBS), among others. Plastics made from these products are used extensively across packaging and consumer goods applications.

Conventional plastic has become a nuisance for land and marine ecosystems, as its decomposition takes hundreds of years, which has resulted in the swift banning of products predominantly in North America and Europe. For instance, the European Commission implemented restrictions on the use of certain single-use plastic items, beginning on the 3rd of July, 2021. These include cutlery, balloon sticks, plastic plates, and straws, as well as food and beverage containers prepared from EPS (expanded polystyrene). In tune with these regulations, notable industry players have been making significant investments in R&D activities to enhance product quality and improve its decomposition properties. However, the industry is also facing a notable challenge in the form of difficulties in the decomposition process due to issues in segregation from conventional plastics, as they have no distinct differences. Moreover, certain biodegradable plastics can only decompose in a specific environment, while some products, during decomposition, release greenhouse gases.

Biodegradable Plastic Market Segmentation

Grand View Research has segmented the global biodegradable plastic market based on product, application, and region

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

Starch Based
PLA
PBS
PBAT
PHA
Polycaprolactone

Application Outlook (Volume, Kilotons, Revenue, USD Million, 2019 - 2030)

Packaging
Agriculture
Consumer Goods
Others

Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2019 - 2030)

North America

U.S.
Canada
Mexico

Europe

Germany
U.K.
France
Italy
Spain

Asia Pacific

China
India
Japan
South Korea

Central & South America

Brazil

Middle East & Africa

Saudi Arabia

List of Key Players in the Biodegradable Plastic Market

Cargill Incorporated
PTT MCC Biochem Co., Ltd.
Biome Technologies plc
Plantic Technologies Limited
BASF SE
Total Corbion PLA
Synbra Technology BV
Futerro
Novamont SpA
NatureWorks LLC
Eastman Chemical Company
Trineso
Danimer Scientific
FKuR Kunststoff GmbH

Check out more related studies published by Grand View Research:

Edible Packaging Market - The global edible packaging market size is projected to reach USD 1.1 billion by 2025, exhibiting a CAGR of 6.2% over the forecast period, according to a new report by Grand View Research, Inc. Growing innovation in food packaging coupled with rising concerns over the excessive use of plastics is among the key factors driving the growth of the global market.
Folding Carton Packaging Market - The global folding carton packaging market size is projected to reach USD 171.35 billion by 2025, according to a new report by Grand View Research, Inc. The steady expansion of various end-use industries including food & beverage, electronics, household, personal care & cosmetics, healthcare, and others has been attributing to the growth of the market from the past several years.
Plastic Market - The global plastic market size is anticipated to reach USD 811.57 billion by 2030, according to a new study by Grand View Research, Inc. The market is projected to advance at a CAGR of 3.7% between 2022 and 2030. The increasing automotive production and subsequent rise in plastic consumption in automotive component fabrication, because of regulatory policies regarding vehicular weight reduction and fuel efficiency, are expected to drive the market during the forecast period.

Browse through Grand View Research's Plastics, Polymers & Resins Industry Research Reports.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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