There are projections that the market for Polyhydroxyalkanoate (PHA) will grow from an estimated USD 73.6 Million in 2016 to USD 93.5 Million by 2021, at a CAGR of 4.88%. This market is growing because of the increase in demand for biodegradable plastics for various applications such as, bio medical, packaging, and food services. The increasing availability of renewable raw materials is expected to lead to the growth of the PHA market.
The PHA market is segmented on the basis of type, manufacturing technology, application, and region. The PHA co-polymers segment is estimated to be the most widely used type in applications such as, packaging, bio medical, and chemicals, and accounted for the largest market share in 2015; this is projected to grow at the highest rate during the forecast period. It is a cost effective type, offering benefits similar to those of other PHA types. On the basis of application, the market is segmented into packaging, food services, bio medical, agriculture, and others (textile, chemical, electronic, automotive, and energy). The packaging segment is projected to grow at the highest CAGR, due to the increasing use of bioplastics in packaging applications such as, rigid and flexible. Favorable governmental green procurement policies are expected to lead to the high growth of PHA market in the consumer goods packaging application.
On the basis of key regions, the market for PHA is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The Asia-Pacific market is projected to grow at the highest rate from 2016 to 2021, as countries in this region are expected to achieve high growth in the bio medical, agriculture, and packaging sectors; this would lead to a high demand for PHA based bioplastics.
There are certain factors that restrain the growth of the PHA market. Some of these are, the high cost of production of PHA as compared to conventional plastics, and the fact that the functional attributes of these plastics are less effective, as compared to conventional petroleum-based plastics.