Gurugram, India, June 15, 2023 (GLOBE NEWSWIRE) -- Driven by the rising consumption from various end-user industries such as packaging, automotive, electronics, and others, global Biodegradable Plastics Market is forecasted to Cross US$12 Bn by 2028 says Ken Research Study.
Biodegradable plastics are the type of plastics that can be broken down into water, carbon dioxide, and biomass by the action of living organisms, usually micro-organisms. Biodegradable plastics are typically made from renewable sources (such as sugarcane, castor beans, soy, corn, potatoes, and others), microbes, petrochemicals, or a combination of all three. Some biodegradable plastics are compostable, which means they decompose under controlled conditions such as those found in compost or anaerobic digestion locations.
“Ken Research shares 3 key insights on this high-opportunity market from its latest research study”
1. Rising Awareness for Eco-Friendly Plastic Solutions and Reduction in the usage of Conventional Plastics provide Opportunity for the Market Growth
According to Ken Research Analysis, the Global Biodegradable Plastics Market was valued at ~US$ 7 billion in 2022 and is forecasted to reach a market size of ~US$ 12 billion by 2028, growing at a CAGR of ~9%, due to the shifting consumer preference towards eco-friendly plastic solutions. Biodegradable plastics break down faster than conventional plastics. Biodegradable plastics degrade by 60% in less than 180 days, compared to traditional plastics which take about 1,000 years to decompose. Growing piles of garbage and landfills have become a major environmental disaster, with many negative impacts on ecosystem flora and fauna. Growing consumer awareness of these effects encourages the use of biodegradable plastics. Hence, this has shifted consumer preference towards using environmentally friendly plastic products, driving the biodegradable plastics market.
Furthermore, the stringent regulations by various governments and federal agencies with the objective to reduce plastic waste and promote biodegradable plastics usage in packaging are likely to boost the market demand during the forecast period. The regulations related to green packaging are increasing. With the increasing packaging waste generated worldwide, governments across the globe are adapting to alternative sources such as biodegradable packaging. As a result, various FMCG companies are required to adopt biodegradable packaging to comply with the standards, which in turn, is propelling the growth of the market.
For instance, in July 2020, the German government announced a ban on the sale of single-use plastic products such as cutlery, straws, food containers, and other similar products from July 2021 to minimize plastic waste across the country. Such factors are estimated to impel the biodegradable plastics market growth, during the forecast period.
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2. Increasing Consumption of Biodegradable Plastics in the Packaging Industry is Fuelling the Market Globally
Biodegradable packaging is generally defined as any form of packaging that disintegrates and decomposes naturally. The market for biodegradable packaging in the beverage sector is anticipated to witness growth with the never-ending demand for bottled water and non-alcoholic beverages. According to the Environmental Audit Committee, an organization that examines the policies and programs on environment and sustainable development, stated an estimated 700,000 bottles are being littered every day in the UK alone, which indicates the severe need for biodegradable packaging solutions for beverages.
- For instance, in 2021, No Evil Foods, a US-based food & beverages company, produced compostable packaging made by Kraftpak and printed with plant-based ink. Kraftpak is a biodegradable, unbleached carton board sealing with water-soluble adhesives.
- The retailers in Europe, such as Rossmann, Aldi, Coop, and Carrefour, use single or multi-use carrier bags made from bioplastics, with the add-on bonus of biodegradability. The certified biodegradable cups are also used at big events and in major football stadiums across Europe.
- According to European Bioplastics Association, the existing total production capacity of Bioplastics in 2021 was 2.4 Mn Tonnes, distributed across all major end-user segments, within which ~50% was from packaging industry.
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3. High Price of Biodegradable Plastics as Compared to Conventional Plastics is the Major Challenge Faced by The Biodegradable Plastics Market
Higher prices of biodegradable plastics than that of conventional polymers hinder the market's growth in various application segments. Usually, the manufacturing cost of biodegradable plastics is 20-80% more than that of traditional plastics. This is attributed to the high polymerization cost of such plastics as the product is in the developing stage and therefore has not achieved economic viability.
For instance, biodegradable plastic such as Polyhydroxyalkanoates (PHA) has numerous applications in synthetic papers, binders, medical devices, food packaging, electronic parts, and agriculture that have high production costs, limited availability, and low yields. Polylactic acid (PLA) polymer is more economical than PHA, but still more costly than petroleum-based Polypropylene (PP) and Polyethylene (PE).
The price of biodegradable plastics varies from US$ 2/kg to US$ 6/kg compared with that of conventional plastics, which is approximately US$ 1/kg to US$ 2/kg. Higher production and R&D costs because of small-scale production and the substantial price variation in comparison to conventional petroleum-based plastics are the major factors that contribute to the low penetration of biodegradable plastics across various industries.
Market Taxonomy
By Product Type
- Starch Based
- Polylactic acid (PLA)
- Polyhydroxyalkanoates (PHA)
- Polybutylene Adipate Co-terephthalate (PBAT)
- Poly Butylene Succinate (PBS)
- Others
By End-User Segment
- Packaging
- Agriculture
- Consumer Goods
- Textiles
- Healthcare
- Others
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By Region
North America
- USA
- Canada
- Mexico
Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- South Korea
- India
- Indonesia
- Australia
- Rest of Asia Pacific
LAMEA
- Latin America
- Middle East
- Africa
Key Players
- BASF SE
- Belmont Packaging Ltd.
- Danimer Scientific
- Eastman Chemical Company
- Mitsubishi Chemical Corporation
- NatureWorks LLC
- Novamont S.p.A.
- Plantic
- TORAY INDUSTRIES, INC.
- TotalEnergies Corbion
- PTT Global Chemical Public Company Limited
- FKuR
For more insights on the market intelligence, refer to below link:-
Global Biodegradable Plastics Market
According to Ken Research Analysis, the Global Oleochemicals Market is expected to record a positive CAGR of ~9% during the forecast period (2022-2028) and is expected to reach approximately US$ 50 billion by 2028. The Oleochemical Market witnessed disruption in the value chain owing to COVID-19 and the lockdown in major countries. The outbreak of COVID-19 further increased the demand for oleochemicals as they are used in soaps and disinfectants. During the pandemic, the fatty acids market came under pressure due to sluggish demand owing to weak downstream sectors such as industrial lubricants and tires but the fatty alcohols fared better in because the majority of these go into the making of household and personal care products.
According to Ken Research Analysis, the Global Composites Market is expected to record a positive CAGR of ~8% during the forecast period (2022-2028) and is expected to reach approximately US$ 120 billion by 2028. The COVID-19 outbreak had a huge impact on supply chains since key economies had to halt commerce. Additionally, the demand for composites had decreased across a range of end-use industries, including aerospace, automotive, and construction. However, the situation improved in 2021 due to the removal of trade barriers, which restored the market's growth trajectory.
Over the next five years, the Biocomposites market in North America is forecasted to grow at least 12% CAGR, owing to the stable long-term usage among end-user industries and government efforts for use of more eco-friendly products, especially in developed countries such as the USA. Consumer products such as music instruments, casings and cases, furniture, tables, toys, combs, and trays are made from wood and natural fiber plastic granulates. Customer preferences for these products due to their distinct appearance and feel, great quality, and value will help the Biocomposites market to grow.
The India adhesive market shall witness negative growth in FY’2021, due to lockdown measures, restriction on various businesses and ban on transportation in the initial phase. India adhesives market is anticipated to get back to normal by first quarter of 2021. Over the forecast period FY’2020-FY’2026F, the India adhesives market is further anticipated to showcase a CAGR of 7.6%. India industrial adhesives market is anticipated to grow at a CAGR of 7.8% during the forecast period FY’20 to FY’26. Growth in the end user industries such as packaging, automotive and other is anticipated to lead to the growth of the industrial adhesives market. With high potential in the industrial adhesive market and ease of manufacturing, the country shall witness the entry of global players in this segment. India consumer adhesives market is anticipated to grow at a CAGR of 7.4% during the forecast period FY’20 to FY’26. The consumer adhesive companies in India will continue to expand their dealer and distribution network to reach to a larger target market which would help them increase their market share.
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