Bioplastics are produced using renewable raw materials like cellulose, sugarcane, and corn. Manufacturers are able to use bio-based plastics because of elements including their environmental friendliness, the accessibility of renewable feedstocks, and favourable governmental regulations pertaining to the production of sustainable products. The market for bioplastics is expanding as a result of increased use of biodegradable goods and expanded applications for bioplastic in various end-user industries. In addition, compared to traditional synthetic plastic, bioplastic has the potential to reduce carbon dioxide emissions by 30–70%.
Market Overview
The size of the global bioplastics market was estimated at USD 10.2 billion in 2021, and from 2022 to 2030, it is anticipated to increase at a compound annual growth rate (CAGR) of 17.1%.
In substitute of petroleum-based polymers, bioplastic is a durable polymer made from renewable basic ingredients. It might cut carbon dioxide emissions by 30 to 70 percent. The result is a 42% decrease in carbon footprints. Production of bioplastic uses 65 percent less energy than that of conventional petroleum-based plastic. The worldwide bioplastics market is changing as rivals concentrate more on advancing and combining R&D efforts, which leads to increased production capacity.
Due to its exceptional technological qualities and capabilities, bioplastic has been adopted quickly across a variety of applications. The business for bioplastics has expanded considerably in a variety of plastic applications as a result of advantageous regulations implemented by a number of nations worldwide. The accessibility of green energy raw material sources for the production of bioplastics, increased consumer acceptance of products made from biomaterials, regulatory frameworks for producing biodegradable containers, and the characteristics of bioplastics that make them environmentally friendly are some of the key market drivers. Since the creation of bioplastic uses 66% less energy than that of conventional plastic, it is an energy-efficient process. Since they are non-toxic and easily degrade, bioplastics have no negative effects on the planet or the environment. Additionally, the degradation of bioplastic produces very little greenhouse gas emissions.
Driving Factors
All of the main food and beverage producers now utilise plastic, and they are in an excellent position to switch to packaging their products in bioplastic. As a result, once a fully commercial bioplastic is available, the bioplastics sector is anticipated to grow. To commercialise this innovation, a large R&D investment is required, and work should continue to increase material efficiency, streamline the synthesis process, and maximise the usage of potential biomaterials. Manufacturers will be able to make bioplastic that is more valuable and less expensive because to this development. Companies like PepsiCo and Coca-Cola, for instance, are developing PET plastic bottles, PET bottles made of nylon, and bottles made of bio-based polyethylene for packaging. Companies like NEC Corporation use bioplastics in products like POS terminals and LCD projectors.As a result, an increase in these companies’ CSR initiatives is anticipated to boost investor interest in the bioplastic industry and generate demand for the material.
The usage of bioplastics helps to lower carbon footprints by about 42%. As a result, major industry players including Nestle, Nike, Coca-Cola, and Ford are investing in the production of bioplastic materials for a variety of uses, including plastic bottles and automobile parts. In a range of industries, such as catering, packaging, agriculture, and automotive, bioplastics are gaining popularity. Additionally useful for organic farming is bioplastic. Farmers utilise biodegradable mulching films in horticulture and agriculture.
Consumers choose bioplastic over synthetic plastic packaging since the latter could break down when exposed to food. Additionally, governments around the world are developing beneficial policies and regulations to support the resilience and degradability of bioplastics. The primary political supporter of the bioplastics sector is the European Union. Furthermore, common feedstocks used in the production of bioplastics include maize, grain, corn, and sugarcane. These are widely accessible in practically every nation on the planet. As a result, changes in the price of crude oil on a worldwide scale have no impact on the growth of the bioplastic industry. The bioplastics market is expanding as a result of all of these factors.
Restraining Factors and Challenges
Over the projection period, it is also projected that growing government initiatives to prevent landfilling, such as the U.S. 2030 Food Loss and Waste Reduction Goal, will increase demand for bio-based or compostable bags used in the collecting of food scraps and other organic waste materials.
One of the major problems with the worldwide bioplastics business, meanwhile, is the high cost of goods. Currently, bioplastics cost more than twice as much as traditional plastics made from petroleum.This is mostly caused by the expensive R&D, building a polymer factory, and raw material expenses when the production scale is still small. This aspect can slow the market’s expansion for bioplastics.
Opportunities
Contrarily, in response to consumers’ growing environmental concerns, businesses are shifting toward sustainable and environmentally friendly solutions to build and strengthen their brand image. For instance, top businesses like Coca-Cola and PepsiCo concentrate on using PET, nylon, and polyethylene with bio-based materials for beverage packaging. Additionally, businesses like NEC Corporation include bioplastics into a variety of their goods, including LCD projectors and POS terminals. The expansion of these firms’ corporate social responsibility (CSR) initiatives is anticipated to boost investor interest in the bioplastic industry and stimulate demand for the material. This is expected to boost the market’s profitability by increasing the sales of bioplastics.
Segmentation Analysis
The type, application, and regional segments make up the global bioplastic market. It is separated as biodegradable plastic and nonbiodegradable plastic according to kind. The market is divided into flexible packaging, rigid packaging, textiles, coatings & adhesives, agriculture & horticulture, consumer products, and others on the basis of application. North America, Europe, Asia-Pacific, South America, the Middle East, and Africa are all considered when analysing the market regionally.
- By Product
- Biodegradable
- Polylactic Acid
- Polybutylene Adipate Terephthalate (PBAT)
- Polybutylene Succinate (PBS)
- Starch blends
- Others
- Non-biodegradable
- Polyethylene
- Polyethylene Terephthalate
- Polytrimethylene Terephthalate
- Polyamide
- Others
- By Application
- Packaging
- Rigid Packaging
- Bottle & Jar
- Trays
- Others
- Flexible Packaging
- Pouches
- Shopping/Waste Bags
- Others
- Consumer goods
- Agriculture
- Automotive & Transportation
- Textile
- Building & Construction
- Others
- By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
With a sales share of around 43.5% in 2021, Europe will dominate the global market. Numerous essential uses, such as refuge bags, loose packaging, agricultural mulch films, shopping bags, and bottles, make extensive use of bioplastics. Each year, some 100 billion bags are used in the European Union. In all European countries, consumers are becoming accepting of bioplastics. The increasing use of bioplastics in important end-use industries including packaging, consumer goods, textiles, medical devices, automotive & transportation, among others, is also anticipated to have a positive impact on the market.
The demand for bioplastics is expected to grow, which will benefit the North American sector. A significant demand for sustainable packaging has arisen as a result of the regional market’s strong desire for sustainability. Additionally, the US Department of Agriculture’s initiatives to promote environmentally friendly products are probably to increase consumption for bioplastics in North America as a whole.
Asia-Pacific accounted for the largest revenue share of the bioplastics market in 2020 and is also the area that is growing the fastest, with a CAGR of 12.45%, thanks to the prevalence of a well-established food and beverage sector and consumers of different types of packaging. The top three sources of income in the region are China, India, and Japan. Owing to China’s reliance on a variety of raw materials for the production of biodegradable plastics, the market situation may change.
Competitive Analysis
The “Circular Economy Action Plan” of the EU Commission, which is a component of the “Green Deal,” will be unveiled in the spring of 2020. Key product categories include plastics and packaging. The EU Commission is preparing a plastic tax, restrictions on microplastics, and incentives for plastic recycling, among many other things, to counter the throwaway society and reduce waste. To prevent “greenwashing,” life cycle analyses can be used. Biobased plastics ought to be used if they actually improve the environment in comparison to fossil plastics and don’t interfere with food production.
In addition to BASF SE, Biome Technologies Plc., CJ CheilJedang Corp., Corbion N.V., Danimer Scientific, Dow Inc., Eastman Chemical Company, Kuraray Co. Ltd., LG Chem, Mitsubishi Chemical Holdings, Novamont S.P.A., and SKC are some of the significant businesses profiled in this sector.
Some of the key competitors of this industry are named as follows:-
- TEIJIN LIMITED
- TORAY INDUSTRIES, INC.
- Toyota Tsusho Corporation
- Avantium
- PTT MCC Biochem Co., Ltd.
- An Phat Holdings
- NatureWorks LLC
- SABIC
- BASF SE
- Futerro
- Trinseo S.A.
- Braskem
- Total Corbion PLAIR
- SUPLA (JIANGSU SUPLA BIOPLASTICS CO., LTD.)
Solvay