Bio-plastics Market Size (2023 - 2030)

The Global Bio-plastics Market was valued at USD 14.40 billion and is projected to reach a market size of USD 51.30 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 19.9%. 

The global industry that is engaged in the creation, marketing, and use of bio-based plastics is referred to as the Bio-plastics market. A form of plastic called Bio-plastics is produced from renewable resources, including plants, as opposed to conventional fossil fuels. As they have the potential to lower greenhouse gas emissions and reliance on non-renewable resources, they are frequently seen as being more sustainable and ecologically benign than traditional plastics. Recent years have seen a sharp increase in the market for Bio-plastics, which has been fuelled by rising environmental consciousness, stronger laws governing plastic waste, and consumer demand for more environmentally friendly packaging and goods. Government laws and regulations, customer preferences, technical breakthroughs in the manufacture of Bio-plastics, and partnerships between businesses and research institutions to create novel bio-based materials are just a few of the variables that have an impact on the market for bioplastics. It's vital to remember that the market for Bio-plastics is currently rather modest when compared to the entire plastics sector. Due to their low price and established production and recycling infrastructure, traditional plastics continue to rule the market. The industry continues to work on issues related to the cost-effectiveness, scalability, and end-of-life disposal of bioplastics. As concerns about sustainability become increasingly widespread around the world, it is anticipated that the Bio-plastics industry will maintain its upward trend. The use of Bio-plastics in many industries is anticipated to be fuelled by increased innovation, investments, and supporting legislation, resulting in a gradual transition to a more sustainable and circular economy.

Global Bio-plastics Market Drivers:

Government Regulations and Consumer Demand Propel Bio-plastics Market Growth:

The demand for Bio-plastics is being driven by rising environmental consciousness and worry about the effects of conventional plastics. Because they are made from renewable resources, lower carbon emissions, and can biodegrade or compost, Bio-plastics provide a more environmentally friendly option. Governments all across the globe are putting laws and policies into place to lessen plastic waste and encourage the use of renewable materials. Single-use plastics are subject to prohibitions or limitations, and bio-based substitutes are encouraged. Such regulations support the use of Bio-plastics by fostering a favorable market environment. The market for Bio-plastics is being significantly stimulated by rising consumer awareness of and demand for environmentally friendly goods. Customers are actively looking for environmentally friendly substitutes for conventional plastics and are prepared to pick Bio-plastics for packaging, consumer goods, and other uses.

Technological Advances Drive Market Growth and Diverse Industry Applications:

Many businesses are implementing sustainable practices and establishing goals to lessen their environmental impact. To achieve sustainability goals and appeal to environmentally sensitive consumers, they are progressively adding Bio-plastics into their goods and packaging. Production of Bio-plastics is advancing technologically thanks to ongoing research and development. This covers the creation of novel bio-based materials with enhanced qualities and capabilities as well as improvements in manufacturing procedures and processing methods. These developments are increasing the range of uses for bioplastics and stimulating market expansion. Several industries, including packaging, automotive, electronics, agriculture, and textiles, are seeing an increase in demand for bioplastics. Among other things, Bio-plastics are used to make textiles, automobile parts, electrical components, and packaging materials. The adaptability of Bio-plastics and their capacity to satisfy certain industry needs support the expansion of their market.

Global Bio-plastics Market Challenges:

Generally speaking, biodegradable polymers are more costly than regular plastics. However, changes in oil prices have an impact on the cost of plastics. Long-term, this would be challenging. However, the short-term rise in oil costs will result in higher pricing for traditional polymers. As a result, biodegradable plastics would be a desirable substitute since they would be more affordable and environmentally friendly than traditional plastics. This will act as a short-term catalyst for the market for biodegradable plastics. With the dynamics of supply and demand, oil prices might yet decrease.

COVID-19 Impact on Global Bio-plastics Market:

Several sectors, including packaging, consumer products, textiles, agriculture & horticulture, and consumer packaged goods, employ biodegradable polymers. However, the epidemic that is still going on has had an impact on companies all around the world. The industry's expansion had been hindered the year before by a lack of labor, logistical challenges, material scarcity, and other limitations. The Covid-19 pandemic's breakout and slow expansion have had a growing impact on sectors that provide customers with necessities like food and materials. These factors will cause the Covid-19 pandemic's impact on the packaging sector to be uneven. Globally, the COVID-19 epidemic has had a significant influence on the market for textile items. Because of the lockdown, manufacturers that make textile items were forced to close or operate with a reduced staff. This circumstance also caused a blockage in the supply chain and had an impact on everyone along the value chain, from the suppliers of raw materials to the final customers. Because their supplies were full, the stores closed, forcing the customers to cancel or delay their orders. According to the International Textile Manufacturers Federation (ITMF), demand may decline by 10% from 2019 levels in 2020.

Global Bio-plastics Market Recent Developments:

• In May 2022, a cooperation between PepsiCo and Danimer Scientific, a pioneer in the development and production of biodegradable materials, was recently revealed. To produce bio-based and biodegradable film resins for snack packaging, cooperation was formed.

• In January 2022, a Brazilian petrochemical business called Braskem reported an increase in its ability to produce bio-based polyethylene in Europe. To fulfill the rising demand for sustainable plastics across a range of sectors, the business invested in a new plant in the Netherlands.

• In June 2021, a renowned supplier of compostable and biodegradable goods, BioBag Group, has been acquired by the Italian bioplastics and biochemicals business Novamont. The goal of this purchase was to improve Novamont's standing in the worldwide market for biodegradable products and Bio-plastics.

BIO-PLASTICS MARKET REPORT COVERAGE:

Global Bio-plastics Market Segmentation: By Type

• Bio-based PET (Polyethylene Terephthalate)

• Bio-based PE (Polyethylene)

• Bio-based PA (Polyamide)

• Bio-based PLA (Polylactic Acid)

• Others

PET made from bio-based materials has qualities similar to those of standard PET but with less carbon impact. It has uses in packaging, especially in the bottles, containers, and films used in the food and beverage sector. Bio-based PE is made from regenerative materials, such as sugarcane ethanol. It is widely utilized in many different applications, including packaging, agricultural films, automotive components, and consumer products. A Bio-plastics created from sustainable resources like castor oil is called bio-based PA, sometimes referred to as bio-nylon. It is utilized in industries including automobiles, textiles, and industrial components and has great mechanical qualities. Popular Bio-plastics called bio-based PLA is made from sustainable materials like sugarcane or maize starch. Due to its biodegradability and adaptability, it is frequently utilized in packaging, disposable cutlery, textiles, and 3D printing applications. Bio-polyester known as PHA is created by microorganisms utilizing sustainable carbon sources. Applications for it include packaging, agricultural films, health care items, and 3D printing.

Global Bio-plastics Market Segmentation: By Application

• Agriculture

• Textiles

• Electronics

• Construction

• Others

Agriculture uses Bio-plastics as mulch films to increase crop output, manage weeds, retain moisture, and boost soil health. Making biodegradable plant pots and trays out of Bio-plastics reduces waste and makes transplanting easier. Panels, dashboards, seat cushions, and trim are some examples of interior vehicle parts made of bioplastics. Automobile exterior components including bumpers, body panels, and fenders can use Bio-plastics. Bio-plastics may be converted into fibers that are utilized in non-woven textiles, apparel, and upholstery. Electronic device enclosures and housings are produced utilizing Bio-plastics because they are an ecologically benign, lightweight, and long-lasting alternative. Pipes, fittings, and other infrastructure components are made of Bio-plastics in the construction sector. Applications for Bio-plastics in the medical and healthcare fields include implantable devices, medication delivery systems, and surgical instruments. Sports equipment, toys, and recreational items made of Bio-plastics are utilized in the manufacturing of athletic goods and leisure products.

Global Bio-plastics Market Segmentation: By End-User

• Packaging

• Automotive

• Agriculture

• Textiles

• Electronics

• Consumer Goods

• Construction

• Others

One of the biggest markets for Bio-plastics is packaging. It covers a range of industries, including packaging for food and drinks, cosmetics, consumer goods, and more. Bottles, containers, films, trays, and other packaging materials are made from Bio-plastics. Bio-plastics are being used more often in the automobile sector for a variety of purposes. To lighten the load on the car and improve sustainability, Bio-plastics are utilized in interior components such as dashboards, door panels, and seat components. Agricultural uses for Bio-plastics include irrigation systems, nursery pots, seedling trays, and mulch films. They contribute to increased agricultural productivity, less water use, and improved soil health. Bio-plastics are utilized in the textile sector to create environmentally friendly fibers, textiles, and garments. In place of traditional petroleum-based plastics in textiles, bio-based polyesters, and other Bio-plastics materials are employed. Numerous consumer products, including toys, sporting goods, home goods, and personal care items are made with Bio-plastics. In these uses for consumer products, Bio-plastics provide environmentally friendly substitutes for conventional plastics.

Global Bio-plastics Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

The existence of major market participants, tough laws on single-use plastics, and rising consumer awareness of environmental problems, and these factors all contribute to the growth of the North American bioplastic industry. The bioplastic market in this area receives significant contributions from the United States and Canada. Due to strict legislation supporting sustainable packaging and rising consumer demand for eco-friendly products, Europe is one of the top markets for bioplastics. The market for Bio-plastics is expanding significantly in the Asia Pacific area. The market is growing as a result of elements such as quick urbanization, industrialization, rising environmental concerns, and government measures to cut down on plastic waste. An increasing market for Bio-plastics is Latin America. In nations like Brazil, Argentina, and Mexico, the industry is driven by rising environmental consciousness, government programs supporting sustainable practices, and the availability of agricultural resources for bio-based feedstocks.

Global Bio-plastics Market Key Players:

1. NatureWorks LLC

2. Braskem

3. Novamont S.p.A.

4. Corbion N.V.

5. BASF SE

6. TotalEnergies

7. Mitsubishi Chemical Corporation

8. Arkema S.A.

9. Biome Technologies plc

10. Plantic Technologies Limited