Global Compostable Bioplastics Market Size (2023-2030)

In 2022, the Global Compostable Bioplastics Market was valued at $2.2 billion, and is projected to reach a market size of $7.73 billion by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 17%.

Compostable bioplastics are environmentally friendly plastics from renewable sources like plants and agricultural waste. They can naturally break down into harmless compost with the help of microorganisms, reducing their environmental impact. However, they need specific conditions, such as industrial composting facilities, to decompose effectively. They are commonly used in food packaging, disposable cutlery, and other single-use items, contributing to sustainability efforts. Proper disposal in composting facilities is essential to ensure their successful degradation and minimize litter and mismanagement. As with any new technology, ongoing research, and development are necessary to improve their performance and widen their applications, creating a more sustainable future for plastic materials.

Global Compostable Bioplastics Market Drivers:

The increasing emphasis on sustainability and advancements in bioplastic technology has driven a surge in demand for compostable bioplastic products.

The compostable bioplastic market is driven by several factors that stem from people's growing concern for the environment and desire to make sustainable choices. As individuals become more aware of the harmful impact of traditional plastics on the planet, they seek eco-friendly alternatives. Compostable bioplastics, derived from renewable sources, offer a greener solution that can biodegrade into compost, reducing plastic waste. They actively choose products packaged in compostable bioplastics, pushing companies to adopt more sustainable practices. Moreover, the challenges posed by waste management of conventional plastics fuel the adoption of compostable bioplastics. The long-lasting nature of traditional plastics overwhelms recycling and disposal systems, leading to pollution and environmental harm.

The growing consumer awareness about plastic pollution and the urgent need to reduce environmental impact has fueled the demand for compostable bioplastic products.

Compostable bioplastics, technological advancements, and growing environmental concerns have driven significant progress in the compostable bioplastic market. Compostable bioplastics have proven to be a successful solution in reducing the environmental impact of traditional plastics. With the use of renewable resources and sustainable manufacturing processes, compostable bioplastics contribute to a circular economy model. These materials can naturally break down into compost, significantly reducing plastic waste in landfills and oceans. Compostable bioplastics are designed to biodegrade under specific conditions in industrial composting facilities, providing an eco-friendly end-of-life solution. Compostable bioplastics support natural resources, reduce greenhouse gas emissions, and mitigate plastic pollution's harmful effects on the environment.

Global Compostable Bioplastics Market Challenges:

Compostable bioplastics face challenges due to higher costs compared to traditional plastics. The raw materials are more expensive, and smaller production volumes result in limited economies of scale. Manufacturing processes and certifications add to the overall expenses. Consumer perception of higher prices and the need for separate waste collection also pose obstacles. Additionally, the supply chain is also affected by raw material availability, a fragmented market, and the requirement for efficient waste management infrastructure. Raising awareness and educating consumers is essential to overcome these challenges and promote the widespread adoption of compostable bioplastics as a sustainable solution. Collaboration among manufacturers, governments, waste management entities, and consumers is crucial to address these obstacles effectively.

Global Compostable Bioplastics Market Opportunities:

As more people become aware of the harmful impact of traditional plastics on the environment, they seek eco-friendly alternatives. This creates an opportunity for compostable bioplastics, which are made from renewable resources and broken down into compost. Consumers and businesses embrace sustainable solutions, driving market growth and attracting investments for further advancements. As compostable bioplastics gain popularity, companies can expand their product offerings and reach new markets. This positive shift towards eco-conscious choices fosters collaborations within the industry, strengthening the supply chain and waste management infrastructure. Compostable bioplastics play a significant role in addressing environmental concerns while promoting a more sustainable and responsible future.

COVID-19 Impact on the Global Compostable Bioplastics Market:

During the pandemic of COVID-19, the usage of new plastic bags, including biodegradable ones, significantly declined as a precautionary measure. Consumers started opting for reusable options like fabric bags and refrained from using single-use plastic bags to minimize potential virus transmission. Retail shops and small stores also played a part in the efforts to curb the spread by refraining from providing new plastic bags. This collective shift towards sustainable practices showcased the importance of environmentally friendly alternatives and demonstrated how communities can come together to prioritize safety and environmental consciousness during challenging times.

Global Compostable Bioplastics Market Developments:

• On June 2021, a new texturizing biopolymer, Hydagen, was launched by BASF. Using the konjac plant tuber, a cold processable rheology modifier, patch, jelly, and peel-off formulations are possible for aqueous systems such as gels, fluids, serums, and novel formats.

• On October 2022, Braskem announced in that its I'm Green biopolymer production capacity would be expanded by 30%. To expand its capacity, the company is investing USD 60 million. The project is a partnership between Braskem and SC Chemicals.

• On November 2022, Total Energies Corbion announced a long-term collaboration with BF. In addition to PLA supply, both companies entered into agreements for application development.

COMPOSTABLE BIOPLASTICS MARKET REPORT COVERAGE:

Global Compostable Bioplastics Market Segmentation: By Application

• Packaging

  • Flexible Packaging

  • Rigid Packaging

• Textiles

• Agriculture & Horticulture

• Automotive

• Others

The packaging segment holds the highest market share due to its wide range of applications and the urgent need for reducing plastic waste. Consumers are increasingly demanding eco-friendly packaging options for food, beverages, and other products, which is propelling the growth of compostable bioplastics in this segment.

Textiles, agriculture and horticulture, automotive, and other segments are witnessing rapid growth in the adoption of compostable bioplastics due to factors like changing consumer preferences, regulatory support, sustainability initiatives by industries, and the need for eco-friendly alternatives in various applications. As these industries continue to prioritize environmental considerations, compostable bioplastics are positioned to play a crucial role in their sustainable development.

Global Compostable Bioplastics Market Segmentation: By Distribution Channel

• Online

• Offline

  • Distributors

  • Retailers

  • Others

Online and offline distribution channels play significant roles in the compostable bioplastics market. However, online distribution is experiencing the highest growth due to its global accessibility, consumer education opportunities, and alignment with eco-conscious shoppers' preferences.  Offline distribution remains valuable for products that benefit from physical interaction, direct customer engagement, and reaching markets. It has seen the fastest growth. The choice between these distribution channels often depends on the nature of the product, the target audience, and regional market dynamics.

Global Compostable Bioplastics Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

North America has one of the highest growth rates for compostable bioplastics. This is primarily driven by increased consumer awareness of environmental issues and a growing emphasis on sustainable living. Bioplastics can be used in a variety of applications including food packaging, medical supplies, and consumer products. Furthermore, bioplastics are biodegradable and compostable, making them a more sustainable option than traditional plastics.

Asia Pacific experiences the fastest growth in the compostable bioplastics market. This growth is driven by increasing government regulations and consumer demand for eco-friendly and biodegradable products. Additionally, the rise of e-commerce and the growing demand for sustainable packaging are also contributing to the growth of the compostable bioplastics market in the Asia Pacific. Market dynamics are changing due to stringent regulations, consumer awareness, and corporate sustainability initiatives in this region.

Global Compostable Bioplastics Market Key Players:

1. BASF

2. Teijin

3. Avantium

4. SABIC

5. Solvay