The "Biodegradable Plastics Market by Type and End-Use Industry, Forecasts to 2027" report has been added to ResearchAndMarkets.com's offering.
The Global Biodegradable Plastics Market is forecast to reach USD 9.85 Billion by 2027 from USD 3.40 Billion in 2019, registering a CAGR of 14.28% over the forecast period.
The surging demand for biodegradable plastics observed in the packaging sector and significant agricultural applications will be favorable for market growth.
The production of biodegradable plastics generally involves renewable raw materials. The biodegradable plastics market is fueled by regulations imposed on single-use plastics due to environmental concerns raised by the proliferation of plastics in landfills and oceans. These wastes mostly consist of toxic materials. The burning of these materials breeds toxicity in the environment. These factors promote biodegradable plastic use and result in high demand.
The growing understanding among the masses has led to the adoption of eco-friendly technologies, the awareness of traditional plastics' ill-effects has led to an innovative end-user demand. The most significant move to biodegradable plastic was witnessed in the packaging market. The packaging sector has to comply with strict government regulations, which have contributed to significant improvements in the packaging industry's manufacturing process and raw materials used.
There are unique problems facing the industry; there is no simple distinction between biodegradable plastic and non-biodegradable plastic. Thus, the use of non-biodegradable plastic in biodegradable landfills beats the goal of biodegradability. One of the factors that may restrict the growth of the demand for biodegradable plastics is the high cost of biodegradable plastics.
Given the economic slowdown, the reduction of disposable income could pose a challenge to the growth of the market for biodegradable plastics. Biodegradable plastics decompose over time, but they require complex decomposition conditions that may not be available in every landfill, raising concerns about the efficacy of biodegradable plastics.
Further Key Findings From the Report Suggest
Consumer goods will be a lucrative segment and will grow at a CAGR of 14.59%. Due to the strict government regulations to mitigate the piling up of e-waste, household appliances and electronic devices are gradually increasing the use of biodegradable plastics. Modern types of plastic are used by electronic devices such as circuit boards and casings.
The highest share in the biodegradable plastics industry is held by starch-based plastics. It has many environmental advantages, such as reducing the carbon footprint of conventional resins besides being highly bio-degradable. Due to its low toxicity, biocompatibility, and mechanical properties, it is increasingly being blended with biopolymers. In the case of polysaccharides, more than 75 percent of the organic material on earth is present. Corn is commonly considered the go-to source for the development of starch. As a processing method, starch employs the wet-milling process.
The fastest-growing market will be the European region. The rules and regulations for the transition to a low carbon & circular economy would lead to the further development of the region's biodegradable plastics industry. The European region is working to minimize plastic bag use by 80%, resulting in the widespread use of biodegradable, flexible, and rigid packaging in the region.
NatureWorks, Total Corbion PLA, BASF SE, Biome Bioplastics, Bio-On, Mitsubishi Chemical Corporation, Novamont S.P.A, Danimer Scientific, Plantic Technologies, and Toray Industries, among others, are the main participants in the biodegradable plastics sector.
Total Corbion began production in Rayon, Thailand, in December 2018. An important step in the growth of the biodegradable plastic market in the Asia Pacific region would be the production capacity of 75 KT of Total Corbion. It manufactures PLA and PDLA from non-GMO sugarcane grown locally.
Market Segmentation & Impact Analysis
Market indicators analysis
Market driver's analysis
Growing use in the food packaging sector
Increasing adoption of eco-friendly technology by the consumers
Market restraints analysis
High Cost of Biodegradable plastics
Performance issues faced by the biodegradable plastics
Porter's Five Forces Analysis
Competitive Metric Space Analysis
Price trend Analysis
Covid-19 Impact Analysis
Global Recession Influence
Total Corbion PLA
Mitsubishi Chemical Corporation
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