Bioplastics Market size is set to grow by USD 253.98 billion from 2024-2028, Emergence of bio-based and renewable raw materials to boost the market growth, Technavio

NEW YORK, Aug. 9, 2024 /PRNewswire/ — The global bioplastics market  size is estimated to grow by USD 253.98 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 39.04%  during the forecast period.  Emergence of bio-based and renewable raw materials is driving market growth, with a trend towards consumption of bioplastics in novel applications. However, cost-effectiveness of conventional plastic over bioplastics  poses a challenge. Key market players include Arkema Group, BASF SE, Biome Bioplastics Ltd., Braskem SA, Cargill Inc., Corbion nv, DuPont de Nemours Inc., Evonik Industries AG, Finasucre SA, Fkur Kunststoff GmbH, Futerro SA, Koninklijke DSM NV, KURARAY Co. Ltd., Novamont S.p.A., Resonac Holdings Corp., Saudi Basic Industries Corp., Solvay SA, Sulzer Ltd., Teijin Ltd., Toray Industries Inc., Toyota Motor Corp., and Trinseo PLC.

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Key Market Trends Fueling Growth

The global bioplastics market is experiencing growth due to increasing sustainability focus and favorable regulations for green procurement policies. The packaging sector, particularly in food and services, is a significant contributor to this growth. Compostable waste bags improve composting processes and reduce landfill waste, while biodegradable mulch films reduce labor and disposal costs in agriculture. Bioplastics have expanded into various industries, including food and beverage, automotive, and medical, with applications such as trays, cutlery, cups, dishes, stitching materials, screws, implants, and tires. Toyota’s Environmental Challenge 2050 aims to reduce plastic consumption by 40-50%, creating opportunities for bioplastics. Initially high-cost niche products, bioplastics are expected to become more economical with increased economies of scale and improved performance. Companies like Dell have already started using recycled plastic in manufacturing, potentially saving USD700 million annually in environmental costs if the industry adopts closed-loop recycling. These developments and innovations will positively impact the bioplastics market.

The bioplastics market is witnessing significant growth with key players like Braskem and Arkema leading the charge. Bioplastics, made from renewable feedstocks such as cellulose acetate, sugarcane, corn, and castor oil, offer eco-friendly properties and biodegradability. Notable bioplastics include Polyethylene Furanoate, Polytrimethylene Terephthalate, and Polyethylene Terephthalate. Major applications include packaging, particularly in films and sheets, jars, containers, and bottles for fresh food. Bioplastics are also used in agriculture for mulch films and as shopping bags, refuse bags, and in hygiene applications. Companies like Danone and Nestlé are adopting bioplastics for their sustainable packaging initiatives. The market trends towards circular economy and reducing carbon dioxide emissions. Hybrid material innovations are also gaining traction, combining the best properties of traditional plastics and bioplastics. However, the market faces challenges such as lead time, international borders, and competition from traditional plastics like Polyethylene, Polypropylene, Polyamide, and Polyvinyl Chloride. Despite these challenges, the future of bioplastics looks bright as more businesses embrace the shift towards sustainable and biodegradable products.

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Market Challenges

The bioplastics market faces several challenges that hinder its growth. Production costs for bioplastics are significantly higher than conventional plastics, ranging from 25% to 75% more. This is primarily due to the high polymerization costs and the fact that most bioplastic production processes are still in the development stage, lacking economy of scale. Additionally, the required supply chain network is not yet established at upcoming capacity locations. The production technology for bioplastics is also unconvincing as it is still in its infancy, with various raw materials being tested for optimal production. The cost of bioplastics currently ranges from USD2.65 to USD6.68 per kilogram, compared to USD1.65 per kilogram for conventional plastics. Vendors’ high production costs, substantial R&D expenses, and the significant price difference between petroleum-based plastics and bioplastics are other reasons for the low demand for bioplastics. These factors are expected to impede the growth of the bioplastics market during the forecast period.The bioplastics market is experiencing significant growth in various industries such as consumer goods, textiles, construction, electronics, medical devices, and more. However, challenges persist in the form of consumer acceptance, production costs, and infrastructure development. In the consumer goods sector, bioplastics face competition from conventional plastics and natural fibers. In the electronics industry, nanoparticles and polymer plant construction pose challenges. Production halts due to environmental issues and the need for a paradigm shift towards sustainable alternatives add to the complexity. Cheaper alternatives like starch blends, PBS, PBAT, and PHA are gaining traction. The market for bioplastics in packaging, particularly in food items, beverages, and non-food products, is expanding. However, the lack of composting infrastructure remains a concern. Cornstarch, polylactic acid, bio polyethylene terephthalate, bio polyethylene, and bio polypropylene are key bioplastics used in various applications. The automotive industry and bio-based packaging are also showing potential. Overall, the bioplastics market is evolving, with nature providing the raw materials for a more sustainable future.

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Segment Overview 

This bioplastics market report extensively covers market segmentation by

Type 1.1 Non-biodegradable1.2 BiodegradableApplication 2.1 Packaging and food service2.2 Agriculture and horticulture2.3 CG and HA2.4 Automotive2.5 OthersGeography 3.1 Europe3.2 North America3.3 APAC3.4 Middle East and Africa3.5 South America

1.1 Non-biodegradable-  The non-biodegradable bioplastics market is experiencing notable growth due to increasing efforts to reduce the carbon footprint of products. These plastics, such as bio-PET and bio-PE, offer similar durability to their fossil counterparts but can be mechanically recycled. The market for non-biodegradable bioplastics will expand substantially during the forecast period, driven by the shift away from conventional plastics. Despite this growth, the non-biodegradable bioplastics segment will grow at a slower rate than the biodegradable bioplastics market. Notably, the residential and commercial sectors are embracing non-biodegradable bioplastics as a sustainable alternative. This trend toward reduced conventional plastic usage is fueling the expansion of the non-biodegradable bioplastics segment, contributing to the overall growth of the global bioplastics market.

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Learn and explore more about Technavio’s in-depth research reports

The global bioplastics and biopolymers market is experiencing robust growth, driven by increasing demand for sustainable alternatives to traditional plastics. With applications spanning packaging, agriculture, and automotive industries, the market is poised to expand significantly. Key factors include rising environmental concerns, government regulations, and advancements in biopolymer technology. Major players are investing in research and development to innovate eco-friendly solutions. The market’s growth is also fueled by consumer preference for biodegradable products, positioning bioplastics as a crucial component of the circular economy.

Research Analysis

Bioplastics, also known as biodegradable plastics, are eco-friendly alternatives to traditional fossil fuel-based plastics. Made from renewable feedstocks like corn starch, sugarcane, and cellulose, they offer significant environmental benefits, including reduced carbon dioxide emissions and biodegradability in nature. The market for bioplastics is growing rapidly, driven by the circular economy and the need for sustainable solutions. Hybrid material innovations, such as starch blends, PBS, PBAT, PHA, and Polycaprolactone, are gaining popularity in various industries, including flexible packaging, food items, and electronics. However, production halts and environmental issues have posed challenges to the industry. Biodegradable plastics are now replacing traditional plastics in packaging films, and Danone is one of the leading companies adopting this trend. The degradable nature of bioplastics makes them ideal for composting infrastructure, but the lack of standardization and infrastructure remains a barrier to widespread adoption. The paradigm shift towards bioplastics is driven by the need for cheaper alternatives to fossil fuel-based plastics, as well as the growing concern for the environment. The future of bioplastics lies in the continued innovation and development of eco-friendly properties, such as biodegradability and compostability, to meet the demands of various industries.

Market Research Overview

Bioplastics, derived from renewable feedstocks, offer eco-friendly properties and are biodegradable, addressing carbon dioxide emission concerns in the circular economy. Innovations include hybrid materials and biodegradable plastics in various sectors like flexible packaging, food items, beverages, and non-food products. Companies in consumer goods, textiles, construction, electronics, and medical devices are adopting bioplastics for their sustainability and biodegradability. Bioplastics are used in packaging films, napkins, tissues, toilet paper, nappies, sanitary towels, cardboard, coat paper, cups, plates, and jars. Cornstarch, polylactic acid, bio polyethylene terephthalate, bio polyethylene, bio polypropylene, and various biopolymers like PBS, PBAT, PHA, Polycaprolactone, cellulose acetate, and PET are used in bioplastic production. Sugarcane, corn, and castor oil are common feedstocks. Bioplastics face challenges such as lead time, production halts due to environmental issues, and competition from cheaper alternatives. The electronics industry and nature are exploring degradable solutions for electronic components and packaging. The paradigm shift towards bioplastics is driven by consumer demand and international borders’ regulations.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeNon-biodegradableBiodegradableApplicationPackaging And Food ServiceAgriculture And HorticultureCG And HAAutomotiveOthersGeographyEuropeNorth AmericaAPACMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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