Global Bioplastic Market Research Report: Forecast (2023-2028)

Market Definition

Bioplastics are resources made from organic matter, such as vegetables & starch, rather than focusing on petroleum-based alternatives. As conventional plastic is highly non-biodegradable & is a major cause of pollution of land & sea, the consumer goods & packaging industry is slowly shifting towards organic plastic products to cope with the environmental challenges.

Market Insights & Analysis: Global Bioplastic Market (2023-28)

The Global Bioplastic market size is valued at around USD 8.21 billion in 2024 and is projected to grow at a CAGR of around 10.12% during the forecast period, i.e., 2023-28. Some factors that have attributed to growth are increasing sustainability consciousness among consumers & industry players, stringent government regulations being placed in many regions, a growing number of biodegradable options available, etc. They are now widely used in several industries such as packaging, agriculture products, automotive, electronics, etc., due to which a diverse demand is created for them. The growing awareness of the negative impact of conventional plastics on the ecosystem has led to a rise in demand for these organic resources, which are biodegradable & compostable.

Consumers are also becoming extremely conscious regarding the purchased product & sustainability, due to which many of the industrial & consumer goods manufacturing companies are opting for these organic resources over conventional petroleum-based plastics. Furthermore, many countries have also placed stringent policies & regulations concerning the usage of conventional plastic that has accentuated the need for a shift towards these resources. For instance:

• In 2022, Under the Plastic Waste Management Amendment Rules 2021, effected from 31st December 2022, the usage of single-use plastic, with a thickness of less than 120 microns, was banned in India. This was one of the key moves in the economy in order to push the packaging industry to move toward biodegradable packaging alternatives.

With the increased focus of both the public & private players to adopt an environment-friendly approach towards the transition from conventional plastic, the growth of the global market is anticipated to continue in the forecast years, i.e., 2023-28. These resources are made from organic matter, such as vegetables & starch, rather than focusing on petroleum-based alternatives. Hence, as conventional plastic is highly non-biodegradable & is a major cause of pollution, the consumer goods & packaging industry is slowly shifting towards organic plastic products to cope with the environmental challenges, therefore stimulating the market in the future years.

Global Bioplastic Market Key Driver:

Growing Consumer Awareness Towards Sustainable Packaging Products  - Consumers are becoming more health-conscious & adopting sustainable practices in terms of their purchase decisions, which is being reflected in the growing demand for sustainable & green products across the globe. Bioplastics cause less harm & are easily biodegradable, due to which the customers are inclining more towards sustainable packaging of products which has induced the need for these resources & resulted in the growth of the respective market. The growing popularity of reusable & biodegradable alternatives, such as bamboo straws, glass water bottles, cloth bags, etc., among consumers has again benefitted the market through an enhanced avenue of expansion.

Moreover, the consumer's perception of these resources has also changed due to the COVID-19 pandemic in 2020. With the increased focus on sustainability, cleanliness, and others, consumers have become more conscious in terms of their purchases & selecting environment-friendly products with keen observation, especially in developed & fast-developing economies. Therefore, the improved awareness among individuals would expand the adoption of bioplastic-based products in the coming years, thereby pushing market expansion in the ensuing years.

Global Bioplastic Market Possible Restraint:

Higher Cost Compared to Conventional Plastics to Impede the Adoption in Price-Sensitive Market - Bioplastics have various advantages over conventional plastics, of which biodegradability is one of the prominent ones. However, the limited-scale production & wide-scale adoption of conventional plastic across the globe have kept the prices of biodegradable ones on the higher side. The global supply chain has long been dependent on conventional plastic-based products, due to which the industry has achieved economies of scale, assisting to keep the prices on the lucrative side. Besides, many of the renewable products being introduced in the newer markets, such as Asia-pacific, Middle East, Eastern Europe, etc., with limited scale production, have placed the economies of scale on a higher side, placing the cost of output exorbitantly elevated.

Numerous countries across the globe still lack the capacity to fulfill their domestic demand for it, which has resulted in extreme dependence on imports & further exacerbating the price dynamics with the conventional plastic counterparts. Moreover, conventional plastics are made from petroleum products that have long benefitted from the weak international oil prices, resulting in keeping the cost of production on the lower side. Henceforth, considering the listed factors, the higher prices of bioplastics due to lowered economies of scale & low international prices of crude oil would be a crucial barrier for the market in the coming years, i.e., 2023-28.

Global Bioplastic Market Growth Opportunity:

Growing Demand for Compostable Carry Bags in Asia-Pacific Region - Bioplastics have emerged as a viable option for many of the conventional plastic-based products, of which carry bags are one of the key products. The extensive usage of plastic bags due to their economical production cost, as well as well-established production, supply chain, and distribution network, has made a large number of countries dependent on the usage. Due to the consumption of plastic bags, a vast amount of non-biodegradable plastic waste is produced, which is highly contaminant. Thus, in order to cope with the challenges & a sustainable alternative to reduce the packaging solutions, many countries have focused on supporting the industries to enhance/develop these organic resources. The usage of bioplastics, especially compostable ones, has been the prime focus, which would be conducive to the upcoming growth opportunities as it would act as a great packaging solution for various end-user industries, including consumer goods & food packaging industry.

Global Bioplastic Market Key Trend:

Burgeoning Usage in Automotive Parts - Automotive is one of the critical growth industries across the globe that has witnessed sustained growth with the rise in population coinciding with soaring disposable income & a burgeoning middle-class population. With the rising need for vehicles, automotive manufacturing companies have become extensively dependent on steel & other plastic products. This is anticipated to take a shift in the coming years with the inclination of automotive manufacturing companies toward the integration of bioplastic-based products in vehicles. Furthermore, various resources, including bio-polyamide, polylactic acid, bio-based polypropylene, etc., are being used as an alternative to several non-biodegradable plastic counterparts in automotive components. However, the integration of these resources in automotive components is still in its infancy stage & is expected to be implemented in various elements in the coming years to reduce the carbon footprint of the pertinent industry.

Global Bioplastic Market (2023-28): Segmentation Analysis

The Global Bioplastic Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Product Type, and Application the market has been further classified as:

Based on Product Type:

• Biodegradable
  • Polylactic Acid
  • Starch Blend
  • Polybutylene Adipate Terapthalate (PBAT)
  • Polybutylene Succinate (PBS)
  • Others Biodegradable
• Non-biodegradable
  • Polyethylene
  • Polyethylene Terapthalate
  • Polyamide
  • Polytrimethylene Terapthalate
  • Other Non-Biodegradable

Of all, the Biodegradable product type is envisioned to exhibit noticeable growth in the global market. They are also referred to as bio-based plastics that are completely made from organic matter & can easily break down in nature after usage. This product type offers excellent superiority over non-biodegradable solutions that cannot be composted & are required to be collected & recycled due to their nature. Various public & private sector initiatives have been taken, which would be crucial for biodegradable resource adoption in the coming years. Furthermore, with the growing government support for biodegradable & compostable plastic for packaging & carrying goods, which is a major focus area of transition, it is expected that the demand for the biodegradable segment in the market would experience a surge in the forecast years.

Based on Application:

• Packaging
  • Rigid Packaging
  • Flexible Packaging
• Agriculture
• Consumer Goods
• Automotive & Transport
• Agriculture & Horticulture
• Electrical & Electronics
• Textiles
• Others (Building & Construction, coatings & adhesives, etc.)

The Packaging application is predicted to hold a sizeable market share in the Global Bioplastic market. Packaging is one of the dominant categories due to the extensive usage of flexible packaging, being used in various articles & in the replacement of single-use plastic, such as carrying bags. The reduction of single-use plastics is another major concern area for many countries across the globe to reduce water & land pollution, due to which the category is presumed to prevail in the coming years. Another relevant area is rigid packaging, which includes bottles, containers, etc., which do not require to show elastic deformation or perfect plastic deformation. Moreover, many of the large-scale commitments being made by big FMCG brands across the globe are also anticipated to provide ample thrust for the growth of respective categories. For instance,

• In 2021, under the sustainability aim of Unilever, around 30 billion tea bags under the Lipton brand were rolled out by the end of 2021 from fully plant-based material. According to the company, by the end of 2023, it would produce nearly 45 billion tea bags from plant-based material.

Consequently, with the raised adoption of plant-based plastic for rigid & flexible packaging, it is presumed to elevate market growth, thus maintaining its stronghold with a sizeable market share during 2023-28.

Global Bioplastic Market Regional Projection

Geographically, the market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Of all the regions across the globe, Europe is poised to account for the majority of the market share in the global market. The regional market has been majorly driven by the growth of various end-user industries, such as packaging, agriculture, textiles, automotive sectors, etc. With the higher inclination of consumers towards environment-friendly packaging & consumer goods, various greener alternatives have exhibited strong growth in the region. The respective sectors have increasingly adopted bioplastics as a viable solution to traditional petroleum-based plastics.

Also, the unique properties, like biodegradability, decomposition, and recyclability, have made these a lucrative option for a wide range of applications. Furthermore, some other regions, including North America & Asia-Pacific, have also exhibited rapid adoption along with the growing production capacity for bioplastic, which would be conducive to the expansion, subsequently enhancing the market in the coming years.

Global Bioplastic Industry Recent Developments 

• 2023: Solvay S.A. launched ISCC PLUS certified mass balance hydroquinone & hydroquinone monomethyl ether as raw materials in epoxy & polyester coatings, etc. Products are produced to manage the polymer, coating, adhesive, pharmaceutical, and agrochemical businesses' demand for enhanced sustainability, environmental-friendly feedstock, and a lower carbon footprint.

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