Bioplastics Market Dynamics and Trends by 2028

[Research Report] The bioplastics market is expected to grow from US$ 5,799.8 million in 2021 to US$ 13,806.1 million by 2028; it is estimated to grow at a CAGR of 13.2% from 2021 to 2028

Market Insights and Analyst View:

Bioplastics are plastics materials that are made up of renewable biomass sources which include vegetable fats and oils, corn starch, straw, woodchips, sawdust, recycled food wastes, among others. Bioplastics are being increasingly used to reduce the problem of plastic waste that is suffocating the planet and contaminating the environment along with this the production of bioplastic requires 65% less energy than conventional petroleum plastic. Further, in 2022, the packaging segment was the dominating the global market and is also expected to be the fastest-growing segment in the bioplastics market.

Growth Drivers and Challenges:

The growing environmental concerns and a global endeavour to lessen pollution is driving the demand for biodegradable plastics in the packaging sector across the globe. In addition, the demand for bioplastics in the packaging industry is expected to grow due to the rising need for different healthcare products to combat the COVID-19 pandemic. Further, it’s relatively easy for manufacturers to manufacture bioplastic packaging because packaging produced from biopolymers can usually be produced employing standard plastics processing technology. Thus, the growing demand for eco-friendly plastics in the packaging sector is a major factor expected to boost the bioplastics market growth across the globe over the forecast period. Further, the prices of bioplastics are relatively higher than conventional plastics. For instance, PLA can be 20 to 50% more costly than comparable materials because of the complex process used to convert corn or sugarcane into the building blocks for PLA. Moreover, some bioplastics have a shorter lifetime than oil-based plastics owing to weaker mechanical properties, such as superior water vapour permeability than standard plastic, easy to tear like tissue paper, or very brittle. For example, some algae-based bioplastics will break down in hours when in the water, making them very biodegradable and fragile. Thus, the higher price of bioplastics along with shorter lifetime of bioplastics is anticipated to hinder the bioplastics market growth during the forecast period.

Published Report - Bioplastics Market: Strategic Insights

Report Segmentation and Scope:

The “Global Bioplastics Market” is segmented based on type, application, and geography. Based on type, the bioplastics market is segmented into biodegradable and non-biodegradable. The bioplastics market is segmented based on application, into packaging, agriculture, consumer goods, automotive & transportation, textiles, building & construction, and others. The bioplastics market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on type, the bioplastics market is bifurcated into biodegradable and non-biodegradable. The biodegradable segment held the significant share in the bioplastics market and is expected to register the significant growth over the forecast period. Biodegradable bioplastics are anticipated to gain popularity during the forecast period due to environmental concerns, reducing waste, and negative impacts of traditional plastics on the environment, including landfill and plastic pollution. They are produced from renewable materials, plant or animal materials such as corn oil, orange peels, soybeans, switchgrass, microorganisms, or starch.

Regional Analysis:

Based on geography, the bioplastics market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global bioplastics market was dominated by Asia Pacific which accounted for US$ 2535.91 Million in 2022. Europe is a second major contributor holding more than 25% share in the global bioplastics market. North America is expected to register the considerable growth at a CAGR of over 13% over the forecast period.  In North America, bioplastics are widely consumed in the packaging sector in the form of plastic bottles and bags. Production and consumption of bioplastics are expected to grow in the region, primarily in food packaging applications. Unlike traditional plastics, bioplastics are obtained from renewable sources. The automotive industry in this region is one of the most advanced industries globally due to substantial investments in infrastructure, R&D activities, and new production facilities. Bio-polyamides (Bio-PA), polylactic acid (PLA), and bio-based polypropylene (Bio-PP) are bioplastics used in automotive manufacturing. These factors are driving the bioplastics market growth.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the bioplastics market are listed below:

• In January 2022, Toray Industries, Inc. announced a development initiative that it has developed a nylon 510 (N510) fiber that incorporates 100% ‘biobased synthetic polymer content.
• In October 2021, Sabic introduced a new line of bio based ULTEMTM resins that provide environmental benefits while maintaining the same high performance and processability as traditional ULTEM materials.
• In June 2019, Biome bioplastics and the Biorenewables Development Centre (BDC) have collaborated to construct and install a new specialized polymerization reactor with the University of York's Green Chemistry Centre of Excellence. The new reactor, which was partially funded by the University of York's Higher education Innovation fund, will be critical in helping to scale up the expanding array of novel bioplastics.

Bioplastics

Published Report - Bioplastics Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Bioplastics Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the chemicals and materials industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020.  The construction of residential and commercial buildings was almost negligible due to the shortage of laborers and disrupted the supply chain of construction materials. In addition to this, the automotive industry was slowed down due to the lack of supply of various automotive parts and low demand for vehicles. In Asia Pacific, many bioplastics producers were operating their plants at reduced rates amid the COVID-19 pandemic. Various end-use industries, such as automotive and transportation, textiles, and building & construction have been hit hard by the pandemic, impacting bioplastics consumption in Asia Pacific. China is a leading automotive market in terms of production and consumption. Due to adverse impact of the pandemic on the automotive industry, the bioplastics market growth declined in the region.

However, various industries are coming on track after supply constraints affecting these industries are resolving gradually. Moreover, the rising demand for bioplastics across diverse industrial applications and government initiatives to combat COVID-19 is expected to substantially promote the requirement for bioplastics in the global market. The automotive sector has also begun to revive with the resumption of operations in various industries from 2021. Moreover, the demand for bioplastics is witnessing significant recovery as various countries restarted their business activities, driving the bioplastics market growth.

Competitive Landscape and Key Companies:

A few players operating in the global bioplastics market include Teijin Limited; Toray Industries, Inc.; Sabic; Basf SE; Total Corbion PLA; Braskem S.A.; Biome Bioplastics; Mitsubishi Chemical Corporation; Novamont S.P.A.; and Natureworks LLC. Players operating in the global bioplastics market focus on providing high-quality products to fulfil customer demand.