Global Biodegradable Plastics Market Outlook
Revenue, 2023
Forecast, 2033
CAGR, 2024 - 2033
The Biodegradable Plastics industry revenue is expected to be around $8.9 billion in 2024 and expected to showcase growth with 18.7% CAGR between 2024 and 2033. The demand for Biodegradable Plastics is increasing as industries look for options to traditional plastics in order to lessen their impact on the environment. By 2023 the market had reached a worth of around USD 6.3 billion and It is projected to grow at an annual rate of 18.7% with expectations to hit USD 21 billion by 2030 and USD 49 billion, by 2035. Biodegradable plastics provide friendly solutions and can naturally decompose in specific conditions; they are commonly used across various sectors including packaging, agriculture and textiles.
Sustainability regulations and the growing preference for eco products have led to the rise of biodegradable plastics as a solution to waste management challenges and a way to support a more circular economy approach in our society today. Innovations in polymer production techniques and the creation of biodegradable plastics have made them a practical choice for use, in a wide range of applications.
Market Key Insights
- The Biodegradable Plastics market is projected to grow from $6.3 billion in 2023 to $35.2 billion in 2033. This represents a CAGR of 18.7%, reflecting rising demand across Packaging, Textiles and Agriculture.
- NatureWorks, BASF, Danimer Scientific are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Biodegradable Plastics market and are expected to observe the growth CAGR of 18.0% to 26.2% between 2023 and 2030.
- Emerging markets including India, Brazil and South Korea are expected to observe highest growth with CAGR ranging between 14.0% to 19.4%.
- Transition like Transition to Bio-Based Alternatives is expected to add $2 billion to the Biodegradable Plastics market growth by 2030
- The Biodegradable Plastics market is set to add $28.9 billion between 2023 and 2033, with manufacturer targeting Agriculture & Textiles Application projected to gain a larger market share.
- With Stringent government regulations on plastic waste, and Increasing consumer awareness of sustainability, Biodegradable Plastics market to expand 455% between 2023 and 2033.
Opportunities in the Biodegradable Plastics
The progress, in technology allows biodegradable plastics to be used in challenging scenarios.
Growth Opportunities in North America and Europe
North America Outlook
In the plastics market, North America takes the forefront due to consumers wanting sustainable products and regulations supporting less plastic waste reduction efforts. Companies such, as BASF and Danimer Scientific are developing solutions to fulfill this rising demand.
Europe Outlook
Europe's biodegradable plastics market is established thanks to stringent environmental regulations and efforts to promote a circular economy. The main players in this market such, as Novamont and Total Corbio PLA emphasize offering notch eco friendly solutions that meet regulatory standards.
Market Dynamics and Supply Chain
Driver: Stringent Government Regulations on Plastic Waste, and Advancements in Biodegradable Polymer Technology
The increasing focus, on issues is also driving consumers to seek out plastic alternatives that are also more eco friendly.
Restraint: High Production Costs, and High Production Costs
Biodegradable plastics typically come with manufacturing expenses compared to traditional plastics.
Opportunity: Increased Use of Biodegradable Plastics in Agriculture and Rising Interest in Closed-Loop and Circular Economy Models
The emphasis on adopting circular economy principles opens up possibilities, for the use of biodegradable plastics.
Challenge: Limited Industrial Composting Facilities
Supply Chain Landscape
NatureWorks
Total Corbion PLA
BASF
Danimer Scientific
Avient
Nexeo Solutions
Packaging
Agriculture
Textiles
Consumer Goods
NatureWorks
Total Corbion PLA
BASF
Danimer Scientific
Avient
Nexeo Solutions
Packaging
Agriculture
Textiles
Consumer Goods
Applications of Biodegradable Plastics in Packaging, Textiles & Agriculture
Biodegradable plastics play a role in packaging for food and beverages as they comply with regulations and help decrease the impact on the environment. Major suppliers such, as NatureWorks and BASD provide solutions based on PLA and PBS materials.
Biodegradable films and mulch sheets created from PHA and PLA are commonly utilized in agriculture to enhance soil health and minimize pollution with corporations such as Danimer Scientific and Novamont focusing their efforts specifically in the production of eco friendly plastics, for agricultural use.
Biodegradable materials are becoming more popular in the textile industry for making fabrics. Companies, like Total Corbian PLA and Bio On are working to create biopolymer solutions.
The consumer goods sector incorporates plastics into items such as cutlery and packaging to appeal to environmentally conscious consumers preferences for sustainable options presented by top firms, like Cardia Bioplastics and Good Natured Products.
Recent Developments
Danimer Scientific introduced a cutting edge PHA material specifically designed for use, in packaging.
Corresponding to the increasing demand Total Corbian PLA has extended its PLA manufacturing plant.
BASF has launched a resistant biodegradable plastic for agriculture films