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Biodegradable Plastics Market

The market for Biodegradable Plastics was estimated at $5.1 billion in 2025; it is anticipated to increase to $10.1 billion by 2030, with projections indicating growth to around $20.1 billion by 2035.

Report ID:DS1313004
Author:Vineet Pandey - Business Consultant
Published Date:
Datatree
Chemicals & Materials
Bio-Based C&M
Biodegradable Plastics
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Report Summary
Market Data
Methodology
Table of Contents

Global Biodegradable Plastics Market Outlook

Revenue, 2025

$5.1B

Forecast, 2035

$20.1B

CAGR, 2026 - 2035

14.7%

The Biodegradable Plastics industry revenue is expected to be around $5.1 billion in 2026 and expected to showcase growth with 14.7% CAGR between 2026 and 2035. The market shows increasing strategic value because companies now focus on sustainable packaging solutions which match new environmental rules for single use plastics and customer preferences for environmentally responsible materials. The market demand for packaging and agriculture products now reaches 77.5% which drives the industry to adopt compostable materials instead of traditional polymers for plastic waste reduction and circular economy support. The PLA plastic generated $2.23 billion in 2025 because bio based polymers including PLA and PBAT and PHA successfully fulfilled performance standards while decreasing plastic waste in value chain operations. The future of Biodegradable Plastics depends on continuous funding for green chemistry research and the growth of industrial composting facilities and business sustainability initiatives which will maintain their essential role in worldwide supply chain decarbonization and resource management plans. The production of Biodegradable Plastics depends on renewable materials and specific degradation processes which enable these materials to maintain their operational strength until they break down into harmless substances after their useful life ends. The product features three main characteristics which include operation with current packaging systems and specific mechanical properties and adjustable breakdown times suitable for food and beverage packaging and agriculture films and mulch and consumer goods and medical and hygiene applications. The materials used in packaging allow manufacturers to create lightweight sustainable packaging solutions and compostable food service products. The materials serve two purposes in agriculture because they help farmers create biodegradable mulch films and controlled release products which reduce their work requirements and minimize plastic fragments that remain in the soil. The market demands Biodegradable Plastics because of three main factors which include PLA plastic and starch based plastic blends that show better heat stability and PHA formulations which create marine biodegradable solutions and companies adopt Biodegradable Plastics as part of their carbon reduction and sustainable product development initiatives.

Biodegradable Plastics market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Biodegradable Plastics Market Outlook

Market Key Insights

  • The Biodegradable Plastics market is projected to grow from $5.1 billion in 2025 to $20.1 billion in 2035. This represents a CAGR of 14.7%, reflecting rising demand across Packaging, Agriculture, and Textiles.

  • BASF SE, NatureWorks, and TotalEnergies Corbion lead the market as they determine its competitive structure.

  • The Biodegradable Plastics market shows its highest demand through the U.S. and Germany which will experience CAGR growth rates of 13.2% to 17.6% during 2025 to 2030.

  • Our analysis predicts that India, Brazil and South Korea will experience the highest market expansion through 10.3% to 15.4% CAGR.

  • Transition like Soil Safe Inputs is expected to add $1 billion to the Biodegradable Plastics market growth by 2030.

  • The Biodegradable Plastics market will experience a $15.0 billion growth span from 2025 to 2035 while manufacturers focus on developing products for Agriculture & Textiles Application to achieve higher market penetration.

  • With

    regulatory pressure and sustainable packaging demand accelerating material substitution across end use sectors, and

    Advancements in polymer science improving performance parity with conventional plastics, Biodegradable Plastics market to expand 294% between 2025 and 2035.

biodegradable plastics market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Biodegradable Plastics - Country Share Analysis

Opportunities in the Biodegradable Plastics

The global food service industry faces an urgent need to switch from using conventional plastics to certified compostable packaging solutions. The PLA market will also remain the largest biodegradable plastic segment because it reached $2.23 billion in 2025 and experts predict it will reach $4.84 billion by 2030 to lead the market for cups and lids and cutlery. The company can create customized logo printed formats which will help regional composting operators establish quick service chains for closed loop packaging programs that target environmentally aware restaurant customers.

Growth Opportunities in Europe and Asia-Pacific

The European market for Biodegradable Plastics operates mainly through packaging applications while agricultural uses experience growing popularity which generates major business potential for food contact bioplastic packaging and e commerce mailers and soil biodegradable mulching films because of Europe's strict waste management and circular economy laws. The market competition involves three main segments which include specialty chemical groups and packaging converters and niche biopolymer innovators who compete to provide high barrier certified compostable materials and traceable bio based polymers. The company should concentrate on developing premium packaging materials which provide high performance while building alliances with retailers and waste management companies and establishing PLA resin manufacturing facilities near their target markets for fresh produce and dairy and specialty crop distribution.
The Asia Pacific region leads Biodegradable Plastics development because packaging and consumer goods sectors use these materials for their packaging needs which include food delivery containers and e commerce shipping materials and disposable eating utensils. The market shows potential growth in agricultural film applications and controlled release input solutions because of single use plastic restrictions and urban population expansion and consumer demand for sustainable products from middle class buyers. The market contains numerous competitors who operate from different locations because they include local resin producers and affordable conversion facilities and international partnerships which focus on starch based polymers and bio based polymers. The main strategic opportunities for success involve creating manufacturing facilities across different regions to produce affordable compostable materials and working with leading food delivery and retail companies to create custom packaging solutions and obtaining extended supply agreements with companies that want to establish sustainable market presence. The company should choose to enter the agricultural product segment because it will operate successfully in hot and humid environments which match the characteristics of local farming operations.

Market Dynamics and Supply Chain

01

Driver: Regulatory pressure and sustainable packaging demand accelerating material substitution across end use sectors

Stringent regulations on single use plastics and landfill waste are also a primary growth factor, particularly in Europe and parts of Asia, where bans and extended producer responsibility rules push manufacturers toward biodegradable alternatives. Governments increasingly favor compostable materials in packaging, agriculture and food service, directly boosting demand. Alongside regulation, rising brand and consumer commitment to sustainability is also accelerating material substitution. Global FMCG companies are also redesigning packaging portfolios to reduce environmental impact, creating stable long term demand. Together, policy enforcement and corporate sustainability goals are also reshaping material selection and encouraging investment in biodegradable polymer capacity and innovation.
Ongoing technological advancements are also enhancing the mechanical strength, heat resistance and processability of biodegradable plastics. Innovations in copolymerization, blending and additives now allow materials like PLA and PBAT to perform reliably in flexible packaging, fibers and agricultural films. This narrowing performance gap reduces adoption risk for converters and end users, supporting broader commercialization in applications previously dominated by petrochemical plastics.
02

Restraint: Higher material costs and price volatility limiting adoption in cost sensitive applications

Biodegradable plastics remain significantly more expensive than conventional polymers due to higher raw material costs and limited economies of scale. Price volatility in bio based feedstocks further affects procurement planning. As a result, cost sensitive sectors such as mass packaging and agriculture often limit usage or adopt partial blends, slowing revenue growth despite rising sustainability interest.
03

Opportunity: Biodegradable PLA and PBAT blends for e-commerce flexible mailers targeting sustainability-conscious urban millennials worldwide and High-performance PHA-based agricultural mulch films and coatings for mechanized farming in China and India

The worldwide delivery package quantity keeps rising while more young customers on the internet choose to avoid using plastic shipping materials which cannot be recycled. The combination of PLA and PBAT in lightweight blends provides seal strength and printability and compostability which makes them suitable for direct substitution of poly mailers and bubble envelopes. The highest potential for expansion exists in the delivery of fashion items and beauty products and small electronic devices between different countries. The market offers potential for developing special mailer designs with mid sized e commerce businesses and logistics companies which do not only have their own materials development capabilities yet need to disclose their sustainability performance.
China and India have started to eliminate persistent polyethylene mulch which enables the market to accept complete biodegradable PHA films and coatings. PHA demonstrates the quickest expansion because its market value will increase from $0.35 billion in 2025 to $1.80 billion during 2030 at a 38.6% annual growth rate. The main business opportunity involves developing PHA blends which work with current film blowing systems and mechanized laying equipment through partnerships between resin manufacturers and local conversion businesses and agrochemical companies that provide complete soil health packages to big farms which use technology.
04

Challenge: Limited composting infrastructure and inconsistent standards restricting end of life benefits

In many regions, industrial composting infrastructure is insufficient, reducing the practical environmental benefit of biodegradable plastics. Inconsistent labeling and standards also confuse consumers and waste handlers. This limits demand from brands concerned about greenwashing risks and reduces willingness to pay premium prices, directly impacting market penetration and long term demand confidence.

Supply Chain Landscape

1

Bio-based Feedstocks

BASF SETotalEnergies CorbionNatureWorks LLC
2

Biodegradable Plastics Production

NatureWorks LLCNovamont SpABASF SE
3

Compostable Polymer Processing

Kingfa Science and TechnologyBASF SETotalEnergies Corbion
4

Biodegradable Plastics Applications

PackagingAgricultureConsumer Goods
Biodegradable Plastics - Supply Chain

Use Cases of Biodegradable Plastics in Packaging & Agriculture

Packaging : Packaging remains the largest application for biodegradable marine packaging plastics, driven mainly by PLA, starch based blends and PBAT used in flexible films, trays and rigid containers. Food and beverage brands prefer these materials for their compostability, clarity and good barrier performance for short shelf life products. Companies such as NatureWorks, BASF and Novamont lead this space with strong polymer innovation and global supply reach, helping brand owners meet sustainability targets while maintaining packaging functionality and regulatory compliance.
Agriculture : In agriculture, biodegradable plastics are widely used in mulch films, plant pots and controlled release fertilizer coatings, with PBAT and starch based polymers being most common. These materials naturally degrade in soil, eliminating the need for film removal and reducing labor costs for farmers. BASF, Novamont and TotalEnergies Corbion have strong positions due to proven soil biodegradation performance and agronomic certifications, enabling wider adoption in high value crops and precision farming practices.
Textiles : Smart textiles represent a growing application where biodegradable plastics such as PLA are used in fibers for apparel, nonwovens and hygiene textiles. These materials offer breathability, softness and lower carbon footprint compared to conventional polyester, appealing to eco conscious fashion and medical textile brands. NatureWorks and Toray Industries are key players, leveraging advanced fiber processing and scale advantages. Their materials support circular fashion initiatives while meeting performance needs in disposable and semi durable textile products.

Recent Developments

Recent strategic developments in the Bioplastics market show strong growth in sustainable packaging, biopolymer innovation, and corporate commitments to eco‑friendly materials as key trends. Expansion of production capacities and partnerships among leaders like NatureWorks, BASF and Total Corbion PLA are enhancing material performance and supply chains, while new home‑compostable polymers and flexible films gain traction across food, agriculture, and e‑commerce sectors. Rising regulatory support and consumer preference for compostable alternatives continue to shape demand, driving broader market adoption and investment.

May 2025 : NatureWorks LLC launched a new generation of PLA bioplastics with enhanced thermal stability and faster industrial composting times, broadening its application scope in packaging and consumer goods. This product release strengthens NatureWorks’ market leadership in high-performance PLA grades.
March 2025 : BASF SE acquired a majority stake in Biome Bioplastics Ltd to expand its bio-polymer portfolio and strengthen its European biodegradable plastics market position. This acquisition enhances BASF’s presence in compostable materials and complements its existing ecovio/ecoflex offerings.
August 2024 : TotalEnergies Corbion entered into a strategic distribution and research agreement with Nagase & Co., Ltd. to advance the adoption and tailored development of Luminy PLA bioplastics in Japan. This collaboration aims to grow PLA market share and jointly develop locally optimized biopolymer solutions.

Impact of Industry Transitions on the Biodegradable Plastics Market

As a core segment of the Bio-Based C&M industry, the Biodegradable Plastics market develops in line with broader industry shifts. Over recent years, transitions such as Soil Safe Inputs and Circular Farming Systems have redefined priorities across the Bio-Based C&M sector, influencing how the Biodegradable Plastics market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Soil Safe Inputs

The agriculture sector is undergoing a significant transition from conventional plastic inputs to biodegradable alternatives, notably mulch films made from PBAT and starch blends, which are set to reduce plastic residue and disposal costs. This shift not only enhances soil management practices but also catalyzes innovation in the fertilizer and seed industries, as they increasingly adopt biodegradable coatings in precision agriculture. Additionally, equipment manufacturers are evolving their machinery to accommodate these new materials, aligning with regenerative agriculture goals. This comprehensive transition is projected to drive an estimated $1 billion in growth for the Biodegradable Plastics market by 2030, underscoring the strategic importance of certified soil biodegradable materials across multiple industries.
02

Circular Farming Systems

Another major transition is the move toward circular farming systems that emphasize reduced waste and improved lifecycle efficiency. Biodegradable plastics enable closed loop practices by decomposing into biomass without retrieval. This change impacts waste management companies, compost producers and bio feedstock suppliers, who are aligning operations with agricultural demand. The transition encourages collaboration between polymer producers, agritech firms and cooperatives, reshaping value chains toward sustainability driven agricultural ecosystems.