Bioplastics Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2027

The Global Bioplastics Market is estimated to witness a major jump in revenue from US$ 5,487.2 Mn in 2021 to US$ 10,169.9 Mn by 2027. The market is registering growth at a CAGR of 10.8% over the projection period 2022-2027. In terms of volume, the market was valued at 2,143.9 Kilo Tons in 2021 and is projected to grow at a CAGR of 11.8% during the forecast period. 

Bioplastics are plastic materials that are produced from renewable biomass sources such as vegetable fats and oils, corn starch, straw, woodchips, sawdust, recycled food waste, etc. Some bioplastics are obtained by processing directly from natural biopolymers including polysaccharides and proteins, while others are chemically synthesized from sugar derivatives and lipids from either plants or animals or biologically generated by fermentation of sugars or lipids. 

Market Dynamics

Environmentally friendly properties and favorable government policy and high consumer acceptance and renewable raw material sources are expected to boost the bioplastic market growth. Various governments across the world adopt favorable regulations and policies to promote the sustainability and biodegradability of bioplastics. Also, the adoption of bioplastic in the packaging industry plays a significant role in the market’s growth during the forecasting period. Moreover, an increase in consumer awareness about the usage of sustainable products coupled with rapid environmental concerns such as global warming drives consumers’ acceptance of bio-based and biodegradable plastic materials. However, the high cost of products is one of the biggest issues associated with the global bioplastics market. Also, the poor mechanical, thermal, and water absorption properties of bioplastic are not suitable for many applications.

Key Insights of the Report: 

• The latest study published by Astute Analytica analyses the Global Bioplastics Market for the study period of 2021-2027; where the base year is 2021 and the forecast period is 2022-2027.
• The research report offers a detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with an attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 14 chapters distributed across 238 pages with 54 lists of tables and 90 lists of figures.
• The market estimates are presented in terms of value (US$ Mn).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes raw material providers, manufacturing & processing, distributors, and end-users.
• The competitive dashboard section includes analysis on the basis of the Concentration Ratio (CR), based on market size and market presence of key companies.
• The report also talks about the Global Biomass Plastic Market, wherein the market is segmented based on raw materials, application, and region. The market is registering a CAGR of 11.3% over the projection period 2022-2027.

Biomass-based Plastics

Japan Bio-Plastics Association (JBPA) defines Biomass-based Plastics as polymer materials that are produced by synthesizing, either chemically or biologically, materials that contain renewable organic materials (natural organic polymer materials that are not chemically modified are excluded).

Plastics are indispensable to support our lives. JBPA desires to provide plastic materials while helping to solve the most urgent and important issues of preservation of the global environment and the establishment of a recycle-oriented society by applying chemical and biochemical technologies on biomass resources.

Impact of COVID-19 on Global Bioplastics Market

During the inception of the COVID-19 pandemic, the global demand for the bioplastics market is significantly reduced due to the reduced investments by government and private companies in bioplastic manufacturing, which leads to cutbacks in such business lines, thereby hampered the market growth considering the global scenario. Moreover, the rapid spread of the coronavirus pandemic reduced the application of any new plastic bags including biodegradable bags. Also, after the COVID-19 outbreak governments across different countries made several changes in their regulations regarding disposable and single-use plastics to prevent further spread of the virus. In addition, supply chain disruptions due to irregular transport led to increasing lead time of raw materials. It further affects the business of its end-use industries who opt for such products on account of its versatile benefits. Furthermore, the pandemic further interrupted the demand and supply of the bioplastic industry throughout the world, backed by the certain restriction on trade and lockdown imposed by government bodies. This often limits the adoption of bioplastics and therefore, inhibits the market growth globally.

Bioplastics Regulation

• ASTM D6400 - The properties in this specification are those required to determine if plastics and products made from plastics will compost satisfactorily, including biodegrading at a rate comparable to known compostable materials. Further, the properties in the specification are required to assure that the degradation of these materials will not diminish the value or utility of the compost resulting from the composting process.
• Commission Regulation, (EU) No. 10/2011 - The relevant Commission Regulation, (EU) No. 10/2011, contains requirements for migration tests. A migration limit value indicates the maximum permitted quantity of an ingredient to transit into food. The limit value ensures that food contact material does not pose a health risk to consumers. In addition to the migration test, the composition of multi-component materials is also checked.
• EU standard EN 13432 - Biodegradable plastics certified for industrial composting according to EU standard EN 13432 have to meet a fixed limit for heavy metals and other toxic and hazardous substances. Also, an ecotoxicity test is carried out in accordance with the OECD [1] rules. This test examines the possible effects of industrial compost on plant growth and its toxicological harmlessness to microorganisms.

Key Takeaways from the Global Bioplastics Market Report

• Based on type, the biodegradable segment is estimated to have the highest market share in 2021 owing to stringent regulations pertaining to single-use plastic ban across various regions including Europe, North America, and Asia. Further, the segment is projected to grow at the highest CAGR of 11.6% during the forecast period due to increasing environmental concerns.
• On the basis of mode of application, the flexible packaging segment is estimated to have the highest market share during the forecast period. As packaging has wide scope in various applications including food packaging, cosmetic & personal care packaging, shopping bags, and others, thereby augmenting the growth of the segment. Whereas the consumer goods segment is expected to register a CAGR of 12.4% during the forecast period.
• In terms of region, Asia Pacific held the major share in the global bioplastics market in 2021. The region is expected to project the highest CAGR of 12.5% in the global bioplastics market during the forecast period. The increasing consumer preferences towards eco-friendly plastic products with the rapidly growing population of the region and consumer purchasing power are the factors responsible for the market growth in the region.

Competitive Insight

The key players in the Global Bioplastics Market are NatureWorks LLC, Braskem, BASF SE, Novamont S.p.A., Mitsubishi Chemical Holdings, Toray Industries, Toyota Tsusho, E. I. du Pont de Nemours and Company, Galactic and Showa Denko K.K. among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on the emerging markets. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview 

The global Bioplastics Market is segmented based on type, mode of application, and region. The industry trends in the global bioplastic market are sub-divided into different categories in order to get a holistic view of the global marketplace.

Following are the different segments of the Global Bioplastics Market:

By Type Segment of the Global Bioplastics Market is Sub- Segmented into:

• Biodegradable
  • Starch-based
  • Polylactic Acid (PLA)
  • Poly hydroxy alkanoates (PHA)
  • Polyester (PBS, PBAT, and PCL)
  • Other Biodegradable Plastics
• Non-biodegradable
  • Bio-polyethylene Terephthalate (PET)
  • Bio-Polyethylene
  • Bio-Polyamides
  • Bio-Polytrimethylene Terephthalate
  • Other Non-Biodegradable Plastics

By Mode of Application Segment of the Global Bioplastics Market is Sub- Segmented into:

• Rigid Packaging
  • Bottles & Jars
  • Trays
  • Others
  • Flexible Packaging
  • Pouches
  • Shopping/Waste Bags
  • Others
• Agriculture & Horticulture
• Consumer goods
• Textile
• Automotive & Transportation
• Building & Construction
• Others

By Region Type Segment of the Global Bioplastics Market is Sub- Segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe 
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America