Bioplastics Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Market Scenario 

The global bioplastics market is expected to experience a significant increase in revenue, projected to jump from US$ 6,034.3 million in 2022 to US$ 14,531.6 million by 2030. The market is predicted to grow at a Compound Annual Growth Rate (CAGR) of 12.6% during the projection period of 2023-2030. Additionally, in terms of volume, the market was valued at 2,377.7 Kilo Tons in 2022 and is projected to grow at a CAGR of 11.6% during the forecast period 2023-2030.

Bioplastics are a type of plastic material that is produced from renewable biomass sources. These sources include vegetable fats and oils, corn starch, straw, woodchips, sawdust, and recycled food waste. Some bioplastics are directly obtained from natural biopolymers such as polysaccharides and proteins, while others are chemically synthesized from sugar derivatives and lipids derived from plants, animals, or generated biologically through fermentation of sugars or lipids.

The growing awareness among consumers about the impact of conventional plastics on the environment and the need to adopt sustainable alternatives is driving the demand for bioplastics. Governments across the world are also supporting the use of bioplastics by introducing policies and regulations that promote the adoption of sustainable materials.

However, the production of bioplastics requires significant resources and energy, and the manufacturing process can be costly. Additionally, the disposal of bioplastics can also be a challenge, as they require specific conditions to degrade properly.

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Market Dynamics

Growing Awareness Among Consumers

One of the primary drivers of the bioplastic market is the growing awareness among consumers about the impact of conventional plastics on the environment and the need to adopt sustainable alternatives. Consumers are becoming more conscious of their impact on the environment and are seeking ways to reduce their carbon footprint. Bioplastics provide a solution that aligns with this growing trend towards sustainability.

Government Policies and Regulations

Another driver of the bioplastic market is government policies and regulations that promote the adoption of sustainable materials. Governments across the world are implementing policies to reduce plastic waste and encourage the use of bioplastics. For instance, the European Union's single-use plastics directive aims to reduce the use of certain single-use plastic products and encourage the adoption of more sustainable alternatives, including bioplastics.

Restraint: High Production Costs

The primary restraint of the bioplastic market is the high production costs compared to conventional plastics. The production of bioplastics requires significant resources and energy, making it more expensive than traditional plastics. This cost barrier limits the adoption of bioplastics, especially in industries that require large quantities of plastic materials. Additionally, the limited scalability of bioplastics production further exacerbates the cost issue, as it can be difficult to achieve economies of scale.

Segmental Analysis 

By Biomass Plastic

By type, biomass plastic has emerged as a promising alternative to conventional plastics, which are largely derived from non-renewable sources such as petroleum. Biomass-based plastics are produced by synthesizing materials that contain renewable organic materials through either chemical or biological means. The Japan Bio-Plastics Association (JBPA) defines biomass-based plastics as such, but excludes natural organic polymer materials that have not been chemically modified.

The use of biomass-based plastics is driven by the need to address urgent environmental concerns and establish a recycle-oriented society. Plastics have become indispensable to support our lives, but their overuse and improper disposal have led to significant harm to the environment. By utilizing chemical and biochemical technologies on biomass resources, JBPA aims to provide plastic materials while minimizing the negative impact on the environment.

By Type

By type, the biodegradable segment of biomass-based plastics is estimated to have the highest market share in 2022. This is due to the increasing regulatory pressures across various regions, including Europe, North America, and Asia, to ban single-use plastics. The biodegradable segment is projected to grow at a highest CAGR of 11.6% during the forecast period, driven by increasing environmental concerns.

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By Application

The flexible packaging segment is expected to dominate the bioplastic market with more than 32% revenue share due to its numerous benefits over traditional packaging materials. Bioplastic-based flexible packaging offers enhanced product protection and longer shelf life, making it ideal for food packaging applications. Additionally, bioplastics can be made with a range of materials, including corn starch, sugarcane, and cellulose, which provides greater flexibility in terms of packaging design and function.

The cosmetic and personal care packaging segment is also expected to contribute significantly to the growth of the bioplastic market. Bioplastics are increasingly being used in these applications due to their biodegradability and eco-friendliness. For example, bioplastic tubes made from sugarcane are becoming popular for packaging cosmetics and personal care products.

Another important application for bioplastics is in the production of shopping bags. With the increasing awareness of the environmental impact of plastic bags, many retailers are switching to bioplastic bags made from renewable resources. These bags are not only biodegradable but also provide a sustainable alternative to traditional plastic bags.

The consumer goods segment is also expected to see significant growth in the bioplastic market. Consumer goods such as electronic devices, toys, and kitchenware are increasingly being made with bioplastics due to their durability and ability to be molded into a variety of shapes and sizes. Bioplastics are also being used in the production of disposable cutlery and other food service items.

By Region 

The Asia-Pacific region is expected to capture more than 50% of the global bioplastic market share in the near future. This is due to the region's rapidly growing demand for bioplastics, with China and India leading the way in terms of production. Additionally, the presence of large-scale bioplastic production facilities in the region, as well as the increasing number of bioplastic-related research and development projects, are contributing to this growth. The region is also benefiting from government initiatives such as subsidies and tax incentives, which are making bioplastics more cost-effective and accessible.

In addition to the increasing demand for bioplastics in the Asia-Pacific region, the region is also benefiting from a number of government initiatives aimed at promoting the use of these sustainable materials. Many governments in the region have introduced subsidies and tax incentives to encourage the production and use of bioplastics, which are making these materials more cost-effective and accessible to consumers.

Moreover, the Asia-Pacific region is home to a number of large-scale bioplastic production facilities, which are contributing to the growth of the industry in the region. China and India are leading the way in terms of bioplastic production, with both countries investing heavily in research and development to improve the quality and performance of these materials.

The increasing number of bioplastic-related research and development projects in the region is also driving growth. Many universities and research institutions in the Asia-Pacific region are conducting studies aimed at improving the properties and functionality of bioplastics. These efforts are focused on developing new bioplastic materials that can meet the requirements of various applications, including packaging, consumer goods, and automotive components.

Competitive Insight

The cumulative market share of the top 10 players is close to 62%. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip of emerging markets. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

List of Key Companies Profiled:

• BASF SE
• Biome Technologies plc
• Braskem
• Corbion N.V.
• Danimer Scientific.
• E. I. du Pont de Nemours and Company
• Eastman Chemical Company
• Futerro SA
• Galactic
• M& G Chemicals
• Mitsubishi Chemical Holdings
• NatureWorks LLC
• Novamont S.p.A.
• Plantic
• PTT Global Chemical Public Company Ltd.
• Showa Denko K.K.
• Solvay SA
• Teijin Ltd.
• Toray Industries
• Toyota Tsusho
• Other Prominent Players

Segmentation Overview 

Global Bioplastics Market is segmented based on type, mode of application and region. The industry trends in 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