Europe Sustainable Biopolymers Market Size and Trends

The Europe sustainable biopolymers market is estimated to be valued at USD 2.10 Bn in 2024 and is expected to reach USD 3.63 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

Europe Sustainable Biopolymers Market Key Factors

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Stringent government regulations regarding the use of conventional plastics along with the growing environmental consciousness among consumers and industries are expected to drive the adoption of sustainable biopolymers in the region.

Growing demand from packaging industry

The packaging industry in Europe has been showing significant growth over the past few years predominantly driven by the increased demands for flexible as well as sustainable packaging solutions. Traditional plastic packaging materials have come under scrutiny due to environmental concerns around non-biodegradability. This has prompted packaging manufacturers to look for more eco-friendly alternatives. Biopolymers offer a viable solution as they can be completely biodegradable and break down fairly quickly in compost or anaerobic digestion facilities.

Materials like bio-PET, PLA, Bio-PE, and others have gained traction in the packaging industry. Various FMCG companies have been actively partnering with packaging providers to come up with sustainable options made from biopolymers. For instance, a leading consumer goods giant has collaborated with a flexible packaging producer to develop Stand Up Pouches made from PLA for their coffee product range. Similarly, a global snack foods brand switched to using bio-PE-based laminates for its snack packs owing to its renewable content. Increasing commitments by leading brands towards sustainability has put pressure on the entire packaging supply chain to transition towards greener options.

Produce packaging is another area where biopolymers such as bio-PET and PLA films find widespread usage. They help extend the shelf-life of fruits and vegetables while ensuring they are compostable at the end-of-life. Many supermarket chains in the region now offer biodegradable produce bags made from such materials. Even quick service restaurants are seeking biopolymer-based clear clamshell containers and cups as contingencies for single-use plastic bans. The convenience offered by the mechanical properties and processing abilities of biopolymers makes them an attractive value proposition for a wide range of rigid as well as flexible consumer packaging applications.

With environmental stewardship gaining prominence amongst brand owners and retail buyers, packaging manufacturers will have to increasingly rely on sustainable resins like biopolymers. This growing demand is anticipated to drive higher production volumes for companies involved in the manufacturing of biopolymer resins and compounds. It will also open up opportunities for equipment providers and machinery OEMs who can tailor their solutions for processing renewable biopolymers efficiently. While biopolymers still account for a modest share of the overall plastic packaging demand, their uptake is expected to accelerate in the coming years on account of favorable market trends as well as policy impetus.

Stringent Government Regulations Regarding Use of Plastics

The issue of plastic pollution is being witnessed in almost every European country owing to the ubiquitous usage of single-use plastic items and packaging materials that are difficult to recycle. Non-biodegradable plastics clog landfills and waterways, posing threats to biodiversity as well as human health. They also conflict with the principles of circular economy promoted within the European Union. As a result, governments across the region have been actively formulating laws and directives to curb plastic waste generation and establish an effective waste management infrastructure.

Several nations have introduced bans on specific problematic plastics like grocery bags, cutlery, straws, and Styrofoam containers. Thresholds have been set for minimum recycled content percentages in plastic packaging to spur greater plastic reprocessing abilities. Extended Producer Responsibility measures make plastic manufacturers responsible for end-of-life management of their products. More countries are moving towards the model of "Pay As You Throw" where households and businesses are charged per unit of non-recyclable trash sent to landfills or incinerators. The overarching aim is to make plastic packaging producers finance waste collection as well as establish take-back systems.

Besides plastic items, single-use packaging has also come under regulatory scanner. The European Commission has proposed new rules establishing minimum recycled content standards for beverage bottles.