PLANT BASED PLASTIC (GREEN PLASTIC) MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Plant Based Plastic (Green Plastic) Market Size and Trends

The Plant Based Plastic (Green Plastic) Market is estimated to be valued at USD 1.88 Bn in 2024 and is expected to reach USD 3.78 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.5% from 2024 to 2031.

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Increasing demand for biodegradable and sustainable plastic from various end-use industries such as packaging, textiles, automotive, and others is driving the market growth. The Plant Based Plastic (Green Plastic) Market is expected to witness strong growth on account of rising environmental concerns around non-biodegradable plastics. Stringent government regulations regarding single-use plastic usage and investments by leading companies to develop innovative and affordable bioplastic solutions will further aid the market expansion. Also, the growing acceptance of plastic replacements by consumers and brands will accelerate the shift towards sustainable plastic alternatives.

Market Driver - Growing environmental awareness

With growing awareness regarding the damaging effects of conventional plastics on the environment, people are looking for more sustainable alternatives. There is a sense of urgency among both individuals and organizations to adopt eco-friendly options. Young consumers, in particular, want to make informed choices and reduce their plastic footprint. Manufacturers realize this changing mindset and are actively scouting for innovative but greener materials.

Plant-based plastics seem to be filling this gap very well. Plant-based plastics, they are derived from biomass sources like Sugarcane, cassava root, corn, or even agricultural waste. These plastics have a renewable and natural origin instead of depending on finite fossil fuel reserves. Numerous studies have highlighted how conventional plastics take centuries to decompose while green plastics can break down within just a few months after use under composting conditions. This biodegradability makes them far more sustainable for single-use applications. Recyclability is also better as they can be processed in municipal composting facilities along with food waste.

With ever-increasing climate change concerns, many governments and policymakers are aggressively promoting bio-based and biodegradable alternatives. Favorable regulations provide production incentives as well as mandate the use of sustainable materials in specific product segments. Even influential retail giants and food conglomerates seek "green" packaging suppliers. Their vast sourcing power and environment-conscious customer base create a huge pull for natural plastics.

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Increasing concern about plastic waste and pollution

The issue of plastic pollution is gaining global attention due to dramatic visuals of its disastrous effects. Mountains of non-degradable waste choking landfills and plastic debris littering oceans have sparked outrage. For instance, In March 2022, the United Nations Environment Assembly (UNEA) passed a historic resolution to develop an international legally binding agreement to address plastic pollution. This resolution was adopted by 175 nations, demonstrating the widespread recognition of plastic pollution as a critical environmental issue that requires coordinated global action.

People now recognize synthetic polymers as a serious threat, especially single-use plastics that find immense applications across sectors. The ongoing pandemic has further amplified plastic usage but also plastic garbage in public places. Proper waste management remains a challenge in most developing nations. Growing distances between source and disposal also impact the efficiency of plastic recycling processes. These factors have underlined the unsuitability of conventional plastics in a linear "take-make-waste" model.

Governments and global bodies are working to curb marine plastic pollution through prohibitions, levies, and international co-operation. Recent bans target ubiquitous disposable plastic items like bags, straws, cutlery and Styrofoam cups. Industry is under pressure to develop innovative solutions and invest in bio-alternatives. Companies realize end consumers want brands that demonstrate concern for the planet through their product choices and operations.

Plant-based plastics have comparable functionality but ensure plastic waste stays out of sensitive ecosystems. Their compostable nature is reassuring from a post-consumer perspective. The urgency to address the plastic pollution pandemic and transition to a circular economy presents fertile ground for natural and biodegradable alternatives like plant-based plastics.