Biodegradable plastic refers to a type of plastic that can be broken down into simpler compounds by natural processes such as bacteria or fungi. It is designed to break down within a reasonable amount of time, usually from a few months to a few years, unlike traditional plastic, which can last for hundreds of years. Biodegradable plastics can be used in various applications such as packaging materials, disposables, agricultural films and medical devices. Its use helps reduce plastic waste and environmental pollution, as it breaks down into harmless organic matter. However, its effective biodegradation requires specific conditions (such as suitable temperature, humidity and microbial activity).
Market Statistics:
The Global Biodegradable Plastics Market is estimated to account for US$ 2.52 Bn in terms of value by the end of 2023.
Global Biodegradable Plastics Market: Drivers
Biodegradable plastics can reduce carbon dioxide emissions by 30%-70% compared to conventional synthetic plastics, while minimizing greenhouse gas emissions. Leading companies like Coca Cola, Nestle, Nike, and Ford are increasingly interested in producing and using bio based biodegradable plastics in various applications. Consumers are increasingly adopting bio plastics for organic farming, mulching films, plant pots, and fertilizer rods. Biodegradable packaging is preferred over synthetic plastic packaging due to its high biodegradation, zero toxicity, environmental freedom, and direct substitute to conventional plastic.
Global Biodegradable Plastics Market: Opportunities
Companies like Coca Cola and PepsiCo are adopting sustainable and eco-friendly alternatives for beverage packaging, such as bio-based PLA and PSA. However, high bio plastics prices hinder industry growth. To address this, volatility in crude oil prices and advancements in R&D can help reduce dependence on petroleum resources. The industry's healthy capital base and infrastructure are expected to adopt forward integration strategies, creating a value chain.
Global Biodegradable Plastics Market: Restraints
The global Biodegradable Plastics Market faces challenges due to high costs of R&D, polymer plant construction, raw materials, and production scale. Manufacturers are investing in R&D to increase efficiency. Biodegradable resins are expected to reach price parity with conventional plastics, but their high prices may challenge market growth.
Covid-19 Impact Analysis:
The rapid spread of corona virus pandemic reduced the application of any new plastic bags including biodegradable bags. Consumers are bringing their old fabric and plastic bags, and retail shops and small stores are not providing new plastic bags to prevent further spread.
Prior to COVID-19 breakdown, a large number of multinationals such as Danone, Coca-Cola and Nestlé promised to adopt biodegradable plastics under pressure from activists and consumers. However, after 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. For instance, the State of Maine postponed its ban on plastic bags until January 2021, thus negatively impacting the market growth.
In addition, supply chain disruptions due to irregular transport lead to increasing lead time of raw materials, such as corn starch, thus delaying the entire product process. For instance, according to a report by business standard, the corn starch consumption has reduced by 50% from 400,000 tons to 200,000 tons.
Import dependency on China for various raw materials for the production of biodegradable plastics may change market scenario.
As China started production in limited capacity, the material price for biodegradable plastic is expected to increase. Industry players are focusing to extend the lead time to avoid such high material price.
Key Takeaways:
The Global Biodegradable Plastics Market was valued at US$ 2.23 Bn in 2022 and is forecast to reach a value of US$ 6.10 Bn by 2030 at a CAGR of 13.4% between 2023 and 2030.
Packaging segment held dominant position in the Global Biodegradable Plastics Market in 2022, accounting for 67% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/bio-based-biodegradable-plastics-market-3205
Global Biodegradable Plastics Market Trends:
PBAT is growing due to its flexibility and resilience, making it a preferred substitute for LDPE in packaging. Government policies, biodegradable plastic usage, and consumer preference for packaged food drive growth. PBAT is used in cling bags, gardening bags, and water-resistant paper cups due to its zero toxicity and biodegradation. However, high production costs and low thermos-mechanical properties hinder its application.
PBS is primarily used in films, bags, and food and cosmetics packaging. The market is consolidated by major players like Mitsubishi Chemicals. However, limited raw material supply restricts commercial production. Collaborations between industry players, like PTT Global Chemical and Mitsubishi Chemicals, create stronger, biodegradable plastic blends, providing lucrative opportunities.
Global Biodegradable Plastics Market: Competitive Landscape
Basf Se, Corbion N.V., Danimer Scientific, Dow Inc., Eastman Chemical Company, Kuraray Co., Ltd., Mitsubishi Chemical Holdings, Novamont S.P.A, Ptt Global Chemical Company Limited.
Global Biodegradable Plastics Market: Recent Developments
- In January 2021, NovamontP.A, a company involved in development and production of bio plastics and biochemical has acquired the Biobag Group, a Norway based company producing low impact solutions for packaging. This acquisition will allow Novamont S.P.A expand its packaging market and offer more suitable and wider range of packaging solutions in the market in untapped regions.
- In 2022, Kaneka who operates research laboratories announced the investment of 15 billion Japanese yen for the increase of its production capacity for KANEKA Biodegradable Polymer Green Planet in Japan. The investment is aimed to increase the production capacity from 5,000 metric tons to around 20,000 metric tons per year, with operations set to commence in January 2024.
