Biodegradable Plastics Market (By Product: Starch based, PLA, PHA, PBAT, PBS; By Application: Packaging, Consumer Goods, Agriculture) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The global biodegradable plastics market size was estimated at around USD 4.72 billion in 2022 and it is projected to hit around USD 11.96 billion by 2032, growing at a CAGR of 9.74% from 2023 to 2032.

Key Pointers

• Starch Based was the largest product segment for biodegradable plastics in 2022 with a revenue share of more than 41.35%. On the basis of product, the market is divided into starch based, PLA, PBAT, PBS, PHA, and others. The starch-based segment is projected to dominate the market in terms of value as well as volume throughout the forecast horizon.
• PHA is projected to register significant growth during forecast period. The increasing use of PHA in medical and other applications is expected to fuel the growth of PHA segment in biodegradable plastics market. 
• Packaging was the largest application segment for biodegradable plastics in 2022 with a revenue share of more than 60.36%. Packaging is one of the leading application sector for biodegradable plastics. It is used in both rigid and flexible packaging. Replacement of conventional plastics by these plastics in food packaging such as boxes, wraps, cups, plates is gaining momentum, which is supporting the growth of the biodegradable plastics market.
• Europe was the largest regional market for biodegradable plastics in 2022 with a revenue share of more than 43.18%. High awareness among people towards plastic waste coupled with European Union ban on single-use plastics is estimated to propel the regional market over the forecast period. 
• Asia Pacific is expected to emerge as the fastest growing market in the global arena. Rising disposable income and improving standard of living in developing countries such as China and India are anticipated to augment the market in the region.
• The Central & South America region also emerged as promising destination in the market. Availability of cheap raw materials is likely to augur well for the market in the region. The region is projected to register a CAGR of 9.67% during the forecast period. 
• Europe biodegradable plastics market is anticipated to witness substantial growth over the coming years owing to various factors such as the presence of stringent environment-friendly laws, increasing environmental concerns among consumers, and rising R&D investments in bioplastics sector by private as well as public organizations.

Report Scope of the Biodegradable Plastics Market

The increasing use of biodegradable plastics, owing to strict governmental laws prohibiting the use of conventional plastics, coupled with growing awareness among the public towards the ill effects of plastic waste is stoking the growth of the market. The above factors are expected to spur market growth during the forecast period.

Biodegradable plastics are plastics that decompose in the environment within a reasonable period. Biodegradable plastics are made up of renewable raw materials. Many of these plastics require biodegradable additives to enhance the biodegradation process and some may require a specific environment to disintegrate. Time taken by plastics to decompose depends upon various factors such as raw materials used and environmental conditions such as moisture and temperature.

The starch-based segment leads the global market. Starch-based plastics are used in various applications such as packaging, consumer electronics, agriculture, automotive, and textiles. PLA is also one of the most consumed biodegradable plastic-type. It is used in 3D printing, mulch film, and packaging.

Packaging is the leading application of biodegradable plastics. A ban on plastics by European Commission is anticipated to drive the segment during the forecast period. Novel applications of biodegradable plastics in the medical sector for drug encapsulation and medical surgeries are being increasingly practiced.

Around the world, people are facing grave issues of plastic waste as conventional plastics take hundreds of years to decompose. To tackle this, issue several countries have banned the use of single-use plastic products and are promoting the use of eco-friendly biodegradable plastics. Ban of non-reusable conventional plastics in many regions around the globe, especially in Europe and North America is estimated to propel the market. Additionally, improving the standard of living and increasing disposable income in developing countries are likely to augur well for the market in the Asia Pacific and Central & South America.

Key players are investing in research and development activities to create improved products that are strong and can be easily decomposed in the natural environment. Many the companies have integrated the value chain to serve customers better and improve the profits of the company

Product Insights

Starch Based was the largest product segment for biodegradable plastics in 2022 with a revenue share of more than 41.35%. On the basis of product, the market is divided into starch based, PLA, PBAT, PBS, PHA, and others. The starch-based segment is projected to dominate the market in terms of value as well as volume throughout the forecast horizon. Starch based plastics are used in application industries such as packaging, automobiles, and agriculture. The PLA Product plastics are also rapidly gaining their ground in the arena. Inexpensive cost of PLA compared to any other Product is a major driving factor for the segment.

PHA is projected to register significant growth during forecast period. The increasing use of PHA in medical and other applications is expected to fuel the growth of PHA segment in biodegradable plastics market. PHA is majorly used in medical applications such as drug encapsulation and medical implants. Other medical uses include tissue engineering, bone marrow scaffolds, and bone plates. Other than medical, PHA is also used in the production of compost bags; agriculture foil and films; and packaging for food and beverages and consumer products. These factors are expected to fuel the growth of PHA globally.

Application Insights

Packaging was the largest application segment for biodegradable plastics in 2022 with a revenue share of more than 60.33%. Packaging is one of the leading application sector for biodegradable plastics. It is used in both rigid and flexible packaging. Replacement of conventional plastics by these plastics in food packaging such as boxes, wraps, cups, plates is gaining momentum, which is supporting the growth of the biodegradable plastics market.

The agriculture sector also held a significant share in the market. Use of biodegradable mulch film ensures conservation of water in the soil, suppression of weed growth, and conducive soil temperature maintenance in order to facilitate faster crop development. Surging use of biodegradable plastics in consumer goods is also evident in developed economies.

Regional Insights

Europe was the largest regional market for biodegradable plastics in 2022 with a revenue share of more than 43.15%. High awareness among people towards plastic waste coupled with European Union ban on single-use plastics is estimated to propel the regional market over the forecast period. On the other hand, Asia Pacific is expected to emerge as the fastest growing market in the global arena. Rising disposable income and improving standard of living in developing countries such as China and India are anticipated to augment the market in the region.

The Central & South America region also emerged as promising destination in the market. Availability of cheap raw materials is likely to augur well for the market in the region. The region is projected to register a CAGR of 9.67% during the forecast period. The U.S. biodegradable plastics market is expected to rise significantly over the forecast period on account of the growing demand for bio-based packaging in food and consumer goods sectors. Bio bags and bio-based plastics have higher tensile strength, are eco-friendly in nature, and are convenient for use as compared to the conventional plastics. As a result, the demand for biodegradable plastics is further projected to propel over the forecast period

Europe biodegradable plastics market is anticipated to witness substantial growth over the coming years owing to various factors such as the presence of stringent environment-friendly laws, increasing environmental concerns among consumers, and rising R&D investments in bioplastics sector by private as well as public organizations. In addition, government initiatives such as the decision of the EU to minimize the overall consumption of single-use plastic products by about 80% in the region by 2022 are anticipated to propel the demand for biodegradable plastics over the forecast period.

Biodegradable Plastics Market Segmentations:

By Product

• Starch Based
• PLA
• PBS
• PBAT
• PHA
• Others

By Application

• Packaging
• Agriculture
• Consumer Goods
• Others