Biopolymers and Bioplastic Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2023-2027

Biopolymers and Bioplastic Market Forecast 2023-2027

The biopolymers and bioplastic market is estimated to grow by USD 75.14 billion at a Compound annual growth rate (CAGR) of 14.36% between 2022 and 2027. The market's growth relies on several factors, notably the surge in bio-based and renewable raw materials, the escalating importance of bioplastics and biopolymers, and governmental focus on biopolymer utilization and efficient plastic waste handling. These trends underscore a global shift towards sustainable practices and environmentally friendly solutions. With increasing awareness of the environmental impact of traditional plastics, businesses and policymakers are increasingly turning to biodegradable alternatives, driving the demand for biopolymers and shaping the trajectory of the market.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is witnessing significant growth driven by various factors such as the increasing awareness of environmental sustainability, rising concerns about carbon footprint, and the escalating costs of energy. With a focus on compostability and biodegradability, these materials offer promising alternatives to traditional plastics, reducing the burden on landfills and mitigating environmental impact. Leveraging bio-based content derived from renewable sources like plants, vegetable fats, and oils, biopolymers and bioplastics are gaining traction across industries, from big businesses to the financial sector, as environmental consciousness becomes a priority in manufacturing and consumer choices. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Driver

The emergence of bio-based and renewable raw materials is notably driving market growth. The use of bio-based raw materials, such as starch and vegetable crop derivatives, provides various benefits. The dependence on petroleum-based plastics is reducing, with the rising use of bioplastics in numerous applications such as packaging and domestic goods. The market are experiencing growth due to the utilization of environmental-friendly feedstocks, such as starch and vegetable crop derivatives. Bioplastics are increasingly replacing petroleum-based plastics in various applications, including eco-friendly packaging for food products and urban convenience items like bottles, films, clamshell cartons, waste collection bags, carrier bags, and mulch films. The shift towards biodegradable bioplastics addresses consumer concerns over plastic waste and aligns with changing consumer lifestyles. Innovation and development in bioplastics are crucial for industries like pharmaceuticals and food, particularly in the Asia-Pacific region, Europe (EMEA), and North America (The U and The UK). Regulations, such as REACH and EPA, are driving the adoption of bioplastics. Key players in the market include Nature Works LLC, ABB technology, Polylactic acid (PLA) producers like Braskem, and sugarcane-based biorefineries such as Ledesma. The circular economy is a significant trend in the bioplastics industry, with Rotterdam serving as a hub for bioplastic production and trade. Leading journals cover the latest advancements and research in this field.

The efficient use of biomass, such as grass, trees, plants, and other organic materials, helps in building a bio-based economy. This has led to a shift in the preference for the production of biopolymers based on renewable sources. The raw materials used in the production of biopolymers are renewable and are available in abundance across the world. Therefore, the global outlook for bio-based raw materials for polymers is more positive than that of petroleum-based raw materials. These factors will drive the growth of the global market during the forecast period.

Significant Trend

The focus on sustainable production is a key trend shaping the market. The increase in the focus on sustainability and the emergence of favorable government regulations for green procurement will drive the growth of the consumer goods and packaging sectors. The market isoffers experiencing substantial growth due to the shift towards environmental-friendly feedstocks and eco-friendly packaging. With an expanding urban population and increasing disposable income, the demand for biodegradable bioplastics, such as bottles, films, clamshell cartons, waste collection bags, carrier bags, mulch films, food service containers, and packaged foods, is surging. The food and pharmaceutical industries are major contributors to this market, with innovation and development being key drivers. Consumer concerns and changing lifestyles are also influencing this trend. In the Asia-Pacific region, countries like China and India are leading the way in bioplastics production. Regulations, such as REACH in Europe and the EPA in the US, are also promoting the use of biodegradable bioplastics. Companies like Nature Works LLC, Braskem, ABB technology, and Ledesma are at the forefront of this industry, using feedstocks like polylactic acid (PLA) derived from sugarcane to produce bioplastics. The circular economy is also playing a significant role in the growth of this market. For more information, refer to relevant journals.

Packaging is a large end-user segment of the market. Bioplastics are used in the production of trays, dishes, and other food-catering equipment. In addition, they are used to produce implants in the medical sector. Bioplastics were initially used for niche products such as biodegradable plastic shopping bags. However, the economies of scale and improved performance of bioplastics are expected to widen the scope of end-user applications. This will pave the way for the economical production of biopolymers, which, in turn, is expected to boost the growth of the market trends during the forecast period.

Major Challenge

The cost-effectiveness of conventional plastic over biopolymers is challenging market growth. The demand is due to the use of environmental-friendly feedstocks in their production. Bioplastics offer eco-friendly packaging solutions for various industries, including food and beverage, pharmaceuticals, and urban populations with disposable income. However, the cost of bioplastics, ranging from USD2.65 to USD6.68 per kilogram, is higher than conventional plastics at USD1.65 per kilogram. This price disparity is due to the high polymerization costs and challenges in technology and raw material optimization. Key players in the market include Nature Works LLC, Braskem, and Ledesma, who produce biodegradable bioplastics in the form of bottles, films, clamshell cartons, waste collection bags, carrier bags, mulch films, food service containers, and packaged foods. Innovation and development in bioplastics are driven by consumer concerns and changing lifestyles, with a focus on circular economy and sustainability. Regulations in regions such as the EMEA, The U.S., and the UK, including REACH and the EPA, are influencing the market's growth. Companies like ABB technology and Polylactic acid (PLA) producers are investing in research and development to meet the demand for bioplastics. Sugarcane is a popular raw material for bioplastics production, with Asia-Pacific being a significant producer and consumer region. Journals and industry reports provide insights into the latest trends, challenges, and opportunities in the bioplastics and biopolymers market.. Therefore, the increasing production costs, high R&D costs, and substantial differences in the price of conventional petroleum-based plastics and bioplastics are expected to impede the growth of the market during the forecast period. 

Customer Landscape

The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Biopolymers and Bioplastic Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Biotec GmbH Co. and KG - The company offers biopolymers and bioplastics such as BIOPLAST 105, BIOPLAST 300, and BIOPLAST 400. It offers different types of bioplastics that are made from plant-based renewable resources.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:

• AGRANA BEteilgungs AG
• AKRO PLASTIC GmbH
• Arkema Group
• BASF SE
• Biome Bioplastics Ltd.
• Braskem SA
• Carbiolice
• Cardia Bioplastics
• Cargill Inc.
• Fkur Kunststoff GmbH
• Futerro SA
• Green Dot Bioplastics Inc.
• Ingevity Corp.
• Mitsubishi Chemical Corp.
• Novamont S.p.A.

Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

 

 

Living organisms and microbes play a crucial role in the decomposition of bioplastics, converting them into harmless substances like carbon dioxide and water. This process helps mitigate the harmful effects of methane emissions associated with traditional plastics. By breaking down inorganic compounds found in conventional plastics, these biodegradable alternatives reduce the accumulation of microplastics in the environment. Additionally, materials like sawdust can be incorporated into bioplastic formulations to enhance their durability and mechanical properties, making them suitable for various applications in electronics and beyond. With a focus on sustainable cultivation and harvesting practices, these materials contribute to improved crop productivity and soil quality, aligning with public procurement policies and certification systems that prioritize environmental stewardship. Utilizing alternatives like polyethylene terephthalate and polybutylene adipate terephthalate enables industries to transition away from petroleum-based resins and embrace more sustainable materials.

By End-User

The market share growth by the packaging segment will be significant during the forecast period. Bioplastics are extensively used in the production of bottles, loose-fill, cups, pots, blows, flexible films, and other products. Bioplastics used for packaging are of two types, namely rigid packaging and flexible packaging. 

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The packaging segment was valued at USD 20.87 billion in 2017 and continued to grow until 2021. Bioplastics, derived from environmental-friendly feedstocks, are increasingly used in eco-friendly packaging. The packaging sector, including cosmetics, food, and other material industries, accounts for over 60% of bioplastic usage. Biodegradable bioplastics are utilized in producing bottles, films, clamshell cartons, waste collection bags, carrier bags, mulch films, and food service containers for quality food products. Urban populations with disposable income drive demand for convenient plastic packaging. Consumer concerns over waste and changing lifestyles fuel innovation and development in bioplastics.

The food and pharmaceutical industries in the Asia-Pacific, the U.S., and the EMEA regions are major consumers. Key players include Nature Works LLC with ABB technology's Polylactic Acid (PLA), Braskem, and Ledesma, using sugarcane as feedstock. Regulations, such as REACH and the EPA, influence the market. Circular economy initiatives are also shaping the bioplastics industry. Major applications include food packaging, food service containers, and packaged foods. Bioplastics are used in beverage cups, films, and cardstock coatings. Journals report on the latest trends and advancements in this field.The growth of the packaging industry and the rising demand for packaged goods will drive the growth of the plastics segment of the market during the forecast period.

By Type

The environmental-friendly bioplastics market, primarily driven by eco-friendly packaging applications, is growing significantly. Bioplastics, such as bio-PE, are derived from renewable resources like sugarcane and ethanol. These biodegradable plastics offer the convenience of traditional PE while being kinder to the environment. The urban population's increasing disposable income and changing consumer lifestyles have led to a surge in demand for quality food products and packaging. Biodegradable bioplastics, including bottles, films, clamshell cartons, waste collection bags, carrier bags, and mulch films, are increasingly used in the food industry and pharmaceutical sector. Innovation and development in bioplastics continue to address consumer concerns, with companies like Nature Works LLC, Braskem, and Ledesma leading the way.

Regional Analysis

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Europe is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The European market for eco-friendly bioplastics and biopolymers, made from environmental-friendly feedstocks, has matured over the past two decades. With a significant market share in the global market in 2020, Europe leads in the production and consumption of biodegradable bioplastics. Driven by consumer demand for sustainable packaging, key products include biodegradable waste bags, loose-fill packaging, bottles, films, clamshell cartons, and carrier bags. Urban populations with disposable income prioritize eco-friendly packaging for quality food products. Innovation and development in biodegradable bioplastics address consumer concerns and changing lifestyles. Key players include Nature Works LLC, ABB technology, and Braskem. The Pharmaceutical and Food industries in the EMEA region, particularly in The U and The UK, utilize bioplastics. Regulations, such as REACH and EPA, guide the market. Notable companies like Ledesma in Rotterdam use sugarcane to produce bioplastics. The Asia-Pacific region is also witnessing growth in this sector. Bioplastics are essential for the circular economy and include mulch films, food service containers, and packaged foods. Journals provide insights into the latest advancements and trends. Regulatory policies and government strategies promote the use of bio-based or biodegradable resins through subsidies. Changes in focus toward sustainability awareness and improvements in sustainable manufacturing will further drive the growth of the market during the forecast period.

Market Analyst Overview

 

The market is experiencing robust growth, driven by various factors such as energy costs and inflation influencing production expenses. Microorganisms play a crucial role in facilitating composting, digestion, and biodegradation processes, contributing to environmental sustainability. Enhanced thermal stability and melt flow properties make biopolymers suitable for diverse applications, from surgical devices to single-use plastics. Efforts to reduce reliance on petroleum-based resins and address environmental concerns, such as the ban on plastic bags, are shaping market dynamics. Innovations, tax breaks, grants, and research funding are driving advancements in sustainable alternatives, fostering growth in segments like automotive, transportation, agriculture, and horticulture.

 

The energy costs and inflation factors heavily influence the dynamics of the market. These materials, derived from renewable sources such as plants, straw, woodchips, and vegetable fats and oils, contribute to reducing the carbon footprint and promoting environmental consciousness. Their compostability and biodegradability address concerns related to overflowing landfills and environmental pollution. Moreover, stringent border controls and increasing scrutiny from financial sectors are driving the shift towards sustainable solutions in big businesses. The industry's focus on a circular economy underscores its commitment to minimizing waste and maximizing resource efficiency.

Segment Overview

The market forecasting report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook
  • Packaging
  • Consumer goods
  • Agriculture and others

• Type Outlook
  • Bio-PE
  • Bio-PET
  • PLA
  • Biodegradable starch blends
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Industry  Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017 - 2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 14.36%
Market growth 2023-2027	USD 75.14 billion
Market structure	USD Fragmented
YoY growth 2022-2023(%)	13.79
Regional analysis	Europe, APAC, North America, South America, and Middle East and Africa
Performing market contribution	Europe at 44%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AGRANA BEteilgungs AG, AKRO PLASTIC GmbH, Arkema Group, BASF SE, Biome Bioplastics Ltd., Biotec GmbH Co. and KG, Braskem SA, Carbiolice, Cardia Bioplastics, Cargill Inc., Fkur Kunststoff GmbH, Futerro SA, Green Dot Bioplastics Inc., Ingevity Corp., Mitsubishi Chemical Corp., Novamont S.p.A., Plantic Technologies Ltd., TianAn Biologic Materials Co. Ltd., Toray Industries Inc., and TotalEnergies SE
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, APAC, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the growth of market Companies

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