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The Bioplastics Market size is estimated to grow by USD 114.24 billion between 2022 and 2027 at a CAGR of 27.53%. The market's expansion hinges on various factors, notably the rise of bio-based and renewable materials as sustainable alternatives, addressing environmental concerns in packaging. Consumers' shifting preferences towards eco-friendly packaging solutions further drive market growth, reflecting a broader trend towards sustainability. Government initiatives aimed at promoting bioplastic packaging usage, such as incentives and regulations, also play a pivotal role in shaping market dynamics. As sustainability becomes a key focus across industries, bioplastic packaging emerges as a viable solution, offering both environmental benefits and functional performance. With increased awareness and support from stakeholders, the market for bioplastic packaging is poised for significant growth, catering to the evolving needs of environmentally-conscious consumers and businesses alike.
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This report extensively covers market segmentation by Type (non-biodegradable and biodegradable), Application (packaging and food service, agriculture and horticulture, CG and HA, automotive, and others), and Geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is experiencing a paradigm shift towards renewable feedstocks, as eco-friendly properties gain prominence in addressing environmental issues. Biodegradable products, such as bioplastics, are becoming increasingly popular due to their carbon dioxide emission reduction capabilities. Hybrid material innovations, including starch blends, PBS (Polylactic Acid), PBAT (Polybutylene Adipate Terephthalate), PHA (Polyhydroxyalkanoate), Polycaprolactone, and Cellulose acetate, are driving the market forward. Flexible packaging, food items, and electronics industries are major consumers of bioplastics. However, production halts due to insufficient composting infrastructure and higher costs compared to traditional plastics like Polyethylene and Polypropylene remain challenges. The market is expected to grow as cheaper alternatives and advancements in technology are explored. Nature continues to inspire new degradable packaging films and biodegradable plastics, ensuring a circular economy for a sustainable future. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The emergence of bio-based and renewable raw materials is driving market growth. The market is experiencing significant growth due to the increasing utilization of bioplastics in various sectors, particularly in packaging and food service. This shift is driven by the availability of renewable resources, such as biomass and bio-based raw materials like starch and vegetable crops, which are used to produce bioplastics. Bioplastics, including shopping bags and refuge bags, are gaining popularity as eco-friendly alternatives to traditional petroleum-based plastics. The abundance of raw materials for bioplastics production, which are renewable in origin, contrasts with the limited supply of fossil-based raw materials. As a result, the global outlook for bio-based raw materials for plastics is significantly more positive than that of petroleum-based raw materials, which is expected to drive the growth of the market in focus during the forecast period.
The cost-effectiveness of conventional plastic over bioplastics is a major restraint hindering market growth. The market faces several challenges, including higher production costs of 25%-75% compared to conventional plastics. This is primarily due to the expensive polymerization process and the development stage of most production techniques, which have yet to reach economies of scale. Another hurdle is the absence of a well-established supply chain network at new production sites. In the realm of bioplastics, the technology remains in its infancy, with various raw materials under investigation for optimal production. Currently, the cost of bioplastics ranges from USD 2 to an undisclosed amount. It is essential to note that bioplastics have potential applications in various sectors, such as shopping bags and refuge bags, but their widespread adoption is hindered by the current production cost and technological limitations. High production costs due to small-scale production by vendors, significant R&D expenses, and substantial differences in prices between petroleum-based plastics and bioplastics are other factors that may hinder the growth of the market during the forecast period.
The consumption of bioplastics in novel applications is a trend driving market growth. The market is experiencing notable expansion, particularly in the areas of shopping bags and refuse bags, due to growing sustainability concerns and supportive government regulations. Biodegradable shopping bags offer an eco-friendly alternative to traditional plastic bags, while biodegradable refuse bags facilitate efficient waste management and reduce the need for landfills. In agriculture, biodegradable mulch films are gaining popularity for their cost-effective disposal and environmental benefits. The food industry, specifically catering, is another significant application of bioplastics, which includes the production of biodegradable trays, cutlery, cups, and dishes. Such development is set to positively impact the market during the forecast period.
The report includes the adoption lifecycle of the market research and growth, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
The market share growth by the non-biodegradable segment will be significant during the forecast period. The market encompasses sanitary towels, cardboard, coat paper, and various consumer goods such as cups, plates, and containers made from bio-based materials like cornstarch, polylactic acid (PLA), bio polyethylene terephthalate (bio-PET), bio polyethylene (bio-PE), and bio polypropylene (bio-PP). These bioplastics, while not biodegradable, offer carbon footprint reduction and mechanical recyclability.
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The non-biodegradable segment was valued at USD 11.60 billion in 2017 and continue to grow by 2021. The market for non-biodegradable bioplastics is projected to expand substantially due to the transition from conventional plastics. Key players in this sector include Braskem and Arkema. Applications span across industries, including packaging (packmedia), automobiles, and bio-based packaging. Composting infrastructure development and starch blends (PBS, PBAT, PHA, Polycaprolactone, Cellulose acetate) are crucial for the growth of this market. Bioplastics are used in various forms, including films and sheets, jars, containers, bottles, fresh food packaging, and agricultural mulch films. Sugarcane, corn, and castor oil are primary feedstocks for production. PET, PE, PP, polyamide, PETT, PEF, and PVC are common fossil-based plastic counterparts. A shifting focus to reduce the use of conventional plastics is positively propelling the growth of the non-biodegradable segment, which in turn is propelling the development of the market during the forecast period.
Packaging is the largest application of bioplastics. It has gained significant market traction, particularly in the packaging sector. Approximately 60% of bioplastics are utilized in this application. Notable packaging products include shopping bags and refuge bags, which are manufactured using bioplastics. These eco-friendly alternatives to conventional plastic bags are increasingly popular for carrying groceries and other retail items. Additionally, bioplastics are employed in the production of refuse bags, used for collecting household waste. The demand in packaging applications is driven by the growing trend towards sustainable and eco-friendly solutions. The rising population will boost the demand for food and drive the demand for food packaging materials during the forecast period.
Europe is estimated to contribute 34% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period.
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Europe is estimated to contribute 34% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. The European market, established over two decades, has reached maturity with significant consumption. Key products include biodegradable sanitary towels, cardboard, coat paper, cups, plates, and packaging made from cornstarch, polylactic acid (PLA), bio polyethylene terephthalate (PET), bio polyethylene, bio polypropylene, and Packmedia. European governments offer subsidies, contributing to market growth.
In 2022, Europe held the largest market share due to high demand for bio-based packaging. This demand is driven by consumers and supported by government bodies for environmental benefits. Applications include films and sheets, jars, containers, bottles, fresh food packaging, and agricultural mulch films. Materials include PBS, PBAT, PHA, Polycaprolactone, cellulose acetate, polyethylene, polypropylene, polyamide, PET, PEF, PVC, and bioplastics derived from sugarcane, corn, and castor oil. Companies like Braskem and Arkema are major players in this market. Hence, the growth of the European food service market will drive demand during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
Biome Bioplastics.- The company offers bioplastics including BiomeHT90 and BiomeHTX (450).
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The 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.
Bioplastics have emerged as a sustainable alternative to traditional fossil fuel-based plastics. The Feedstocks for these include renewable resources such as corn, sugarcane, cellulose, and starch. The European market is one of the leading markets for Bioplastics, with Germany, France, and the Netherlands being major contributors. The products in this market include Biodegradable Plastics, such as Polylactic Acid (PLA) and Polyhydroxyalkanoate (PHA), and Biobased Plastics, such as Polyethylene (PE) and Polypropylene (PP) derived from renewable sources.
Further, the Carbon economy and the Circular economy are driving the demand for Bioplastics, as they offer a reduction in greenhouse gas emissions and a closed-loop production system. Consumption of it is increasing in various sectors, including Packaging, Agriculture, and Automotive. The Production capacity for Bioplastics is also expanding, with new projects in the pipeline. The use of it is not only environmentally friendly but also economically viable, making it a promising market for the future.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 27.53% |
Market growth 2023-2027 |
USD 114.24 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
25.74 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arkema SA, BASF SE, Biome Bioplastics Ltd., Braskem SA, Cargill Inc., Corbion NV, DuPont de Nemours Inc., Evonik Industries AG, Finasucre SA, FKuR Kunststoff GmbH, Futerro SA, Koninklijke DSM NV, KURARAY Co. Ltd., Novamont Spa, Resonac Holdings Corp., Saudi Basic Industries Corp., Solvay SA, Teijin Ltd., Toray Industries Inc., and Toyota Tsusho Corp. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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