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The global bioplastics market size is estimated to grow by USD 114,242.17 million between 2022 and 2027 and the size of the market is forecast to increase at a CAGR of 27.53%.
The growth of the market depends on several factors, including the emergence of bio-based and renewable raw materials, the changing consumer preference toward eco-friendly packaging, and government initiatives for increasing the use of bioplastic packaging.
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.
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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 growth of the global bioplastics market during the forecast period is being driven by several factors, including the increasing use of renewable resources, biomass, and bio-based raw materials like starch and vegetable crops. As bioplastics are being increasingly used in various applications such as packaging and food service, plastic manufacturers are reducing their dependence on petroleum-based plastics.
Biomass refers to organic materials such as grass, trees, plants, animal meat, and other tissues that can decompose through the activities of microorganisms. This shift in focus from petroleum-based plastics to bioplastics based on renewable sources has prompted plastic manufacturers to adopt raw materials that are renewable in origin, with global supply being abundant compared to 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 global bioplastics market faces challenges due to the higher production cost, which can be 25%-75% more expensive than conventional plastics, primarily due to the high cost of polymerization. Additionally, the lack of an established supply chain network at upcoming capacity locations poses another challenge in the market. The current technology for producing bioplastics is still in the early stages of development, and different raw materials are being tested for optimal production. As a result, the cost of bioplastics ranges from USD 2.65 to USD 6.68 per kilogram, whereas conventional plastics cost only USD 1.65 per kilogram. 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 bioplastics market during the forecast period.
The availability of cheap bio-based raw materials is a trend driving market growth. Raw materials produced from non-food products or waste residues extracted from food products are significant feedstock alternatives for bioplastic production because of their low cost. In addition, using non-food raw materials such as organic waste and biomass for manufacturing bioplastics will lead to improved waste management. For example, seaweed can be used as a non-food alternative for making bioplastic. Sewed is present in abundance, rarely eaten, and does not require any land space to grow. For instance, NatureWorks aims to use non-food alternative feedstock from biomass to manufacture Ingeo bioplastics at its new facility in Thailand. Such development is set to positively impact the market during the forecast period.
The market share growth by the Non-biodegradable segment will be significant during the forecast period. Non-biodegradable or partially bio-based durable plastics, such as bio-PET and bio-PE, are more or less equal to their fossil counterparts, but they support reducing the carbon footprint of the products. In addition, they can be mechanically recycled in pre-existing streams.
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The non-biodegradable segment was valued at USD 11,604.37 million in 2017 and continue to grow by 2021. The market for non-biodegradable bioplastics will grow significantly during the forecast period because of a shifting focus from the use of conventional plastics to bioplastics. However, the growth of the global non-biodegradable bioplastics market will be lower than that of the global biodegradable bioplastics market, as the former does not degrade easily. Nevertheless, the use of non-biodegradable bioplastics is picking up in the residential and commercial sectors. 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 global bioplastics market during the forecast period.
Packaging is the largest application of bioplastics. Two types of bioplastic packaging are commonly used, rigid packaging and flexible packaging. Bioplastic packaging is in high demand for wrapping organic food as well as premium and branded products with particular requirements. More than 60% of bioplastics go into packaging applications. These are used in cosmetics packaging, food packaging, and other material packaging. Many well-known brands such as Heinz, Coca-Cola, and Volvic use bio-PET for bottle packaging aerated drinks and fluids. Global online sales of bioplastics increased by 32.4% in 2020 compared to the previous year. India, China, the US, and Japan were among the leading markets in the global food service industry in 2020. These countries require large quantities of food packaging materials owing to the rising population. As of July 2020, the global population was 7.8 billion. The rising global 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 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.
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Europe is estimated to contribute 34% 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. Italy and Germany are the two largest markets for bioplastics in Europe. The majority of the companies present are medium and large sizes. The German plastic industry consists of three main sub-sectors, plastic materials production, plastic processing, and plastic machinery production. The key end-use markets in Germany are consumer goods, packaging, automotive, and construction. The presence of a large number of manufacturers and processors in this region also promotes the growth of the bioplastics market by developing new materials, innovative additives, and other substance-improving materials. Hence, the growth of the European foodservice market will drive the demand for bioplastics during the forecast period.
In 2020, COVID-19 reduced the sales of bioplastics in Europe, as manufacturing units were closed. However, large-scale vaccination drives in 2021 and the lifting of travel restrictions resulted in the full resumption of production operations by the end of 2021. Such factors are expected to drive the growth of the regional bioplastics market during the forecast period.
Vendors 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 such as BiomeHT90 and BiomeHTX (450). Also, under this segment, the company also offers different types of bioplastic products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Bioplastics Market Customer Landscape
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 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 114,242.17 million |
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 Vendors, Market Positioning of Vendors, 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 analysis, 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 |
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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