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The polyhydroxyalkanoate (PHA) market size is forecast to increase by USD 26.9 million, at a CAGR of 6.31% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing demand for biodegradable plastics, the increasing application of PHA in the biomedical industry, and the fluctuating crude oil prices promoting the use of PHA-based products. The market is witnessing significant growth driven by the increasing emphasis on sustainability and the adoption of eco-friendly materials across various industries. With a focus on environmentally friendly practices and circular economy principles, PHA offers a promising solution to reduce reliance on single-use products.PHA, a biodegradable polymer, is derived from natural sources like dead plants and bio-based materials such as Biomer and monomers. Its molecular structure comprises carbon chains, enabling versatility in applications across various industries.
The utilization of non-degradable plastics has raised significant environmental concerns regarding pollution and its impact on human health and safety. To address these challenges, there's been a growing interest in environmentally friendly materials and biomaterials, particularly sustainable and biodegradable plastics like Polyhydroxyalkanoate (PHA). PHA, a versatile biopolymer produced through microbial fermentation and genetic engineering, offers a promising solution to replace traditional petroleum-based plastics. Derived from renewable resources, PHA reduces reliance on non-renewable sources and mitigates environmental degradation associated with conventional plastics. Applications of PHA span across various sectors, including medical industries, packaging & food services, biomedical, agriculture, and food processing plants. It finds use in a wide range of products such as plastic bags, boxes, sheets, disposable utensils, films, and flexible packaging.
The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Application, which comprises packaging, biomedical, food services, agriculture, and others. Additionally, it categorizes Type into copolymerized PHA and linear PHA, and covers Regions, including APAC, Europe, North America, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments. The adoption of environmentally friendly materials like Polyhydroxyalkanoate (PHA) is gaining momentum as concerns escalate over the detrimental effects of traditional plastics on the environment. PHA, a biodegradable polymer produced through microbial fermentation of organic materials, presents a sustainable alternative for various applications, including packaging and biomedical products. Additionally, the development of carbon capture technology plays a pivotal role in mitigating carbon emissions from industrial processes, contributing to efforts to combat climate change. Meanwhile, the transition away from non-degradable plastics, such as polyvinyl chloride (PVC), towards biodegradable alternatives like PHA is driven by growing consumer awareness of the environmental and health hazards associated with conventional plastics. Moreover, the utilization of agricultural biomass, including cereals like maize, wheat, barley, and sugarcane, underscores a shift towards more sustainable practices in raw material sourcing, further bolstering the biodegradable plastics market. As consumer demand for eco-friendly solutions continues to rise, foreign exports of environmentally friendly materials like PHA contribute to global sustainability efforts and foster a more sustainable future.
The market share growth by the packaging segment will be significant during the forecast years. Stringent regulations against the use of conventional plastic across the globe will drive the demand for PHAs in the packaging segment. In the F&B industry, biodegradable polymers are used to produce containers for beverages, packaging material (for food), and caps. Packaging can be primarily classified as rigid and flexible. Biodegradable polymers are used to manufacture bottles, loose-fill, cups, pots, bowls, flexible films, and other products.
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The packaging segment accounted for USD 23.38 million in 2018. Two types of packaging are commonly used: rigid packaging and flexible packaging. Packaging products made of biodegradable polymers are used in the packaging of fresh food, dry snacks, candy, bakery goods, juice bottles, and meat trays, as well as coatings for beverage cups, films, and card stock. Furthermore, the e-commerce industry uses large quantities of foams, carrier bags, and shrink wraps, among others, as packaging materials. The thriving global e-commerce industry will drive the demand for packaging materials, including PHAs, thereby driving market growth through the packaging segment during the forecast period.
Copolymerized PHAs are categorized into block copolymerized PHAs and graft copolymerized PHAs. Graft-copolymerized PHAs are mainly used in the copolymerization of natural polymers, oligomers, and synthetic polymers. Rising demand for tissue engineering and drug delivery systems across the world will increase the consumption of copolymerized PHAs. Also, block copolymerization refers to the process of manufacturing PHAs by adding different functional polymers that modify the physical and chemical properties (of PHAs). Furthermore, increasing demand for copolymerized PHAs in major industries such as medical, agriculture, and food services will drive the growth of the copolymerized PHA segment in the polyhydroxyalkanoate market during the forecast period.
The market is experiencing significant growth driven by the increasing demand for environmentally friendly alternatives to conventional plastics. As concerns over environmental sustainability and waste management practices continue to rise, there is a growing preference for biodegradable plastics like PHA. PHA, derived from renewable resources such as organic waste and biomass, offers promising solutions to address plastic pollution and reduce reliance on petroleum-based plastics.Technological advancements in PHA production technologies, including microbial fermentation and genetic engineering, have enabled the development of various PHA types such as Polyhydroxybutyrate (PHB), Poly-3-hydroxybutyrate (P3HB), and Polyhydroxyvalerate (PHV). These biopolymers exhibit favorable thermal and mechanical properties and can be tailored to meet specific application requirements in packaging, food processing, agriculture, and biomedical industries.
The versatility of PHA extends to its use in films, flexible packaging, and disposable utensils, offering solutions for packaging & food services, e-retail business, and food and beverage industry. Moreover, PHA's biodegradability and renewable sourcing contribute to its attractiveness across domestic e-commerce and foreign export markets, aligning with consumer preferences for sustainable products.Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Fluctuating crude oil prices promote the use of PHA-based products is the key factor driving market growth. Plastic products closely follow the price pattern of oil as crude oil derivatives are major components for manufacturing virgin plastics. As a result, due to the Russia-Ukraine war, oil and gas prices increased. The rising price of oil and gas has led to global inflation, negatively impacting the manufacturing of many products, including plastic.
Moreover, uncertainty in pricing is compelling end-user industries to switch to alternative packaging materials, such as bioplastics and papers, which is driving the global polyhydroxyalkanoate market. Consequently, a significant rise in the consumption of biodegradable packaging materials is expected, especially in Europe and the US. Hence, the fluctuating crude oil prices will drive the demand for PHAs, thereby boosting the growth of the market during the forecast period.
Increasing new product launches of PHA-based products is the primary trend shaping market growth. Many major market players are increasingly investing in R&D activities to augment the application areas of PHAs in various industries such as automotive, electronics, consumer products, and energy. Further, manufacturers such as Kaneka Corp. and BASF SE, have been heavily emphasizing new product innovations and developments to maintain competitive edges and gain shares in the market. For example, in May 2022, CJ BIO, a division of CJ CheilJedang Corp, launched PHACT, which is a marine biodegradable polymer based on its PHA technology.
Furthermore, plastic bottles are expected to be replaced by PHA water bottles, which will break down into CO2, water, and organic waste during the process of landfills. These water bottles will be useful in reducing environmental pollution through landfills. Similarly, in the electronics industry, PHA can be used in electronic casings, pressure sensors for heat sealing components, and tonners. Thus, such innovations in the product are expected to accelerate the demand for PHA products and further drive market growth during the forecast period.
Lack of availability of raw materials is a challenge that affects market growth. The manufacturing of PHAs primarily depends on the availability of animal and agricultural products such as sugars, glucose, and starch. The costs of these products vary significantly, and these products are often highly-priced. During the production of PHAs in large volumes, the cost of sugar can account for more than half of the total product cost. The decreasing agricultural production due to the reduction of arable land over the years is a major limitation to PHA production due to the reduced availability of raw materials.
Furthermore, inappropriate agricultural practices and deforestation have contributed to the degradation of soil quality, thereby reducing crop yield. In addition, the growing population in developing countries such as China, India, and Brazil requires more land to fulfill the need for food grains by 2030. The decrease in the arable land area is likely to affect the availability of raw materials used in PHA production during the forecast period. Hence, the lack of availability of raw materials will restrain the growth of the market during the forecast period.
APAC is estimated to contribute 48% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The polyhydroxyalkanoate (PHA) market in APAC is expected to grow owing to the rising packaging industry and increasing agricultural activities across the region. The rising number of e-commerce companies will drive the demand for PHAs from the packaging industry. Also, rapid urbanization and industrialization in emerging countries are contributing to the growth of the e-commerce industry in the region. India and China are among the growing markets for e-commerce and logistics. Furthermore, in the agriculture industry, PHAs are used for manufacturing mulch films and plant pots. A mulch film protects crops and increases crop yield. PHAs are also used for making agricultural grow bags and agricultural nets. Increasing agricultural activities across the region will drive the growth of the regional polyhydroxyalkanoate market during the forecast period.
Polyhydroxyalkanoate (PHA) is a bio-polyester that is produced naturally by numerous microorganisms, including bacteria. Microorganisms produce PHAs as by-products during the fermentation of sugar. Polyvinyl chloride (PVC), a widely used synthetic polymer, has faced scrutiny due to its environmental impact and potential health risk. Disposable utensils, such as spoons and forks, traditionally made from PVC, can now be manufactured using PHA.
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Companies are implementing various market growth and forecasting 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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Becton Dickinson and Co., BIO ON spa, Bluepha, BOSK Bioproducts, CJ CheilJedang Corp., Danimer Scientific Inc., Genecis, Kaneka Corp., RWDC Industries Ltd., Terraverdae Bioworks Inc., TianAn Biologic Materials Co. Ltd., WinCup, and Yield10 Bioscience Inc.
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.
Consumer awareness regarding environmental issues and government regulations on plastic usage has led to a growing interest in bio-based alternatives to conventional plastics. However, the adoption of these alternatives faces restraints such as excessive cost compared to conventional polymers. The polymerization process and commercialization of bio-based plastics are still in developmental stages, hindered by challenges in achieving economies of scale and sourcing novel raw materials from non-food sources like waste management practices, waste residues and biomass. Despite advancements in manufacturing technology and optimization of production, the PHA market ecosystem, particularly in the United States and European countries, is dominated by leading players with stable financial positions and extensive portfolios. These petroleum-based plastics, including (Polyhydroxybutyrate (PHB)), P3HB, and (Polyhydroxyvalerate (PHV), offer environmentally-friendly packaging plastics, packaging & food services, and biomedical uses, such as implants and controlled-release drug carriers, due to their favorable thermal and mechanical properties.
Research and development efforts are directed towards enhancing scalability and optimizing PHA properties, including chain length variations such as short, medium, and long chains. PHA, particularly MCL-PHA variants like PHBH and PHBV, exhibit desirable characteristics like solubility, biodegradability, and suitable melting points. As demand grows, PHA is gaining traction in diverse applications, including biofuels, emulsifiers, and packaging materials, gradually capturing a dominant market share in the bioplastics market.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2018-2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.31% |
Market Growth 2024-2028 |
USD 26.9 million |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
5.92 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Becton Dickinson and Co., BIO ON spa, Bluepha, BOSK Bioproducts, CJ CheilJedang Corp., Danimer Scientific Inc., Genecis, Kaneka Corp., RWDC Industries Ltd., Terraverdae Bioworks Inc., TianAn Biologic Materials Co. Ltd., WinCup, and Yield10 Bioscience Inc. |
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 the 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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