Biodegradable plastics market is expected to reach US$ 185.25 Bn by 2026 with 19.3% CAGR during the forecast period from 2018 to 2026. In 2017, Europe led the biodegradable plastics market and Asia Pacific is estimated to be the fastest growing region between 2018 and 2026.

Biodegradation is a property of certain plastic materials mainly made up of polymers. It is a process by which decomposition of polymer materials take place under the influence of various biotic components that includes living organisms. Fermentation of canola oil or sugar to produce polyhydroxyalkanoates (PHA) or polylactic acid (PLA) is the most common process involved in the production of biodegradable plastics. It mainly finds application in packaging and hence food companies are adopting to biodegradable plastics from renewable resources in their packaging. The global biodegradable plastics is expected to grow at a rapid pace owing to the supportive government policies followed by favorable research and development activities conducted by the key players.

Disposable plastics used in food packaging contain harmful compounds. Hence improper disposal of these plastic products results in water pollution. In addition, plastics are non-biodegradable and hence they take long time to decay. Conventional plastics also have low melting point and hence they cannot be used where heat levels are high. Owing to these disadvantages of plastic products, the demand for bio degradable plastics is set to rise during the forecast period as these are recyclable, consumes less energy and also aids in carbon emission reduction. Growing demand for green packaging is mainly driving the global biodegradable plastics market. Green packaging mainly uses biodegradable materials that includes plastics thereby offering improved sustainability. Trend shows that green packaging’s contribution to environmental pollution is negligible which in turn is driving the health conscious consumers to adopt biodegradable plastics. In addition, stringent government regulation with respect to reduction of plastic usage is also expected to bolster the global biodegradable plastics market during the forecast period from 2018 to 2026.Hence with the growing environmental pollution followed by ban on plastics by government regulatories, consumers are expected to shift from conventional plastics to biodegradable plastics. For example, in February 2018, A Plastic Planet, environmental campaign group, unveiled the world’s first plastic free supermarket in Amsterdam, Netherlands. This supermarket deals with various food products without plastic packaging. This establishment aims to roll out various food products in biodegradable plastic packaging with an objective to minimize environmental pollution. In addition, several countries have banned the production and sale of single use plastic bags. For example, Philippines, China, Bangladesh, Cameroon, Brazil and other African countries have banned the production of ultralight or thin plastic bags. In Europe, plastic bag taxes have been implemented in Denmark, Ireland, Germany, UK, Austria and Netherlands. Britain also imposed a plastic tax on single use plastic items and also have encouraged the supermarkets to ban single use plastic packaging by 2025.All these factors clearly indicates that conventional plastic consumption is expected to decline in the near future which in turn is expected to augment the demand for biodegradable plastics during the forecast period from 2018 to 2026.

"Starch Blends Segment Propelling the Growth of Biodegradable Plastics Market"

Starch based plastics can be used in variety of applications that includes cell phone cases, food service disposables, kitchen and yard bags among others as they can be incorporated with biopolymers to create unique composite materials. These materials can be extruded or injection molded with the help of standard processing machinery. These are cost competitive compared to other alternative bioplastics. Starch is basically incorporated with an objective to reduce the carbon footprint of various resins as they aim to replace petroleum based polymers with the natural ones. These are also widely used in the medical industry owing to its low toxicity, biocompatibility, mechanical and degradation properties. Starch based biodegradable plastics also finds application in the agricultural industry owing to its heat preservation and water permeability properties. This in turn aims at increasing the use of various renewable raw materials that are obtained from agro-industrial waste.

Biopolymer films that finds application in agriculture and horticulture are termed as mulch films. They provide soil with requisite amounts of carbon thereby preventing the loss of humus. Hence ongoing innovation in mulch films followed by substantial government subsidies is expected to increase the demand of starch based biodegradable plastics thereby driving the global biodegradable plastics market during the forecast period from 2018 to 2026.

In May 2018, ADM and DUPONT established the world’s first manufacturing facility for bio-based furan dicarboxylic methyl ester (FDME) in Illinois, the US. FDME is a molecule that is used to manufacture plastics. The two companies developed a method for manufacturing FDME from fructose that is basically derived from corn starch. This production facility will facilitate the companies to develop ecofriendly and cost effective starch based biodegradable plastics.

"Packaging Segment Driving the Growth of Biodegradable Plastics Market"

Biodegradable packaging products are mainly derived from various biodegradable plastics that includes   PLA, PHA, Starch based Plastics, PBS and PCL among others. Growing demand of food and beverages packaging is one of the important factor that is expected to drive the global biodegradable plastics market. Increasing applications of biodegradable plastics in various types of packaging that includes agricultural foils, bags for compost, toys and nursery products is also expected to drive this segment during the forecast period from 2018 to 2026.Other growing areas of packaging includes drinking cups, posable cutlery, salad cups, overwrap, plates, lamination film, stirrers, straws, plates, lids and containers among others which is also expected to propel the demand of this segment. Adoption of new regulatory requirements followed by increasing consumer awareness related to environmental issues are other factors expected to drive this segment during the forecast period from 2018 to 2026.For example, Sulapac, based in Finland, collaborated with Fazer to develop and research biodegradable packaging solutions for various food applications. This collaboration will facilitate Fazer to reduce the use of conventional plastics in packaging thereby reducing environmental pollution. In addition, Fazer will also assist Sulapac in its research and development of biodegradable packaging in food applications.

"Europe is the Largest Region in the Global Biodegradable Plastics Market"

Globally, Europe accounted for the largest value and volume share of biodegradable plastics market. The growth is mainly attributed to the growing research and development activities in the bio plastics sector by private and public firms, increasing environmental awareness among consumers and strict implementation of environmental friendly laws. European Union decision to curb the overall consumption of thin plastic bags by around 80% by 2019 is expected to create new opportunities for bio degradable plastics market. Hence the reduction in consumption of conventional plastic bags is expected to increase the demand of biodegradable plastics in retail outlets, malls and loose packaging applications. In addition, increasing pressure on various government organizations to reduce landfills, mounting plastic waste and carbon emissions is also expected to augment the demand for biodegradable plastics during the forecast period from 2018 to 2026. The government of Germany, Denmark and Ireland have imposed taxes on the conventional plastic bags whereas the government of Italy has completely banned plastic bags distribution that are not from biodegradable sources. In 2017, Unilever in Europe also developed a new technology, CreaSolv® Process, with an objective to tackle the issue of plastic sachet waste. With the launch of this new technology, the company aims to make 100% of packaging reusable and recyclable by 2025. In 2017, Asia Pacific was estimated to be the fastest growing region.

"Product Expansion Followed by Recycling of Packaging Products are the Key Strategies Adopted by the Manufacturers"

Key players operating in the global biodegradable plastics market includes BASF SE, Archer Daniels Midland, E. I. du Pont de Nemours and Company, Mondi Group, Biome Technologies PLC, Stora Enso, Amcor, Rocktenn, Unilever, Mitsubishi Chemical Corporation, Corbion, and Natureworks LLC among others. In January 2018, Amcor announced to develop all its packaging reusable or recyclable by 2025.This move will facilitate the company to reduce environmental implications from food and other product waste. The company also claims to be the world’s first global packaging company to increase the use of recycled materials with an objective to drive the recycling of various packaging products across the globe. In April 2017, BASF also launched a new courier bag in China that is made up of biodegradable ecovio material. This product launch aims to reduce the impact of white pollution threat resulting from an increase in parcel deliveries in China.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Biodegradable Plastics market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Biodegradable Plastics market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Biodegradable Plastics market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Biodegradable Plastics market?
• Which is the largest regional market for Biodegradable Plastics market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Biodegradable Plastics market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Biodegradable Plastics market worldwide?