Biodegradable Plastic Market Size, Share, By Type (Starch Based, Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBLT), Polybutylene Succinate (PBS), Polyhydroxyalkynoates (PHA), and Others, Application (Packaging, Agriculture, Textiles, Consumer Goods, and Others), and Region - Trends, Analysis and Forecast till 2035

• The biodegradable plastic market size is expected to grow at USD 78.4 billion by 2035.
• The target market was value at USD 9.7 billion in 2024.
• Target market is expanding at a CAGR of 25.8%.

Biodegradable plastic are plastics that can be decomposed by the action of living organisms, usually microbes, into water, carbon dioxide, and biomass. Target market is driven by growing awareness regarding environmental issues such as plastic pollution, and oceanic debris, among others, strong regulations to reduce plastic pollution. In addition, increasing R&D activities led to advancements in biodegradable plastic formulations and increasing consumer preference toward sustainability are another factors propelling growth of the global market. Furthermore, technological advancements, which increases the efficiency and cost-effectiveness of production is also anticipated to create opportunities for growth of the global market over the forecast period.

Key Takeaways:

• North America held the largest share of the market in 2024 due to the increasing demand for sustainable products.
• Asia Pacific is projected to be the fastest-growing market in the coming years. This is due to economic development, low-cost labor, and increasing demand.

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Key Drivers of Target Market:

Strong Regulations to Reduce Plastic Pollution Drive Market Expansion

Strong regulations against plastic to reduce pollution drive the biodegradable plastic market growth as bans on single-use plastics can increase demand for biodegradable plastics and government regulations can contribute to the rise in innovation in biodegradable plastic industry. Additionally, government subsidies can also help to drive the market expansion as it help producers to offer their products at lower prices, which can increase demand.

• For Instance, in December 2024, Governor Gavin Newsom’s recent legislation marks a significant milestone in the fight against plastic pollution. The new law, set to take effect in 2026, will ban all plastic shopping bags in grocery stores, addressing the shortcomings of a previous 2014 ban that inadvertently exacerbated the problem.

Restrains:

Risk of Contamination can Hamper the Growth of the Market

Biodegradable plastics should not be mixed with non-biodegradable plastics when thrown in garbage bins. Once these two types of plastic mixed together, these bio plastics become contaminated and cannot be used anymore. As a result, these contaminated bio plastics will end in landfills and add to the volume of thrash.

• Counterbalance Statements: Biodegradable and non-biodegradable wastes should be discarded in two separated bins as this helps in effective treatment and disposal of these wastes. 

Opportunities:

New Innovations and Technological Advancements Can Create Significant Opportunities in Upcoming Years

As global awareness of environmental sustainability intensifies, the biodegradable plastics industry is undergoing significant advancements. Biodegradable plastics offer a promising solution, yet their development and application are continuously evolving. Advancements in raw materials, enhanced biodegradability of plastics, the next generation of biodegradable plastics, and integration with circular economy models, scalable production techniques, and innovation in manufacturing processes, such as 3D printing, and collaboration and partnership across industries are some of the future trends in biodegradable plastic technology.

• For instance, in November 2024, Northeastern University researchers have developed an innovative bio plastic that breaks down in water, offering a sustainable alternative to conventional plastic. Called MECHS, which stands for Mechanical Engineered Living Materials with Compostability, Healability and Scalability, this plastic is derived from engineered E. coli bacteria and a fiber matrix, creating a film-like material that biodegrades faster than other biodegradable plastics.

The market is segmented based on type, application, and region.

Type

On the basis of type, the biodegradable plastic market is segmented into starch based, polylactic acid (PLA), polybutylene adipate terephthalate (PBLT), polybutylene succinate (PBS), polyhydroxyalkynoates (PHA), and others. The polylactic acid (PLA) segment dominate the target market growth with 26.20% of total biodegradable plastic market share, due to its lower cost and attractive mechanical properties.

• For instance, in October 2024, India’s first-of-kind ‘Demonstration Facility for Biopolymers’, showcasing Praj’s indigenously developed integrated Polylactic Acid Technology, was inaugurated at Jejuri near Pune. The facility showcases production capacities of 100 tons per annum (TPA) for lactic acid.

Application

The biodegradable plastic market by application is segmented into packaging, agriculture, textiles, consumer goods, and others. The packaging segment holds the largest share of the market with 54% of total share. This is due to the increasing demand for sustainable packaging solutions.

• For instance, in November 2024, Walki has entered a strategic partnership with Lactips to create ‘fully biodegradable, plastics-free’ food packaging using natural polymers, designed to be to be fully recyclable in the paper stream.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: North America is expected to dominate the growth of the market during forecast period due to the ambitious renewable energy targets, government support policies, and the increasing population's major force massive investments in biodegradable plastics production.

• For Instance, in July 2024, BioNatur Plastics has recognized Worldwide Flight Services’ (WFS) commitment to sustainability and honored Stephanie Peacock, Director of Sourcing & Supply in North America at WFS, with its first ‘Pioneer Award’ for inspiring the introduction of biodegradable plastic products into the global air cargo industry.

Asia Pacific: Asia Pacific region is considered to be the fastest growing region in the target market as countries, such as India, China, and many more are leading the charge significantly due to availability of low-cost raw materials and labor and growing demand, government initiatives toward the enforcements of single-use plastic bags, among others.

For Instance, in July 2024, Struggling with the challenges of plastic waste management despite the ban on a few plastic products, the Punjab govt. has called for a complete ban on all varieties of plastic carry bags and packaging products. By proposing a blanket ban on all types of plastic carry bags, the state govt. aims to plug any loopholes and ensure a more sustainable approach to waste management.

Biodegradable Plastic Market Report Scope:

Segmentation:

By Type:

• Starch Based
• Polylactic acid (PLA)
• Polybutylene Adipate Terephthalate (PBLT)
• Polybutylene Succinate (PBS)
• Polyhydroxyalkynoates (PHA)
• Others

By Application:

• Packaging
  • Food Packaging
  • Non-Food Packaging
• Agriculture
• Textiles
• Consumer Goods
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the biodegradable plastic market include Arkema, Biome Bioplastics, and BASF, among others. These key players focusing on different organic and inorganic strategies, such as acquisition, merger, partnership, agreement, product launch and approval to expand their product portfolio and strengthen their market presence globally.

• For instance, In December 2024, Greenworksbio, a Hyderabad-based sustainable packaging solutions provider, has joined hands with the Council of Scientific and Industrial Research-Indian Institute of Chemical Technology (CSIR-IICT) to develop sustainable, high-performance bioplastics and their composites using agricultural waste.

List of Key Players in the Market:

• Arkema
• Biome Bioplastics
• BASF
• BIOTEC Biologische Naturverpackungen GmbH & Co. KG.
• Braskem
• Mitsubishi Chemical Group Corporation
• Eastman Chemical Company
• Novamont S.p.A.
• Green Dot
• TIPA LTD
• Polymateria Limited
• NatureWorks LLC
• Avantium
• NIRAL PLASTICS
• SKYo FKuR Biopolymers Pvt. Ltd.
• CHUKOH CHEMICAL INDUSTRIES, LTD.
• PTT MCC Biochem Co., Ltd.

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• In December 2024, Researchers at the RIKEN Centre for Emergent Matter Science in Japan have designed a revolutionary biodegradable plastic that dissolved in seawater. The material of this plastic is also strong and can be adjusted to fit various uses such as packaging materials to medical devices. The special quality of this plastic lies in the composition, which consists of food-safe components.

Analyst View:      

The industry for biodegradable plastic market is placed for substantial growth due to growing awareness regarding environmental issues such as plastic pollution, oceanic debris, and among others, strong regulations to reduce plastic pollution, increasing R&D activities led to advancements in biodegradable plastic formulations, increasing consumer preference towards sustainability. New innovations and development, advance technologies, and many collaborations and partnerships helps to boost the growth of the market in upcoming years.

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