Biobased Biodegradable Plastics Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022 - 2027

Report Code: CMR 99748 Report Format: PDF + Excel

Biobased Biodegradable Plastics Market Overview

Biobased Biodegradable Plastics Market size is expected to reach a value of US$31.2 billion by 2027 after growing at a CAGR of 19.8% during the forecast period from 2022-2027. Bio-based biodegradable plastic can degrade by naturally occurring microorganisms such as bacteria, fungi, biomass, and inorganic compounds. Biobased biodegradable plastic is made of polylactic acid, polyhydroxyalkanoate, polycaprolactone, starch, and other biomaterials which are used for packaging, crockery, food cutlery, and containers. Thus, there is increase in demand for biobased biodegradable plastics in various end-use industries such as food packaging and consumer goods. This is one of the major factors driving the biobased biodegradable plastics industry growth. Biobased polyethylene offers various characteristics such as flexibility, durability, printability, transparency, barrier, heat resistance, and gloss. Owing to such properties, biobased biodegradable plastics are widely used in the packaging industry which is expected to grow at a significant rate for the biobased biodegradable plastics market during the forecast period.

COVID-19 impact

During the 2020-Q2 of 2021, the Covid-19 pandemic was at its peak, the electronics industry was dropped which highly affected the market scenario. Bioplastics are temperature resistant and are helping to keep the products lightweight and durable. Thus it is used in various applications including touch screen computer casings, loudspeakers, headphones, keyboards, mobile phone casings, laptops, games consoles, and vacuum cleaners. But during the COVID pandemic, the electronics sector was closed which is reducing the demand for biodegradable plastics. According to the China Academy of Information and Communications Technology (CAICT), smartphone market sales dropped 10% in May 2020 to 32.6 million, and 16% in June 2020 to 27.7 million. However, the biobased biodegradable plastics demand was hugely affected in terms of consumption for electrical components which is limiting the market growth.

Report Coverage

The report: “Biobased Biodegradable Plastics Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the biobased Biodegradable Plastics Industry.

By Product Type: Polylactic Acid (PLA), Polybutylene Succinate (PBS), Polyhydroxyalkanoate (PHA), Polybutylene Adipate Co-terephthalate (PBAT), Polycaprolactone (PCL), Polyhydroxy Butyrate (PHB), Starch Blends, and Others

By Source:  Sugarcane, Cassava, Corn Starch, and Others

By Application: Packaging Sector (Vegetables and Food Packaging, Dairy Products, Meat Packaging, Others), Consumer Goods (Tablewear, Flower Pots, Crockery and Cutlery, Others), Electronics (Loudspeakers, Keyboard Elements, Mobile Casings, Others), Agricultural & Horticulture, Healthcare (Diapers, Santry Products, Disposable Gloves, Others), Textiles, Automotives, and Others

Key Takeaways

  • The Asia Pacific held the largest share in the biobased biodegradable plastics market owing to increasing demand for packaging applications such as food & beverages, consumer goods, and electrical components.
  • Increasing adoption of biobased biodegradable plastics as they can reduce pollution in a very real way. Biobased plastic is an alternative to conventional plastic which is estimated to boost the consumption of this plastic.
  • According Food and Drug Administration (FDA) polylactic acid can be for food packagings such as fruit and vegetables due to its environmental nature and sustainability which is also creating growth for the biobased biodegradable plastics industry.

Figure: Asia Pacific Biobased Biodegradable Plastics Market, 2021-2027 (US$ Billion)

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Biobased Biodegradable Plastics Market Analysis – By Product Type

Polylactic acid held the largest share of more than 35% in the biobased biodegradable plastics market in 2021. Polylactic acid is a thermoplastic polyester that has high mechanical strength,  high modulus bio absorbability,  transparency, low toxicity; thus, it is an excellent biobased product in antimicrobial packaging. Food and Drug Administration (FDA) accepted polylactic acid as generally recognized as safe (GRAS) due to low toxicity. According to the Europe Bioplastic, the global production of polylactic acid was 13.9% in 2019. Polylactic acid offers various properties including degradability, biocompatibility, and recyclability which makes them the ideal solution for packing cups, food containers, and dairy products. In November 2020, Sulzer Chemtech supported B&F polylactic acid (PLA) to develop China’s first fully integrated sugar-to-PLA (polylactic acid) plant located in Bengbu, Anhui Province. This plant can produce 30,000 metric tons of PLA per year. This will further drive the biobased biodegradable plastic industry.

Biobased Biodegradable Plastics Market Analysis – By Source

Corn starch held the largest share of more than 30% in the biobased biodegradable plastics market in 2021. Biobased biodegradable plastics are produced using a mixture of corn starch which was heated to give a good yield. Thus, these are can be easily generated in homes without any higher professional assistance and could be manufactured on a large scale. Biodegradable biobased plastic such as polylactic acid and PBS is produced from corn starch. Mitsubishi Chemical Corporation is producing polybutylene succinate (PBS) products with the use of corn starch. Its PBS plant is located in Rayong, Thailand, with an annual capacity of 30,000 tonnes. In 2020, BASF announced a collaboration with Chinese chemical manufacturer Red Avenue New Materials Group, which planned to build another 60,000 tonnes plant in Shanghai, China. This plant will increase the production capacity by 200,000 tonnes of PBS annually. Hence, due to such factors, the demand for corn starch is rapidly growing which is also growing the biobased biodegradable plastic industry growth.

Biobased Biodegradable Plastics Market Analysis – By Application

The packaging sector held the largest share of more than 45% in the biobased biodegradable plastics market in the year 2021. Biobased biodegradable plastics are used to reduce the impact of waste on the environment and are being used in applications such as thermoformed coffee cup lids, disposable cutlery and plates, and food containers. Biodegradable plastics are also used in food packaging applications to protect the food from the environment and maintain food quality. According to Europe Bioplastic, the packaging sector (rigid and soft) is still the leader with more than 47% of the market shares in 2020. In 2020, Toppan Printing has launched new eco-friendly packaging that maintained the quality of meat, processed seafood, and other primary products kept in frozen storage for a long time. According to Eurostat, in Europe, dairy products and soft drinks export 16,203 euros million (US$ 18.51 billion) and 5,650 euros million (US$ 6.45 billion) in 2020, an increase of 3% and 2%during 2019-2020, respectively. Hence, the growing packaging sector is expected to propel the biobased biodegradable plastic industry growth.

Biobased Biodegradable Plastics Market Analysis – By Geography

Asia Pacific region held the largest share of more than 40% in the biobased biodegradable plastics market size in the year 2021, due to the increasing demand from various end-use industries such as the packaging industry in Asian countries including India and China which are estimated to grow the demand for biobased biodegradable plastics. According to the China Food Industry (CFI), almost 15,00 tonnes of fresh food and 3 million bottles of soap were sold in 2020. In 2020, the Indian Government has approved Rs. 320.33 crore (US$ 43.24 million) to implement 28 food processing projects. According to the National Investment Promotion Facilitation Agency, in India, the food processing sector is forecast to reach US$ 535 billion by 2025-2026. According to the United States Department of Agriculture, In 2019, Japan’s food processing industry manufactured US$219.7 billion of food and beverage products as compared to US$216.8 billion in 2018. Hence, all such factors are growing demand for biobased biodegradable plastics in the region.

Biobased Biodegradable Plastics Market Drivers   

The growing demand from Packaging Industry

Biobased biodegradable plastics such as starch and polylactic acids are used in the packaging of food and beverages as they have no harmful chemicals. Starch-based biodegradable plastic is used in the packaging of peanuts. Polylactic acid is suitable for short-life packaging products such as yogurt cups, fruit, vegetable, and meat trays. According to Europe Bioplastic, the worldwide production capacities for bioplastics will increase to around 6.1 million tons by 2021. In 2019, around 1.8 million tons are accounted for plastic packagings such as films, bags, carrier bags, sacks, or disposable cutlery and dishes. The packaging sector holds the largest share of biobased biodegradable plastic more than 53% of the total bioplastics market in 2019. In January 2019, Nestlé and Danimer Scientific announced a global partnership to produce biodegradable bottles which are protected to foster the biobased biodegradable plastic industry growth.

Growing Government initiatives for reducing the Greenhouse Emission

Biodegradable biobased plastic is produced from renewable resources such as corn starch, potatoes, rice, soy, sugarcane, wheat, and vegetable oil. Polylactic acid helps to reduce greenhouse gases. Thus, the growing government initiatives to reduce greenhouse emission is also growing the demand for bio-based biodegradable plastic products. In June 2019, the UK became the first key economy in the world to pass laws to end its contribution to global warming by 2050. The target will require the UK to cut down all greenhouse gas emissions to net-zero by 2050. In 2021, Administrator Samantha Power announced a major new initiative to reduce global greenhouse gas emissions. The United States Agency for International Development (USAID) will support to prevention of 6 billion metric tons of carbon dioxide equivalent emissions by 2030. In 2019, Colorado enacted comprehensive climate legislation directing the state Air Quality Control Commission is implementing regulations to reduce greenhouse gas emissions reductions 26% by 2025, 50% by 2030, and 90% by 2050. This will further drive the biobased biodegradable plastic industry.

Biobased Biodegradable Plastics Market Challenges

High Cost of Biobased Biodegradable Plastic Products Type

PLA is used for eco-friendly food packaging as they maintain food quality. But the cost of polylactic acid is higher than comparable materials. Polylactic acid is 20%-50% more costly than comparable materials because of the complex process used to convert corn starch or sugarcane into the building blocks for PLA. In addition, 1,4-butanediol is used for the production of polybutylene adipate co-terephthalate (PBAT). The price of 1,4-butanediol has risen from more than 7,000 RMB/ton to more than 30,000 RMB/ton. In 2021, the price of PBAT is 35,000 RMB /ton. Hence, the high cost of bioplastic products may create hurdles for the consumption of biobased biodegradable plastic. 

Biobased Biodegradable Plastics Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Biobased Biodegradable Plastics top 10 companies include:

  1. BASF SE
  2. Total Corbion
  3. Biome Bioplastics
  4. Mitsubishi Chemical Holding Corporation
  5. Toray Industries (Japan), Plantic Technologies
  6. Danimer Scientific
  7. Corbion
  8. DOW
  9. Metabolix Inc.
  10. Natureworks, and more.

Recent Developments

  • In 2020, BASF and Fabbri Group have developed a sustainable solution for cling film used in fresh-food packaging. This will help to boost the demand for biobased biodegradable plastics.
  • In May 2019, BASF and Lactips signed an exclusive contract to market Lactips’ water-soluble, bio-based, and fully biodegradable material. The solution of Lactips aims at the replacement of polyvinyl alcohol films in-home care and I&I applications, such as dishwasher tabs.

Relevant Reports

Biodegradable Bag Market - Forecast(2021 - 2026)
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Biopolymers Market - Forecast(2021 - 2026)
Report Code: CMR 0117

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1. Biobased Biodegradable Plastics Market- Market Overview
    1.1 Definitions and Scope 
2. Biobased Biodegradable Plastics Market - Executive Summary
    2.1 Key Trends By Product Type
    2.2 Key Trends by Source
    2.3 Key Trends by Application
    2.4 Key Trends by Geography
3. Biobased Biodegradable Plastics Market – Comparative analysis 
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Biobased Biodegradable Plastics Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Biobased Biodegradable Plastics Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Biobased Biodegradable Plastics Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes 
7. Biobased Biodegradable Plastics Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies 
8. Biobased Biodegradable Plastics Market – By Product Type (Market Size -$Million/Billion)
    8.1 Polylactic Acid (PLA)
    8.2 Polybutylene Succinate (PBS)
    8.3 Polyhydroxyalkanoate (PHA)
    8.4 Polybutylene Adipate Co-terephthalate (PBAT)
    8.5 Polycaprolactone (PCL)
    8.6 Polyhydroxy Butyrate (PHB)
    8.7 Starch Blends
    8.8 Others
9. Biobased Biodegradable Plastics Market – By Source (Market Size -$Million/Billion)
    9.1 Sugarcane
    9.2 Cassava
    9.3 Corn Starch
    9.4 Others
10. Biobased Biodegradable Plastics Market - By Application (Market Size -$Million/Billion)
    10.1 Packaging Sector
        10.1.1 Vegetables and Food Packaging
        10.1.2 Dairy Products
        10.1.3 Meat Packaging
        10.1.4 Others
    10.2 Consumer Goods
        10.2.1 Tablewear
        10.2.2 Flower Pots
        10.2.3 Crockery and Cutlery
        10.2.4 Others (Cups, Tray, others)
    10.3 Electronics
        10.3.1 Loudspeakers
        10.3.2 Keyboard Elements
        10.3.3 Mobile Casings
        10.3.4 Others (Vacuum Cleaners, Mouse, others)
    10.4 Agriclutural & Horticulture
    10.5 Healthcare
        10.5.1 Diapers
        10.5.2 Santry Products
        10.5.3 Disposable Gloves
        10.5.4 Others
    10.6 Textiles
    10.7 Automotives
    10.8 Others
11. Biobased Biodegradable Plastics Market - By Geography (Market Size -$Million/Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Russia
        11.2.8 Belgium
        11.2.9 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zeeland
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 UAE
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Biobased Biodegradable Plastics Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Biobased Biodegradable Plastics Market – Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking- Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Biobased Biodegradable Plastics Market – Key Company List by Country Premium Premium
15. Biobased Biodegradable Plastics Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"

List of Tables

1 US Biobased Biodegradable Plastics Market Size 2018
2 Canada Biobased Biodegradable Plastics Market Share 2018
3 Brazil Biobased Biodegradable Plastics Market Outlook 2019 - 2023
4 Mexico Biobased Biodegradable Plastics Market Research 2018
5 Germany Biobased Biodegradable Plastics Market Trends 2019 - 2023 
6 France Biobased Biodegradable Plastics Market Growth 2019 - 2023 
7 UK Biobased Biodegradable Plastics Market Demand 2019 - 2023 
8 Italy Biobased Biodegradable Plastics Market Segmentation 2018
9 Russia Biobased Biodegradable Plastics Market Analysis 2019 - 2023
10 China Biobased Biodegradable Plastics Market Revenue 2019 - 2023
11 Japan Biobased Biodegradable Plastics Market Volume 2019 - 2023
12 South Korea Biobased Biodegradable Plastics Market Potential 2019 - 2023
13 India Biobased Biodegradable Plastics Market Leaders 2018
14 Saudi Arabia Biobased Biodegradable Plastics Market Forecast 2019 - 2023 
15 Kuwait Biobased Biodegradable Plastics Market Value 2018

List of Figures

For complete list of 60+ tables and 60+ figures follow the Link