Bioplastics & Biopolymers Market

The global market for bioplastics & biopolymers had a value of USD 11.5 billion in 2023 and is expected to reach USD 27.3 billion by 2030, growing at a CAGR of 18.9% during the same period. Bioplastics have significant growth potential due to their lower carbon footprint, reduced waste, improved compostability, and decreased energy costs. The increasing use of bioplastics in the packaging industry, stricter waste management regulations in Europe, favorable government policies, focus on bio-based content, and growing concern for human health are driving the demand for bioplastics & biopolymers.

Recession impact
The anticipated economic growth following the pandemic has slowly diminished, leading to a global economy experiencing slow growth and high inflation. Two years after the global pandemic, economies are facing new challenges as economic growth has sharply declined due to inflation. Economies worldwide, particularly in developed countries like the US, Canada, the UK, European Union countries, China, Japan, South Korea, and Australia, are contracting, and their economic forecasts are shrinking. The three largest economies, the US, European Union, and China, were heading toward an economic downturn in 2022. Additionally, supply chain constraints and higher oil and food prices resulting from the Russian-Ukraine crises have added further difficulties.

Market Dynamics of Bioplastics & Biopolymers:
Driver: Shifting consumer preference towards bio-based plastics
As awareness of sustainable plastic solutions and the desire to eliminate the use of non-biodegradable conventional plastics increase, the market for bioplastics is also growing. Traditional plastics, typically derived from petroleum, take decades to break down or degrade and can contribute to long-lasting landfill waste. In contrast, biodegradable plastics break down faster when discarded and can be absorbed back into the natural system. The faster rate of decomposition of biodegradable plastics by microorganisms compared to traditional plastics has spurred consumer interest in switching to bioplastics and biopolymers.

Restraint: Performance issues of bioplastics
The durability and performance characteristics of bioplastics & biopolymers limit their penetration in various applications, including packaging, electronics, agriculture, and automotive industries. Bio-based polymers exhibit properties such as low barrier to air, water, oxygen, and low resistance to heat, which restrict their use in packaging applications for food, pharmaceuticals, personal care products, and electronics. The poor mechanical properties and process capabilities of bio-based polymers hinder their growth compared to conventional petroleum-based plastics in applications like agriculture and automotive, as they increase the weight of vehicles and lead to higher fuel consumption.

Opportunity: Development of new applications
Bio-based polymers have a wide range of potential applications, similar to traditional polymers. With increasing government focus on sustainability and favorable green procurement policies, the bio-based polymers market is expected to witness significant growth opportunities in consumer goods applications. The packaging sector is also expected to experience substantial growth, particularly in biodegradable mulch films used in the agriculture industry. The demand for bio-based polymers in food packaging products such as trays, cutlery, and cups catering to the food industry is also on the rise.

Challenge: Segregation and processing of bioplastics
The processing of biodegradable bioplastics depends on the type of product, market volume, existing infrastructure for collection and recovery, legislation, and costs. Many bioplastics are not biodegradable, and even biodegradable plastics require industrial composting to decompose within a reasonable period. If bioplastics are recycled instead of composted, they can contaminate recycling streams, leading to landfill disposal.

Starch based bioplastics to hold significant potential in the bioplastics & biopolymers market
Starch-based bioplastics show significant potential in the bioplastics and biopolymers market. Typically, starch is added to conventional plastics to introduce some degree of biodegradability to the resulting composites. Starch blends serve as excellent biodegradable fillers due to their thermal stability and minimal interference with the melt-flow properties of materials. These blends can lower costs and expedite the biodegradation of composite materials. For extrusion applications, starch and polypropylene (PP) blends with a low starch content of 25% to 40% enhance flexibility and ductility, making them ideal. Conversely, high starch content of 50% or more promotes brittleness, resulting in lower tensile strength compared to conventional PP, making it suitable for injection molding applications.

Corn starch to be third largest segment in raw material in bioplastics & biopolymers market
Corn starch is poised to become the third-largest segment in the raw materials used for bioplastics and biopolymers. Derived from corn grain, corn starch is utilized to produce polylactic acid (PLA). Corn grain is both the most abundantly available and cost-effective source. Corn starch bioplastic, derived from PLA, serves as a popular alternative to traditional plastic derived from petroleum-based chemicals. It finds applications in biodegradable packaging materials, food bags, medical implants, surgical devices, and more. NatureWorks LLC, one of the key manufacturers, has introduced the Ingeo bioplastics series derived from corn starch, which is used in high-value-added applications in rigid and flexible packaging manufacturing.

Agriculture & Horticulture end-use industry to register highest CAGR during the forecast period
The agriculture and horticulture sector is expected to exhibit the highest compound annual growth rate (CAGR) during the forecast period in terms of end-use industry. Biopolymers offer specific advantages such as biodegradability and biobased content, making them a preferred choice in agriculture. Farmers have been employing PBAT and PBS mulch films to enhance crop productivity and soil quality. These polymers are also utilized in the cultivation, harvesting, and processing of agricultural products. Additionally, agricultural films can be used for plant pots. Starch-based plastics, PBAT, and PBS are widely used biopolymers in applications such as agricultural mulch films, seeding strips, tape planters, planting pots, and covering films. The incorporation of mulch films into the soil increases biodegradability and water solubility of bioplastics, leading to a higher demand in agriculture.

Asia Pacific to register highest CAGR during the forecast period
The Asia Pacific region is projected to experience the highest CAGR during the forecast period. Government regulations pertaining to plastic bag bans and global warming initiatives in this region contribute to market growth. However, the higher prices of bioplastics and biopolymers compared to conventional petroleum-based resins act as a significant restraint for market growth in the region. Lower living standards and disposable income in the Asia Pacific region are expected to lead to a price reduction of bioplastics and biopolymers. Furthermore, increasing regulations in the plastics industry and a focus on sustainable development present opportunities for replacing plastics with bioplastics in this region. Consumer awareness of sustainable plastics and pressure from retailers are contributing to the growing demand for bioplastics.

In this report, the Asia Pacific region is segmented into China, India, Japan, South Korea, Thailand, and the rest of Asia Pacific. The majority of bio-based polymer production in the region is concentrated in China and Japan.

Key Market Players:
Prominent companies operating in the bioplastics and biopolymers market include NatureWorks LLC (US), Braskem (Brazil), BASF SE (Germany), TotalEnergies Corbion (Netherlands), Novamont S.P.A (Italy), Biome Bioplastics Limited (UK), Mitsubishi Chemical Group Corporation (Japan), Biotec Biologische Naturverpackungen GmbH & Co. (Germany), Plantic Technologies Limited (Australia), and Toray Industries, Inc. (Japan).

Recent Developments:
In November 2022, TotalEnergies Corbion announced a long-term collaboration with BGF for application development and the supply of Luminy PLA.

In October 2022, Braskem revealed plans to expand its I'm greenTM biopolymer production capacity by 30%, with a USD 60 million investment. The project is being carried out in partnership with SCG Chemicals, doubling the current capacity for I'm greenTM products.

In June 2021, BASF introduced COSMOS-approved texturizing biopolymer Hydagen, derived from the konjac plant tuber. It is a cold-processable rheology modifier suitable for aqueous systems like gels, fluids, serums, and innovative formats such as patches, jellies, and peel-off formulations.

In June 2022, Australian food packaging manufacturer Confoil collaborated with BASF to develop certified compostable dual ovenable paper trays. These trays are made of lightweight paperboard coated with BASF's biopolymer Ecovio PS 1606.

In September 2021, Braskem partnered with Gelmart International, a leading manufacturer of underwear, to supply I'm green EVA biopolymer for producing the world's first bra cup.