Biodegradable Plastics Market size was valued at USD 5.68 billion in 2023 and is anticipated to reach USD 17.62 billion by 2036, expanding at around 9.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of biodegradable plastics is assessed at USD 6.09 billion. The growth of the market can be attributed to the rising governmental initiatives to eliminate single use plastic, growing awareness about the hazardous effects of plastic waste around the world, and stringent regulatory framework against the usage of conventional plastic products. For instance, the European Commission launched the single-use plastics EU directive in 2019, which is aimed at tackling 10 single use plastic items found most commonly on European beaches, and promote sustainable alternatives. Furthermore, surge in the use of biodegradable packaging in agriculture and food & beverage sectors is also projected to accelerate the growth of the market in the forthcoming years. Along with these, rise in consumer willingness to pay more for biodegradable materials as a result of their environment friendliness is also evaluated to offer ample growth opportunities to the market in the near future.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
9.1% |
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Base Year Market Size (2023) |
USD 5.68 billion |
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Forecast Year Market Size (2036) |
USD 17.62 billion |
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Regional Scope |
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The market is segmented by type into starch-based, PBAT, PBS, PLA, and PHA, out of which, the starch-based segment is anticipated to hold the largest share in the global biodegradable plastics market on account of the increasing usage of this plastic in industries such as automobiles, packaging and agriculture. In addition, the PHA segment is predicted to witness the highest growth by the end of 2030 ascribing to the growing applications of PHA in pharmaceutical industry for medical implants and drug encapsulation. Moreover, on the basis of end user, the packaging & bags segment is assessed to grab the largest share over the forecast period owing to the rising replacement of conventional plastics by biodegradable ones in food packaging for the production of boxes, plates and wraps.
Our in-depth analysis of the global market includes the following segments
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By Type
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By End User |
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On the basis of geographical analysis, the global biodegradable plastics market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. Asia Pacific is set to account for largest revenue share by 2036, on the back of increasing disposable income of the people and high availability of cheap raw materials in the region. According to the Organization for Economic Cooperation and Development or OECD, the household disposable income in Australia witnessed an annual growth by 4.4 percent in the year 2019. Apart from these, improvements in the standards of living, especially in countries such as China and India, is also expected to drive the region’s market growth in the future. Additionally, the market in Europe is anticipated to acquire the largest share during the forecast period, which can be credited to the high awareness levels among the population regarding the ill-effects of plastic waste and imposition of ban on the usage of single-use plastics in the region.
· May 6, 2021: BASF increased the prices for its certified biodegradable plastic named ecovio in the European region. The material is mainly used for cling films, organic waste of vegetables or fruits and agricultural mulch films.
Author Credits: Parul Atri
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