Bioplastics Market Regional Analysis:
Europe Market Insights
Europe is likely to hold over a 41% bioplastics market share by the end of 2035. The expansion of the market can be driven by the growing adoption of bioplastics in various sectors. The plastic prohibition and to meet the growing demand for sustainable alternatives to traditional plastics, Europe is poised to become a major producer of bioplastics. For instance, one of the main consumers of plastic packaging in the area is the food and beverage industry, since it has benefits, including minimal environmental impact. In addition, bioplastics are used in the production of consumer items, including toys and electronics, which are becoming more and more popular in the area.
Developments in compostable bioplastics are proportionately affected by the evolution of legislation. Owing to the collection of organic waste, which is obligatory across the EU by 2030, the market presents opportunities for repurposing waste bags and converting them to bioplastics for agricultural purposes. The Single Use Plastic (SUP) Directive, even before its commencement in January 2022, largely impacted the single-use plastic generation in Italy, resulting in a dip of 31.7% between 2020 and 2021.
The Italy bioplastics market landscape is shaped by the EU’s CO2 reduction targets that boost the adoption of bio-based and renewable polymers. Prominent investments in biorefineries and infrastructure development are set to facilitate another 100 kilotons of production of renewable polymers by 2030. According to the 2023 report by the International Trade Administration (ITA), Italy had 275 companies comprising 20 granule producers and distributors, 5 chemical producers, 250 processors, with 2,895 employees and a revenue of USD 1.08 billion in 2021.
Asia Pacific Market Insights
Bioplastics market in Asia Pacific, is estimated to be the second largest during the forecast timeframe. The market progress in the region is impelled by rising consciousness about plastic trash in developing nations. For instance, countries in the region are working harder to combat plastic pollution and have implemented bans on the usage of single-use plastics, which is expected to raise the demand for alternatives, including bioplastics. As people are becoming more conscious about plastic trash and their negative environmental impacts, they are increasingly shifting towards the use of bioplastics. Moreover, along with the U.S., Brazil, Germany, and Canada, China is one of the top five nations producing bioplastics, and it is predicted that China will produce over 6 million and 1 million tons, respectively, of the two primary forms of biodegradable plastic, PBAT, and PLA, by the end of 2025, that will make up two-thirds of the world's output.
The Australia bioplastics market is driven by the shift in government focus to ban the usage of single-use plastics to the adoption of bio-based counterparts. For instance, in August 2024, the Government of Tasmania committed USD 1 million for a tenure of four years to cater to the adverse impacts of single-use plastics. This includes incorporating a policy reform to accelerate the phase out and render USD 100,000 to support businesses through the transition. According to the Tasmania Department of Natural Resources and Environment, plastic usage in Australia has surged by 40% over the last decade and is estimated to cross 9.5 million tons by 2049‑50. Furthermore, in a business-as-usual scenario, this metric will surpass 66 million metric tons annually by 2050, thereby underscoring the need for a swift transition.
