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Market Summary

The Global Biodegradable Plastics market is forecasted to grow at a rate of 14.28% from USD 3.40 Billion in 2019 to USD 9.85 Billion in 2027. These are the types of plastics that can decompose the action of microbes. The production of biodegradable plastics is generally using renewable raw materials. The Biodegradable Plastics market is fueled by constant regulations imposed on single-use plastics, due to the environmental concerns such as the occupation of space in landfills forever.

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These wastes are consisting of mostly toxic materials. The burning of these materials breeds toxicity in the environment; such factors promote biodegradable plastic and result in high demand. The biodegradable plastics are consistently being implemented in the agricultural and packaging sector.

The increasing awareness among the masses has resulted in the adoption of eco-friendly technology, rising awareness of ill-effects of conventional plastics bringing about a revolutionary demand from the end-user. The packaging sector has seen the most significant switch to biodegradable plastic. The packaging sector needs to comply with stringent governmental regulations, which has resulted in substantial changes in the manufacturing and raw material of the packaging industry. The latest biodegradable plastics applications in the packaging sector include diaper banking, adult incontinence products, and landfill covers. The waster pollution level owing to the plastic floating in the see will take thousands of years to be rid of has resulted in the growth of the biodegradable sector. The awareness due to the large social media movements has prompted people to boycott non-biodegradable plastic goods. The end-consumer is willing to pay high costs for bio-degradable packaging solutions for the safety of the environment. In general, biodegradable plastics help produce bottles, loose-fill, cups, pots, bowls, and flexible films. The use in the packaging sector is mainly driven by the surge of demand in the food and beverage industry. In complying with the federal agencies' regulations, the FMCG industries inculcate the use of biodegradable plastics in their products.

The industry faces specific challenges, there is no clear distinction between bio-degradable plastic, hence with the inclusion of non-biodegradable plastic in biodegradable landfills beats the purpose of biodegradability. The high cost of biodegradable plastics is one of the factors that may restrain the Biodegradable Plastics market growth. Considering the economic slowdown, the depleting disposable income may pose a threat to the growth of the Biodegradable Plastics market. Biodegradable plastics decompose over time, but they require specific conditions for decomposition, which may not be available in every landfill, this raises questions about biodegradable plastics' efficiency.

Type Outlook:

Based on the type, the Biodegradable Plastics market is divided into PLA, Starch Blends, Biodegradable Polyesters, PHA, and Others. Starch-Based plastics dominated with the largest share in the Biodegradable Plastics market. It offers several benefits to the environment, such as reducing the carbon footprint in traditional resins, which offers high biodegradability. They are increasingly being blended with biopolymers owing to low toxicity, biocompatibility, and mechanical properties. More than 75% of organic material on earth is in the for polysaccharides. Starch is found in seeds and roots of the plants. Starch is available abundantly in corn, wheat, rice, potato, and other renewable sources, making the raw material easy to track down. In general, corn is considered the go-to source for starch production. Starch employs the wet-milling process as a production technique. PLA is another segment that is gaining popularity and is expected to grow at a CAGR of 14.14%. The inexpensive cost of PLA makes it easily accessible and is driving the demand for this segment.

PHA is used in the medical industry and helps in tablet encapsulation and medical implants. Due to the rising popularity of 3D printing, it is being implemented as a raw material in tissue engineering, bio scaffolding, and bone plants.

End-Use Industry Outlook:

Packaging dominates the end-use segment. The increasing demand for packaging in food and beverage and pharmaceutical is driving the growth of the segment. Biodegradable plastics are employed in both rigid packaging and flexible packaging. In food packaging, biodegradable plastics are used to produce cups, plates, and other disposable items. The biodegradable plastics are used due to lower toxicity and more marketability to more aware consumers. Stringent government regulations are also forcing the players to shift to biodegradable solutions for packaging.

Consumer goods will present itself to be a lucrative segment and will grow at a CAGR of 14.59%. The household appliances and electronic devices are increasingly adopting biodegradable plastics due to the strict government regulations to minimize the piling up of e-waste. It is going to be a significant problem for the coming generations as it poses many health problems and environmental effects. Electronic devices such as circuit boards and casings use traditional forms of plastic. The manufacturers are increasingly shifting towards the use of biodegradable plastics in items such as loudspeakers, vacuum cleaners, and casings of mobiles and computers.

The agriculture sector will also be a popular segment over the forecast period. The biodegradable films, help in water conservation, weed growth suppression, and in fabricating ideal condition of crop growth.

Regional Outlook:

North America is the largest share for the biodegradable plastics market. It is due to the governmental and regulatory bodies making decisions based on the motives to protect the planet. The conscious population and the disposable income in the region favor the promotion of the Biodegradable plastics market.

The European region will be the fastest-growing market. The formulation of rules and regulations to transition to a low-carbon and circular economy will help the Biodegradable Plastics market growth. The European region decided to decrease the consumption of plastic bags in the region by 80%, which has resulted in the widespread use of biodegradable flexible and rigid packaging in the region.

Asia Pacific region is growing at a steady pace. The emerging economies of India and China, with a high population number, are opening up the avenues of growth of biodegradable packaging in the region. The raw materials are readily available in the region, which will help sustain the Biodegradable Plastics market sustainability in the region.



Market-O-Nomics

Presently, 8 million tons of plastic is being dumped into the oceans, with plastic production reaching 300 million tons of plastic being produced every year, according to Plastic Oceans Organization. The plastic poses a serious threat to marine life, which will likely disturb the ecological balance. Strict steps will soon be taken to reduce the plastic waste, which will make way for the biodegradable plastics market.

KFC, in January 2019, stated that 100% of consumer-facing packaging would be reusable by the year 2025. The move is likely to inculcate more biodegradable plastics in the packaging.

The covid-19 situation has impacted the major economies of the world. The most damage is done to the supply chains, which were based on the import of the goods. The manufacturing industry will be experiencing production cuts, due to the low demand for non-essential products, which will affect biodegradable plastic in the industries. Packaging will drive the growth of the Biodegradable Plastics market during the pandemic, due to strict rules of social distancing to minimize the Covid-19 impact will negatively impact the Biodegradable Plastics production. The economic slowdown as an aftereffect of the pandemic will be affecting the adoption of the Biodegradable Plastics market. The concerns regarding waste have shifted to concerns regarding the pandemic. The effective and strict economic reforms will determine the swift recovery of the market over the forecast period.

Companies considered and profiled in the market study

BASF SE, NatureWorks, Total Corbion PLA, Mitsubishi Chemical Corporation, Biome Bioplastics, Bio-On, Novamont S.P.A, Plantic Technologies, Danimer Scientific, and Toray Industries, have been profiled in the report. They are the major manufacturers of the product.

The players operating in the market have undertaken several strategies related to the market in the period. The key highlight is:

In December 2018, Total Cabion NV started production at Rayon, Thailand. It will be a significant step in developing the biodegradable plastic market in the Asia Pacific. The plant has a production capacity of 75KT and produces PLA and PDLA from locally grown non-GMO sugarcane.

Deals Landscape:

Mergers & Acquisitions are an integral part of the Biodegradable Plastics industry. Along with the companies operating in the market, other key market players have also been entering the industry.

Expert Insights:

Reports and Data forecast promising developments for increased adoption of Biodegradable Plastics technology. According to industrial experts, applications relating to the market product will usher in the market and will soon drive the industry. Moreover, new manufacturers are expected to enter the market who is likely to provide platform-centric Biodegradable Plastics solutions for production applications. New companies entering the industry would focus on innovating and providing through advanced technologies, thereby reducing complexity and lowering the overall total cost of operation. Experts also believe that increase in the adoption of the environment-friendly product in emerging nations would be a key development area for the industry.

Segments covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For this report, Reports and Data have segmented into the global Biodegradable Plastics market based on type, end-use industry, and region:

Type Outlook (Revenue, USD Million; Volume, Kilo Tons; 2017-2027)

PLA

Starch Blends

Biodegradable Polyesters

PHA

Others

End-Use Industry Outlook (Revenue, USD Million; Volume, Kilo Tons; 2017-2027)

Packaging

Agriculture

Consumer Goods

Others

Regional Outlook (Revenue, USD Million; Volume, Kilo Tons; 2017-2027)

North America U.S

Europe U.K France

Asia Pacific China India Japan

Middle East & Africa

Latin America Brazil



Key Question the Report Will Answer

At what rate will the Biodegradable Plastics Market grow? What will be the value of the market in 2027?

What are the key technologies driving the Biodegradable Plastics market?

What would be the impact of the Biodegradable Plastics market across different regions?

What are the strategies adopted by players to enter the Asia Pacific region?

What is the key application of the Biodegradable Plastics market in the transportation sectors?

What are future growth strategies in the Biodegradable Plastics market?