Bioplastics: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Plastics made from renewable biomass sources, such as plant fats and oils, maize starch, straw, woodchips, sawdust, and recovered food waste, are known as bioplastics. While some bioplastics are produced chemically from sugar derivatives (like lactic acid) and lipids (oils and fats) from either plants or animals, or biologically produced by fermentation of sugars or lipids, others are made from natural biopolymers like polysaccharides (like starch, cellulose, chitosan, and alginate) and proteins (like soy protein, gluten, and gelatin). Bioplastics are produced using materials other than fossil fuels, such as starch, cellulose, wood, sugar, and biomass; this makes the process more environmentally friendly than the manufacture of traditional plastics.

Market Insights

In 2022, global bioplastic market stood at 3.9 million tons in volume and more than $20 billion in revenue terms. Mandatory life cycle assessments and controlled GHG emissions propel the demand for bio-based plastic while restricting its competitors. In volume terms Biodegradable bioplastics accounts for 60% share and within biodegradable PLA is dominating the global market with more than 30% market share

Bioplastic is frequently used in the pharmaceutical sector to provide patients with contamination-free diagnoses. The broad spectrum includes a variety of applications, including as contact inhibition, isolation, and covering. Strong growth trends in the medical industry during the past ten years have been attributed to significant investment in pharmaceutical R&D, particularly in North America. Demand for bioplastics is projected to be driven in the near future by the development of technologically advanced equipment and the growing requirement to comply with strict laws to achieve environmental stability. Due to quick technological breakthroughs and stronger consumer buying power, the North American medical business made up around 40% of the worldwide medical industry. For instance, the North American medical industry is expected to reach $1,000 billion by 2024, according to Pharmaceutical Research and Manufacturers of America. This will positively affect the growth of the bioplastic market in the ensuing years.

Due in part to the breadth of polymer research organisations in Germany (such as the Fraunhofer Institute), Europe was a pioneer in the development of plastics from renewable resources. It also has to do with how deeply green organisations, like the important German political party the Green Party, are ingrained in European society. However, due to massive agricultural production in the U.S. and Brazil as well as government funding for agriculture-based chemicals, particularly ethanol, the Americas overtook Europe in the development of bioplastics in the early 2010s. One outcome was an explosion in the production of polyethylene and polyesters suitable for bottles from feedstock generated from sugar. Another was the massive expansion of polyurethane foams made with polyols derived from soybeans and used in furniture and automotive seats. However, many of the bioplastics made in the Americas (e.g., PLA) are now being shipped to Europe.

New product development and R&D investment are two of the main development methods being used by international manufacturers in this market. Zero Net Carbon, technical innovation, outsourcing, supplier consolidation, and globalization are a few significant developments. The majority of businesses have either adopted a focus strategy based on product type or a strategy of product differentiation through distinctive processing technologies. Moderate to high entry requirements exist. Regulatory obstacles like product testing and the approval process can be very high in particular industries, like the medical and food contact sectors.

Market Dynamics: Drivers

Robust Growth in Food Packaging Business in Asia-Pacific

Food demand is being driven by Asia-Pacific’s growing population and rising consumer buying power, which will impact the food packaging business in the years to come. Due to its great characteristics that contribute to extending the shelf life of food goods, the bioplastic market is gaining traction in the packaging industry. Additionally, strict FDA laws against synthetic or petrochemical food packaging films, which have dangerous effects on human health and the environment, are responsible for the growing product utility in the food packaging industry.

Protein, cellulose, and other bio-based components make up bioplastic films, which make them naturally edible and the material of choice for food packaging. For a variety of foods, protein-based films are used to preserve their physical characteristics, lessen lipid migration, enhance mechanical handling, limit oxygen absorption, and prevent moisture loss from the food. Additionally, these films offer a workable alternative to the waste created when plastic food packaging is thrown away. Since then, the food packaging industry has made widespread use of its functional additives, which increase food quality and lengthen food shelf life by reducing microbial growth.

Market Dynamics: Challenges

High Product Cost and Environmental Impacts

The small market size for bioplastics is probably due to the high product cost in comparison to synthetic and semi-synthetic plastics. Due to their low production volume, packaging films made of bioplastics are typically three times more expensive than those made of polyethylene. The market for bioplastics may be hampered by the product’s relatively poor vapour barrier and mechanical qualities. However, the development of multilayer films and atomic layer deposition as a result of technical improvements is expected to create profitable chances for the bioplastic films market size in the years to come. Benefits of products like drop-in replacements for polyethylene, polyester, polypropylene, and other polymers include high renewable content, simplicity in processing, good optical performance, ability to seal, and barrier qualities. These elements will therefore fuel the expansion of the biopolymer industry.

Basic bioplastics used in packaging films include proteins (soy, gelatin, sunflower, zein) and polysaccharides (cellulose, starch, pectins, and chitosan). However, the product’s inferior mechanical strength and increased water vapour permeability make it less effective than synthetic films in comparison. Additionally, the hydrophilic nature of polysaccharides and proteins causes them to absorb moisture, which limits their potential value in packaging films and likely inhibits market growth throughout the projection period.

Although bioplastics consume less nonrenewable energy and release less greenhouse gases than conventional plastics, they also have detrimental effects on the environment, including eutrophication and acidification. Nitrate and phosphate leak into water bodies during the creation of biomass, which results in eutrophication, the process by which a body of water acquires an excessively richness of nutrients. Additionally, utilising chemical fertiliser during the growing of renewable raw materials to make bioplastics contributes to the high increase in eutrophication and acidity induced by bioplastics.

Market Segmentation

• Based on Resin, the Global Bioplastics market is segmented into
  • PLA
  • Bio polyester
  • Starch-based
  • Bio polyols
  • PE (Sugar)
  • PHA
  • Bio polyamides
  • PBS
  • Bio-PVC
  • Bio-PTT
  • Cellulosic
  • Bio-PP
  • Bio-elastomer
  • Others
• Based on Application, the Global Bioplastics market is segmented into
  • Packaging
  • Auto/transportation
  • Agriculture
  • Fibers/fabrics
  • Furniture
  • Food service ware
  • Medical
  • Electrical/electronic
  • Piping and tubing
  • Building/construction
  • Durable goods (misc.)
  • Sporting goods
  • Consumer products (misc.)
  • Others
• Based on Type, the Global Bioplastics market is segmented into
  • Biodegradable
  • Non- Biodegradable
• Based on Geography, the Global Bioplastics market is segmented into
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar, while the market volumes are given in tons.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Bioplastics Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Bioplastics Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Bioplastics Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Bioplastics Market study?