Bioplastics are derived from renewable sources such as sugarcane, corn, cellulose, and other grains. They are environmental friendly and are gaining huge demand from various industries. Bioplastic is widely used across food packaging, disposables, containers, pouches, shopping bags, etc. application.
Global bioplastics market was valued at US$ 1,020.00 Million in 2021 in terms of revenue, exhibiting a CAGR of 14.8 % during the forecast period (2022 to 2030).
Increasing initiatives for reducing global warming by the government is projected to foster the market growth of the bioplastic. Growing need for reducing reliance on fossil fuels coupled with the easy availability of bio-based raw materials is also expected to propel the market growth of the bioplastic. Moreover, shifting preferences towards non-petroleum-based plastics is again creating demand for plastic over the forecast period.
Growing demand for green products, healthier lifestyle and environmental sustainability is projected to propel the market growth of the bioplastic. Increasing demand for organic-based material for packaging of food products is also driving demand for bioplastic. Moreover, consumers are willing to pay extra for eco-friendly packaging products in order to reduce the environmental impact. Thus, growing demand for the green product is expected to foster the market growth of bioplastic.
The bioplastics market is facing a likelihood of a deep hindrance caused by the effect of lockdowns across the globe to slow the spread of Covid-19 pandemic. The demand for bioplastics has declined among various end-use industries such as construction, paints & coatings, automotive industries, construction, and electronics. The utilization of crude oil for fuel has marked its lowest since World War 2 and has lowered the prices of conventional plastics, which the primary reason for the decrease in growth of the global bioplastics market. This is expected to hamper the growth of bioplastics market in next few years till end of the 2021.
Figure 1. Global Bioplastics Market Value Share (%), By Region, 2021
The premium price of bioplastic due to high production cost is affecting the demand for bioplastic. Also, the limited performance of bioplastic is also expected to hinder the market growth over the forecast period.
Even though bioiplatics has many advantages, most of the bioplastic grades require highly specific industrial composting processes to disintegrate and only a harmful of economies have the required infrastructure for production of these products. As a result, they may either enter landfills or contaminate the recycling feedback, thus harming the environment. Hence, a separate mechanism is required to discard such plastic and results in higher product costing.
|Base Year:||2021||Market Size in 2021:||US$ 1,020.00 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||14.8%||Forecast Period:||2022-2030|
BASF SE, Braskem S.A., Koninklijke DSM N.V., Arkema S.A., Innovia Films. Ltd., Metabolix, Inc., NatureWorks, LLC, Novamont S.p.A., and The Dow Chemical Company
|Restraints & Challenges:||
Nowadays, bioplastic such as polyamide and polylactic acid is majorly used in the production of textile products such as clothes and shoes. Moreover, bioplastics are also used in the production of wall mountings, containers, and sculptures which is again expected to augment the market growth of bioplastic.
Partnership and agreements among manufacturers for expanding business presence on a global level is a key trend in the market. For instance, in May 2020, Neste and Covestro entered into strategic cooperation in Europe to promote the use of sustainable raw materials in plastics production. In this partnership, Covestro will be supplied with material from renewable sources for the production of polycarbonates from Neste’s renewable hydrocarbons.
Figure 2. . Global Bioplastics Market Value Share (%), By Application, 2021
On the basis of application, bottles accounted the global bioplastics market in 2021 with around 44% of market share in terms of revenue, followed by packaging and automotive, respectively.
Major players are operating in the global bioplastics market are BASF SE, Braskem S.A., Koninklijke DSM N.V., Arkema S.A., Innovia Films. Ltd., Metabolix, Inc., NatureWorks, LLC, Novamont S.p.A., and The Dow Chemical Company.
Bioplastics are derived from crops like corn, cellulose and sugarcane. High availability of favorable government initiatives and renewable feedstock has enabled manufacturers to adopt bio-based plastics. Surge in adoption of recyclable products and improvement in scope of bioplastics all over the world has driven the growth of the global bioplastics market.
The global bioplastics market has witnessed significant growth in recent past years, owing to the rising wide spread awareness among consumers regarding environmental safety and benefits of bioplastics are the key factors propelling growth of bioplastics market. Moreover, initiatives of regulatory bodies recommending adoptions of eco-friendly alternatives by the manufacturers, will further boost growth of the bioplastics market during the forecast period. This is expected to propel the growth of the bioplastics market all over the globe.
Major players in the global bioplastics market are increasing their investment on innovative product launchings, research & development and marketing & promotional activities from bioplastics to capitalize on emerging trends in various end-use industries such as food & beverages, packaging, automotive, consumer goods, agriculture and others. This is expected to fuel the market during the forecast period.
Increasing investment in the bioplastic for boosting production is expected to provide lucrative opportunities to the market. For instance, in January 2020, Stora Enso announced that it is investing US$ 10 million to build an experimental plant for enabling the production of bio-based plastics as a barrier in transparent packaging. The new plant will transform plant-based sugars into the renewable building block that is essential to make PEF, a biobased plastic, mainly targeting the food and beverage market. Increasing ban on single-use plastic especially across Europe and North America is projected to drive the bioplastics market in the near future.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective.
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