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).
Drivers
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
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Market Restraints
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.
Bioplastics Market Report Coverage
Report Coverage | Details | ||
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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 |
Geographies covered: |
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Segments covered: |
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Companies covered: |
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 |
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Growth Drivers: |
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Restraints & Challenges: |
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Market Trends
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
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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.
Recent Developments
Competitive Section
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.
Frequently Asked Questions
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