BIOPOLYMERS MARKET ANALYSIS

Biopolymers are polymeric materials produced from feedstock such as crops including corn and sugar cane or standing timber and residual wood. Biopolymers are biodegradable in nature, unlike conventional polymers or plastics that lead to various environmental issues such as pollution and global warming. Increasing awareness regarding the use of bio-based polymers is expected to boost the growth of the global biopolymers market over the forecast period.

The biopolymers market is expected to surpass US$ 33,264.7 million by the end of 2028 in terms of revenue and exhibit a CAGR of 13.8% during the forecast period (2021 to 2028).

Drivers

Biopolymers are now widely recognized in the pharmaceutical industry for their ability to heal wounds of any size, shape, or depth. Some common biopolymers, such as chitosan, alginate, gelatin, and pectin, are utilised to make hydrogels, which provide a moist environment for dry wounds. These biopolymers are also used for wound dressings. These factors are acting as esteemed growth drivers for the biopolymers market.

For instance, in 2005, according to analysis done by Colin Campbell, co-founder of the London-based Oil Depletion Analysis Centre, around 944 billion barrels of oil had been extracted in human history. And, only 764 billion barrels of oil reserves are yet to be extracted from. These statistics are alarming as humans are not far away from when they should totally rely upon a world without oil.

Among regions, Europe accounted for a significant market share of 42.6% in the global biopolymers market in 2020, owing to increasing government initiatives to restrict the use of conventional plastic. For instance, under the Plastic Bags Directive in European Union (EU), consumers cannot use over 90 bags (conventional plastic bags) per year by 2019, which is lower than the EU average of 200 bags a year. Moreover, in France, the Energy Transition for Green Growth Act, which was effective from January 2017, banned the use of conventional plastic bags for fruits and vegetable packaging. Therefore, restrictions imposed on the use of conventional plastic bags are expected to propel the growth of the biopolymers market in Europe.

Figure 1. Global Biopolymers Market Revenue Share (%), By Region, 2020

Market Restraints

High production cost that leads to even higher cost of biopolymers is expected to restrain the market growth. Biopolymers are 2.5 to 7.5 times more expensive than major conventional petroleum-based plastics. For instance, bio-based ethylene is more costly than petroleum-based ethylene. Therefore, the high cost of biopolymers is expected to limit the growth of the biopolymers market over the forecast period.

Market Trends

Since the biopolymers market is at a nascent stage, it is experiencing immense innovation. Thermoplastic starch is a type of biopolymer that is procured from carbohydrates including tapioca, potatoes, maize, rice, and others. This starch is mixed with polymers such as polylactic acid (PLA) and polyethylene to develop 100% biodegradable products. The name of this biodegradable product is ‘eco-alloy’ as this is an amalgamation of two products that benefit the environment.

Figure 2. Global Biopolymers Market Revenue Share (%), By Product Type, 2020

Among product types, the bio-based polyethylene terephthalate (PET) segment accounted for the largest market share of 56.9% in 2020. This is owing to the properties of bio-based PET such as recyclability and biodegradability. The composition of this biopolymer is derived from 30% of plant-based ethylene glycol and 70% of terephthalic acid (TPA, derived from fossil). Bio-based PET is used in the production of bottles, bags, cosmetic containers, carpets, sanitary products, foils, and others.

Global Biopolymers Market - Impact of Coronavirus (COVID-19) Pandemic

Biopolymers are used in various industries such as packaging, consumer goods, automotive & transportation, textiles, and agriculture & horticulture. However, due to the ongoing pandemic, these industries had been affected throughout the world. Manpower shortage, logistical restrictions, material unavailability, and other restrictions had slowed the growth of the industries during the pandemic.

Competitive Section

Major players operating in the global biopolymers market include BASF SE, NatureWorks LLC, Braskem S.A., Novamont S.p.A., Du Pont, Plantic Technologies Ltd., Archer Daniels Midland Company, Danimer Scientific, Bio-on S.p.A., and Rodenburg Biopolymers B.V.