BIOPOLYMERS MARKET ANALYSIS

Market Size and Trends

The Global Biopolymers Market is estimated to be valued at USD 19.46 Bn in 2024 and is expected to reach USD 40.67 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.1% from 2024 to 2031.

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Biopolymers are gaining widespread acceptance as an eco-friendly alternative to oil-based plastics. The rising concerns over plastic waste and focus on reducing carbon footprint have boosted the demand for naturally sourced and biodegradable polymers across various end-use industries like packaging, textiles, agriculture, and healthcare. The biopolymers market is fueled by the growing environmental awareness among consumers and manufacturers alike shifting their focus towards sustainable raw material sourcing and production.

Rising environmental concerns

Rising environmental concerns across the globe are one of the major factors driving the growth of the global biopolymers market. With increasing focus on reducing dependence on petroleum-based plastics due to their detrimental environmental impact, demand for biodegradable and sustainable alternatives such as biopolymers is growing steadily.  Biopolymers are polymers produced from renewable biomass sources such as corn starch, sugarcane, agricultural waste, and others, via fermentation or aseptic processing. They have superior properties like biodegradability and renewability. Leading industries and consumers are actively scouting for greener substitutes to fossil fuel-derived plastics due to stringent environmental regulations concerning single-use plastics. Biopolymers have emerged as one of the most viable eco-friendly substitutes.  Their ability to decompose completely and cause little harm to the environment has made biopolymers highly desirable among packaging manufacturers and brands. Many food and beverage companies have adopted biopolymers to package their products in a sustainable way. As environmental sustainability gains more prominence globally, more industries are expected to switch to biopolymers from conventional plastics in the coming years. The global population of single-use plastic producers such as straws, cups, lids, bags, and cutlery, is gradually being replaced by bioplastic alternatives.  According to a report by the United Nations Environment Programme, around 300 million tons of plastic waste is generated annually worldwide (UNEP, 2018). Improper handling and disposal of plastic waste have severely damaged the global environment. This has prompted governments across the world like the European Union to implement producer responsibility regulations and bans on single-use plastics to curb plastic pollution. These regulatory initiatives are expected to further fuel the demand for biodegradable biopolymers, driving significant growth in the global biopolymers market.

Market Concentration and Competitive Landscape

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Traditional plastic packaging is coming under scrutiny due to issues like waste generation and recyclability. The packaging industry is under tremendous pressure to develop new solutions that are sustainable and reduce the environmental footprint of packaging. Biopolymers are seen as an innovative material that can help address these challenges. They can be molded into packaging that looks and performs similar to plastic but is plant-based and many types can fully decompose without leaving behind microplastics. This has fueled extensive research into applications of biopolymers like bio-PET, PLA, PBS, etc. in food packaging, consumer product casing, e-commerce packaging, etc. Advantages like compostability help brands promote their packaged products as green. COVID-19 has further boosted the need for bioplastic replacing petro-based plastic in single-use packaging like face shields, gloves, takeaway containers etc. With their ability to leverage renewable resources and sustainability credentials, biopolymers are increasingly becoming the material of choice for developing next-generation packaging solutions.

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Biopolymers are more expensive to produce than traditional plastics derived from petroleum, making it difficult for companies to compete on price. Additionally, biopolymer production still relies on agricultural feedstocks whose supply can be vulnerable to factors like weather. Public awareness of bioplastics also remains relatively low compared to conventional plastics, posing an adoption challenge.

Opportunities: Rising Environmental Concerns

Rising environmental concerns are driving increased demand for sustainable alternatives to petroleum-based plastics. Governments around the world are implementing more initiatives and regulations to incentivize bioplastics usage. Furthermore, technology advancements are helping to reduce production costs and develop novel biopolymer varieties that expand their potential applications.

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Bio-PE contributes the 41.3% share in 2024 of the global biopolymers market in terms of type due to its renewable and sustainable properties. Bio-PE is primarily made from sugarcane or other plant starch which allows it to be produced without dependence on fossil fuels. This renewable feedstock has helped Bio-PE gain significant traction as consumers and businesses alike are increasingly prioritizing sustainable options. The production of Bio-PE also results in much lower greenhouse gas emissions compared to traditional PE. Life cycle analyses have found Bio-PE can reduce carbon emissions by up to 80% relative to conventional PE. This significant environmental benefit is appealing to many packaging manufacturers who are targeting reduced carbon footprints. Bio-PE even offers the potential for carbon negativity if production waste is properly treated. Another factor driving Bio-PE adoption is its comparability to petroleum-based PE in terms of properties and performance. Bio-PE can be processed on existing PE equipment and provides barrier properties, durability, and flexibility similar to PE. This compatibility allows Bio-PE to seamlessly replace a portion of PE resin with a renewable alternative without disrupting value chains or end-use applications. Major brand owners have therefore been able to transition a portion of their packaging to Bio-PE with minimal reformulation efforts.

Insights by Application: Bottles Dominate Applications on Strength & Convenience

When analyzing applications segments, bottles contribute the 32.7% share in 2024 of the global biopolymers market. Bottles have effectively utilized biopolymer resins due to their combination of mechanical strength and convenienceThis durability allows biopolymer bottles to securely hold liquids without leakage or breakage. Their composition also makes them lightweight yet structurally sound. As a result, biopolymer bottles have minimal shipping costs while adequately protecting contents. Additionally, biopolymer bottles are fully recyclable, compostable, or biodegradable depending on the resin type. This convenience gives biopolymer bottles an advantage over non-degradable PET bottles. They can be returned through existing recycling streams or simply thrown in regular waste without polluting the environment long-term. Some advanced biopolymer bottles even begin degrading fully within months of disposal. Bottles also benefit from the popularity and prevalence of packaged beverages. As thirst for juices, sodas, teas and more grows globally, so too does the bottle market. Biopolymer resins have capitalized on these packaging needs through their performance attributes tailored for liquid holding. Producing bottles has thus proven a highly scalable and lucrative application.

Insights By End-use Industry: Packaging Continues Ascent on Sustainability Mandates

When analyzing end-use industry segments, packaging contributes the 36.8% share in 2024 of the global biopolymers market. This leadership stems primarily from the immense regulatory and consumer pressure for sustainable packaging solutions. Numerous governments worldwide have enacted extended producer responsibility laws which ensure producers fund end-of-life management of packaging waste. Compliance often mandates use of recyclable, compostable, or biodegradable materials. These sustainability mandates directly advantage biopolymer resins widely proven to fulfill such objectives. Producers have responded by incorporating biopolymers into a growing portion of their flexible, rigid and multilayer packaging lines. Moreover, major brands are pledging bold commitments to make their packaging sustainably sourced, reusable, recyclable, or compostable by certain deadlines. Transitioning to biopolymers allows credible progress towards these goals. Major organizations developing guidelines around packaging sustainability also recommend the increased use of biopolymers. On the consumer front, awareness of plastic pollution and desire for eco-friendly options continue rising globally. Packaging producers recognize biopolymers address this sentiment while retaining necessary protection and performance for products. Social media further spreads information on biopolymer benefits.

Regional Insights

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North America has maintained its dominance in the global biopolymers market over the past decade and remains the largest regional market with 37.8% share in 2024. The U.S. is home to several fortune 500 companies that are major players in the bioplastics industry. Strong government support through regulatory policies promoting sustainable alternatives to conventional plastics has driven extensive R&D and commercialization of biopolymers in the region. Many biopolymer manufacturers are shifting production capacities to the North American region to better serve the local market. The automotive, packaging and healthcare industries in the U.S. and Canada have also increased the adoption of biopolymers for their strong focus on reducing carbon footprint.

The Asia Pacific region has emerged as the fastest growing market for biopolymers globally in recent years. Countries like China, India, Indonesia, and Thailand have seen explosive growth in their economies and manufacturing capabilities. This industrial expansion has significantly boosted the demand for bioplastics as well. The presence of abundant natural resources and cheap labor availability makes Asia Pacific an attractive production base for biopolymer companies. Many leading European players have established production plants in the major Asian economies. Additionally, the large and growing domestic consumer markets in the region for packaged food, healthcare, and other consumer products drives biopolymer consumption. With sustained double-digit GDP growth projected over the next decade, the Asia Pacific region is well-positioned to dominate the global biopolymers industry in the long term.

Market Report Scope

Key Developments

• In April 2024, Türkiye launches safeguard investigation on ethyl acetate.
• In October 2023, Braskem, a Brazil-based petrochemical company, opened a representative office in Tokyo
• In April 2022, Selena Group launches a new biopolymer production system.
• In June 2022, BASF's Care Creations division launched Verdessence RiceTouch, a new biopolymer derived from non-GMO rice to reduce oiliness in personal care products.
• In August 2022, DSM Engineering Materials launched StanylB-MB (Bio-based Mass Balanced), a more environmentally friendly version of its mainstay polyamide (PA) product that contains up to 100% bio-based material.

*Definition: The Global Biopolymers Market refers to the market for biodegradable plastics and polymers that are derived from renewable biomass sources such as corn starch, cellulose, and sugar cane. This includes products made from polylactic acid (PLA), polyhydroxyalkanoates (PHA), bio-polyesters, bio-polyamides and other biodegradable polyesters which can be used to manufacture plastic bottles, packaging films, bags and other consumer products.

Market Segmentation

•  Type Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Bio-PE
  • Bio-PET
  • PLA
  • PHA
  • Biodegradable Plastics
  • Others
•  Applications Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Films
  • Bottle
  • Fibers
  • Seed Coating
  • Vehicle Components
  • Medical Implants
  • Others
•  End-use Industry Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Packaging
  • Textile
  • Automobile & Transport
  • Electronics & Electricals
  • Coatings & Adhesives
  • Agriculture & Horticulture
  • Others (Building & Construction, etc.)
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • BASF SE
  • TotalEnergies Corbion
  • Novamont S.P.A
  • Biome Bioplastics Limited
  • BIOTEC Biologische Naturverpackungen GmbH & Co. KG.
  • Plantic Technologies Limited
  • Toray Industries, Inc.
  • Arkema
  • Kaneka Corporation
  • Danimer Scientific
  • NatureWorks LLC
  • FKuR 
  • Solanyl Biopolymers Inc.
  • Braskem
  • Prime Biopolymers
  • Nurel
  • Futerro
  • Mitsubishi Chemical Group Corporation
  • PTT MCC Biochem Co., Ltd.