Bioplastics are plastics products derived from renewable biomass sources such as oil, vegetables, corn starches, sawdust, grains, recycled food waste, etc. Bioplastics can be produced from used plastic and agricultural by-product. Some of the bioplastics are polyhydroxyalkanoate (PHA), polybutyrate adipate terephthalate (PBAT), polylactic acid (PLA), polybutylene succinate (PBS), and starch blends.
The global bioplastics market was estimated to be valued more than US$ 35 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 25.8% during the forecast period (2020 to 2027).
Due to growing environmental concerns the government has enforced rules against the use of conventional plastic. This is a prime driver fueling the market growth of the bioplastic. Conventional plastic pose various environmental as well as health threat such as carbon dioxide emission, water pollution, and the accumulation of toxic waste on land. For this government of different countries have issues regulation to restrict the use of conventional plastic. This is encouraging manufacturers to launch bioplastic, thereby augmenting the market growth.
The advent of nanotechnology-based bioplastic is expected to bring profitable opportunities for the market in the near future. Nano-technology ensure product safety, monitor food spoilage, and improved performance of the bioplastic. The use of nanotechnology enhances physical properties such as strength, barrier properties, and durability. Nanotechnology-based bioplastic is gaining tremendous demand from the food &beverage industry for the packaging of food products.
High production cost associated with the bioplastic as they are not easily recyclable is expected to hinder the market growth. For instance, bioplastics derived from polylactide (PLA) cannot be recycled easily. So for this advanced recycling tools are required which increases the overall production cost.
On the basis of material type, bio-PET dominated the global bioplastics market in 2019 with around 66% of market share in terms of revenue, followed by others and PLA & PLA blends.
Growing adoption of bioplastics to produce bags for agricultural foils, compost, nursery products, horticultural products, and textiles is one of the key trends driving the market growth. Also, they are rapidly replacing conventional plastic in disposable cups, plates, and food containers. Furthermore, they are used in the manufacturing of electronic device covers, circuit boards, and semiconductor casings, thereby fueling market growth.
The increasing trend of using smart and wearable devices is driving demand for electronic products and bioplastic are widely used in the production of electronic devices. Bioplastics are used in the manufacturing of headphones, mobile phone casings, touch screens for computers, laptops, loudspeakers, keyboards, games consoles, etc. with the help of injection molding technology. Thus, the growing demand for electronic products coupled with environmental concerns is expected to propel the market growth.
Global Bioplastics Market - Impact of Coronavirus (Covid-19) Pandemic
The global spread of (Covid-19) Pandemic has resulted in lockdown measures, and cease in economic activities which has severely impacted the plastics industry. This factor is expected to hinder the growth of the global bioplastics market till the period of 2021.
Key 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., The Dow Chemical Company, and Total Corbion PLA
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