The biodegradable plastic additives market is expected to grow from USD 1.49 billion in 2024 to USD 2.20 billion by 2029, registering a CAGR of 8.1%, driven by the rising demand in packaging and consumer goods, increasing government support, and growing environmental awareness among consumers.
These additives—including bio-based plasticizers, stabilizers, and flame retardants—enhance mechanical, thermal, and processing characteristics of biodegradable plastics, making them viable for a range of industries such as electronics, textiles, healthcare, and most dominantly, consumer goods.
The shift toward a circular economy, supported by regulations like plastic bans and single-use plastic directives, is accelerating adoption. The consumer goods sector held the largest market share due to a growing preference for eco-friendly and sustainable materials.
Europe leads the global market, spurred by progressive regulations like the EU Single-Use Plastics Directive and European Green Deal, along with high consumer expectations for green alternatives.
Key Players Include:
- Cargill Inc. (US)
- DIC Corporation (Japan)
- ADEKA Corporation (Japan)
- Croda International Plc (UK)
- Stora Enso (Finland)
- UPM-Kymmene OYJ (Finland)