The report “Biodegradable Plastics Market by Type (PLA, Starch Blends, PHA, Biodegradable Polyesters), End Use Industry (Packaging, Consumer Goods, Textile, Agriculture & Horticulture), and Region (APAC, Europe, North America & RoW) – Global Forecast to 2026”, The global biodegradable plastics market size is projected to grow from USD 7.7 billion in 2021 to USD 23.3 billion by 2026, at a CAGR of 24.9% between 2021 and 2026. Biodegradable plastics are defined as plastics that undergo biodegradation (a process in which the degradation results from the action of naturally occurring micro-organisms such as bacteria, fungi, and algae). They decompose naturally within three-to-six months under the industrial composting system. Biodegradable plastics possess a high potential for growth due to their positive effect on the environment, like lower carbon footprint, reduced waste, improved compostability, and decreased energy costs.
Some of the prominent key players are:
· BASF (Germany)
· NatureWorks (US)
· Total Corbion (Netherlands)
· Novamont (Italy)
· Biome Bioplastics (UK)
· Mitsubishi Chemical Holding Corporation (Japan)
· Toray Industries (Japan)
· Plantic Technologies (Australia)
· Danimer Scientific (US),
· Fkur Kunstsoff (Germany)
Driver: Increasing use in packaging and compostable bag applications
Packaging is one of the fastest-growing industries globally. According to a National Geographic study, approximately 40.0% of plastic produced is packaging used just once and then discarded. Moreover, approximately 500 million plastic bags are used worldwide annually. However, the increasing use of plastics poses a severe threat to the environment. With the advent of digital media, consumers and manufacturers have shifted their preference toward recyclable and eco-friendly materials. The Packaging and Packaging Waste Directive has been established in Europe, which has two main objectives: to help prevent trade barriers and reduce the impact of packaging waste on the environment. Similarly, the US FDA imposes stringent regulations related to recycling plastic materials used for food contact. All these regulations are expected to offer growth opportunities for biodegradable plastics.
The packaging segment is projected to account for the largest share of the biodegradable plastics market, by end-use industry, during the forecast period.
Packaging is one of the end-use industries that dominates the biodegradable plastics market. Biodegradable plastics have increasing demand to replace conventional plastics to address environmental concerns. Packaging applications of biodegradable plastics include food packaging, healthcare packaging, cosmetic & personal care packaging, shopping bags, and others. Thermoset plastics (soy polyurethanes and unsaturated polyester resins) and thermoplastics (PLA, starch blends, PBS, PHA, and cellulose) are the two types of biodegradable plastics mainly used in the packaging industry. The use of biodegradable plastics is increasing in applications such as bottles, films, clamshell cartons, waste collection bags, carrier bags, mulch films, and food service ware.
North America is estimated to be the fastest-growing market for biodegradable plastics between 2021 and 2026.
North America is estimated to be the fastest-growing market for biodegradable plastics between 2021 and 2026. The US is the largest market for biodegradable plastics in North America. The political and economic conditions have driven the market penetration of biodegradable plastics. The strict government norms and economic conditions have also driven the biodegradable plastics market. These factors have been responsible for the development of biodegradable plastics with collaborative research in the region.
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