REPORT HIGHLIGHT

The global bioplastics market was calculated to be USD 8.3 billion by 2019, growing with 16.1% CAGR during the forecast period, 2021-2027.

Bioplastics refer to the plastic material manufactured through renewable sources, including vegetable fat and oil, recycled food waste, and corn starch. Bioplastics are usually made from starch, lactic acid, or other sugar derivates.

Market Dynamics

The global bioplastics market is in the early phases of development and is projected to witness enormous growth during the forecast timeframe. The global Bioplastics market grpwth is mainly driven by the rising population and increasing awareness for health issues related to end industries.   Furthermore, regional government projects such as the law of the European Union to decrease the overall manufacturing and usage of single-use plastic goods by about 80% by 2022 are expected to aid the market growth in this region.

In adjunct, these plastics can raise the source products as well as end the cycle. The European region is projected to behold the faster growth over the forecast period. It is credited to the factors, such as the occurrence of stringent regulations and escalating environmental troubles.

Furthermore, growing demand to decrease the reliance on conventional fossil fuels is boosting the demand for bio-based goods. It is also backed by the new guidelines and regulations executed and implemented by government bodies worldwide. These regulations include prohibiting or implementing different prices on the use of traditional plastics in applications, such as disposables, shopping bags, and packaging materials. These increasing guidelines and bans against plastic bags and other plastic objects aid the growth of bioplastics worldwide.

Product Takeaway

The non-biodegradable plastics segment topped the industry with a share of 50% in 2019 and will maintain its prominent position over the forecast times. This growth is credited to the soaring demand for consumer goods, electronic equipment, automotive housings, and items including bottles carry bags, mugs, and films. Non-biodegradable bioplastics are further classified into poly trimethylene terephthalate, polyethylene, polyethylene terephthalate, and polyamide. These are utilized to create a wide range of goods due to their exceptional chemical and mechanical uses, consistent performance for a prolonged period, and increased thermal stability.

The biodegradable plastic-type is categorized into polyhydroxyalkanoates (PHA), polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), starch blends, and others. Starch blends surfaced as the global frontrunner in terms of the bioplastic industry share. It is reported to its demand in the flexible packaging and agricultural segment. Starch blends are commonly used to reduce the carbon imprint of conventional gums, thus improving growth. The chemical industry is observing a changing trend from artificial toward biobased products to build sustainable ecosystems. The biodegradable segment is expected to grow at a fast pace. These bioplastics are classified as Polylactic Acid, polytrimethylene terephthalate (PBS), Starch Blends, polybutyrate adipate terephthalate (PBAT). Strict regulations relating to single-use plastic prohibition across regions involving Europe, North America, and Asia are expected to drive the growth of this segment.

Application Takeaway

Based on application, the industry is segregated into Packaging, Automotive & Transportation, Textile, Consumer goods, Agriculture, Building & Construction, Others. Packaging is one of the end-use businesses that dictate the bioplastics & biopolymers market. Bioplastics, particularly biodegradable ones, have a growing demand to substitute conventional plastics to tackle environmental troubles. Bioplastics are expanding in applications such as food service-ware, bottles, films, carrier bags, clamshell cartons, collection bags, and mulch films.

For applications in food packaging, recyclable plastic provides a promising area and is being applied in a range of functions. Surge in preferences for boxed food in retort to demographic, and lifestyle modifications directly affect the need for recyclable plastic in packaging products.

Regional Takeaway

Based on region, the global Bioplastics market is classified into North America, Europe, Asia Pacific (APAC), Latin America (LATAM), and Middle East & Africa (MEA). In 2019, Europe accounted for the most crucial share and had over 35% of the market share in the same year. The occurrence of significant market players in this region combined with the stringent regulations supporting recyclable plastics is the key factor for regional dominance.  Similarly, Europe leads in the number of the new product launched for recyclable materials compared to underdeveloped and developing countries leading to increased adoption aiding in industry growth.

The Asia Pacific is apt to register a stable growth rate due to the accessibility of skilled labor at a minimal cost. Moreover, effortless land availability for production industries will surge the regional market further. The alter in the production landscape of eco-friendly plastics toward emerging countries, particularly China and India, is anticipated to impact regional industry growth positively. In add-on, a requirement in the packaging industry is expected to increase due to the increasing demand for various healthcare applications to tackle the COVID-19 pandemic circumstances.

North America is also projected to observe significant development over the forecast period. The industry is propelled by the growing need from the packaging business in countries, such as the U.S., Mexico, and Canada. Soaring environmental troubles and a global effort to reduce pollution boost the demand for degradable plastics in the packaging domain across the region. In addition, growing COVID-19 positive cases in the U.S. are anticipated to result in an expanded need for generic drugs and therapeutic devices, which will increase the requirement for bioplastics in the medical packaging domain, thereby constructively influencing the growth.

In June 2019, the Canadian government took measures to reduce the country's plastic trash, support improvement, and encourage the use of inexpensive and safe choices by prohibiting harmful single-use applications such as plates, plastic bags, straws, stir sticks, etc. cutlery as soon as 2021. All types of government schemes like these are aiding the bio-plastic industry growth in the region positively.

COVID-19 Impact

The rapid propagation of the coronavirus pandemic has decreased the use of new plastic handbags, including recyclable bags. People are primarily using their old cloth and plastic bags to avoid further infections.

Previous to the COVID-19 breakdown, a considerable number of corporations such as Nestlé, Danone, and Coca-Cola vowed to adopt bioplastic under tension from campaigners and consumers. However, after the COVID-19 epidemic, governments across different nations made several adjustments in their regulations regarding not reusable and single-use plastics to avoid further spread of the virus. For instance, the State of Maine delayed its ban on plastic bags until January 2021; thus, adversely impacting the industry growth.

In addition, supply chain interruptions due to unusual transport boost the lead time of raw ingredients, such as corn starch; thus, postponing the entire production procedure. For instance, based on data published by business standards, corn starch spending has been reduced by 50% from 400 thousand tons to 200 thousand tons.

Key Vendor Takeaway

Some of the major players operating in the business include Teijin Ltd., Toray Industries, Galactic, Toyota Tsusho, M& G Chemicals, Showa Denko K.K., NatureWorks LLC,    SABIC, Futerro SA,  E. I. du Pont de Nemours and Company,  Braskem, PTT Global Chemical Public Company Ltd Corbion N.V., BASF SE, Solvay SA  among others.

The industry is highly fragmented in nature due to the occurrence of many main numbers of companies present at the global and national levels. NatureWorks is among the prominent makers globally. The company is one of the three largest Bioplastics & biopolymers fabricators. Geographical expansion, new product development, and the joint venture were the crucial strategies implemented by the company to infiltrate the global bioplastics & biopolymers industry.

The market size and forecast for each segment and sub-segments has been considered as below:

• Historical Year – 2016 to 2018
• Base Year – 2019
• Estimated Year – 2020
• Projected Year – 2021 to 2027

TARGET AUDIENCE

• Manufacturers
• Raw Material Suppliers
• Distributors
• Vendors
• Research Organizations
• Consulting Firms
• Government and Regional Agencies

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL BIOPLASTICS MARKET KEY PLAYERS

• Mahindra Group
• Teijin Ltd.
• Toray Industries
• Toyota Tsusho
• M& G Chemicals
• PTT Global Chemical Public Company Ltd.
• Showa Denko K.K.
• NatureWorks LLC
• SABIC
• BASF SE
• Futerro SA
• I. du Pont de Nemours and Company
• Braskem
• Corbion N.V.
• Galactic
• Solvay SA

GLOBAL BIOPLASTICS MARKET, BY PRODUCT

• Biodegradable
• Non-biodegradable

GLOBAL BIOPLASTICS MARKET, BY AUTOMATION

• Packaging
• Agriculture
• Consumer goods
• Textile
• Automotive & Transportation
• Building & Construction
• Others

GLOBAL BIOPLASTICS MARKET, BY REGION

• North America
  • The U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • United Kingdom
  • Rest of Europe
• Asia Pacific
  • India
  • China
  • South Korea
  • Japan
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • United Arab Emirates
  • Rest of MEA