February 25, 2024
Bioplastics Market

Decarbonization of Plastics is Estimated to Drive Growth in the Global Bioplastics Market

The global Bioplastics Market is estimated to be valued at US$ 1344.26 Mn in 2023 and is expected to exhibit a CAGR of 14.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Bioplastics are plastics derived from renewable biomass sources such as vegetable fats and oils, corn starch, or microbiota. They are biodegradable and compostable, offering a sustainable alternative to conventional petroleum-based plastics. Common bioplastic products include shopping bags, food packaging films, bottles, containers, cutlery, and clothing made from polylactic acid, polyhydroxyalkanoates, starch blends and other biopolymers. Their biodegradability addresses plastic pollution issues and zero-waste objectives of industries and consumers. They provide structural and barrier properties comparable to conventional plastics, thus finding applications in food packaging and disposable items.

Market key trends:
One of the primary drivers for the bioplastics market is the growing need to decarbonize the plastics industry and transition to sustainable materials. With environmental regulations on single-use plastics and initiatives to reduce greenhouse gas emissions, bioplastics sourced from renewable biomass are gaining traction. Manufacturers are investing in R&D to develop new bioplastic grades from agricultural residues and industrial byproducts that can substitute conventional plastics across application areas. Standardization of compostability certification and improvement in waste management infrastructure is also boosting adoption of compostable bioplastics over plastic variants. Progressive retailers and brands have committed to transitioning their packaging portfolio to more sustainable bioplastic polymers by 2025 timelines, indicating robust demand growth prospects over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the bioplastics market is moderate. High initial capital investments and technical expertise requirements pose entry barriers for new players.

Bargaining power of buyers: The bargaining power of buyers in the bioplastics market is high. Buyers can negotiate prices owing to availability of multiple options from established manufacturers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of multiple raw material suppliers and suppliers’ dependence on the niche market.

Threat of new substitutes: The threat of substitutes is high as traditional plastics can replace bioplastics in certain applications. However, stringent regulations favoring sustainable options provide less threat.

Competitive rivalry: The competitive rivalry is high owing to presence of numerous international and regional players competing on innovations.

Key Takeaways

The Global Bioplastics Market Size is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing awareness about negative environmental impact of synthetic plastics and supportive government policies and regulations.

Regionally, Asia Pacific dominates the global bioplastics market and is expected to grow at a fastest pace during the forecast period. This is attributed to rising consumption of bioplastics in packaging applications in developing economies such as China and India. Moreover, government initiatives to promote sustainable alternatives to plastics further propel the regional market.

Key players operating in the 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., and The Dow Chemical Company. These players are focusing on new product launches, expansion of production capacities and collaborations to strengthen their market positions.