by Cellulose plastics, also known as bio-plastics, are a type of plastics that are derived from renewable biomass sources such as trees, grasses and agricultural waste. They are gaining immense popularity due to their characteristics of being renewable, biodegradable and compostable. Cellulose plastics find widespread use in various packaging applications such as food packaging, non-food packaging and thermoforming applications. They are widely used for producing cups, bottles, cutlery and other consumer goods as replacements for petroleum-based plastics.
The global Cellulose Plastics Market is estimated to be valued at US$ 819.69 Mn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The global cellulose plastics market is expected to be flourished by increasing demand for eco-friendly products from consumers across the globe. There is a rising consumer preference for sustainable packaging products derived from renewable sources rather than crude oil, which has created growth opportunities for cellulose plastics. The increasing stringent regulations regarding the usage of single-use plastics is another major driver boosting the growth of cellulose plastics market. Cellulose plastics help brands and manufacturers comply with plastic bans and regulations pertaining to environment protection. Another factor propelling the market growth is the ability of cellulose plastics to be recycled, reused or composted, unlike conventional plastics that have negative environmental impact.
Segment Analysis
The global cellulose plastics market is dominated by the cellulose acetate and cellulose acetate butyrate segments. Cellulose acetate accounted for nearly 58% share in 2022 owing to its widespread usage in films and coatings markets. It is a versatile material and finds usage in number of applications such as textiles, cigarette filters, tapes and magnetic tapes due to properties such as transparency, biodegradability and processability. Cellulose nitrate segment is expected to witness significant growth during the forecast period on account of increasing demand from automotive industry for interior parts.
PEST Analysis
Political: Cellulose plastics market is positively influenced by stringent government regulations towards reducing single-use plastic usage and promotion of bio-based and biodegradable plastic alternatives. However, volatile crude oil prices impact the prices of raw materials.
Economic: Growth in end use industries such as packaging, automotive and electronics drives the demand for cellulose plastics. However, high raw material costs pose challenges to market growth.
Social: Rising consumer preference for eco-friendly and sustainable products promotes the adoption of cellulose plastics across different industries.
Technological: Advancements in production technologies help improve the performance and properties of cellulose plastics. Continuous innovation to enhance functionality and reduce costs further aids the growth.
Key Takeaways
The global Cellulose Plastics Market Demand is estimated to be valued at US$ 819.69 Mn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific region dominated the market and accounted for over 30% share in 2022 due to strong presence of end use industries in countries such as China, India, Japan and South Korea. China is expected to retain its leading position with increasing production and consumption of cellulose plastics in packaging, automotive and electronics industries.
Key players: Key players operating in the cellulose plastics market are Kraig Biocraft Laboratories, Spiber Inc., AMSilk, and Bolt Threads. Kraig Biocraft Laboratories is a leading player focusing on developing spider silk based materials for different industrial applications. Spiber Inc. specializes in producing biomaterial called Brewed Protein from microorganisms for technical and industrial applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
