The global bioplastics market is poised for notable growth in the long term, driven by the growing adoption of biodegradable bioplastics and increasing uptake from the packaging industry. These findings are highlighted in a comprehensive report that examines the market's growth prospects during the forecast period.

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Key Report Findings

The global bioplastics industry is projected to exhibit significant growth in the long term.

Increasing adoption of biodegradable bioplastics is expected to boost revenue.

The packaging industry plays a vital role in driving the bioplastics market.

Rising demand for flexible packaging applications contributes to market expansion.

Asia Pacific leads with over 50% of total bioplastics production volumes.

Market Analysis in Brief

Bioplastics have found widespread use in the flexible packaging sector, as the packaging industry moves towards a more sustainable future. Bioplastics-based films are extensively employed in the packaging of food and non-food products, beverage bottles, medicines, healthcare and hygiene products, and more. Additionally, their application has been growing in the electronics sector. However, the availability of cheaper alternatives in the market poses a potential challenge to the long-term growth of the bioplastics market. Currently, Europe leads in bioplastics consumption, as revealed by primary industry research

Essential Role of Bioplastics in a Sustainable Economy

With global bioplastics production capacities reaching 2.1 million tons in 2018, these figures represent only about 1% of the total plastic production. The staggering amount of plastic waste generated annually, along with the limited recycling rate, underscores the need for alternative solutions to conventional plastics. Bioplastics, derived from renewable biomass sources, provide a significant advantage in reducing the environmental impact of plastics. This demand for effective sustainable solutions is expected to drive the growth of the global bioplastics market. The industry has witnessed a doubling of production capacity over the last decade.

Continuous Product Development

Continuous improvement in the performance characteristics of bioplastics compared to fossil fuel-based plastics remains a major challenge. Additionally, the industry faces the challenge of over-reliance on feedstock supplies for better economies of scale. The COVID-19 crisis has had a notable impact on the demand and sales dynamics of bioplastics, with declining oil prices potentially threatening the price gap between conventional and bioplastics. However, the rise in single-use plastics during the pandemic emergency is expected to bolster the bioplastics market in the long term. Moreover, the development of disruptive technologies necessitates further scaling up to match manufacturing outputs, posing both cost and complexity challenges.

Strong Demand from Packaging and Automotive Industries

Packaging constitutes a major consumer industry for bioplastics, accounting for about two-thirds of total volume consumption in 2018. The emphasis on biobased products to reduce the carbon footprint in manufacturing and minimize environmental impact during disposal has driven this growth. Bioplastics play a crucial role in transforming the plastics industry from a wasteful linear economy to a circular one. The emergence of new bioplastic polyethylene furanoate (PEF) is expected to further benefit the packaging industry due to its superior barrier and thermal properties.

The automotive industry has witnessed significant variations in bioplastics usage, with increasing adoption not only in interior applications but also in exterior and under-the-hood applications. Bioplastics help reduce CO2 emissions and decrease the overall dependency on volatile energy markets.

Moreover, bioplastics have found a growing trend in the biomedical industry, with applications in tissue engineering, drug delivery, wound management, orthopedic devices, and fibrous scaffolds. Their biodegradable, non-toxic, and versatile properties make them promising materials in the medical industry.

Western Regional Markets Lead the Way

Europe currently dominates the bioplastics market in terms of consumption, as it embraces a circular economy and sustainable strategies. North America and Europe continue to lead in research and innovation in the bioplastics industry. On the other hand, Asia Pacific accounted for over 50% of global bioplastics production in 2018, experiencing significant growth in the flexible packaging sector. Favorable government initiatives and regulatory policies promoting the use of biodegradable plastics create opportunities for bioplastics market players in this region.

Competitive Landscape: Global Bioplastics Market

Technological developments and raw material innovations drive the competitive landscape of the bioplastics market. Companies like Eastman, Novamont, and Total Corbion PLA have introduced cutting-edge bioplastics with superior properties to meet diverse industry demands.

Key Market Players

Prominent players steering the global bioplastics market include Solvay, BASF SE, TEIJIN LIMITED, Toyota Tsusho Corporation, TORAY INDUSTRIES, INC., NatureWorks LLC, SABIC, Avantium, PTT MCC Biochem Co., Ltd., Futerro, Trinseo S.A., Braskem, SUPLA (JIANGSU SUPLA BIOPLASTICS CO., LTD.), and Total Corbion PLAIR.