The biodegradable film is made up of natural and synthetic polymers and is designed to reduce environmental impact by minimizing the non-biodegradable waste in landfills. Biodegradable films are produced from raw materials such as starches (corn, potato, cassava), bacteria, and cellulose such as wood pulp, cotton etc. Raw materials are processed into thin and flexible films through extrusion, casting or blowing and some additives such as plasticizers, antioxidants, and antimicrobial agents are added to enhance the properties. Biodegradable films are used in a variety of applications including industrial films, agricultural films, retail packaging, etc.
The market for biodegradable films is segmented based on type and application. Based on type, the market is fragmented into polylactic acid (PLA), Polyhydroxyalkanoates (PHA), Biodegradable polyester, Starch blends and others. The application segment of biodegradable film includes Packaging, Personal care, Industrial, Agriculture, and Others. The key players in the biodegradable film market are BASF, Cortec Corporation, Plascon Group, Futamura Group and Walki Group.
The market of biodegradable films was xx Kiloton in 2023 and it is poised to grow at a CAGR of xx% to reach xx Kiloton in 2032. The market is driven by rising environmental concern, government regulation and high demand of sustainable packaging in end-use industry such as food packaging, agricultural packaging etc. Biodegradable film made up of polylactic acid was estimated to have a significant demand in 2023. Bioplastic PLA film is produced from plant-based material such as corn, cassava, and sugarcane. The market of PLA film is growing owing to its recyclability, low carbon footprint during manufacturing and composability. The Australian and European standards have certified PLA as industrially composable under commercial composting conditions and it can break down within twelve weeks.
Packaging was estimated to have a major demand of biodegradable films in 2023 owing to high demand in food packaging application. PLA film is used in food packaging applications to produce cups, lids, salad boxes, coffee cup coatings cartons and other food containers. The food packaging industry boosted by increasing demand of longer shelf life of food products, growing demand of convenience food and consumer awareness will drive the demand of Biodegradable films.
Asia-Pacific was estimated to have a strong share in the biodegradable films market in 2023. The market is driven by government initiatives to boost the consumption of biofilms in the region. For example, the Industry and Finance Ministry of Thailand has recently introduced income tax reduction program to boost the consumption of biodegradable plastics in the country. As per the program, companies which will buy biodegradable plastic products will receive 25% reduction in income tax during the period 2023-2024. The government of Thailand has made a target to make the country a bio-hub in ASEAN by 2027.
In India, the Union Minister for Science and Technology, Dr. Jitendra Singh has declared a loan of Rs 1.15 Crore to support TGP Bioplastics company located in Maharashtra in 2023. This will boost the production and commercialization of compostable plastics in the country. Additionally, Indian government has banned the consumption of single-use plastic items including plastic ear buds, candy sticks, plastic plates, cups, glasses, PVC banners of size less than 100 microns from July 1st, 2023. The government already banned imports, distribution, sale, consumption, and manufacturing of plastic bags with thickness less than 75 microns in September 2021. Plastic bags with thickness less than 120 microns were banned from 31st December 2023. The government of South Korea is also pushing the elimination of non-recyclable plastic waste. The Ministry of Environment of South Korea announced in 2019, to offer tax incentives to the plastic product manufacturers for recycling of plastic waste.
The market for biodegradable films is still in a developing phase. Low recycling rate and high cost of production are some of the factors which are hindering the growth of the market. Currently, around 2% of the global plastic packaging is reused as packaging. Additionally, around 32% of 78 million tons of plastic packaging produced goes into oceans.
Cortec Corporation developed compostable, industrial-strength, machine grade stretch film, Eco Wrap in 2021. Eco-wrap was produced from certified compostable resin and tackifier additive for application in automated stretch-wrap equipments.
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