Global Bioplastics Market

Bioplastics are produced from renewable sources, such as corn starch, vegetable fats and oils, woodchips, straw, recycled food waste, sawdust, and other sources. The bioplastics market is segmented by types, which include biodegradable plastics and non-biodegradable plastics. Biodegradable plastic is further categorized into PLA, PHA, PCL, PBS, starch-based plastics and others. Non-biodegradable type is categorized as Bio-PE, Bio-PET, Bio-PP, Bio-PA, Bio-PTT and others. The biodegradable segment dominates the market due to its high demand in packaging, textiles, agriculture, and agriculture industries.

Non-biodegradable bioplastics are commonly used in disposables, bottles, shopping bags, food packaging, carry bags, automotive interiors, films, consumer goods, and electronics. The growing demand for sustainable products and packaging and the rising awareness from consumers to reduce dependency on petroleum-based products are anticipated to drive the growth of the segment over the forecast period.

Based on applications, the market is segmented into Packaging, Consumer Goods, Automotive, Building & Construction, Textile, Agricultural, Electrical & Electronics, Medical Devices, and Others. The packaging segment dominates the market. They are used in packaging films for food items, medicines, beverage bottles, and packaging films.

Europe is the largest market for bioplastics, accounting for more than 40% of global bioplastics production. This is driven by supportive government policies, such as the EU's 2019 Single-Use Plastics Directive, which aims to reduce the impact of plastic waste on the environment. Europe is also home to several leading bioplastics manufacturers, such as BASF and Novamont.

The production capacity of bioplastics in 2021 was around 1850 thousand tonnes which is expected to grow at a CAGR of 16% to reach around 11,000 thousand tonnes by 2032.

Top Bioplastics Manufacturers:

• Braskem
• Novamont
• Celanese Corporation
• DuPont
• Solvay SA
• Lanxess
• Evonik
• Total Corbion
• BASF

Japan’s Mitsui & Co. plans on building a 400 thousand tonnes bio-PET plant in the US which will be one of the largest production sites for bio-based packaging and is expected to start operations by 2025.

NatureWorks is set to launch a new bioplastics plant at Nakhon Sawan Biocomplex in Thailand with an annual production capacity of 75 thousand tonnes, the factory will produce the company's Ingeo product line. 

In 2022, CJ Biomaterials, Inc., and NatureWorks signed a Master Collaboration Agreement (MCA) for the development of sustainable materials solutions based on CJ Biomaterials’ Biodegradable Polymers and NatureWorks’ Ingeo biopolymers which are widely used for compostable food packaging, personal care products, films, and other end-use products.

Rising demand from the Automotive industry to fuel the Bioplastics market growth

The rising demand for bioplastics from the automotive industry is driven by the need to reduce environmental impact, improve fuel efficiency, and meet regulatory requirements.  

They are generally lighter than traditional plastics, which can help to reduce the weight of vehicles. A lighter vehicle requires less energy to operate, resulting in improved fuel efficiency and reduced emissions. Bioplastics are biodegradable, which means they can break down naturally in the environment.

Bioplastics can be produced in a wide range of colors and finishes, which makes them a more aesthetically pleasing option for automotive interiors and exteriors.

They can also be used to create under-the-hood components of a vehicle, such as air intake manifolds, oil filters, and engine covers. Bioplastics are heat-resistant and can withstand high temperatures, which makes them suitable for use in engine components.

Governments around the world are implementing regulations to reduce the environmental impact of the automotive industry. For e.g., the European Union's End-of-Life Vehicle Directive requires automakers to ensure that 85% of the weight of their vehicles is reusable or recyclable.

High Costs

Bioplastics are made from renewable biological sources, such as corn, sugarcane, or vegetable oils. These raw materials are more expensive than the fossil fuels used to make traditional plastics. The cost of these raw materials can be influenced by factors such as weather conditions, supply chain issues, and competition with food production. Bioplastics are currently more expensive to produce than traditional plastics. The production process requires specific technologies and equipment, which can increase production costs.