PBAT Market Size
The global PBAT market size is projected to reach USD 2.5 billion by 2032, at a CAGR of 8% from USD 1.2 billion in 2022 This growth is attributed to the rising PBAT demand from the packaging, consumer goods, agriculture industries.
Polybutylene Adipate Terephthalate (PBAT) is a biodegradable and compostable synthetic polymer belonging to the family of aliphatic-aromatic copolyesters. It is commonly used in the production of biodegradable plastics and is known for its environmental friendliness compared to traditional, non-biodegradable plastics. PBAT is a biodegradable alternative to low-density polyethylene (LDPE) having similar properties such as resilience and flexibility, making it a suitable material in plastic bags and wraps.
Regional PBAT Demand
Asia Pacific on the back of China is the largest market for PBAT owing to the strong presence of various end-use industries such as packaging, consumer goods and agriculture. In a 2021-2025 "five-year plan," China announced it would improve its plastic recycling and incineration capacities, promote "green" plastic products, and reduce the usage of petroleum derived plastic in packaging and agriculture which will further drive the PBAT demand during the forecast period.
Agriculture is one of the main industries in the region with countries like China, Japan and India as the key players. More than 70% of the population relies on agriculture as their primary source of income. All these factors will open new opportunities in the PBAT market.
Global PBAT Demand Analysis, By Region - 2016 -2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
PBAT Demand By Application
This market study describes the PABT market, with focus on major countries and their subsequent demand for different applications. Applications of PBAT include Packaging, Consumer Goods, Agriculture and Others. Packaging segment accounts for the largest demand with a market share of more than 40%. The major packaging application for PBAT is in plastic bag production, in particular shopping bags and garbage bags, followed by food packaging, and mulch/agricultural film.
PBAT is also used in the production of agricultural films for mulching and greenhouse applications which are used in controlling weed growth, conserving soil moisture, and maintaining optimal conditions for plant growth. The biodegradability of PBAT is beneficial in reducing environmental impact in agricultural practices. PBAT is utilized in the production of various consumer goods, such as disposable diapers, hygiene products, and other items where biodegradability is desired.
PBAT demand growth has been strong owing to the rising awareness to reduce environmental issues, including plastic waste, emissions of greenhouse gases, and global warming.
Global PBAT Demand Analysis, By Application - 2016 -2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Key Players in PBAT Market
BASF, Novamont, Amco Polymers, SKC Global, Xinjiang Lanshan Tunhe, Kingfa, Chang Chun Group and GYC Group are the some of the key manufacturers in global PBAT market.
The total production capacity of PBAT in 2022 was recorded to be 484 kilo tons. Xinjiang Lanshan Tunhe is one of the largest leading PBAT manufacturer in China with a production capacity of 128 kilo tons closely followed by Kingfa with 120 kilo tons capacity.
Kolon Industries and SK Global Chemical are cooperating to launch eco-friendly biodegradable plastic product PBAT in the third quarter of 2021.
According to SKC Global, the company is planning to build the world’s largest biodegradable plant in Vietnam, which is scheduled to commence operations in 2025, will primarily produce PBAT, with annual production capacity of 70 kilo tons.
Rising demand from the Packaging industry will further drive the PBAT Market
The use of PBAT in packaging is driven by the increasing demand for environmentally friendly alternatives to traditional plastics. PBAT is known for its biodegradability, compostability, and relatively low environmental impact compared to conventional plastics.
PBAT is safe and non-toxic for use in various packaging applications which will drive the PBAT market in the forecast years. PBAT does not release harmful chemicals into the environment, making it a safer option for the human health and environment as it is designed to break down into natural substances when exposed to the right conditions, such as in a composting environment.
PBAT is widely in food packaging as it is moisture resistant and flexible making it an ideal option for cereal boxes, fruits and vegetable bags, snack packaging, etc. It also provides a good barrier against liquid and gases which helps in extending the shelf life of food products.
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