Polyhydroxyalkanoates (pha) Demand, Production Capacity, Volume and Price Range and Industry Outlook Report Till 2032

Introduction to Polyhydroxyalkanoates: - 

Polyhydroxyalkanoates (PHAs) are biodegradable natural polyesters produced by various bacteria in the form of intracellular granules for energy/carbon storage under insufficient nutrient conditions. PHAs can be differentiated into more than 150 types depending on their basic building blocks and side chains. The side chain is mostly a saturated alkyl monomer. Most PHAs are chiral compounds as the synthesis is stereospecific. Naturally, only R-configured PHAs are found. Depending on the length of the carbons in the chain, PHAs can be classified into short-chain, Medium Chain, and Long Chain PHAs.

The major differentiating factor for PHA from other bioplastics is its biodegradability. PHA is among the very few polymers that can biodegrade even under the ocean. High biodegradability of the PHA is one of the key drivers for the market. PHA is fed to living organisms in all environments (including the ocean) and hence it biodegrades under every environmental condition. However, the rate of biodegradation varies accordingly, depending on various external conditions like humidity, temperature, oxygen, etc. The biodegradability of PHA is an advantage where the separation of plastics is not feasible or possible. 

Polyhydroxyalkanoates Demand Analysis

Global PHA demand was estimated to be over 55 Kilotons in 2023. The PHA market has witnessed strong growth during the past five years. The global PHA market has grown at an annual average rate of 13% between 2016-2021 to the current levels primarily driven by increased PHA demand from packaging applications. In the coming years, the PHA market is projected to cross 280 Kilotons, implying a CAGR of 18% from 2023 to 2032. The high growth rate can be attributed to increasing PHA consumption in North America and Western European countries. PHA has started gaining traction in recent years mainly due to its biodegradability.

PHAs are biodegradable under most of the surrounding conditions and even under the ocean. The PHA is being marketed as the green & sustainable solution to conventional plastics such as PP, LDPE, and HDPE. PHA is produced from variety of feedstocks including waste food, agricultural crops, oils, and cassava starch. However, the Carbon neutrality of these feedstocks is still undetermined. At present, only PHA produced from tertiary feedstock such as food waste can be said carbon negative. Majority of PHA producers are using primary feedstock such as Canola oil, sugar roots, and corn starch. Carbon neutrality/negativity of the overall PHA cycle is a key question on the sustainability claims of various PHA manufacturers.

Global PHA Demand By Region - 2023 (Kilotons)

Global PHA Demand By Region - 2021 (Kilo Tons)

Polyhydroxyalkanoates Market, by Region

North America was the largest market for PHA in 2023 accounting for over 40% of global PHA market. The region will remain the largest market throughout the forecast period. Western Europe accounted for around 30% of market share in 2023. PHA demand in Asia Pacific is estimated to grow at a CAGR of 26% on the back of strong demand from end use industries in China, India and Japan. Currently, the region is the third largest market for PHA after North America and Western Europe, however owing to fast growing PHA demand from China, Japan, and India the region is estimated to overtake Western Europe as second largest market during the forecast period. Middle East & Africa, Central & South America, and Central & Eastern Europe combined accounted for remaining share of the global PHA demand.

In 2023, Germany was the largest PHA market in the Western Europe accounting for more than 20% of the total regional PHA demand . The PHA demand in Germany is projected to grow at a CAGR of 22% during forecast period. Italy was the second largest PHA market after Germany accounting for more than 18% in 2023.  After the shutdown of Bio-On in 2019, Biomer is the only PHA producer in the Western Europe. However, the company has small production capacity and cannot fulfil the entire demand of Western Europe. Most of the regional demand is met through the imports from USA and China. This scenario is likely to change during short term forecast as PHA plants of Nafigate Corporation in Czech Republic and TAIF in Russia will start their production before 2025 and is is estimated to export PHA to Western Europe.

Global PHA Demand By Application - 2023 (KT)


Global PHA Demand By Application - 2021 (Kilo Tons)

In 2023, global PHA capacity was estimated to be more than 70 kilotons. Major PHA players such as Danimer Scientific, Newlight Technologies, and RWDC industries have announced their capacity expansions. The global capacity is projected to cross 550 kilotons in the coming years. Currently Danimer Scientific is the largest producer of PHA in the world, with its PHA production facilities at Bainbridge and Winchester. The company has started the expansion of both of its facilities, and the total capacity of the company will reach 144 kilotons by the end of 2024. Newlight Technologies also started their commercial PHA production facility in September 2020. The facility has an annual production capacity of 23 kilotons. Other major producers are RWDC Industries, Ecomann Technologies, CJ CheilJadang, Tianjin GreenBio, and Kaneka.

Global PHA Demand By Application - 2016-2032 (KT)

Global PHA Demand By Application - 2016-2032 (Kilo Tons)

Polyhydroxyalkanoates Market, by Application 

In 2023, Packaging application was estimated to be the largest market for PHA accounting for over 40% of global PHA demand. Various companies such as PepsiCo, Nestle, IKEA, and Bacardi have signed agreements with major PHA manufacturers like Danimer and Newlight for the production, commercialization, and purchase of PHA for packaging applications. All these conglomerates are large-scale consumers of plastic packaging. Increasing demand for sustainable packaging solutions from major conglomerates is the key driver for PHA in the forecast period. Consumer Goods was the second largest application of PHA accounting for almost 30% of the global market in 2023 and is projected to cross 70 Kiloton by 2032 growing at a CAGR of 17% during the forecast period. The consumer goods demand is driven by growing consumer awareness in Western European countries and North America.
 
Price is another key factor in the adoption of PHA. At present the prices of PHA are around 2.5 to 3 times higher than conventional plastics. The major contributors to the cost are working capital, raw material cost, and smaller scales of production. In a survey conducted by Prismane Consulting on the Global Bio-Plastics Market, more than 50% of the respondents agreed that Price is the key factor for the end users of PHA.  
 
PHA is indeed a more ‘environmentally friendly’ solution than conventional plastics, however, the difficulties in the scale-up and Price reduction are major restraints for the PHA. The growth of the market is mostly due to sustainability targets of various conglomerates, regulations on conventional plastics, and to some extent environmental awareness in consumers. At present PHA cannot compete with conventional bioplastics on economic grounds. However, in the long term, as the price reduces and environmental regulations become more stringent, PHA will capture more markets of PE and PP, particularly in Food packaging and Consumer goods applications.

Recent Developments in the PHA Market

In May 2023, TotalEnergies signed a MoU with China-based PHA producer - Bluepha to expand the adoption of PLA and PHA-based products in China. Under the agreement, TotalEnergies and Bluepha will promote and facilitate the use of their PLA and PHA technologies in various market applications within China

Kaneka is the only producer of PHA in Japan. It recently invested JPY 15 bn (around EUR 126 million) to expand production of PHA at its site in Taksago, Japan by 5 kilotons. The expansion is scheduled to be completed by early 2024 and will lift the company’s capacity to 20 kilotons of PHA annually. Kaneka markets its PHA under brand name ANOILEX. It has focused on the production of PHA suitable for packaging films and agricultural mulch films.

Newlight Technologies has also signed an agreement with various textile, packaging, and consumer goods companies. Nike has signed an off-take agreement with Newlight to purchase PHA for their apparel business. Furniture & packaging company IKEA signed an agreement with Newlight in 2016. According to the agreement IKEA will purchase 50% of the PHA from Newlight’s 23 kilotons plant in California. IKEA targets to be a ‘Carbon Negative’ company before 2030 and hence moving towards sustainable solutions such as PHA. Newlight has also signed various agreements with consumer goods companies such as The Body Shop and major electronic producers such as Dell and Hewlett-Packard (HP). 

In March 2017, RWDC Industries entered a long-term R&D agreement with the University of Georgia for the development of its Solon PHA. In 2019 the company successfully manufactured PHA-based straws. In 2020, RWDC raised USD 133 million in its series B funding round which would be used in the expansion of its Athens facility.

In 2016, CJ CheilJedang acquired assets of Metabolix (including IP rights). The company commissioned its first PHA plant in Pasuruan, Indonesia. The plant stated commercial operation in the second half of 2022 and with the production capacity of 5 kilotons. The plant will use Palm Oil as feedstock for PHA production. CJ Bio (a division of South Korea-based CJ CheilJedang) is the sole producer of an amorphous PHA, it is a softer, and more rubbery version of the PHAs

Scope of Report 

The Polyhydroxyalkanoates report describes the global Polyhydroxyalkanoates market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand Analysis
•  Demand Composition, by Applications
•  Capacity 
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Demand Balance 
•  PHA Market data in terms of volume and value for each end-use 
    at regional and country level
•  PHA Market analysis for capacity and demand, 
    at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment

1.  Introduction
      •  Scope
      •  Market Coverage
          -  Application
          -  Regions
          -  Countries
      •  Years Considered
          -  Historical - 2016 – 2020
          -  Base - 2021
          -  Forecast Period - 2022 – 2032
      •  Research Methodology
          -  Approach
          -  Research Methodology
          -  Prismane Consulting Market Models
          -  Assumptions & Limitations
          -  Abbreviations & Definitions
          -  Conversion Factors
          -  Data Sources
2.  Market Synopsis 
      •  Market Evolution
      •  Demand Overview
      •  Industry Structure
      •  Strategic Issues
      •  End-use Trends
      •  Growth Forecast
3.  Economic & Energy Outlook
      •  GDP and Demographics
      •  Monetary & Fiscal Policies
      •  Crude Oil Production and prices
      •  Natural Gas
      •  Electricity Prices
4.  End-use Sector Performance
      • Packaging
      • Medical
      • Agriculture
      • Food
      • Cosmetics
      • Others 
5.  Introduction to Polyhydroxyalkanoatesand Market Overview 
      •  Product Description
      •  Grades & Properties
      •  Raw Material
      •  Manufacturing Process
      •  Environmental Issues
      •  Value Chain
      •  Applications
6.  Market Dynamics and Industry Trends 
      •  Market Dynamics and COVID-19 Impact
          -  Drivers
          -  Restraints
          -  Opportunities
          -  Challenges
7.  Global PolyhydroxyalkanoatesDemand Analysis, By Application, (Volume, Value) (2016–2032)
      •  Strategic Issues and COVID-19 Impact
      •  Demand Analysis and Forecast (2016 – 2032)
          -  Demand
          -  Demand Growth Rate (%)
          -  Driving Force Analysis
      •  Global Polyhydroxyalkanoates Market, By Application
          -  Packaging
          -  Medical
          -  Agriculture
          -  Food
          -  Cosmetics
          -  Others
8.  Demand Analysis and Market Review, By Region, By Country (Volume, Value), (2016– 2032)
      •  Strategic Issues and COVID-19 Impact
      •  Demand Analysis and Forecast (2016-2032)
      •  Demand Growth Rate (%)
      •  Polyhydroxyalkanoates Market, By Application
Note: Demand Analysis has been provided for all major Regions / Countries as mentioned below. The demand(consumption) split by applications has been provided for each of the countries/regions in Volume (Kilotons) and Value (USD Million).
      •  North America
         -  USA
         -  Canada
         -  Mexico
      •  Western Europe
         -  Germany
         -  France
         -  Italy
         -  United Kingdom
         -  Spain
         -  Rest of Western Europe
      •  Central & Eastern Europe
         -  Russia
         -  Poland
         -  Rest of Central & Eastern Europe
      •  Asia-Pacific
         -  China
         -  Japan
         -  India
         -  South Korea
         -  ASEAN
         -  Rest of Asia-Pacific
      •  Central & South America
      •  Middle East & Africa
Note: CAGR will be calculated for all the applications to arrive at the regional/global demand growth for the forecast period (2022 – 2032)
9.  Pricing Analysis
10.  Key Strategic Issues and Business Opportunity Assessment 
      •  Market Attractiveness Assessment
      •  Prospective & Target Market Study
11.  Strategic Recommendation & Suggestions
12.  Company Analysis and Market Share Analysis
      •  Polyhydroxyalkanoates Manufacturers Profiles/ Company Analysis
         -  Basic Details
         - Headquarters, Key Markets
         -  Ownership
         -  Company Financial
         -  Manufacturing Bases
         -  Global Turnover
         -  Total Employee
         -  Product Portfolio / Services / Solutions
         -  Recent Developments
         -  Companies Covered
             - Biomer
             - Shenzhen Ecomann Biotechnology Co., Ltd.
             - Genecis Bioindustries Inc.
             - Bochemie
             - CJ Cheiljedang Corp.
             - Full Cycle Bioplastics
             - Mango Materials
             - Terraverdae Bioworks In
             - Danimer Scientific
             - Bio On Spa
             - RWDC Industries
             - Kaneka Corporation
             - Polyferm Canada, Inc.
             - Other Manufacturers
Note: This section includes company information, company financials, manufacturing bases, and operating regions. Company financials have been mentioned only for those companies where financials were available in SEC Filings, annual reports, or company websites. All the reported financials in this report are in U.S. Dollars. Financials reported in other currencies have been converted using average currency conversion rates. Company profiles may include manufacturers, suppliers, and distributors.
13.  Appendices
      •  Demand- Regions
      •  Demand– Countries

Scope of Report 

The Polyhydroxyalkanoates report describes the global Polyhydroxyalkanoates market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand Analysis
•  Demand Composition, by Applications
•  Capacity 
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Demand Balance 
•  PHA Market data in terms of volume and value for each end-use 
    at regional and country level
•  PHA Market analysis for capacity and demand, 
    at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment