Biodegradable plastics can be degraded by microorganisms present in the environment in a specific medium and under certain conditions. They can be easily disposed of through waste management processes and have various innovative applications in the food and agriculture industries. Therefore, biodegradable plastic is the best green alternative to conventional plastic materials.
The Global Biodegradable Plastics Market is valued at US$ 7.17 Bn in 2021, and it is expected to reach US$ 65.92 Bn by 2030, with a CAGR of 28.0% during a forecast period of 2021-2030. By region, Europe dominated the global market with a share of 42% in 2021. The rising demand for biodegradable plastics from various sectors, rising global plastic waste, strict regulations by the government on plastic use, growing consumer preference toward eco-friendly plastic, and the increasing consumer awareness about environmental hazards caused due to use of plastics are some of the key factors driving the growth of the biodegradable plastics market. In addition, the use of biodegradable plastics in packaging applications is also expected to drive this market due to the changing lifestyle patterns and the increasing online delivery orders. Nowadays, biodegradable plastics are predominantly used in food packaging and agricultural applications (e. g., mulch films) to minimize the overall environmental impact of plastics.
On the other side, the market growth can be hampered due to the high cost of biodegradable polymers over conventional plastics, lack of standards and certification systems for commercialization of biodegradable plastics, and the lack of universal labeling and naming guidelines for biodegradable plastics. Moreover, the limited knowledge about the disposal of biodegradable plastics restricts the adoption of biodegradable plastics and, thereby, the market growth.
The biodegradable plastics market is segmented on the basis of types, end-users, and region. The types segment comprises polylactic acid (PLA), starch blends, polyhydroxyalkanoates (PHA), biodegradable polyesters [polycaprolactone (PCL), polybutylene adipate terephthalate (PBAT), Polybutylene succinate (PBS)], and other types [regenerative cellulose, cellulose derivative]. The PLA segment is anticipated to hold the largest market share during the forecast period due to its several attractive mechanical properties and low cost.
By end-users, the market is divided into packaging [rigid packaging, flexible packaging], consumer goods [electrical appliances, domestic appliances, and others], textiles [medical & healthcare textile, personal care, clothes & other textiles], agriculture & horticulture [tapes & mulch films, and others]. The packaging segment dominated the biodegradable plastics market in 2020 due to the growing demand for packaging in the food, beverages, and pharmaceutical sectors. Mulch films also have high demand in the agriculture industry. Based on the region, the market is studied across North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe and Asia-Pacific are two significant markets for biodegradable plastics. Europe region is expected to lead the biodegradable plastics market over the forecast perid owing to the increasing awareness among people regarding the harmful effects of plastic, the fast implementation of plastic restriction/ban policies, and the presence of advanced standards and certification systems to check the biodegradability of plastic materials in this region.
Some of the key players operating in the biodegradable plastics market are BASF (Germany), NatureWorks (US), Total Corbion (Netherlands), Novamont (Italy), Biome Bioplastics (UK), Mitsubishi, Chemical Holding Corporation (Japan), Toray Industries (Japan), Plantic Technologies (Australia), Danimer Scientific (US), Fkur Kunstsoff (Germany), Amcor limited (Switzerland), Mondi Group (UK), Kruger Inc. (Canada), and others.
Global Biodegradable Plastics Market, by End-Users, 2020-2030, (Value US$ Bn) 
