The global biodegradable plastic market accounted for US$ 2,989.8 in 2018 and is expected to grow at a CAGR of 14.5% during the forecast period 2019 – 2027, to account to US$ 10,086.2 Mn by 2027.
Biodegradable plastic can be decomposed by the action of living organisms, usually microbes, into the water, carbon dioxide, and biomass. It is produced with renewable raw materials, microorganisms, and petrochemicals. Currently, excessive plastic waste and its disposal have become a major environmental issue globally. Biodegradable plastics are used as an effective and environment-friendly alternative to commercial plastic. Significant reduction in carbon emissions during the manufacturing process is a major advantage of biodegradable plastics over conventional plastics. This factor further boosts the growth of the biodegradable plastic market. Apart from taking significantly lesser time to break down, compared to conventional plastic, biodegradable plastic can also be further recycled to create more plastic products such as packaging bags. This further propels the growth of biodegradable plastic over the forecast period. However, the high cost of biodegradable plastic as compared to conventional plastic is projected to hamper the growth of the biodegradable plastic market.
The customers in developed and developing countries have become more aware of the ill effects of conventional plastics on their lifestyle and the environment. As a result, they demand more environmentally friendly products, which leads to a decrease in the use of crude oil and natural gas, thereby reducing carbon footprints. Biodegradable plastic is an alternative for nearly all conventional plastics used in a diverse range of applications. These plastics offer innovative solutions with enhanced properties, along with distinctive ability to reduce emissions as well as provide the same qualities and functionalities as that of conventional plastics. Therefore, rising demand for more sustainable plastic products provides a huge opportunity for the key players operating in the biodegradable plastic market.
Many industry players from packaging, agriculture, consumer goods, and textile, among others, are inclined toward delivering biodegradable plastic products owing to the rising awareness about the impact of plastic consumption on the environment. Various organizations are working toward bringing transformation in the handling of plastics, through strategic planning, communication, consumer awareness campaigns, documentary films, education, cleanup campaigns, raising business awareness, scientific research, entrepreneurial innovation, legislation, and sustainability. The key aim is to increase the understanding of users regarding plastic pollution, thereby encouraging the invention of more sustainable solutions, and empowerment of more people and business organizations to take action to stop plastic pollution. Moreover, increasing efforts to develop new biodegradable plastic products leads to growing biodegradable plastic market. Moreover, the revolution in consumer demand on the basis of environmental awareness, packaging convenience, and sustainable plastic production systems is boosting the global biodegradable plastic market growth.
Some of the players present in global biodegradable plastic market are API SpA, BASF S.E, FKuR Kunststoff GmbH, Green Dot Bioplastics, Novamont S.p.A, Kingfa Sci. & Tech. Co., Ltd., GuangDong Huazhilu Biological Material Co., Ltd, Mitsubishi Chemical Corporation, Plantic Technologies Limited, and Total Corbion PLA, among others.
The overall global biodegradable plastic market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the biodegradable plastic market. Also, multiple primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the biodegradable plastic market.