Product Code: 52183
The bioplastics market size was estimated at over 1,220 kiloton in 2020, and the market is projected to register a CAGR of over 16% during the forecast period (2021-2026).
The market was positively impacted by COVID-19 in 2020. Amid the lockdown situation, the demand for flexible packaging has increased, which accounted for more than 45% of bioplastics, owing to the rise in demand for personal and healthcare products, pharmaceuticals, and packed food and beverages. Moreover, according to the JEITA, the production of global electronics products, such as laptops, mobiles, and semiconductors, among others, and information technology increased, and it is expected to reach USD 3,175 billion by the end of 2021, thereby positively impacting the demand for bioplastics.
- Over the short term, major factors driving the market studied are environmental factors encouraging a paradigm shift and growing demand for bioplastics in flexible packaging. The environmental dilemma caused by reaching high levels of greenhouse gas emissions in the atmosphere is one of the major drivers for the bioplastic market, as bioplastics help to reduce the dependency on fossil resources, reduce greenhouse gas (GHG) emissions, and increase resource efficiency.
- However, the availability of cheaper alternatives is likely to hinder the growth of the market studied.
- Flexible packaging application is expected to dominate the global market, in terms of volume, during the forecast period.
- Substitutes for petroleum-based plastics and government regulations on traditional plastic products are likely to act as opportunities in the future.
Key Market Trends
Flexible Packaging is Expected to Dominate the Market
- Bioplastics are used in flexible packaging, as they are not harmful to nature, and few are easily degradable as well.
- They are used in packaging films for food items, medicines, beverage bottles, packaging films, and packaging of non-food products, such as napkins and tissues, toilet paper, nappies, sanitary towels, cardboard and coat paper for food wrapping paper, and coated cardboards to make cups and plates. Moreover, they are used in flexible and loose-fill packaging.
- Moreover, polylactic acid (PLA) is used majorly in the packaging of food items, while bio-polyethylene terephthalate (PET), bio-polyethylene, and bio-polypropylene are majorly used as packaging films.
- The consumption of bioplastics is increasing in making plastic bags, as they are nature-friendly, and for organic waste collection bags, which are majorly used in hospitals, hotels and restaurants, commercial and retail outlets, and houses. Local governments of different countries have also initiated their usage.
- The usage of bioplastics is the highest in the packaging sector, which is increasing due to the growing environmental concerns across the world.
- Bioplastics provide the packaging industry with a renewable, sustainable option for a variety of uses. According to European Bioplastics, in 2020, 47% of global bioplastic production was used in packaging applications.
- The global packaging industry is growing across the world. Asia-Pacific has the largest manufacturing capacity of bioplastics, with around 45% of the global capacity. Moreover, with the increase in awareness among consumers and the strict ban by the governments in the countries like China, India, and Japan, they have started promoting the consumption of bioplastics in the region.
- The production capacity of bioplastics for flexible packaging application was estimated to be 663 thousand metric ton in 2019.
- However, the current COVID-19 outbreak hampered all the manufacturing activities in all countries due to the temporary shut down in 2020, and it is still affecting the growth of the market but is expected to recover during the forecast period.
Europe to Dominate the Market
- Europe dominated the global bioplastics market, with most of the demand coming from Germany, followed by France, Italy, and the United Kingdom.
- The German economy is the largest in Europe and the fifth-largest in the world. The country is in plans to stop the further downfall of the economy due to the COVID-19 impact by announcing availability funds (of over USD 600 billion) to ensure growth and smooth functioning in various public sectors in the near future.
- The textile industry of Germany is the largest in the European region, with around 6,000 registered companies. The country is the prominent importer of textile raw material and exporter of finished textile products. The industry has grown to a gigantic stature, as it caters to around 18% of the textile market in Europe, and the technical textiles from Germany, cater to the world demands of around 45%.
- Consumers are showing a growing demand for value and quality enriched products, including organic and fair trade and health and wellness goods, indicating a favorable potential demand for packaging films, which is approved for use in conjunction with food products.
- In Europe, Italy leads the market in the production of bioplastics (inclusive of bio-degradable polymers), with numerous small and medium-sized enterprises (SMEs) are engaged in its production. However, in terms of consumption, the country stands to be the second-largest market in the region, after Germany.
- Italy's packaging industry is one of the largest industries in the world. There are nearly 7,000 major and minor packaging companies active in the country. The growing importance of supermarket retailing and the changing consumer buying habits are increasing the packaging demand in the country. Besides, exports are further adding to the demand for packaging materials.
- The United Kingdom stands to be the fourth-largest consumer of plastics in Europe. The country has been identified as one of the most innovative and advanced countries in terms of developing advanced and modified plastics. However, the country's attention has been drifted toward bioplastics, with increasing awareness about the environmental impact of petroleum-based non-biodegradable plastics.
- Furthermore, in July 2019, the Department for Business, Energy, and Industrial Strategy (BEIS) in the United Kingdom announced a drive to encourage innovation in bioplastics (inclusive of bio-degradable polymers). The GBP 60 million government investment is expected to hugely boost the UK's research and development (R&D) sector and further generate GBP 149 million from businesses. Overall, such optimistic growth from various end-user industries is expected to drive the UK market through the years to come.
- Hence, the market scenario in the region is expected to boost the demand for bioplastics through the forecast period.
The bioplastics market is fragmented in nature. Some of the key players in the market include Braskem, Novamont SpA, NatureWorks LLC, BASF SE, and Indorama Ventures Public Company Limited.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Environmental Factors Encouraging a Paradigm Shift
- 4.1.2 Growing Demand for Bioplastics in Flexible Packaging
- 4.1.3 Impact of the COVID-19 Outbreak
- 4.2 Restraints
- 4.2.1 Availability of Cheaper Alternatives
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
- 4.5 Patent Analysis
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Biodegradable Plastics
- 126.96.36.199 Starch-based
- 188.8.131.52 Polylactic Acid (PLA)
- 184.108.40.206 Polyhydroxyalkanoates (PHA)
- 220.127.116.11 Polyester (PBS, PBAT, and PCL)
- 18.104.22.168 Other Biodegradable Plastics
- 5.1.2 Non-biodegradable Plastics
- 22.214.171.124 Bio-polyethylene Terephthalate (PET)
- 126.96.36.199 Bio-Polyethylene
- 188.8.131.52 Bio-Polyamides
- 184.108.40.206 Bio-Polytrimethylene Terephthalate
- 220.127.116.11 Other Non-biodegradable Plastics
- 5.2 Application
- 5.2.1 Flexible Packaging (Films, Plastic Bags, etc.)
- 5.2.2 Rigid Packaging (Bottles, Containers, etc.)
- 5.2.3 Automotive and Assembly Operations
- 5.2.4 Agriculture and Horticulture
- 5.2.5 Construction
- 5.2.6 Textiles
- 5.2.7 Electrical and Electronics
- 5.2.8 Other Applications
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 18.104.22.168 China
- 22.214.171.124 India
- 126.96.36.199 Japan
- 188.8.131.52 South Korea
- 184.108.40.206 Rest of Asia-Pacific
- 5.3.2 North America
- 220.127.116.11 United States
- 18.104.22.168 Canada
- 22.214.171.124 Mexico
- 5.3.3 Europe
- 126.96.36.199 Germany
- 188.8.131.52 United Kingdom
- 184.108.40.206 Italy
- 220.127.116.11 France
- 18.104.22.168 Rest of Europe
- 5.3.4 South America
- 22.214.171.124 Brazil
- 126.96.36.199 Argentina
- 188.8.131.52 Rest of South America
- 5.3.5 Middle-East and Africa
- 184.108.40.206 Saudi Arabia
- 220.127.116.11 South Africa
- 18.104.22.168 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share Analysis**
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 Arkema
- 6.4.2 BASF SE
- 6.4.3 Biotec
- 6.4.4 Braskem
- 6.4.5 Danimer Scientific
- 6.4.6 Futerro
- 6.4.7 Indorama Ventures Public Company Limited
- 6.4.8 Minima
- 6.4.9 Natureworks LLC
- 6.4.10 Novamont SpA
- 6.4.11 Rodenburg Biopolymers
- 6.4.12 Trinseo
- 6.4.13 Total Corbion PLA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS