ID: MRFR/CnM/1432-HCR | February 2021 | Region: Global | 140 pages
The bioplastic market was valued USD 6.48 billion and expected to register a CAGR of 10% to reach USD 11.68 billion by 2027. Bio-plastics are cleaner and easier to make since they need 65% less energy to make than conventional plastics.
Bio-plastics decompose easily and they don’t leach harmful chemicals or other substances into the environment when they do so. They also don’t release as many harmful gases into the environment as they decompose.
COVID-19 has a short history in the world but it has changed the course of world history and destiny far more than any other pandemic preceding it did. The virus is dangerous and somewhat contagious. It killed more than a few people, left many people seriously ill, and caused long-term health complications in those who recovered.
Governments realized this early on that’s why they imposed lockdowns and quarantines in an attempt to stop the spread of the virus. They were temporary because they weren’t very effective. In any case, most companies in a variety of industries suffered because they were either forced to halt production at least temporarily or dramatically scale back their operations.
The companies in the bio-plastics industry were no exception. The demand for all types of plastics products declined dramatically because people were staying in more often. They didn’t want to be exposed to COVID-19. This disrupted the supply chain operations for most bio-plastics companies and it’s taking them a long time to recover from this.
The bioplastics industry is highly competitive and somewhat fragmented. The reasons for this are:
Companies are finding that they can remain profitable only if they create a sustainable competitive advantage through intensive research and development. This allows them to develop and market newer and better products before the competition can. They can enter new markets and solidify their positions in existing markets. They can also create a name for themselves in new and old markets. Finally, they can justify charging higher prices for these bioplastics.
Companies are also responding by merging their production of raw materials and their distribution operations. The result is the introduction of better quality products on the market. Incidentally, these companies also expand their regional presence.
Teijin Limited is a Japanese company. It has managed to remain profitable in the super-competitive bioplastics industry by creating a sustainable competitive advantage. The company has done so by investing heavily in research and development. This allowed it to develop and market superior and unique products.
List of companies
The world is preferring to use products from renewable and natural sources. Bio-plastics are no exception. Many companies in many industries and the general public prefer to use plastics that have the same qualities as traditional plastics but decompose easily and are don’t harm the environment when they do so.
Many companies prefer to use bio-plastics when they make plastic bags, packaging for various foodstuffs, disposable items, and general packaging. This is also a major bio-based chemicals market growth driver.
Many companies in the bio-plastics industry are seeing that the market is lucrative. They are investing heavily in research and development in the attempt to develop better quality bio-plastics that are friendlier for the environment.
What’s holding back growth in the bioplastics industry is that bio-plastics tend to be more expensive. Therefore, a lot of companies in many industries can’t afford them.
One of the biggest challenges that companies in the bioplastics industry face lies in continuing to make superior bioplastics products at lower price points that end users can afford. They also have to educate the general global public on the many benefits of bioplastics.
Cumulative growth analysis
The CAGR for the global bioplastics industry is 10%. The overall bioplastics market value is projected to be USD 11.68 billion by 2027.
Newer advancements in technology have made it possible for plastics manufacturers to make plastics out of natural and renewable crops like sugarcane, corn, and vegetable oil. This is making it possible for companies to make friendlier plastics that last longer and don’t release harsh and dangerous chemicals into the ground as they decompose. With the advent of newer technologies, the bioplastic market is expecting to see a huge growth in the upcoming years as per the mentioned forecasted data in the report.
The global bioplastics industry can be grouped into the following sub-segments based on type:
Partially degradable plastics are popular because they are made from natural ingredients. Therefore, they decompose safely into the ground. Many companies in the film, carry bags, sheets, and other industries use this type of plastic.
The global bioplastics industry can be grouped into the following sub-segments based on application:
The global bioplastics industry can be grouped into the following regions:
The European Union had the greatest bioplastics industry market share in 2019 at 33.7%. This was because the European Union has strict standards regarding the production and usage of plastics. It also has a large concentration of bioplastic companies.
The European Union as a whole has passed many laws and rules that make it much harder for companies and individuals to use plastics that have to be thrown away after only one use. Most companies in the European Union are also investing much more in the technologies that are needed to make bioplastics. These factors are also driving growth in this region. The European masses, in general, are aware of the bad effects that plastics have on the environment as they decompose and they are taking steps to try to discourage the production and usage of traditional plastics as much as possible.
The Asia-Pacific region had a bioplastics industry market share of 34.4% in 2018. This made it the region with the largest market share and size for that year. There were many factors that accounted for this. They were:
The North American region has the third-highest bioplastics industry market share. What accounts for this is the passage of new laws and legislation that makes using traditional plastics illegal.
The Latin American, Middle Eastern, and African markets are trailing in terms of market growth and share largely because of a lack of awareness of the many benefits of bioplastics.
The CAGR for the bioplastics industry is projected to be 10% by 2027. The bioplastics market value is expected to be USD 11.68 billion by then! New advancements in technology have made it possible for companies to make plastic products out of naturally grown materials. Because they are environmentally friendly, more and more people around the world are preferring to use them every year. This is because people are becoming more aware of how sensitive the environment is and the pressing need to protect it.
What is also a major factor is the fact that governments around the world are becoming stricter regarding the ways in which companies are allowed to manufacture and use plastics. They are also severely restricting the chemicals that companies can use to make these plastics - hence the increased production, marketing, and usage of bioplastics.
The European Union has the greatest bioplastics market share. This is because most European governments are becoming much stricter about the processes that companies can use to make plastic products. They are also becoming much stricter in terms of the materials that these companies can use to make these plastics.
The Asia-Pacific region has the second-highest bioplastics market share. It has the highest bioplastics market growth rate of all of the regions in the world. There are many factors for this. One is because the masses in most Asia-Pacific nations are becoming better educated. They are becoming more aware of the environment and hence, more sensitive to it. These masses prefer to use products that are safer for the environment.
|CAGR||CAGR of 10% (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Braskem (Brazil), Total Corbion PLA (The Netherlands), NatureWorks (US), Bio-On (Italy), Novamont (Italy), Toray Industries (Japan), Plantic Technologies (Australia), BASF (Germany), Biome Bioplastics (UK), Mitsubishi Chemical Corporation (Japan)|
|Key Market Opportunities||Imposition of ban on the use of conventional plastics|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global bioplastic market is expected to register a CAGR of 10% by the end of the forecast year 2023.
The global bioplastic market is segmented based on application as flexible packaging, rigid packaging, textile, horticulture, agriculture, automotive, consumer goods, electronics, construction, building, and others.
With a total market share of 34.4% as per the market share analysis compiled in 2018 Asia-Pacific region was the largest shareholder of the global bioplastic market in terms of size and volume of the market.
With a market share of 33.7% as per the market share analysis compiled in 2019, The European region was accounted to be the market-dominant in the global bioplastic market.