Biodegradable Polymers Market

Overview of the Biodegradable Polymers Market

Biodegradable polymers market report focuses on the analysis of the biodegradable polymers market, the current scenario, major challenges, growth trends, and potential opportunities.

The plastic pollution around the world and the actions taken by various countries have profound impact on this market. Many countries have placed restrictions on chemical-based polymers and encourage the adoption of biodegradable and bio-based polymers. To meet the regulatory compliance several players are moving toward biodegradable polymers.

This report examines the use of biodegradable polymers in sectors such as food and beverages, healthcare and pharmaceuticals, agriculture and horticulture, and cosmetics and personal care among others.

This report also projects how technological advancements and innovations related to biodegradable polymers are impacting the market. Conduction of an extensive study of investment patterns, thorough decision-making could be facilitated on the part of research and development activities and competitive forces.

The biodegradable polymers market is witnessing a significant growth due to the factors such as advancements in the biopolymer technology, corporate sustainability initiatives, growing consumer awareness about the plastic pollution, rising pressure on brands to adopt sustainable plastics practices, and stringent environmental regulations enacted in various countries.

As biodegradable polymers are created from bio-based sources, greenhouse gas emissions get reduced. Many countries have imposed ban on single use plastic and plastic bags. It is forcing the companies to manufacture bio-based biodegradable polymers.

Biodegradable polymers can help in reducing the consumers’ reliance on disposable plastics. Moreover, it can help the municipal bodies in managing the waste in a better way. This report analyses these factors, provides in-depth-analysis about the market, the competitive landscape, and the biodegradable polymers market opportunities available in the market.

Introduction to Biodegradable Polymers Market

The report intends to explore the vital determinants of biodegradable polymers market like demand, regulations that benefit the market, innovations, and various applications related to the biodegradable polymers.

This report will act as a business guide for investors, government policy makers, and companies who are interested in obtaining insights about this promising market. In other words, it will showcase the drivers of growth, market patterns, and potential challenges for guiding companies to design competitive strategies.

This research sees through various areas of biodegradable polymers such as natural biodegradable polymers and synthetic biodegradable polymers. This report captures the influence of various industries such as food and beverages, healthcare and pharmaceutical, agriculture and horticulture, cosmetics and personal care, on the consumption of biodegradable polymers, providing comprehensive industry wide study.

The research methodology comprises primary and secondary research. Secondary research involves data collection from scientific journals, government reports, income statements, and balance sheets of companies.

Primary research involves meticulous interviews with the major stakeholders such as biodegradable polymers manufacturers, regulatory bodies, and industry experts. The collected market data is analysed through trend analysis, competitive benchmarking, and statistical models.

Biodegradable Polymers Market Outlook

The biodegradable polymers market size is valued at US$ 8.2 Bn and is anticipated to grow at a CAGR of 21.5% due to increasing demand for biodegradable polymers from the end-use industries. Demand for environmentally-friendly packaging alternatives from food and beverages, e-Commerce, and retail sectors drive the growth of the market.

Manufacturers are investing significantly in research and development for producing new biodegradable polymers that can give the same functionality and performance as the conventional polymers with lower impact on the environment.

Biodegradable Polymers market Forecast predicts to grow at a significant CAGR during the forecast period. Governments’ support for eco-friendly products through grants for research and development, tax incentives, and the other favourable policies further help in the growth of the market.

The applications such as surgical implants, drug delivery systems, mulch films, eco-friendly plant bags and pots, compostable non-woven fabrics, biodegradable tableware, etc. are anticipated to augment the growth of the market.

3D printing holds a significant potential for the market as biodegradable 3D printing filaments can replace conventional polymer-based filaments. Moreover, biodegradable polymers can act as eco-friendly building materials in sustainable and eco-friendly building constructions.

Biodegradable Polymers Market Trends

• Growing Demand for Sustainable Packaging: The demand for the biodegradable alternatives are increasing due to the ban on single-use plastics in many countries. Major brands are publicly adopting sustainability as part of their business and adopt biodegradable and compostable packaging.
• Innovations Related to Biodegradable Polymer Materials: Development of biopolymers based on starch has brought down the cost of production of biodegradable polymers. Moreover, integration of nanotechnology has helped in improving the mechanical properties of biodegradable polymers.
• Growth in Agriculture and Horticulture: Growth in use of biodegradable films helps in reducing plastic waste in agriculture sector. The growing domestic adoption of biodegradable plant pots augurs well for the demand for biodegradable polymers.
• Regulatory Support and Government Policies: The EU Green Deal has initiated stringent regulations regarding conventional plastics. In the U.S., the Plastic Waste Reduction Act is in place. Policies related to Extended Producer Responsibility are forcing companies to switch from conventional polymers to biodegradable polymers.

Biodegradable Polymers Industry Analysis

SWOT Analysis

• Strengths: These are eco-friendly Polymers. They help in reducing carbon footprint and plastic pollution. There is a strong regulatory support for biodegradable polymers in many countries. There is a rising demand from consumers for sustainable packaging, consumer goods, and fashion.
• Weaknesses: Biodegradable polymers are costlier than traditional polymers due to the high costs associated with raw materials and processing. Some of the biodegradable polymers have reduced durability and strength when compared to traditional plastics. Moreover, they have lower shelf life.
• Opportunities: Many major brands are moving toward biodegradable alternatives away from conventional plastics. There is a growing adoption of biodegradable polymers in Asia Pacific, Africa, and Latin America. Many companies invest in biodegradable polymers for meeting their sustainability goals.
• Threats: The growth of chemical and mechanical recycling technologies pose serious competition to biodegradable polymers. Misconception about compostable plastics, oxo-degradable, and biodegradable plastics is another threat. There is lobbying from petrochemical companies against the biodegradable polymers in many countries.

Porter’s Five Forces Analysis

• Bargaining Power of Suppliers (Moderate to High): Limited raw material availability, price fluctuations, and supplier concentration etc. favors suppliers. Dependency on raw materials by manufacturers empowers the suppliers.
• Bargaining Power of Buyers (High): Large packaging companies, retailers, and food manufacturers seek cheaper alternatives. Buyers in this market tend to have strong negotiating power owing to increasing alternatives and price sensitivity.
• Threat of Substitutes (High): Growth in adoption of alternatives not based on polymers in some sectors pose serious threat to biodegradable polymers. There is high competition from alternative sustainable plastics and recyclable plastics.
• Threat of New Entrants (Moderate): New entrants need to invest in research and development activities, production, and complying with regulations on a significant note. Increasing funding for start-ups and partnerships from companies seeking biodegradable alternatives helps new entrants.
• Industry Rivalry: There is a presence of large players such as Mitsubishi Chemical, Total Corbion, NatureWorks, and BASF, which drives competition significantly. This could be attributed to pricing pressures and faster innovations by them.

Target Market

The leading industries that adopt biodegradable polymers are food and beverages, healthcare and pharmaceuticals, agriculture and horticulture, and cosmetics and personal care among others. Packaging industry leads in generating a huge demand for biodegradable polymers as there is a huge requirement for packaging in food and beverage, retail, and e-Commerce sectors.

These industries want to get rid of the pollution related to conventional plastic packaging. Companies in the end-use industries are looking for environmentally-friendly polymers for minimizing their carbon footprint. Compliance with stringent regulations and corporate sustainability goals are forcing the end-use industries to adopt biodegradable polymers.

Textile and fashion industry are focusing on biodegradable fibre- and fabrics-based textiles for shoes, accessories, and clothing. Sustainable non-woven materials are utilized in hygiene products such as wipes and diapers.

In automotive and transportation sector, biodegradable polymers are ideal for dashboards, insulation, and seat covers. Automotive companies looking for lightweight and sustainable plastics for slashing the carbon footprint of the vehicles adopt biodegradable polymers.

Buyers are looking for reliable suppliers, high material quality, affordable pricing, and strike long-term agreements and strategic partnerships for consistent supply.

Competitive Landscape

Biodegradable polymers market is driven by increasing demand for sustainable plastics alternatives to conventional polymers and technological advancements. The competitive landscape is characterized by emerging companies, global leaders, and strategic collaborations for expanding biodegradable polymers market share.

BASF SE, NatureWorks LLC, Novamont S.p.A., Total Energies Corbion, and Mitsubishi Chemical Corporation are the major players in the market. Some of the emerging players include Futerro, Biome Bioplastics, Danimer Scientific, and Green Dot Bioplastics, among others.

The major players in the market are consolidating their presence in the market through mergers and acquisitions, expanding production capacity, strategic collaborations, and investments in research & development and innovations. The leading regions in the biodegradable polymers market are Europe, North America, and Asia Pacific.

Europe is the leading region due to stringent regulations, bans on conventional plastics, high investment in research and development activities, and strong corporate adoption of biodegradable polymers. Presence of BASF SE and Novamont helps the growth herein.

In North America, there is plastic ban in the major states in countries. Companies such as Amazon, McDonald’s, and PepsiCo are moving over to biodegradable packaging as part of their corporate sustainability commitments. It drives the demand for biodegradable polymers in the region.

Biodegradable Polymers Market Segmentation

• By Type:
  • Polylactic Acid (PLA)
  • Polyhydroxyalkanoates (PHA)
  • Polybutylene Succinate (PBS)
  • Starch-Based Plastics
  • Polyglycolic Acid (PGA)
  • Polybutylene Adipate Terephthalate (PBAT)
  • Others
• By Application:
  • Packaging
  • Agriculture
  • Biomedical & Healthcare
  • Textiles
  • Consumer Goods
  • Others
• By End Use :
  • Food & Beverage
  • Healthcare & Pharmaceutical
  • Agriculture & Horticulture
  • Cosmetics & Personal Care
  • Others
• By Region:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa