Biodegradable plastics are used for manufacturing bottles, loose-fill, cups, pots, bowls, flexible films, and other products. According to Grand View Research, the global biodegradable plastics market is segmented by:
The global biodegradable plastics is anticipated to reach USD 6.12 billion by 2023 at a CAGR of 15.1%, from USD 3.02 billion in 2018. The packaging and the bag industry is one of the major factors for the growth of the global biodegradable plastics industry. It is anticipated to be the quickest growing end-use industry segment of the biodegradable plastics market between 2018 and 2023.
One of the leading sectors for biodegradable plastics is packaging. It is used in flexible and rigid packaging. Conventional plastics are now being replaced by biodegradable plastics in food packaging such as cups, plates, wraps, which is further boosting the biodegradable plastics market. Another reason for the driving growth is the rising consumer awareness towards sustainable plastic solutions.
The market is witnessing a significant boost due to the agricultural sector as well. There has been a rising demand for biodegradable mulch film to ensure conducive soil temperature, suppression of weed growth and conservation of water in the soil.
APAC is anticipated to be one of the fastest growing biodegradable plastics markets. Various end-use industries such as agriculture, horticulture, textile, consumer goods are expected to drive the APAC market. Significant opportunities due to the rising demand in the packaging and the bags industry is another reason for the growth of APAC biodegradable plastics.
Due to its various uses in end-use industries such as packaging, bags and consumer goods, PLA is the largest type segment of the biodegradable plastics market. Derived from corn starch, PLA is non-toxic and an environmentally friendly material. The main applications of PLA are thermoformed products such as food trays, drink cups, containers. PLA is also being adopted as it is due to its cost-effective nature as compared to other biodegradable plastics.
Let’s now address the global market for biodegradable plastics. Europe was one of the leading regional markets in 2017. High-awareness towards plastic waste was one of the major contributing factors for the growth in the European regions. Asia-Pacific is expected to witness a surge in the growing market in the global arena. Rising disposable income and improved standard of living in countries such as India and China are anticipated to boost the market in the region.
The Central & South America region also emerging as a promising destination in the market. It is projected to register a CAGR of 12.8% during the forecast period.