Biodegradable Plastics Market Overview

• Biodegradable Plastics market size has reached to $6.79 billion in 2024

• Expected to grow to $14.9 billion in 2029 at a compound annual growth rate (CAGR) of 17.2%

• Growth Driver: Rising Consumer Demand For Sustainable Products Fuels Growth In The Biodegradable Plastics Market

• Market Trend: Innovative Biodegradable Plastic Products Emerge As Key Trend In Market

• North America was the largest region in 2024 and Asia-Pacific is the fastest growing region.

What Is Covered Under Biodegradable Plastics Market?

Biodegradable plastics are made from petrochemicals that contain biodegradable additives and are degraded into carbon dioxide, water, and biomass by microorganisms. The biodegradable plastics are used in organic waste collection and diversion, food packaging, the agricultural and horticultural sectors, and disposable tableware and IT can be used in packing materials, injection-molded products, and others.

The main types of biodegradable plastics on the market are polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polybutylene succinate (PBS), polyhydroxyalkanoates (PHA), starch blends, and others. Polylactic Acid (PLA) is a thermoplastic biopolymer and its cross-linking of chains gives rise to biodegradable plastic sheets that serve as the basis for the production of numerous non-polluting plastic products. Some of the main end users in the biodegradable plastics market include packaging, agriculture, consumer goods, and other end users.

What Is The Biodegradable Plastics Market Size 2025 And Growth Rate?

The biodegradable plastics market size has grown rapidly in recent years. It will grow from $6.79 billion in 2024 to $7.89 billion in 2025 at a compound annual growth rate (CAGR) of 16.2%. The growth in the historic period can be attributed to growing concerns for the environment, increasing use of biodegradable plastic and emerging markets growth.

What’s The Trade War Impact On Chemicals Industry?

The intensifying U.S. tariffs and escalating trade tensions in spring 2025 are expected to have a significant impact on the chemicals sector, which is bearing a disproportionate burden, particularly from tariffs on petrochemicals and intermediates, where affordable domestic substitutes are often unavailable. Producers of specialty chemicals, heavily dependent on Chinese raw materials, are experiencing production disruptions. At the same time, fertilizer manufacturers are seeing profit margins eroded due to tariffs on phosphate imports. In response, companies are ramping up R&D into bio-based alternatives, forming procurement alliances to consolidate buying power, and shifting production to tariff-neutral nations such as Saudi Arabia.

How Is The Biodegradable Plastics Market Segmented?

1) By Type: Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), PHA (Polyhydroxyalkanoates), Starch Blends, Other Types

2) By End User: Packaging, Agriculture, Consumer Goods, Others

Subsegments:

1) By Polylactic Acid (PLA): Standard PLA, High-Temperature PLA

2) By Polybutylene Adipate Terephthalate (PBAT): Flexible PBAT, Rigid PBAT

3) By Polybutylene Succinate (PBS): Standard PBS, Modified PBS

4) By PHA (Polyhydroxyalkanoates): Medium-Chain Length PHA, Short-Chain Length PHA

5) By Starch Blends: Thermoplastic Starch (TPS), Starch-Based Bioplastics

6) By Other Types: Cellulose-Based Plastics, Protein-Based Plastics, Other biodegradable polymers

What Is Driving The Biodegradable Plastics Market? Rising Consumer Demand For Sustainable Products Fuels Growth In The Biodegradable Plastics Market

Rising consumer demand for sustainable products is expected to propel the growth of the biodegradable plastics market going forward. Sustainable products refer to goods that are designed, produced, and used in ways that minimize their environmental impact, conserve resources, and promote social responsibility throughout their lifecycle, from sourcing to disposal. Rising consumer demand for sustainable products is driven by increased awareness of environmental issues, ethical concerns, and a desire to reduce carbon footprints and support eco-friendly practices. Biodegradable plastics are used as sustainable products because they break down naturally, reducing environmental pollution and minimizing the impact on landfills and ecosystems. For instance, in April 2024, according to a survey of 1,200 US consumers conducted by PDI Technologies, a US-based software development company, percentage of consumers willing to pay a premium for sustainable products rose from 68% in 2023 to 80% in 2024. Therefore, growing consumer demand for sustainable products will drive the biodegradable plastics industry.

What Is Driving The Biodegradable Plastics Market? Government Funding Boosts Biodegradable Plastics Research And Development

An increasing number of government funding initiatives is expected to propel the growth of the biodegradable plastics market going forward. This increase in funding can be attributed to the growing recognition of the environmental benefits of biodegradable plastics and the need to reduce plastic pollution. Government funding supports biodegradable plastic research and development by providing financial resources for innovation, facilitating pilot projects, and encouraging collaboration between academia and industry. For instance, in February 2023, Virginia Tech researchers have received a $2.4 million grant from the U.S. Department of Agriculture (USDA) to develop bioplastics from food waste. This three-year project will evaluate the scalability and feasibility of converting diverted food waste into bioplastics at national and global levels, while keeping production costs low. The initiative includes a pioneering pilot project to create an affordable modular bioprocessing system for producing biodegradable bioplastics from food waste.

Who Are The Major Players In The Global Biodegradable Plastics Market?

Major companies operating in the biodegradable plastics market include BASF SE, Mitsubishi Chemical Holding Corporation, Kaneka Corporation, Novamont SpA, Corbion N.V. (Total Corbion PLA), Eastman Chemical Company, Danimer Scientific, NatureWorks LLC, Biome Technologies plc, Fkur Kunstsoff, BioPak, UFlex, EsselPropack, Balson Industries, Kingfa Sci. & Tech Co. Ltd, GuangDong Huazhilu Biological Material Co. Ltd, Plantic Technologies Limited, Huhtamaki, Greatview Aseptic Packaging, Shanghai PRECISE Packaging Co, Qingdao Likang Packing, Tidetron, CB Material, Red Avenue New Materials, Bio-On, RadiciGroup, Tetra Pak, GOGLIO, Biochemtex, Mondi Group, Gualapack Group, AVANTIUM N.V, SULAPAC, AMSilk GmBH, CARBIOS, Amcor, Sealed Air, Plastic Suppliers, International Paper, Smurfit Kappa, DS Smith, Green Dot Bioplastics, Kruger Inc, Klabin SA, BioBag, Nova Envirocom Inc, Braskem, Biocycle, Minima, Brazilian Plastics, Rotopak LLC, Gulf East Paper and Plastic Industries LLC, Arabian Packaging LLC, Amber Packaging Industries LLC, Diamond Packaging Industries LLC, Corys Packaging LLC, Astrapak Ltd (RPC Group), Nampak Ltd, Mpact Pty Ltd, Bonpak (Pty) Ltd, bioplastics Egypt, Al Ahram Plastic Co.

What Are The Key Trends Of The Global Biodegradable Plastics Market? Innovative Biodegradable Plastic Products Emerge As Key Trend In Market

Major companies operating in the biodegradable plastics market are focusing on developing innovative solutions, such as production conversion technology, to enhance the efficiency and quality of biodegradable plastics. Production conversion technology in biodegradable plastics enables traditional plastic manufacturing systems to efficiently produce eco-friendly, compostable alternatives without extensive equipment overhauls. For instance, in December 2023, Sulzer, a US-based engineering and manufacturing sector, launched SULAC Technology, an innovative process for the conversion of lactic acid into lactide, a critical precursor for producing polylactic acid (PLA), a biodegradable plastic. This technology enhances the efficiency and quality of lactide production, enabling PLA manufacturers to integrate new capabilities into their processes. By supporting the production of sustainable bioplastics, SULAC Technology aligns with global sustainability goals and the increasing demand for eco-friendly materials, thereby reinforcing Sulzer's leadership in the bioplastics market.

What Are The Key Trends Of The Global Biodegradable Plastics Market? AI Revolutionizes Biodegradable Plastics Manufacturing For Sustainability

Companies in the biodegradable plastics market are leveraging Artificial Intelligence (AI) to eliminate plastic waste from their manufacturing processes. Artificial intelligence and machine learning have accelerated the design of materials, such as plastics, that disintegrate fast without affecting the environment, and super-strong, lightweight plastics for satellites and aircraft that will eventually replace metals in usage. AI can eliminate waste from design processes by using engineering data and detecting repetitive and wasteful development cycles. It can streamline packaging, making that packaging as sustainable as possible. It can also increase the use of biodegradable or recyclable materials and cut down shipping costs by optimizing dimensions and weight in packages. For instance, French cosmetics company, L’Oréal, is using AI to ensure that the plastic packaging IT uses is either recycled or bio-based by 2030. The company is using predictive tools to estimate the performance of product and packaging designs faster and more accurately, which allows the company to reduce the amount of materials needed in making products and ensures that each product is as sustainable as possible.

Biodegradable Plastics Market Merger And Acquisition: Versalis Spa Acquires Novamont To Strengthen Renewable Chemistry Strategy

In October 2023, Versalis SpA, an Italy-based chemical company, acquired Novamont for an undisclosed amount. The aim of the acquisition is to enhance Versalis's renewable chemistry strategy by integrating both companies' portfolios. This integration leverages unique technology platforms and expands a low-carbon product portfolio, aligning with Versalis' goals to advance sustainable bioplastics and support Eni's energy transition journey. Novamont is an Italy-based biodegradable bioplastics manufacturing company.

Regional Outlook For The Global Biodegradable Plastics Market

North America was the largest region in the biodegradable plastics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

What Defines the Biodegradable Plastics Market?

The biodegradable plastics market consists of sales of biodegradable plastics, including hydro-biodegradable and oxo-biodegradable plastics. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Biodegradable Plastics Industry?

The biodegradable plastics market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the biodegradable plastics industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.