Global Biobased Biodegradable Plastics Market Projected to Register Robust Growth through 2020

The widespread awareness about the adverse effects of fossil fuel based plastics on the environment has led to the demand for eco-friendly alternatives. Biobased plastics, also known as bioplastics, have emerged as a credible alternative, as they use renewable resources as raw materials.

Biobased plastics that can be decomposed naturally are known as biobased biodegradable plastics. Some of the common raw materials used in the production of biobased biodegradable plastics are potato, wheat, cassava, and corn. Although the global biobased biodegradable plastics market is at a nascent stage, focus on environmental conservation and regulations from the government are projected to provide an impetus to the market in the near future.

Global Biobased Biodegradable Plastics Market at a Nascent Stage

Bioplastics form a miniscule part of the global plastics market, with conventional fossil fuel-based having the lion’s share. In 2013, about 300 Mn metric tonnes of plastics were used, out of which the share of bioplastics was only 0.21%. The market share of the biobased biodegradable plastics was a tiny 0.1%. However, it is projected that the global biobased biodegradable plastics market will witness a double digit growth through 2020.

In 2014, the global biobased biodegradable plastics market is estimated to be worth US$ 1.27 Bn. It is projected that the market will witness a CAGR of 18% and reach a valuation of US$ 3.42 Bn by 2020. As discussed previously, focus on environment conservation will be the key driver for the growth of the global biobased biodegradable plastics market.

Market Segmentation of Biobased Biodegradable Plastics Market

On the basis of end-use applications, the global biobased biodegradable plastics market is segmented into packaging, medical, agriculture, fibres, and others. Among these segments, packaging has the largest market share and it is forecasted that it will exhibit a 12.6% CAGR through 2020. Agriculture, fibres, and medical end-use applications have a substantial share in market, and it is forecasted that these segments will also witness healthy growth in the next five years.

Starch blends, poly hydroxyalkanoates (PHA), polyester, poly lactic acid (PLA), and cellulose are the key product-type segments of the global biobased biodegradable plastics market. Polyester and PLA are the two dominant segments of the global biobased biodegradable plastics market, and together they constitute about 62.2% of the total market. It is forecasted that these two segments will exhibit a double-digit growth through 2020 on account of their varied use in several sectors. Apart from polyester and PLA, the starch blends segment is also forecasted to register robust growth in the next five years.

Europe & North America will Witness High Growth

Early adoption of biobased biodegradable plastics in Europe has contributed to the growth of the market in the region and it is forecasted that the market will continue to witness high growth through 2020. Other prominent regions for the global biobased biodegradable plastics market are North America, Japan, Asia Pacific, and Latin America.

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