Biodegradable Polymers Market

Biodegradable Polymers Market Outlook

The biodegradable polymers market is estimated to be valued at US$ 7.9 billion in 2023. The biodegradable polymers market size is projected to reach US$ 54.48 billion by 2033. Sales of biodegradable polymers are anticipated to grow at a CAGR of 21.3% through 2033.

Significant demand for biodegradable polymers arises as these replace synthetic polymers. Synthetic polymers are widely used in the packaging industry, creating serious environmental problems. Non-biodegradable polymers are becoming a newer challenge for policymakers due to their sizable market share in the packaging industry. Considering the issue, several brands are now opting for biodegradable polymers to reduce the threat of carbon dioxide emission and global warming.

According to research, 55% of consumers want to purchase from environmentally responsive brands. Therefore, numerous packaging firms are utilizing appropriate solutions for countering the environmental impacts of non-biodegradable conventional polymers. P&G, a firm specializing in climate and sustainable packaging, is making progress in developing innovative and natural packaging solutions. The company aims to reduce its footprint and greenhouse gas emissions by 2030.

Key Biodegradable Polymers Market Highlights

• Biodegradable polymers are used for rigid as well as flexible packaging. It is widely adopted in the food and beverage sector and cosmetics.
• Packaging sectors cover more than 50% of the market, where Europe is the key consumer of biodegradable polymers-based materials for packaging.
• Brands are ditching plastic packaging and switching to recycled cardboard. For instance, Lush is a cosmetics brand that avoids packaging and sells its products in bar form. 90% of the packaging is made of recycled material that can be composed or returned to the store.
• North America is the second-leading region in the consumption of biodegradable polymers, owing to the stringent regulation on plastic usage.
• Increasing demand for safety standards in food packaging while discontinuing plastic cutlery and plastic bags is accelerating the market in the Asia Pacific.

Historical Performance of Biodegradable Polymers Market

The global biodegradable polymers market was valued at US$ 6.6 billion in 2022 and is anticipated to reach US$ 7.9 billion in 2023. Increasing demand for sustainable packaging in healthcare and food and beverage sectors is expected to drive the biodegradable materials market.

The popularity of sustainable packaging is growing among consumers. As a result, several companies are looking for biodegradable options that can be decomposed easily without harming the environment.

TIPA Compostable Packaging deals in sustainable packaging solutions that manufacture ready-to-pack bags and pouches using eco-friendly material and bio-plastic technology.

Factors Driving Biodegradable Polymers Market

• Easily Decomposable and Free of Toxic Materials

Biodegradable polymers are free of toxic materials that break down easily within six months in industrial composting. Biodegradable materials can be easily decomposed, adding nutrients to the soil. Synthetic polymers take nearly 1,000 years to decompose.

• Supports Health and Farm

Packaging materials made of natural and recycled materials give a boost to the biodegradable packaging. These are produced from peanuts, cornstarch, mushrooms, seaweeds, and other organic fibers. They are attractive and sturdy and utilize agricultural waste, which is also a blessing for farming.

Nikhil Kaitwade

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Comparative View of Adjacent Biodegradable Polymers Markets

The table below represents a comparison between the biodegradable polymers market, sustainable packaging market, and corrugated box market. The biodegradable polymers market is expected to progress at a CAGR of 21.3% from 2023 to 2033. The demand for biodegradable polymers is anticipated to increase in Europe and Asia Pacific regions over the forecast period.

Biodegradable Polymers Market:

Sustainable Packaging Market:

Corrugated Box Market:

Category-wise Insights

Polylactic Acid to Dive in Significant Revenue Growth

The biodegradable polymer market represents another key area for opportunities in the polylactic acid (PLA) segment. The need for eco-friendly alternative polymers is driving the demand for polylactic acid. The segment recorded a valuation of US$ 1 billion in 2022 and is expected to thrive at a CAGR of 11.9% through 2033. The market is expected to be valued at US$ 3.1 billion by 2033.

The emergence of bio-based raw ingredients, such as derivatives of biomass and crop vegetables, is expected to drive the market. Bioplastics have been witnessing rising demand from the retail goods and packaging sector as they help retain the freshness of products. Therefore, their application in food packaging, biomedical, and wastewater treatment is driving sales of biodegradable polymers.

Polylactic acid biodegradable polymers are expected to gain traction over the projected period. They are being increasingly utilized in the packaging, agriculture, textile, and medical industries. Their wide-ranging applications in the biomedical sector are fostering the demand for biodegradable polymers.

Country-wise Analysis

Europe reduced 44% of plastic waste landfilling between 2006 and 2018. It is the first market to step ahead in recycling to recover waste that cannot be decomposed. According to a survey, 29 million metric tons of plastic were recovered from European countries in 2018.

The below section highlights the biodegradable polymers market revenue by key countries. China is the leading market, with a historical growth rate of 5%. The biodegradable polymers market in Germany recorded a valuation of US$ 669 million in 2022.

Rising Trend of Paper over Plastic in China

Reduced polymer manufacturing and stringent government regulations have paved the way for China to play a significant role in driving revenue growth. In 2022, China witnessed a market size of US$ 765 million and recorded a CAGR of 5%.

According to the China National Development and Reform Commission, the country witnessed a reduction in plastic packaging by 40%, after implementing the plastic bags policy. China is the leading producer of biodegradable polymers and is expected to thrive at a CAGR of 24% over the forecast period.

Germany Moving Toward a Cleaner and Safer Environment

Acceptance for plant-based products among consumers and an extensive supply of raw materials that can be recycled is driving the market in Germany. The biodegradable polymers market recorded a CAGR of 21% during the historical period. It reached a value of US$ 669 million by 2022.

Germany is the key producer of biodegradable polymers. By 2025, the consumption of petroleum-based plastics in the country is expected to reduce by 20%. Bioeconomy Strategy and Action Plans implemented by the EU and UN are the prominent motivators for Germany to become a leader in the market.

Ban on Single-use Plastics in the United States

Increasing environmental issues and growing awareness regarding the use of renewable polymers are expected to drive market growth. Stringent regulations and active promotion of sustainable practices boost eco-friendly alternatives.

The United States is among the massive consumers of plastic bags and packaging. Therefore, recovery of waste plastic, recycling targets, collection and waste disposal laws enhance the biodegradable polymers market in the United States.

Canada Reducing Negative Impact with Recycled Materials

Canada recorded a market share of 6% in 2022 and is expected to generate huge revenue due to the ban on conventional plastic bags. Changing climatic conditions and the increasing impact of GHG are escalating the need to shift toward reusable bags.

For instance,

• Calgary Co-ops launched compostable bags that are made up of polylactic acid. The biodegradable polymer bag was developed by LEAF Environmental Products Inc., which does not contain any microplastic material.

Reduced Use of Toxic Material in the Packaging Industry in India

Several brands in India have reduced their production of toxic packaging materials. In 2022, the Government of India imposed a ban on single-use plastic to curb pollution.

In 2019, IIT Guwahati developed a biodegradable plastic to manage solid waste. According to CoE-SusPol, the cutting-edge technology is cost-efficient and has no hazardous chemicals.

Competitive Landscape in the Biodegradable Polymers Market

Manufacturers in the biodegradable polymers market are focusing on increasing their market share and presence. They are collaborating with key players and research institutions to introduce advanced technologies and product innovations.

Key Companies to Watch For

• Novamont

The company is taking the initiative to eliminate plastic pollution by being a part of the New Plastics Economy. This initiative helps create a sustainable plastic economy, thereby redefining the limitations of plastic materials for packaging.

• Plantic

The company aims to expand its global presence with new product launches. The company has introduced meat packaging made up of renewable and recyclable material. Plantic is the first company in Australia to take such a dynamic initiative in food packaging.

• Cortec Group

The company has planned to expand its product portfolio by partnering with recapitalized Window Nation, Inc. In addition, the partnership has also been done to maximize the energy efficiency of windows. The expertise of both companies is expected to provide beneficial opportunities for the biodegradable polymers market.

Recent Developments in the Biodegradable Polymers Market

• Engineers from the University of Connecticut created an implantable sensor made from PLLA (poly (L-lactide), a biodegradable polymer. It is medically safe and can measure every minor change in the pressure within the organs.
• In 2022, a team of scientists in India developed an eco-friendly polymer for packaging applications. Using the solution casting method, the polymer is made of guar gum and chitosan. The films are fabricated with high mechanical strength to resist environmental conditions.

Biodegradable Polymers Market Segmentation

By End-use Industry:

• Packaging
• Textile
• Agriculture
• Healthcare
• Consumer Goods
• Others

By Type:

• Starch-based Polymers
• Polylactic Acid (PLA)
• Polyhydroxy Alkanoates (PHA)
• Polyesters
• Others

By Region:

• North America
• Latin America
• Eastern Europe
• Western Europe
• Asia Pacific
• The Middle East and Africa