India's bioplastics market is projected to grow at a CAGR of 24.36% to reach US$1,420.870 million by 2027, up from US$308.942 million in 2020.
Increasing environmental consciousness is one of the prime factors that is set to drive the Indian bioplastics market to a new zenith during the forecast period. Moreover, major market players are incentivized to enter this market to resonate with the growing consumer awareness, simultaneously strengthening their position in this market, which is another factor that is set to propel the market’s growth. The other driving factor that is poised to facilitate the growth of the market is the increasing focus on sustainability that various companies have turned their attention towards, to reduce their carbon footprint.
Increased R&D investments
Moreover, many market players are investing in the research and development of new technologies to bring about bioplastics in such a manner that the end-use cost is reduced, and the adoption of bioplastics is swifter than it is at present. For instance, as of June 2020, Lygos, Inc., based out of Berkley, California, and Praj Industries Ltd., based out of Pune, India have reportedly signed a memorandum of Understanding (MOU) under the aegis of which Lygos’s proprietary yeast will be codeveloped to facilitate the production of lactic acid. Further, Praj Industries Ltd. will be provided with the proprietary yeast platform by Lygos towards a joint endeavour in the fruition of various commercial applications, which is inclusive of but not limited to, the integration of lactic acid as source material for the production of Bioplastic, called Polylactic Acid (PLA).
Key developments in the market
Additionally, the government of India’s stance on plastic, as exemplified by an announcement by the then environment minister Harsh Vardhan in 2018, on World Environment Day, that single-use plastics will be phased out by 2020, which has since been revised to 2022 - is also expected to pave new avenues for the Indian Bioplastics market subsequently stimulating its growth. As of 2019, around 18 states of the country have enforced a ban on single-use plastics. In September 2019, the global technology leader in lactide monomers and Poly Lactic Acid (PLA), Total Corbion PLA, which is a 50/50 joint venture between Total and Corbion, announced its intention to enter the Indian bioplastics market, in technical collaboration with Konkan Specialty Poly Products Pvt Ltd., a polymers and chemicals player that is based out of Mangalore, India. As part of the collaboration, a completely biodegradable and compostable option for plastic will be launched by Total Corbion PLA and will be operated through Konkan Speciality Poly Products Pvt. Ltd. The latter will import PLA to create compounds according to various needs. Moreover, the increasing need for promoting industry-academia interaction has been through various R&D, has been materialled by the initiation of a joint venture between the Indian Institute of Technology, Guwahati (IITG), in September 2019 to develop bio-degradable plastics from oil and bio-refinery streams with a financial involvement of Rs 4 Crore.
The COVID-19 pandemic had a significant impact on the international economy in 2020 as a result of widespread social isolation and national lockdowns. All aspects of the economy have ceased to exist, including investment and production along all value chains. The COVID-19 outbreak limited the use of biodegradable bags because of the supply chain disruption and lengthened lead times for raw ingredients. Many governments and organizations delayed passing regulations on single-use plastics and green investments as a result of the pandemic, which has led to a decline in the adoption of bio-based alternatives. To improve product demand, however, the growth of PPE packaging, pharmaceuticals, and plastics offered a great alternative to traditional plastics. The market for bioplastics products has expanded as a result of the high consumer acceptability of bio-based products, the environmentally favourable characteristics of bioplastics, and the availability of renewable raw material sources.
|Market Size Value in 2020||US$308.942 million|
|Market Size Value in 2027||US$1,420.870 million|
|Growth Rate||CAGR of 24.36% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments Covered||Type, And Application|
|Companies Covered||BASF SE, Braskem, Corbion India PL, Ecolife, Envigreen Biotech India Private Ltd, NatureWorks LLC, Novamont S.p.A., Plastobags, TORAY INDUSTRIES, INC.|
|Customization Scope||Free report customization with purchase|
Corbion India PL
Envigreen Biotech India Private Ltd
TORAY INDUSTRIES, INC.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.