The South America bioplastics market is projected to grow at a CAGR of 10.88% during the forecast period to reach US$5.349 billion by 2027, from US$2.596 billion in 2020.
Plastics created from renewable biomass sources such as vegetable fats and oils, woodchips, corn starch, sawdust, and reprocessed food waste, among others, are known as bioplastics. Some bioplastics are made directly from natural biopolymers and proteins. In contrast, others are chemically synthesized from sugar derivatives and lipids from plants and animals or biologically produced by sugar or lipid fermentation. Common plastics, on the other hand, such as fossil-fuel plastics, are made from petroleum or natural gas. One of the primary drivers for the bioplastics market is the environmental challenge of achieving high levels of greenhouse gas emissions in the atmosphere. In addition, variations in oil prices and modifications in laws restricting the use of petroleum-based plastics increased bioplastic demand in South America.
Government initiatives that encourage the usage of bioplastics in this region will be a major driver of the bioplastics market's growth.
In South America, legislation limiting the use and distribution of single-use plastic is being developed. After banning products such as plastic bags and drinking straws in various nations, new legislation is driving even more drastic changes and focusing on reducing several types of unwanted plastics. Chile has been the South American country where the debate against single-use plastics has progressed the greatest. Chile is through the approval process for a law prohibiting the distribution of single-use plastics in diners, coffee shops, resorts, and other outlets. Peru is another country that has enacted a national law on plastic, with a gradual ban on single-use plastics and a tariff on the distribution of plastic bags. In other Latin American markets, like Brazil, major cities such as Sao Paulo and many others have prohibited selling some plastic items. The National Plan for the Sustainable Management of Single-Use Plastics was launched by the Colombian government in June 2021. Several industries are replacing plastics in packaging due to legal restrictions and changes in customer habits. For example, iFood, the Brazilian market leader in online food ordering and delivery, has committed to reducing the amount of single-use plastic it provides to its consumers significantly. These achievements would not have been possible without the work of many non-profit organizations such as Oceana, Plastic Oceans Chile, and the UN Environment Program's Clean Seas Campaign in Brazil. These regulations by the government, together with consumers' preference for environmentally friendly products, are expected to propel the market growth of bioplastics in South America.
By country, Brazil is expected to hold a significant share in the South American bioplastics market during the forecast period.
In South America, Brazil is expected to hold a substantial share in the market for bioplastics. The demand for bioplastics and the manufacture of bioplastics has increased dramatically as a result of the development of companies in Brazil, as well as growing environmental concerns. The country has experienced the fastest industrial growth and leads South America in bioplastic production. Due to its extensive understanding of sugar cane production and ethanol processing, Brazil appears to have a competitive advantage. In addition, different cities and states in Brazil have enacted single-use plastic bans. Drinking straws are the principal target of such regulations in Latin America's largest country. At least 12 Brazilian localities and five states have legislation prohibiting them. Almost every week, the local media reports on the approval of a new municipal prohibition. Moreover, according to recent research published by the World Wildlife Fund (WWF), Brazil is the fourth-largest producer of plastic waste in the world, behind the United States, China, and India. Significant development by key players is also expected to propel market growth in this region. For instance, in June 2020, Eastman and Suntech formed a partnership to manufacture and distribute protective goggles to medical professionals throughout Brazil. Eastman supplied Eastman TrvaTM engineering bioplastic, a high-quality cellulose-based thermoplastic, to Suntech to facilitate manufacture. Suntech Supplies is a producer of sunglasses, prescription glasses, and protective glasses, as well as the creator of brands like HB and Secret, which are sold primarily in Brazil. In June 2020, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and the Global Compact Network Brazil named Braskem's production of a bio-based plastic made from sugarcane as one of the most transformational cases in sustainable development in Brazil in the Industry & Energy category.
The market for bioplastics in South America was negatively impacted by the COVID-19 pandemic. This can be attributed to the disruptions in the supply chain and containment measures by the governments in response to the pandemic. Furthermore, during the COVID-19 pandemic, changes in consumer behavior necessitate efforts involving the introduction of bioplastics for single-use food packaging.
|Market size value in 2020||US$2.596 billion|
|Market size value in 2027||US$5.349 billion|
|Growth Rate||CAGR of 10.88% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, End-User Industry, And Country|
|Regions covered||Brazil, Argentina, Chile, Colombia, Others|
|Companies covered||NatureWorks LLC, Corbion, BASF, Braskem, Novamont S.p.A., Cardia Bioplastics, Amcor Limited, Taghleef Industries, Arkema SA, Mitsubishi Chemical Corporation|
|Customization scope||Free report customization with purchase|
Key Market Segments
Mitsubishi Chemical Corporation
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