Bioplastics are environment-friendly plastic that is derived from organic biomass sources like vegetable oil, agricultural waste, woodchips, sawdust, etc. by employing starch, cellulose, and lactic acid for their production unlike conventional sources like petroleum. Bioplastics, a revolution over traditional plastic forms are environment-friendly, cost-effective, energy-efficient, easily degradable, non-toxic, and reduce carbon dioxide emission. These favorable characteristic factors have led to a rise in adoption and a surge in demand for bioplastics during the forecast period.
Increasing Demand for Plastics With a Sustainable Solution to Drive the Market Growth
Moreover, the utilization of plastic in this day and age is pervasive. Plastic creation and utilization have dominated that of steel, and its interest is developing at a dramatic rate. The manufacturing process of conventional plastic includes the escalated discharge of ozone harming greenhouse gases. Bioplastic, instead, is plant-based and generally biodegradable. Manufacturing of bioplastic does not include the release of these greenhouse gases and exercises the utilization of sustainable and non-exhaustible resources. Furthermore, since it is manufactured from the recovery of by-products, bioplastic essentially positively affects the climate and economy. It saves non-renewable and non-sustainable petroleum products, with the utilization of food squander. Hence, the increasing demand for plastics with a sustainable solution is propelling the growth of the global bioplastics market.
Rising Consumer Adoption of Bioplastics to Lead to Inclined Demand
The consumer acceptance and adoption of bioplastics are further increasing owing to the rising awareness of the ills of conventional plastic fueled by various governmental and non-governmental initiatives across the globe. Under the recent clarion call by the Indian Government to phase out single-use plastic by 2022, the Indian Ministry of Environment is set to organize two-month awareness generating campaign on single-use of plastics in June 2021 highlighting plastic waste management and elimination of identified single-use plastic items.
Favorable Government Regulations to Facilitate the Growth of the Market
Governments and regulatory bodies across the globe are adopting and implementing new policies and regulations like banning or imposing ancillary surcharges on the utilization of traditional plastics in different forms, such as shopping bags, packaging materials, and disposables. These regulations act as the driving factor and incentive for the bioplastics market. U.S. State lawmakers have introduced at least 95 bills in 2019 related to plastic bags. Most of these bills would ban or place a fee on plastic bags. Others would preempt local government action or improve bag recycling programs. Like, New York graced to become the third state to ban plastic bags in 2019 through passing the Senate Bill 1508. The law, which came into effect in March 2020, applies to most single-use plastic bags supplied by grocery stores and other retailers. The law permits individual counties the option of placing a 5-cent fee on paper bags, with 2 cents going to local governments and 3 cents to the state's Environmental Protection Fund. Five other states that enacted such legislation in 2019 are Connecticut, Delaware, Maine, Oregon, and Vermont.
Inclining Utilization for Packaging to Boost the Demand
Packaging is one of the applications that rule the bioplastics market. Bioplastics, and particularly biodegradable bioplastics, have inclining demand to supplant ordinary traditional plastics to address natural concerns. The utilization of bioplastics is expanding in applications like films, clamshell containers, bottles, squander assortment packs, carrier sacks, mulch films, and foodservice products. So, the increasing adoption of bioplastics for packaging purposes is further boosting the market share of the bioplastics market. ‘good natured’ Products Inc., a North American leader in earth-friendly plant-based products, launched Canada’s first innovative assortment of compostable Microwavable To-Go Containers in May 2021 as a viable alternative for businesses faced with the impending single-use plastic ban in Canada by December 2021.
The accessibility of cheaper alternatives and inadequate research and development are the hurdles faced by the market.
Impact of COVID-19 on Bioplastics Market
Limiting waste and natural effect of harmful substances is on the top of the brain for both the buyers and associations, yet simultaneously, the far and wide impact of COVID-19 has prompted higher prerequisites to secure food in supermarkets and expanded interest for take-out from cafés because of moving limitations on in-eatery feasting imposed by the regulatory authorities of various countries. This, along with developing government and corporate orders, is driving interest for inventive sustainable plastic arrangements that do less ill to the planet and human wellbeing.
Increasing Demand for Bio-PE and Bio-Pet
By type, the bioplastic market is fragmented into Biodegradable bioplastic and non-biodegradable bioplastic. Bio-PE (Polythene) and Bio-PET (Polythene Terephalate) are non-biodegradable bioplastics and are expected to develop at a critical rate during the estimated period. PET plastic has higher strength and solidness, alongside being light in weight. Consequently, it is generally utilized in single-utilized plastic containers. Bio-PET is a more creative and maintainable substitute over virgin PET and can undoubtedly supplant it. Global corporates have been utilizing bio-PET containers, substituting virgin PET for lessening the carbon impression. PepsiCo, for instance, has been utilizing Bio-PET containers, since 2011, to convey its soft drinks. But, the significant restraint confronting Bio-PET plastic is that it is non-biodegradable. Polyester and Polylactic Acid (PLA) biodegradable plastic are predicted to hold a vital share in the bioplastic market during the forecast period, inferable from their biodegradable property, alongside wide utilization in the creation of canvas, containers, films, protection for wires, and others. Yet, cost assumes a critical part in challenging the growth of the market.
The Significant Growth Rate in Europe and Asia Pacific Region
The European and Asia Pacific region bioplastics market is expected to grow at a significant rate in the forecast period. The growth of the market in Europe is attributed to the increasing consumption, research, and development in the region along with the robust automotive industry and rising demand for bioplastics for packaging by the manufacturing companies. Moreover, the Asia Pacific market is expected to propel owing to the expanding customer inclinations towards eco-accommodating plastic items with the quickly developing population in the region.