The global bioplastic market is expected to grow at a compound annual growth rate of 13.17% over the forecast period to reach a market size of US$65.989 billion in 2026 from US$27.756 billion in 2019.
Bioplastic is made from the by-products of the agriculture such as vegetable fats, corn starch, and oil, sawdust, food waste, woodchips, and straw. They employ lactic acid, starch, and cellulose for their production. Bioplastic is considered as the revolution over the common plastic. The rise in the demand for the plastic and the absolute requirement to employ the sustainable alternative to reduce the carbon footprint which is driving the demand of the Bioplastic market and is expected to continue its trend during the forecasted period. The production and consumption of the plastic is surging compared to the steel.
February 2021, China intends to become the biggest producer and consumer of bioplastic with the implementation of the policy which ban the disposable plastic bag usage. Chinese BBCA group is aiming to magnify the production of bioplastic to fill the disposable plastic bags gap. The petroleum-based plastic substitutes and government regulation on the traditional plastic products is expected to create opportunities for the bioplastic market during the forecasted period.
The environmental factors are encouraging the paradigm shift and rising demand for the bioplastics in flexible packaging. The high levels of the greenhouse gas emission in the atmosphere are encouraging the bioplastic to reduce the dependency on the fossil fuels and reduce the greenhouse gas emission and increase the resource efficiency.
The availability of the cheaper alternative is expected to create a hindrance in the market growth of the bioplastic.
Market Players included in the report of the Bioplastic Market are BASF SE, Corbion, NatureWoks LLC, Novamont S.P.A., Cardia Bioplastic, Biome Bioplastic, Braskem, Nature Plast, PlastoBag
The outbreak of the Covid-19 pandemic and its subsequent lockdown and severe rules and regulations mandated by the government globally have impacted every industry and have severely disrupted the distribution channel. The coronavirus pandemic has a positive impact on the Bioplastic Market. The demand for the flexible packaging had increased during the pandemic as the increase in the personal and healthcare products, packaged food & beverages and pharmaceutical which was boosting the market growth of the bioplastics market. In addition, the pandemic pressurized the government to scrutinize their policies and employ sustainable means to reduce human carbon footprint.
Germany economy is the largest in Europe and is fifth-largest in the world. Germany is focusing to stop the further downfall of the economy due to the pandemic by giving the initiatives of over USD 600 billion to ensure smooth functioning and growth in various public sectors in the future.
Bioplastic Market on the basis of region is segmented as North America, South America, Europe, Middle East, and Africa, and the Asia Pacific.
Europe region is expected to hold major share of the Bioplastic market due to the rise in the concern regarding environment and sustainability. British Columbia scientist invented coffee pod, Nexe Pod, in March 2021, that are completely made of bioplastic and can completely biodegrade in 35 days. The Europe government by adhering to the European Union political process and regulation is supporting the bioplastic market. The majority of the demand of the bioplastic is from Germany followed by France, Italy, and United Kingdom. Consumers demand show inclination towards value and quality enriched products such as organic, fair trade and wellness, and health products. the Department for Business, Energy, and Industrial Strategy (BEIS) in the United Kingdom announced a drive to encourage innovation in bioplastics in 2019. The government investment of GBP 60 million is expected to boost the research and development (R&D) sector in United Kingdom and further generation of GBP 149 million from the business. This is expected to drive the Bioplastic Market in United Kingdom during the forecasted period.
The bioplastic market by type is segmented to Non-biodegradable Bioplastic and Biodegradable Bioplastic. Biodegradable Bioplastic is segmented to Polyester, Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch Blends, and Others. While Non-biodegradable Bioplastic segmented into Bio-PE (Polyethylene), Bio-PET (Polythene Terephalate), Bio-PA (polyamide), and Others.
The bioplastic market by Application is segmented to Construction, Packaging, Agriculture, Textile, Automotive, FMCG, and Others
Bioplastic is used in various applications but is widely finding applications in packaging as the bioplastics have similar properties as traditional plastics. Bioplastic are being utilized in both flexible packaging and rigid packaging. The rise in the environment awareness and the impact plastics have on environment is pressurizing the manufactures of all industry to find sustainable packaging and adopt Bioplastic. Johannesburg-based Eco Invader Solutions invented bioplastic in March 2021 which was made of nanotechnology and sawdust, thus, limiting microplastic. This bioplastic is expected to take 3 days to a month to biodegrade in water. Government of various countries are encouraging the bioplastics for various applications with the aim to reduce carbon footprint and pollution. For instance, Japanese government aimed to reach 20% bioplastic usage of the overall plastic usage and have successfully reached in 2020. The plastic is derived from fossil fuels, oil and degradation of the conventional plastic which involves release of greenhouse gases and have huge environment pollution. Bioplastic is plant-based, employing the use of the renewable resources and mostly biodegradable. Government of Singapore implemented government waste management program in 2019. Thus, the adoption of the bioplastic in making the plastic bag is increasing as they are nature-friendly and biodegradable. Thailand has emerged as the leading producer of the bio-feedstock for the bioplastic market.