As per the Plastic Oceans Organization, more than 8 million tons of plastic are dumped into the oceans every year and the production rate of plastic per year is approximately 300 million tons. Owing to such alarming circumstances, UN has launched a campaign #CleanSeas to eliminate marine litter by 2022. Growing consumer awareness regarding global warming and government legislation such as ban on plastic bags has escalated the worldwide application for biodegradable plastics. Plastics manufactured by renewable raw materials found in agricultural plant or animal products, that decay to carbon dioxide and water, aided by bacteria and microbes is known as biodegradable plastics. As per the IndustryARC business intelligence report, biodegradable plastics market through endless governmental campaigns and regulations has managed to divert a substantial chunk of traditional plastic consumers into its own domain. Such epidemic movements has augmented the global biodegradable market size to be around $8billion as of 2018. The analyst of the report has tracked the opportunities in the biodegradable plastic market to be growing at a CAGR of around 11% during the forecast period of 2019-2025.
Biodegradable Plastic Market Outlook:
As per the product type biodegradable plastics or bioplastic is mainly segmented into polyhydroxyalkanoates
(PHA), polylactic acid
(PLA), polybutylene succinate
(PBS) and polycaprolactone (PCL). Further analysis of the application segment indicates the packaging industry to be the lead employer of biodegradable plastics. Increasing demand of biodegradable plastics owing to stringent regulations as major packaging equipment in food & beverage, fabrics, pharmaceuticals and consumer products is all set to strike the market with abundant demand. Such demands coupled with ecological awareness to implement biodegradable plastics have supplemented the packaging segment to be growing at a CAGR of around 9% going through 2025.
Biodegradable Plastic Market Growth Drivers and Trends:
‘Lightweighting’ is a trending subject for the automotive industry to reduce carbon footprints and the foremost reason for plastics been employed as a replacement for heavier materials such as metals. As per the International Energy Agency’s latest report, the Global Energy and CO2 Status Report, 2017, the carbon emissions stretched at a historical high of 32.5 gigatonnes in 2017. Thus the automotive industry in an emergent need for lightweight materials and at the same time to keep a check on carbon footprints and maintain environment conservationism has been enforced to let go of the petroleum plastic and adapt biodegradable plastics in its operations.
Japanese automotive giant Toyota is a leader in adopting bioplastics which is accustomed to employ biobased polyesters, biobased PET, and PLA-blends in its manufacturing procedure. Toyota has fixed an objective of substituting 20 percent by weightiness of all petroleum plastics for automotive by bioplastics. The Toyota SAI and Toyota Prius models already feature a number of bioplastic applications such as headliners, sun visors, or floor mats. Up to 60 percent of the interior fabrics are made of biobased polyesters.
Owing to its rapidly innovating automotive sector and robustly growing packaging sector catering F&B and pharmaceuticals industries, APAC has established itself as the leading region in terms of biodegradable plastic demand. It hosts more than 35% of the global demand under its own territory. Indian and Chinese economy with a huge chunk of global population is disrupting pharmaceutical and automotive sector and consumer products demand. Employment of plastics and packaging as an integral part of these sectors is all set to poise the market towards exponential growth.
Biodegradable Plastic Market Challenges:
One of the most prominent factor obstructing the biodegradable plastic market is the high price of biodegradable plastics. The intricate engineering processes along with the instability of raw materials employed for the fabrication of biodegradable plastics is the motivation behind the augmented prices.
But, the governments in various economies are taking determined steps to eradicate non-biodegradable plastics from the environment. Numerous organizations have been established to confirm that there is negligible plastic waste disposed in the environment, and biodegradable plastics are recycled in majority of the sectors.
Biodegradable Plastic Market Players Perspective:
Some of the leading players operating in the biodegradable plastic market profiled in this business intelligence report are Cargill Incorporated, Mitsubishi Chemical Corporation and NatureWorks.
To cater the demand for biodegradable plastics emerging from the F&B sector, Japan Paper and Pulp Co., Ltd. has decided to sell paper cups made with Mitsubishi Chemical Corporation (MCC) BioPBS. BioPBS, developed and patented by MCC, is plant-derived and biodegradable plastic.
Biodegradable Plastic Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Biodegradable Plastic Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of products in the Biodegradable Plastic Market, and their specific applications in different phases of operations.