Biodegradable Plastics Market to exceed USD 25.5 billion in 2030, at a CAGR of 21.4%

The Biodegradable Plastic Market was estimated at USD 7.1 billion in 2023-e and projected to grow at a CAGR of 21.4% through 2030 to reach USD 25.5 billion. The use of biodegradable plastics in food packaging is on the rise and is expected to contribute significant growth over the forecast period. The increasing demand for eco-friendly alternatives to traditional plastics, especially biodegradable polyesters, is driving this growth.

Moreover, the demand for food packaging, disposable tableware, and bottles is also increasing, leading to a rise in demand for biodegradable plastics. Governments across the globe are also supporting biodegradable plastics by implementing strict regulations on the usage of petroleum based plastics to minimize environmental pollution. Additionally, the rising consumer awareness about biodegradable products is expected to boost market growth.

Source: Intent Market Research Analysis

The application of biodegradable plastics in the agriculture sector, particularly through the use of biodegradable plastics, is a noteworthy and impactful trend. Biodegrad able plastics help in the conservation of water by reducing evaporation and improving soil moisture retention, leading to more efficient water usage in agriculture. Biodegradable plastics contribute to maintaining optimal soil temperatures, fostering a conducive environment for seed germination, root development, and overall faster crop growth.

The biodegradability of these plastics used in agriculture ensures that they break down naturally over time, eliminating the need for their removal and reducing environmental impact compared to traditional plastic mulch films. The increased use of biodegradable plastics in consumer goods with a growing awareness and preference for sustainable and environmentally friendly products is projected to fuel market growth. Consumer goods is one of the major end-use industry of biodegradable plastics. Biodegradable plastics are increasingly utilized in domestic and electrical appliances. The major consumer goods manufacturers are shifting their focus from traditional plastics to biodegradable plastics to reduce the negative impact on the environment. 

The dual impact of biodegradable plastics in agriculture and consumer goods demonstrates the versatility and positive environmental contribution of these materials. As sustainability becomes a focal point in various industries, the adoption of biodegradable plastics is likely to grow, driven by both regulatory pressures and consumer preferences.

The demand for biodegradable plastic is expected to rise in both developed and developing economies. Major market players are investing significantly into research & development to create innovative biodegradable plastic products that are durable and break down easily in the natural environment. In June 2023, BASF announced the opening of their new Biodegradation and Microplastics Center of Excellence at their Michigan site. The center will focus on comprehending the disintegration performance of compostable materials, biodegradation performance of new chemical compositions, and collecting innovative insights on microplastics.

The Latin America emerged as a promising destination in the market. The availability of cost efficient raw materials is most likely to complement the growth of the market in the region.  Key players operating in the market are BASF, Biome Technologies, Cargill, Danimer Scientific, Eastman Chemical, FKuR Kunststoff, Futerro, NatureWorks, Novamont, Plantic Technologies, PTT MCC Biochem, Synbra Technology, Total Corbion and Trineso.