Global Biodegradable Plastics Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

 Biodegradable Plastics Market Size

•  The global biodegradable plastics market was valued at USD 24.82 billion in 2024 and is expected to reach USD 100.56 billion by 2032
• During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 19.11%, primarily driven by increasing stringent environmental regulations
• This growth is driven by increasing consumer awareness of sustainable alternatives and rising demand for eco-friendly packaging across industries such as food and beverage, retail, and healthcare

Biodegradable Plastics Market Analysis

• Biodegradable plastics have gained widespread acceptance due to their eco-friendly composition, versatility, and high-performance properties, driving demand across packaging, agriculture, and automotive industries. Their ability to reduce plastic waste, lower carbon footprint, and support circular economy initiatives has reinforced their significance in sustainable manufacturing
• The market is primarily driven by rising consumer awareness, stringent government regulations, and the increasing adoption of compostable packaging solutions. In addition, advancements in polymer technology and investments in bioplastic production are accelerating industry growth
• For instance, in China and India, the demand for biodegradable packaging has surged due to plastic ban, e-commerce expansion, and growing investments in bio-based materials
• Globally, biodegradable plastics continue to play a pivotal role in environmental sustainability, with innovations such as bio-based resins, compostable biopolymers, and enhanced production techniques driving market expansion and long-term adoption

Report Scope and Biodegradable Plastics Market Segmentation     

Biodegradable Plastics Market Trends

“Growing Use of Biodegradable Plastics in Packaging and Consumer Goods”

• The increasing demand for eco-friendly packaging solutions is driving the adoption of biodegradable plastics, particularly in food and beverage and consumer goods industries, where sustainable alternatives are becoming a priority
• Manufacturers are focusing on biopolymer innovations, such as PLA, PHA, and starch-based plastics, to replace traditional packaging materials, reducing plastic waste and aligning with circular economy principles
• The shift toward compostable packaging and bio-based materials is accelerating, as consumers and businesses alike prioritize environmentally responsible products and packaging solutions

For instance,

• In February 2024, Nestlé introduced biodegradable packaging for its new product line, reducing its plastic usage by over 50%
• In November 2023, Coca-Cola announced a partnership with Danimer Scientific to develop PHA-based bottles, aiming to significantly reduce its environmental footprint
• In August 2023, Unilever launched a range of compostable food packaging made from PLA, marking a significant step in its commitment to sustainability

• As regulations tighten and consumer preferences shift toward sustainable alternatives, biodegradable plastics will continue to play a crucial role in transforming the packaging and consumer goods industries, driving innovation and meeting global sustainability targets

Biodegradable Plastics Market Dynamics

Driver

“Increasing Adoption of Biodegradable Plastics in Agriculture”

• The growing demand for sustainable farming practices and eco-friendly alternatives to traditional plastic materials is driving the adoption of biodegradable plastics in agriculture
• Biodegradable mulching films, plant pots, and seedling trays made from bioplastics are becoming increasingly popular due to their ability to reduce soil contamination, improve crop yields, and promote sustainable farming
• The shift towards biodegradable plastics aligns with global efforts to reduce the environmental impact of agricultural practices and plastic waste, supported by both government policies and consumer demand for environmentally friendly products

For instance,

• In February 2024, BASF launched biodegradable mulching films made from PHA to support sustainable farming practices and improve soil health
• In December 2023, Syngenta introduced biodegradable seedling trays that decompose naturally, reducing plastic waste in agricultural fields
• In October 2023, Novamont launched a range of compostable plant pots made from PLA, helping farmers adopt more sustainable practices

• As government regulations on agricultural waste tighten and the sustainability focus increases, biodegradable plastics will play a crucial role in transforming farming practices, reducing plastic pollution, and promoting eco-friendly solutions across the agricultural sector

Opportunity

“Growing Demand for Biodegradable Plastics in the Medical Sector”

• The increasing emphasis on environmentally friendly healthcare solutions and sustainable materials is creating opportunities for biodegradable plastics in the medical sector, particularly in medical packaging and disposable medical products
• With rising concerns over plastic waste and the need for more sustainable medical supplies, biodegradable plastics are becoming increasingly popular in products such as drug delivery systems, surgical instruments, and wound care products
• The ongoing shift towards eco-friendly and biocompatible materials in the healthcare industry is driving demand for biodegradable plastics to replace traditional, petroleum-based plastics in medical devices, ensuring safer and more sustainable healthcare solutions

For instance,

• In January 2024, Johnson and Johnson introduced biodegradable plastic-based medical packaging for surgical tools, aligning with its sustainability goals
• In October 2023, Medtronic announced a new initiative to incorporate biopolymer-based materials in its implantable medical devices, reducing environmental impact
• In July 2023, BD partnered with bioplastics manufacturers to develop compostable syringes, aiming to reduce single-use plastic waste in medical settings

• As the healthcare industry prioritizes environmentally conscious solutions and sustainable practices, biodegradable plastics will present significant growth opportunities, enabling the industry to meet regulatory demands and enhance environmental responsibility

Restraint/Challenge

“Limited Availability of Biodegradable Plastics Recycling Infrastructure”

• The lack of dedicated recycling facilities for biodegradable plastics makes it difficult to implement a closed-loop system, limiting the ability to reuse and recycle these materials effectively
• The biodegradable plastics sector faces challenges in developing adequate infrastructure to handle the diverse range of materials used in packaging, automotive, and consumer goods, which complicates the overall recycling process
• Government regulations requiring companies to meet specific recycling targets are increasing pressure on manufacturers to invest in advanced recycling solutions, which often come at a higher cost

For instance,

• In December 2023, PepsiCo encountered difficulties in composting biodegradable packaging in certain regions due to inadequate composting facilities

• Tackling these infrastructure challenges will be crucial for ensuring the sustainability of biodegradable plastics, allowing for effective recycling and contributing to the global circular economy

Biodegradable Plastics Market Scope

The market is segmented on the basis of product type and application.

Biodegradable Plastics Market Regional Analysis

“North America is the Dominant Region in the Biodegradable Plastics Market”

• North America leads the biodegradable plastics market, driven by strict environmental regulations, rising consumer demand, and strong adoption of sustainable packaging
• The U.S. and Canada dominate the region due to advancements in biopolymer technology, government incentives, and increasing use of eco-friendly materials in agriculture and food packaging
• Growing investments, expanding production facilities, and the integration of biodegradable polymers in retail, healthcare, and automotive applications are fueling market expansion
• In addition, the presence of key market players, rising R&D initiatives, and increasing corporate sustainability commitments contribute to the region’s market leadership

“Asia-Pacific is projected to register the Highest Growth Rate”

• Asia-Pacific is expected to witness the fastest growth in the biodegradable plastics market, driven by rapid urbanization, increasing government support, and rising demand for sustainable alternatives
• China, India, and Japan lead the region due to expanding manufacturing sectors, stricter environmental policies, and growing use of biodegradable materials in packaging, agriculture, and automotive industries
• Advancements in polymer technology, increasing investments, and the widespread adoption of eco-friendly solutions in retail, food service, and consumer goods are accelerating market expansion
• In addition, the presence of key industry players, supportive regulatory frameworks, and increasing corporate sustainability initiatives contribute to the region’s high growth potential

Biodegradable Plastics Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• BASF (Germany)
• NatureWorks LLC (U.S.)
• TotalEnergies (Netherlands)
• Novamont S.p.A. (Italy)
• FkuR (Germany)
• DuPont (U.S.)
• Biome Bioplastics (U.K.)
• Mitsubishi Chemical Group Corporation (Japan)
• TORAY INDUSTRIES, INC. (Japan)
• Dow (U.S.)
• Plantic (Australia)
• Hubei Tianan Hongtai Biotechnology Co., Ltd. (China)
• Danimer Scientific (U.S.)
• Evonik (Germany)
• Eastman Chemical Company (U.S.)
• DAIKIN INDUSTRIES, Ltd. (Japan)
• Solvay (Belgium)

Latest Developments in Global Biodegradable Plastics Market

• In November 2024, Toray Industries, Inc. signed a memorandum of understanding with PTT Global Chemical Public Company Limited (GC) to explore mass production technology for adipic acid derived from non-edible biomass. This partnership aims to evaluate the feasibility of large-scale production in Thailand and Japan, with a target of producing several thousand metric tons of bio-based muconic and adipic acid annually by 2030
• In November 2024, BASF SE introduced an innovative midsole technology called CircleCELL in collaboration with Mount to Coast, a specialist in ultrarunning footwear. The CircleCELL midsole, made from BASF’s biomass-balanced ecoflex BMB biopolymer, offers 90% greater durability than traditional materials such as polyether block amide (PEBA) while maintaining high energy return, promoting both performance and sustainability
• In September 2024, Danimer Scientific and Ningbo Homelink Eco-iTech launched a home compostable extrusion coating biopolymer branded as Nodax. This PHA-based biopolymer is designed as a liquid barrier for paper cups, providing an eco-friendly alternative to traditional polyethylene coatings
• In April 2024, NatureWorks LLC partnered with IMA Coffee to introduce a turn-key compostable coffee pod solution for Keurig brewers in North America. This collaboration, which started in April 2021, combines NatureWorks’ expertise in Ingeo PLA biopolymer with IMA Coffee’s packaging technology to create a sustainable solution that maintains coffee’s taste and aroma
• In March 2024, Beyond Plastic announced a collaboration with CJ Biomaterials to produce biodegradable plastic-based bottle caps. Made from polyhydroxyalkanoate (PHA), a biopolymer derived from natural sources, this bottle cap enhances the functional properties of traditional plastics while offering environmental benefits
• In February 2024, Balrampur Chini Mills Ltd invested USD 267 million (INR 2,000 crore) in bioplastics and is setting up a PLA plant with a production capacity of 75,000 tons per annum   

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