Bioplastics market size expected to reach USD 253.98 billion

The bioplastics market size is estimated to reach USD 253.98 billion between 2024-2028, growing at an estimated CAGR of 39.04%, says Technavio.  Developments in bio-based and renewable raw materials drive market growth, with a trend towards consumption of bioplastics in novel applications. 

Increasing focus on sustainability and favorable regulations for green procurement policies also improve market growth. The packaging sector, particularly in food and services, is a significant contributor to this growth. Compostable waste bags improve composting processes and reduce landfill waste, while biodegradable mulch films reduce labor and disposal costs in agriculture.

Bioplastics have expanded into various industries, including food and beverage, automotive, and medical, with applications such as trays, cutlery, cups, dishes, stitching materials, screws, implants, and tires.

Toyota's Environmental Challenge 2050 aims to reduce plastic consumption by 40-50%, creating opportunities for bioplastics. Initially high-cost niche products, bioplastics are expected to become more economical with increased economies of scale and improved performance. Companies like Dell have already started using recycled plastic in manufacturing, potentially saving USD700 million annually in environmental costs if the industry adopts closed-loop recycling. These developments and innovations will positively impact the bioplastics market.

The bioplastics market is witnessing significant growth with key players like Braskem and Arkema leading the charge. Bioplastics, made from renewable feedstocks such as cellulose acetate, sugarcane, corn, and castor oil, offer eco-friendly properties and biodegradability. Notable bioplastics include Polyethylene Furanoate, Polytrimethylene Terephthalate, and Polyethylene Terephthalate. Major applications include packaging, particularly in films and sheets, jars, containers, and bottles for fresh food. Bioplastics are also used in agriculture for mulch films and as shopping bags, refuse bags, and in hygiene applications. Companies like Danone and Nestlé are adopting bioplastics for their sustainable packaging initiatives. The market trends towards circular economy and reducing carbon dioxide emissions. Hybrid material innovations are also gaining traction, combining the best properties of traditional plastics and bioplastics. However, the market faces challenges such as lead time, international borders, and competition from traditional plastics like Polyethylene, Polypropylene, Polyamide, and Polyvinyl Chloride. Despite these challenges, the future of bioplastics looks bright as more businesses embrace the shift towards sustainable and biodegradable products.

Market challenges

- Production costs for bioplastics are significantly higher than conventional plastics, ranging from 25% to 75% more. This is due to the high polymerization costs and the fact that most bioplastic production processes are still in the development stage, lacking economy of scale. Additionally, the required supply chain network is not yet established at upcoming capacity locations. The production technology for bioplastics is also unconvincing as it is still in its infancy, with various raw materials being tested for optimal production. The cost of bioplastics currently ranges from USD2.65 to USD6.68 per kilogram, compared to USD1.65 per kilogram for conventional plastics. Vendors' high production costs, substantial R&D expenses, and the significant price difference between petroleum-based plastics and bioplastics are other reasons for the low demand for bioplastics. These factors are expected to impede the growth of the bioplastics market during the forecast period.

- The bioplastics market is experiencing significant growth in various industries such as consumer goods, textiles, construction, electronics, medical devices, and more. However, challenges persist in the form of consumer acceptance, production costs, and infrastructure development. In the consumer goods sector, bioplastics face competition from conventional plastics and natural fibers. In the electronics industry, nanoparticles and polymer plant construction pose challenges. Production halts due to environmental issues and the need for a paradigm shift towards sustainable alternatives add to the complexity. Cheaper alternatives like starch blends, PBS, PBAT, and PHA are gaining traction. The market for bioplastics in packaging, particularly in food items, beverages, and non-food products, is expanding. However, the lack of composting infrastructure remains a concern. Cornstarch, polylactic acid, bio polyethylene terephthalate, bio polyethylene, and bio polypropylene are key bioplastics used in various applications. The automotive industry and bio-based packaging are also showing potential. Overall, the bioplastics market is evolving, with nature providing the raw materials for a more sustainable future.