July 24, 2024
Biodegradable Foam Market

Biodegradable Foam Market is Estimated To Witness High Growth Owing To Expanding Bioplastics Industry

The biodegradable foam market is estimated to be valued at US$ 906.1 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:-

Biodegradable foam products are made from renewable and biodegradable materials such as starch, cellulose, polylactic acid, and polyhydroxyalkanoates. These foams can degrade in composting facilities or landfills naturally without harming the environment. They provide cushioning, insulation, and packaging properties similar to conventional petroleum-based foams. Their increased usage helps in reducing dependence on non-renewable plastic foams.

Market key trends:-

One of the major market trends driving the biodegradable foam market is the expanding bioplastics industry. Bioplastics are plastics derived from renewable biomass sources such as vegetable fats and oils, corn starch, or microbiota. Biodegradable foams are derived from biopolymers such as polyhydroxyalkanoates, polylactic acid, and starch blend. Increasing legislative push for use of eco-friendly and compostable materials in packaging is propelling demand for biodegradable foams from packaging industry players. Major brands are opting for biodegradable foams for packaging in order to improve their environmental credibility.

Porter’s Analysis:-

  • Threat of new entrants: Low capital requirements and cost advantage means threat is high.
  • Bargaining power of buyers: Large number of buyers for biodegradable foam means their bargaining power is high.
  • Bargaining power of suppliers: A few major suppliers for raw materials means their bargaining power is high.
  • Threat of new substitutes: Bioplastics are emerging as major substitutes.
  • Competitive rivalry: Intense competition among existing players to gain market share.

SWOT Analysis:-

  • Strengths: Biodegradability and sustainability are major strengths.
  • Weaknesses: High production costs and limited applications are weaknesses.
  • Opportunities: Growing environmental concerns offer opportunities.
  • Threats: Substitution threat from bioplastics and stringent regulations pose threats.

Key Takeaways:

The Global Biodegradable Foam Market Demand is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing concern for sustainability and demand for eco-friendly packaging solutions. Regionally, Europe dominated the market in 2023 with over 30% share due to stringent regulations. Asia Pacific is projected to be the fastest growing market during the forecast period due to growth in end use industries in nations like China and India.

Key players operating in the biodegradable foam market are BASF SE, Arkema SA, Dow Chemical Company, Synbra Technology BV, and Sekisui Alveo AG. BASF SE is the global leader with over 20% market share owing to its wide product portfolio and international presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it