March 1, 2024
Biopolymers Market

Biopolymers Market Poised To Capture Double Digit Growth Driven By Biodegradability

Biopolymers are the alternative to traditional plastics derived from fossil fuels and are produced either from renewable feedstock like vegetable oils, corn starch, pea starch, wheat gluten or from bacterial fermentation of cane sugar. Some key advantages of biopolymers include biodegradability, compostability, non-toxic nature and renewability. Growing environmental concerns regarding sustainability and disposal of conventional plastics along with stringent regulations on single use plastics have boosted demand for biodegradable alternatives.

The global Biopolymers Market is estimated to be valued at US$ 17428.96 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the biopolymers market is growing adoption of bioplastics for packaging applications. Packaging industry is the largest end-use segment for bioplastics as it helps reduce post-consumer plastic waste. Factors like convenient disposal options through composting and renewability make bioplastics suitable for sustainable and eco-friendly food packaging. Rise in number of regulations banning single use plastic packaging along with initiatives by retailers to opt for greener packaging has fueled consumption of bioplastic films, bags, clamshells etc. for food packaging. Additionally, expanding e-commerce sector boosting demand for sustainable shipping envelopes and mailers has opened growth avenues for bioplastic producers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants into the biopolymers market is moderate. Significant capital investment is required along with established distribution channels which act as a barrier.

Bargaining power of buyers: The bargaining power of buyers is moderate. The presence of numerous alternative materials puts pricing pressure on biopolymers however demand is increasing for sustainable options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as key raw materials such as polylactic acid, starch blends and cellulose are produced by a select group of suppliers globally.

Threat of new substitutes: The threat of substitutes is moderate as other eco-friendly materials can replace biopolymers for certain applications however biopolymers have advantages over synthetic polymers.

Competitive rivalry: The competitive rivalry in the market is high due to presence of numerous global and regional players. Companies compete on innovation, pricing and brand positioning.

Key Takeaways

The Global Biopolymers Market Size is expected to witness high growth over the forecast period supported by increasing demand for sustainable packaging solutions. The global Biopolymers Market is estimated to be valued at US$ 17428.96 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.

North America currently accounts for a significant share of the global biopolymers market led by the US where brands are actively replacing single use plastics. Stringent government policies related to packaging waste management in the European Union are also propelling biopolymers consumption

The European region currently dominates the market owing to stringent regulations and presence of major biopolymer producers. Expanding domestic demand is expected to drive fastest growth in the Asia Pacific region going forward.

Key players operating in the biopolymers market are BASF SE, NatureWorks LLC, Braskem S.A., Novamont S.p.A., Du Pont, Plantic Technologies Ltd, Archer Daniels Midland Company and Danimer Scientific. Companies are investing significantly in capacity expansion projects and new product launches to capitalize on the fast growing biopolymers demand across industries.

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