by The plant based plastic market, also known as the green plastic market, has seen tremendous growth in recent years. Plant based plastics are made from renewable biomass sources like vegetable oils and starches from corn, sugarcane and other plants. They provide an eco-friendly and sustainable alternative to traditional plastics which are primarily derived from fossil fuels. Key advantages of plant based plastics include biodegradability, lower petroleum dependency and reduced greenhouse gas emissions. They can be used across various applications in packaging, textiles, transportation, consumer goods and more. Continued consumer demand for sustainable products and government push for reduced plastic waste have boosted adoption of these sustainable materials.
The Global Plant Based Plastic (Green Plastic) Market is estimated to be valued at US$ 1.88 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the plant based plastic market are Corbion, BASF, TotalEnergies Corbion, Mitsubishi Chemical Corporation, NatureWorks LLC, Novamont S.p.A., Eastman Chemical Company, Braskem, Danimer Scientific, Green Dot Bioplastics, SABIC, Futerro, Genomatica, Toray Industries, Inc., Biome Bioplastics, Kaneka Corporation, Arkema, and PTT MCC Biochem Co., Ltd.
Corbion, BASF, TotalEnergies Corbion and Mitsubishi Chemical Corporation are among the leading players in the global green plastic market, with BASF in particular having a wide portfolio of bio-based and biodegradable polymers. These major players are investing heavily in R&D to develop innovative plant based solutions.
Growing demand: Rapid depletion of fossil fuels and increasing global focus on sustainability have boosted demand for Plant Based Plastic (Green Plastic) Market Demand alternatives. Various end-use industries are actively adopting green plastics to meet sustainability targets and green procurement guidelines.
Global expansion: Leading manufacturers are expanding globally through new production facilities and partnerships to capitalize on the immense growth opportunities. The market is expected to witness fastest growth in Asia Pacific and South America regions over the forecast period.
Market key trends
One of the major trends driving the Plant Based Plastic (Green Plastic) Market Size And Trends is increased regulations against single-use plastic items. Several countries and states have imposed bans or taxes on fossil fuel-based plastic bags, straws, utensils and other disposable products. This is positively impacting the demand for compostable and biodegradable plant based plastic alternatives. Stringent standards along with supportive government policies will continue shaping long term growth prospects of the market.
Porter’s Analysis
Threat of new entrants: Low capital requirements to enter this market encourages more players to enter. However, established brands have strong hold on the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes but rising awareness about sustainability increases dependency on plant-based plastics.
Bargaining power of suppliers: Suppliers have high bargaining power due to limited availability of key raw materials and need for adherence to strict processing standards.
Threat of new substitutes: Threat from new substitutes is high as R&D leads to availability of advanced substitutes with better properties.
Competitive rivalry: Intense due to presence of global leaders and local small players catering to diversified application segments.
North America accounts for over 35% of the global plant-based plastic market value owing to strong government support through mandates and subsidies. The US market stood at $420 million in 2021 and is expected to grow at a CAGR of 13% during the forecast period driven by its packaging and automotive industries rapidly replacing conventional plastics with green alternatives.
Asia Pacific region holds the largest market share globally and the value is estimated to reach $1 billion by 2029 with China alone representing more than 25% share. Growth of industries like packaging, electronics and electrical appliances along with rising disposable incomes and awareness among consumers will fuel market growth in the region. Countries like India and Indonesia are emerging as fast growing markets in Asia due to rapid industrialization and implementation of plastic bans.
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*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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