July 11, 2024
Thermoplastic Starch (TPS) Market

The Thermoplastic Starch Market is Estimated To Witness High Growth Owing To Rising Environmental Concerns

The Thermoplastic Starch Market is estimated to be valued at US$ 233.41 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Thermoplastic starch is a biodegradable and renewable polymer material made by melt-processing starch with a plasticizer at high temperatures. It has properties similar to conventional plastics but is environmentally friendly. Thermoplastic starch is used in packaging films, bags, containers etc. due to its decomposability and sustainability.

Market key trends:
One of the major trends driving the growth of the thermoplastic starch market is rising environmental concerns regarding plastic waste. Plastics are non-biodegradable and their accumulation in landfills and oceans is causing tremendous damage. This has increased the demand for biodegradable and sustainable alternatives like thermoplastic starch. Governments across the world are also promoting the use of biodegradable materials through various policies and regulations regarding single-use plastic usage which is boosting the adoption of thermoplastic starch.

Porter’s Analysis

Threat of new entrants: Low capital requirements and lack of proprietary technology pose low barriers of entry. However, established players and brand loyalty pose threats.

Bargaining power of buyers: Large buyers such as food & beverage manufacturers have significant bargaining power due to large order volumes. However, easy availability of substitutes provides some balance.

Bargaining power of suppliers: A few large suppliers of raw materials exert pricing pressures. However, easy access to suppliers and raw materials mitigates the threat.

Threat of new substitutes: Bioplastics, paper, alternatives provide substitutes but require changes in manufacturing infrastructure.

Competitive rivalry: Intense competition exists among existing players to grow market share.

SWOT Analysis

Strengths: Biodegradable, recyclable, environment-friendly properties suit sustainable development goals. Ability to partially replace petroleum-based plastics provides an advantage.

Weaknesses: High raw material costs, limited applications compared to alternatives. Processing requires specialized production facilities.

Opportunities: Growing preferences for eco-friendly substitutes to single-use plastics from F&B and packaging sectors present opportunities. Supportive regulations promote adoption.

Threats: Alternatives like PLA offer substitutes. Economic slowdowns impact market growth.

Key Takeaways

The global thermoplastic starch market is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing regulations banning single-use plastics and adoption of sustainable solutions. The market size for 2023 is US$ 233.41 Mn.

Regionally, Asia Pacific dominates currently due to rising food packaging demand from abundant population and fast-growing F&B industries. Strict plastic waste management rules especially in India and China fuel regional growth.

Key players operating in the thermoplastic starch market are AGRANA Beteiligungs AG, Biome Bioplastics Limited, BIOTEC, Cardia Bioplastics, Novamont SpA, Kuraray Co. Ltd (Plantic), Rodenburg Biopolymers, and Wittenburg Group. Leading manufacturers focus on R&D to develop modified variants with customized properties and wider application scope.

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