by The global biodegradable plastics market size reached USD 4.79 billion in 2024 and is projected to reach around USD 19.41 billion by 2034 with a CAGR of 15.28%.
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Key Points
- Europe accounted for the largest market share of 42.14% in 2024.
- The Asia Pacific region is projected to grow at the highest CAGR during the forecast period.
- The starch-based segment dominated the market by type in 2024.
- The Polyhydroxyalkanoate (PHA) segment is expected to witness the fastest CAGR over the forecasted period.
- The packaging segment held the highest revenue share among end-use industries in 2024.
- The agriculture segment is forecasted to experience the fastest CAGR between 2025 and 2034.
Market Scope
| Report Highlights | Details |
| Growth Rate from 2025 to 2034 | CAGR of 15.28% |
| Market Size in 2024 | USD 4.79 Billion |
| Market Size by 2034 | USD 19.41 Billion |
| Largest Market | Europe |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | By Vehicle Class, and By Architecture |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Market Dynamics
Market Drivers
The biodegradable plastic market is driven by increasing environmental concerns and stringent regulations on plastic waste management. Governments worldwide are imposing bans and restrictions on conventional plastic usage, leading to a surge in demand for sustainable alternatives. The growing consumer awareness regarding eco-friendly products is further fueling market expansion. Additionally, advancements in bioplastic production technology and cost reduction in biodegradable materials are enhancing their adoption across various industries, including packaging, agriculture, and textiles.
Market Opportunities
The rising adoption of biodegradable plastics in emerging economies presents a significant opportunity for market growth. Increasing investments in research and development are leading to innovative biodegradable plastic solutions with improved durability and performance. Expanding applications in sectors such as medical devices, automotive, and electronics are also creating new growth avenues. Additionally, the growing trend of corporate sustainability initiatives and eco-conscious branding by major companies is expected to drive demand for biodegradable plastics in the coming years.
Market Challenges
Despite the promising growth, the biodegradable plastic market faces challenges such as high production costs and limited infrastructure for composting and recycling. Many biodegradable plastics require specific conditions to break down efficiently, and the lack of proper waste management systems hinders their widespread adoption. Furthermore, competition from traditional plastics, which remain cheaper and more accessible, presents a significant barrier to market penetration.
Regional Insights
Europe leads the biodegradable plastic market due to strict environmental regulations, strong consumer awareness, and government policies promoting sustainable packaging. Asia Pacific is expected to grow at the fastest rate, driven by increasing industrialization, rising environmental concerns, and government initiatives supporting eco-friendly materials. North America also holds a significant market share, with the United States and Canada implementing various sustainability programs and incentives for biodegradable plastic production.
Biodegradable Plastic Market Companies
- Biome Technologies plc
- Mitsubishi Chemical Corporation
- BASF SE
- Plantic Technologies Limited
- Yield10 Bioscience, Inc.
- Corbion
- Eastman Chemical Company
- Dow Inc.
- NatureWorks LLC
- Danimer Scientific
- Toray Industries, Inc.
- p.A.
- TianAn Biologic Materials Co., Ltd.
Recent Developments
- In December 2023, with the introduction of a new end-to-end licensed technology called CAPSULTM for the continuous manufacturing of polycaprolactone (PCL), a biodegradable polyester frequently used in the packaging, textile, agricultural, and horticultural industries, Swiss technology company Sulzer is broadening its line of bioplastics.
- In February 2024, leading South Korean chemical manufacturer LG Chem Ltd. and food and biotechnology company CJ CheilJedang Corp. have partnered to establish an environmentally friendly bio-nylon joint venture in an effort to reduce carbon emissions and generate new revenue. The CEOs of the two companies, LG Chem and CJ CheilJedang, announced on Thursday that they had inked a head of agreement (HOA) to construct a joint venture plant that would manufacture environmentally friendly nylon using PMDA, or bio-materials made from fermenting corn, sugarcane, and other crops.
Segments Covered in the Report
By Type
- Starch-based
- PBS
- PLA
- PHA
- PBAT
- Others
By End-User
- Consumer Goods
- Agriculture
- Packaging
- Others
By Regional Outlook
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of the World
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