Bioplastics are sustainable and biodegradable alternative to conventional plastic which are primarily derived from petroleum sources. Bioplastics are traditionally made from renewable biomass sources like corn starch, potato starch, tapioca roots, chips or starch, vegetable fats and oils, lignocellulose, and polylactic acid polymers derived from corn or sugarcane. Bioplastics have significantly lower carbon footprint and their production requires less energy. The global Bioplastics Market is estimated to be valued at US$ 9.5 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for sustainable polymers from packaging and food and beverage industries is the key trend fueling the growth of bioplastics market. Bioplastics offer viable alternatives to conventional plastics used for food packaging, take away containers, bottles and other single-use food containers and utensils. Their compostable and biodegradable property addresses the issues related to non-biodegradability of traditional plastics and increasing plastic wastes. The stringent regulations on use of single-use plastics in many countries is driving growth in demand for bioplastic-based sustainable polymers from FMCG and food packaging companies. The market players are investing in capacity expansion to cater to this growing demand.
Segment Analysis
The bioplastics market is primarily segmented into biodegradable and non-biodegradable plastics. Biodegradable plastics dominated the market and accounted for over 60% share in 2024. These plastics decompose and break down into water, carbon dioxide or methane in the presence of oxygen. They are commonly used in packaging for food and beverages, agriculture and horticulture applications. Within biodegradable plastics, polylactic acid emerged as the fastest growing segment during the forecast period due to its increasing adoption in rigid packaging of food & non-food products and 3D printing filaments.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the bioplastics market is moderate. Establishing manufacturing plants require large capital investments and R&D which pose significant barriers. However, lucrative growth prospects and increasing government support attract new players.
Bargaining power of buyers: The bargaining power of buyers in the bioplastics market is high. Buyers can negotiate on price and demand value-added benefits due to availability of substitutes. Brand loyalty is low as buyers frequently switch between brands based on prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major raw material suppliers possess strong bargaining power due to limited availability of crop resources and developing technology. However, growing number of suppliers has reduced individual supplier control over prices.
Threat of new substitutes: Threat of new substitutes is high. Ongoing R&D has increased substitutes like recycled plastics. Performance improvements and cost reductions of substitutes results in consumers switching over easily.
Competitive rivalry: Competition in the market is high and expected to intensify further with entry of regional and local players. Players compete based on product innovation, pricing, and quality.
SWOT Analysis
Strength: Bioplastics are renewable, biodegradable and compostable which appeal to eco-conscious consumers. They help reduce dependence on oil and reduce carbon footprint.
Weakness: High production costs and limited availability of raw materials restrict market growth. Performance inferiority over conventional plastics is another limitation.
Opportunity: Government support through subsidies and policies promoting sustainable materials offer opportunities. Growing demand from packaging and agriculture industries will drive market expansion.
Threats: Substitution threat from recycled plastics and preference for conventional plastics in certain applications can hamper growth. Volatility in raw material prices is another threat.
Key Takeaways
The Global Bioplastics Market Share is expected to witness high growth over the forecast period from 2024 to 2031 registering a CAGR of 4.1% driven by government initiatives and consumer preference for sustainable products.
Regional analysis: North America dominates the bioplastics market with a share of over 30% in 2024 owing to stringent regulations to curb carbon emissions and pollution. Asia Pacific is expected to witness fastest growth over the forecast period back by rapid industrialization and increasing R&D activities in countries like China, India, Thailand and Indonesia.
Key players: Key players operating in the bioplastics market are BASF SE, Braskem S.A., Corbion N.V., Natureworks LLC, Novamont S.p.A, Dow Inc., Solvay, etc. Major players are focusing on expanding their product portfolios and building strategic partnerships to strengthen their market position.
Get More Insights Here
https://www.trendingwebwire.com/bioplastics-market-size-share-growth-outlook-2023/
https://techaxen.com/mesenchymal-stem-cells-the-future-of-regenerative-medicine/
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