Compostable Plastics Market Introduction
- Compostable plastics are the next generation of plastics. They come from renewable materials and break down through composting. Compostable plastics are derived from renewable materials such as corn, potato, and tapioca starches; cellulose; soy protein; and lactic acid. Compostable plastics are non-toxic and decompose back into carbon dioxide, water, and biomass when composted.
- Compostable plastics, also known as bioplastics, hold the potential to reduce dependence on fossil fuels, foster the development of more sustainable products, and increase the diversion of food waste from landfills
- Based on type, the global compostable plastics market can be segmented into polylactic acid (PLA), polyhydroxy fatty acid (PHA), thermoplastic (complex) starch, polybutylene succinate (PBS), and others. In terms of end-use, the market can be divided into packaging, textiles, agriculture & horticulture, consumer goods, and others.
Key Drivers of Compostable Plastics Market
- Growth of the packaging industry and presence of strict environmental norms and regulations are key factors driving the compostable plastics market. Climate change issues and the expected scarcity of fossil resources have accelerated the search for better concepts for plastics packaging. Compostable plastics offer qualities similar to that of conventional packaging. Compostable plastics also offer better sustainability.
- Rise in usage of compostable plastics in pharmaceutical applications is expected to boost the market during the forecast period. Compostable plastics are also used in more durable applications such as in textiles, consumer goods, automotive parts and building & construction where the focus is on the use of renewable (bio) resources. Compostable plastics are widely used in residential projects.
Restraints of Compostable Plastics Market
- Fluctuation in prices of raw materials is the key restraining factor of the compostable plastics market. High cost of compostable plastics their conventional counterparts is also hampering the market. Instability in raw material prices is likely to restrict the compostable plastics market. Addition, substitutes developed due to research and development are anticipated to hamper the market during the forecast period.
COVID-19 impact on Compostable Plastics Market
- The COVID-19 outbreak is hampering the demand for compostable plastics in many applications. Governments of various countries across the globe enforced lockdown measures to curb the spread of the disease. This resulted in slowdown and even halt in manufacturing operations; restrictions on supply and transport; and infrastructure slowdown, thereby adversely affecting the demand for compostable plastics.
- Key players operating in the compostable plastics market are primarily tier I and tier II manufacturers and suppliers. Manufacture and supply chain facilities of these are spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of the players halted their production output for a few months due to the COVID-19 pandemic. The pandemic has negatively affected the demand and supply chain of these materials.
- The COVID-19 outbreak has directly affected the production and demand for compostable plastics. The industrial shutdown caused by the pandemic has created disruption in the supply chain. Disruption in supply of raw materials is projected to hamper full-scale operations of companies operating in the market.
Europe to Constitute Significant Share of Global Compostable Plastics Market
- In terms of region, the global compostable plastics market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Europe dominated the global market in 2020. The region accounts for large share of the compostable plastics market. The non-residential sector in Europe is witnessing significant growth due to increase in industrial development.
- Major share of Europe can be ascribed to the increase in awareness about plastic waste and ban on single-use plastics by the European Union. Expansion of the packaging industry is expected to drive the compostable plastics market in Europe during the forecast period.
Competitive Landscape of Global Compostable Plastics Market
- Major players operating in the global compostable plastics market are adopting various organic and inorganic growth strategies such as joint ventures, mergers & acquisitions, expansion, collaborations, new product launches, strategic alliances, and research and development to increase their regional presence and business operations. Currently, the market is witnessing fierce competition among several leading players. Key players operating in the market include:
- Biome Bioplastics
- Toray Industries
- Mitsubishi Chemical Corporation
- Plantic Technologies
- Danimer Scientific
Global Compostable Plastics Market: Research Scope
Global Compostable Plastics Market, by Type
- Polylactic Acid (PLA)
- Polyhydroxy Fatty Acid (PHA)
- Thermoplastic (Complex) Starch
- Polybutylene Succinate (PBS)
Global Compostable Plastics Market, by End-use
- Consumer Goods
- Agriculture & Horticulture
Global Compostable Plastics Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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