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Manufacturers Invest in New Materials amid Volatile Demand during Coronavirus Pandemic

Due to the COVID-19 outbreak, the demand for plastic and single-use packaging is on the rise. Manufacturers in the PBAT (polybutylene adipate terephthalate) market are taking advantage of this opportunity to work at break-neck speeds to produce shopping bags, packaging solutions, and other polymer-based products. An overall poor market sentiment regarding the demand for products and services is causing a slowdown in the global economy. However, manufacturers are mainly focusing on important industries such as agriculture for mulch films, packaging, and consumer goods in order to keep the economies running.

Apart from maintaining robust supply chains, companies in the PBAT (polybutylene adipate terephthalate) market are making investments to innovate in materials. For instance, the South Korea-based conglomerate SK Group is investing $123 Mn in TBM - a Japan-based startup developing Limex, which is a flexible composite involving PBAT.

pbat (polybutylene adipate terephthalate) market infographic

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PBAT Incorporation Helps Improve Toughness of Blends Containing Brittle Polymers

PBAT is tough and ductile, and can be processed by conventional film extrusion techniques. This helps to yield films with mechanical properties similar to LDPE (low density polyethylene). However, PBAT is relatively stiff when compared to its homopolymers. As such, PBAT incorporation can help improve the toughness of polymer blends that contain brittle polymers such as PLA (Polylactic Acid) or thermoplastic starch (TPS) without interfering with their biodegradability.

Companies in the PBAT (polybutylene adipate terephthalate) market are increasing their research to develop flexible and moldable composites based on calcium carbonate and PBAT. The inexpensive calcium carbonate in combination with PBAT is relatively cost competitive as compared to other biodegradable plastics. On the other hand, manufacturers are increasing their production in packaging films with a blend of PBS (polybutylene succinate) and PBAT.

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Chinese Manufacturers Increasing Exports of 100% Biodegradable Plastic Bags

PLA and PBAT are being highly publicized as biodegradable polymer materials that are playing a pivotal role to minimize global white pollution, which involves pollution caused by conventional plastic. Due to the flexibility and high elongation at break, PBAT and its composite are widely used to develop biodegradable blown films. Chinese manufacturers in the PBAT (polybutylene adipate terephthalate) market are bullish on expanding their business in 100% biodegradable plastic bags based on corn starch, PLA, and PBAT. This is evident since shopping bags are anticipated to dominate the highest revenue share among all application types in the market.

Companies in the PBAT (polybutylene adipate terephthalate) market are increasing their production capabilities in soft and endurable biodegradable plastic bags with suitable strength of pull. Chinese manufacturers are extending their exports in Asia, Eastern Europe, Western Europe, Australia, and North America.

Moisture-proof, Biodegradable Stand-up Pouches Grow Popular for Nuts Packaging

The PBAT (polybutylene adipate terephthalate) market is expected to grow at a robust CAGR of ~8.7% during the forecast period. Manufacturers are bolstering their output capacities in antimicrobial packaging systems that increase the shelf life of foods by inhibiting the growth of microorganisms. This has fueled the demand for antimicrobial PBAT films incorporating different amounts of chitosan nanofibers. Films made from aliphatic polyesters tend to be brittle, and can be overcome by blending PLA with other bio-based polymers such as PBAT. Moreover, improved mechanical and barrier performance of PLA/PBAT/TPS/nanocrystalline cellulose (NCC) nanocomposites have potential use in food packaging applications.

Manufacturers in the PBAT (polybutylene adipate terephthalate) market are producing biodegradable stand up pouches for the packaging of nuts. These compostable pouches involve PLA, PBAT, and corn starch. Manufacturers are increasing the availability of moisture-proof and biodegradable stand up pouches applicable for food packaging. As such, food packages is slated to achieve the second-highest revenue among all application types in the market.

Poor Mechanical Strength in Biodegradable Mulch Films Affecting Demand Trends

The demand for biodegradable mulch films is driven by the amount of residual film in farmland soil in Northwest China, which is significantly higher than that in North China and Southwest China. Such demand and trends are translating into revenue opportunities for manufacturers in the PBAT (polybutylene adipate terephthalate) market. However, manufacturers need to improve mechanical strength in biodegradable mulch films to prevent rupture during various applications. Thus, to achieve this, manufacturers need to invest in R&D to improve mechanical strength in biodegradable mulch films.

Apart from China, biodegradable mulch films are registering high demand in Japan and Europe.

Corn Starch, PLA Reduce Final Cost of PBAT Materials

The attributes of pure PBAT are not enough for consumer acceptance due to its high production cost and low mechanical strength as compared to other conventional plastics. Hence, companies in the PBAT (polybutylene adipate terephthalate) market are increasing their research expenditure to lower production cost and improve mechanical properties in PBAT materials. As such, low cost materials such as starch and reinforcing materials including PLA are emerging as effective strategies to decrease the final price and improve the properties of PBAT materials.

Companies in the PBAT (polybutylene adipate terephthalate) market are taking efforts to meet the international standard of compostable material innovations and earn its certificates. These materials are taking the form of ready-to-use products that can be directly processed on conventional plastic equipment.

PBAT-based Soil-biodegradable Mulch Films Prevent Microplastic Residues

In the face of climate change, several companies in the PBAT (polybutylene adipate terephthalate) market are inching toward establishing a circular economy. Companies such as BASF SE - a Germany-based multinational chemical company, has entered the race to achieve sustainability through soil-biodegradable mulch films for agriculture. Competitor companies in the PBAT (polybutylene adipate terephthalate) market are taking note of such innovations to gain a strong research base in PBAT soil-biodegradable mulch films where soil microbes can use the film as food.

PBAT-based soil-biodegradable mulch films enable microorganisms to use the carbon from the polymer to generate energy and form biomass. Manufacturers are developing PBAT materials that biologically degrade in the soil and do not remain there as microplastic.

pbat (polybutylene adipate terephthalate) market segmentation

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Analysts’ Viewpoint

The demand for single-use plastics and packaging solutions during the coronavirus pandemic is helping to maintain continuous revenue streams in businesses and markets. The PBAT (polybutylene adipate terephthalate) market is estimated to surpass a production of ~577 kilo tons by 2031. Chinese manufacturers are mainly focusing on biodegradable mulch films. There is a need to lower cost of pure PBAT materials. Hence, manufacturers should use corn starch and PLA to lower final cost of PBAT materials. In addition, the PBAT-based biodegradable mulch films are being used for intelligent packaging of fruits and vegetables to avoid food wastage. Fruit and vegetable bags made from these films deliver better water vapor and oxygen transmission rates.

PBAT (Polybutylene Adipate Terephthalate) Market: Overview

  • PBAT (Polybutylene Adipate Terephthalate) is a semi-aromatic, biodegradable thermoplastic polyester that can be easily molded and thermoformed. It is produced by random co-polymerization of 1,4-butanediol, adipic acid, and dimethyl terephthalate (DMT) monomers. Pure PBAT is a type of PBAT that has the lowest water absorption due to its high hydrophobicity.
  • According to Transparency Market Research’s latest research report on the global PBAT market for the actual year 2020 and the forecast period of 2021 to 2031, rise in usage of PBAT in end-use industries such as packaging, agriculture & fishery, and consumer goods is a key factor likely to boost the global PBAT market during the forecast period
  • In terms of revenue, the global PBAT market is estimated to reach US$ 2 Bn by 2031, expanding at a CAGR of 8.7% during the forecast period

Growth of Agriculture Industry: Key Driver of PBAT (Polybutylene Adipate Terephthalate) Market

  • The usage of PBAT has been rising significantly in the agriculture industry, especially in developed and developing economies such as the U.S., the U.K., China, Russia, Brazil, South Africa, India, and Japan. Growth of the industry can be ascribed to the increase in usage of mulch films in soil and rise in government initiatives in growing markets such as India to encourage foreign investments in the agriculture industry.
  • Farming is a widely adopted profession in the modern economy. It holds a strong position in the global economy. Consumption of crops for food, animal feed, and fuel has been rising across the globe. This trend of increase in crop consumption is expected to continue during the forecast period.
  • Growth of urban population and rise in income of the people have boosted the demand for higher-value food products (including ready-to-eat food). Farmers across the globe are modernizing their farming techniques to enhance crop yield in order to meet the rising demand for food and increase their farming incomes. PBAT is a biodegradable polymer made from renewable raw materials. It is widely used in the farming industry as mulch film for soil protection. Thus, rise in demand for PBAT in the agriculture industry is fueling the PBAT market.

Expansion of Packaging Industry

  • The packaging industry has been expanding at a consistent pace since the past few years. The food & beverages industry has been a key driver of the packaging industry. Expansion of the packaged food industry is anticipated to boost the demand for paperboard packaging during the forecast period.
  • PBAT is used in packaging of consumer goods. Market share of the application is projected to rise in the near future.
  • Minimalistic packaging design that is elegant and simple; and creation of appealing esthetics by eliminating non-essential content are estimated to be key trends over the next few years. Growth of the packaging industry is one of the key drivers of the global PBAT market, as PBAT is widely used in food packaging. Rise in demand for packaged food is also projected to drive the PBAT market.

Packaging Dominated PBAT (Polybutylene Adipate Terephthalate) Market in 2020

  • In terms of end use, the packaging segment held major share of the PBAT market in 2020. The packaging segment is expected to expand at a CAGR of 9.2% during the forecast period.
  • Other highly lucrative segments of the PBAT market include consumer goods and agriculture & fishery

PBAT (Polybutylene Adipate Terephthalate) Market: Competition Landscape

  • Detailed profiles of providers of PBAT have been included in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the global PBAT market are
    • BASF SE
    • Feddersen Group
    • JinHui ZhaoLong High Technology Co., Ltd.
    • EASTMAN CHEMICAL COMPANY
    • FillPlas Co. Ltd.
    • GO YEN CHEMICAL INDUSTRIAL CO LTD (GYC Group)
    • Chang Chun Group
    • Amco Polymers

PBAT (Polybutylene Adipate Terephthalate) Market: Key Developments

  • Key providers of PBAT, such as BASF SE, Feddersen Group, and FillPlas Co. Ltd. are focusing on the expansion of PBAT, owing to the rise in demand for PBAT application. Other prominent developments in the PBAT market across the globe are highlighted below:
    • On January 31 2020, BASF SE closed the acquisition of Solvay’s polyamide business (PA 6.6). The acquisition helped the company expand its position in Asia and as well as North and South America. The acquisition between BASF SE and Solvay included eight production sites in Germany, France, China, India, South Korea, Brazil, and Mexico. It also helped the company establish research and development centers in Asia and the Americas.
  • In the global PBAT market report, we have discussed individual strategies, followed by company profiles of providers of PBAT. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global PBAT market.

PBAT (Polybutylene Adipate Terephthalate) Market – Scope of Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global PBAT market in order to accurately gauge its future growth. The study presents detailed information about the important growth factors, restraints, and trends that are creating a landscape for the growth of the global PBAT market so as to identify growth opportunities for market stakeholders. The report also provides insightful information about how the global PBAT market would expand during the forecast period of 2021 to 2031.

The report offers intricate dynamics about different aspects of the global PBAT market, which aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on significant changes that are highly anticipated to configure growth of the global PBAT market during the forecast period. It also includes a key indicator assessment that highlights growth prospects of the global PBAT market and estimates statistics related to growth of the market in terms of volume (kilo tons) and value (US$ Mn).

This study covers a detailed segmentation of the global PBAT market, along with key information and competition outlook. The report mentions company profiles of players that are currently dominating the global PBAT market, wherein various development, expansion, and winning strategies practiced and implemented by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on PBAT (Polybutylene Adipate Terephthalate) Market

The report provides detailed information about the global PBAT market on the basis of comprehensive research on various factors that are playing a key role in accelerating the growth potential of the global market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in the global PBAT market, so as to help them design successful strategies and make target-driven decisions.

  • Which end use segment of the global PBAT market would emerge as major revenue generator during the forecast period?
  • How are key market players successfully earning revenue out of advantages of PBAT?
  • What would be the Y-o-Y growth trend of the global PBAT market between 2021 and 2031?
  • What are the winning imperatives of leading players operating in the global PBAT market?
  • Which application segment is expected to create lucrative opportunities for the global PBAT market during the forecast period?
  • Which are the leading companies operating in the global PBAT market?

Research Methodology – PBAT (Polybutylene Adipate Terephthalate) Market

The research methodology adopted by analysts for compiling the global PBAT market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible sources, analysts have offered riveting observations and authentic forecast for the global PBAT market.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine sources, analysts have emphasized the changing scenario of the global PBAT market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global PBAT market.

PBAT (Polybutylene Adipate Terephthalate) Market – Segmentation

TMR’s research study assesses the global PBAT market in terms of type, application, end use, and region. The report presents extensive market dynamics and trends associated with different segments of the market and how they are influencing growth prospects of the global PBAT market.

Type
  • Pure PBAT
  • Modified/Blended PBAT
Application
  • Shopping Bags
  • Food Packages
  • Mulch Films
  • Garbage/Bin Bags
  • Others (Cutlery)
End Use
  • Packaging
  • Agriculture & Fishery
  • Consumer Goods
  • Others (Polymer)
Region
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

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