Published: Mar, 2018
The global biodegradable plastics market is gaining momentum on account of the nascent technologies forged by the market vendors. Moderate level of competition is expected to be a key highlight of the market over the coming years. The price sensitivity of the raw materials ensures that the competitors do not engage in intense or cut-throat competition. Moreover, the pricing strategies adopted by market players has also been a defining factor in keeping the level of competition under control. In 2014, 33% of the total market share was collectively held by the following three market players: Corbion, BASF SE, and NatureWorks LLC. It is evident that these market players have attained a plush level of reckon across the market and are expected to influence the growth of the market over the coming years. Furthermore, other market players are also expected to introduce key business strategies to enhance their prospects of growth over the coming years. Since the market for biodegradable plastics is closely related to the domain of environmental conservation, the market players are expected to bank on the initiatives of governments and environmentalists to encourage the use of biodegradable plastics.
Transparency Market Research (TMR) produced a report that estimates the growth rate of the market over the period from 2015 to 2023. According to the report, the global market for biodegradable plastics is projected to grow at a robust CAGR of 9.90% over the forecast period. The market value is expected to reach US$17.66 bn by the end of 2023 elevating from a value of US$9.10 bn in 2016. The market is currently dominated by the polylactic acid-based biodegradable plastics segment but the starch-based biodegradable plastics segment is expected to outdo the former over the coming years. Starch-based biodegradable plastics segment is projected to reach a value of US$6.36 bn by the end of 2023.
Government Initiatives Aid Market Growth
Protection of the environment should be given utmost importance in order ensure a sustainable future for the planet. However, the negligence of the masses along with activities that degrade the natural cover have already placed a negative toll on the environment. Hence, governments and environmentalists have begun emphasizing on the need to put an end to the degradation of the environment. This has given an impetus to the market for biodegradable plastics that serve advantages for the environment as against other plastic wastes. Governments across the world are encouraging the use of biodegradable plastics by imposing restrictions on the use of other forms of plastics. Moreover, the quest of the industrial units to fulfil their Corporate Social Responsibility (CSR) has also driven demand within the global market for biodegradable plastics.
High Price Could Obstruct Affluent Growth
Despite the affluent growth of the market, certain factors act as obstructions for the market. The foremost factor that hampers the growth of the market is the high price of biodegradable plastics. The complex manufacturing processes along with the volatility of raw materials used to manufacture biodegradable plastics is the reason behind the increased prices.
Governments in the European countries are making concerted efforts eliminate non-biodegradable plastics from the environment. Several bodies have been established to ensure that there is minimal plastic waste disposed in the environment, and biodegradable plastics are used in majority of the sectors.
The review is based on a market research report titled ‘Biodegradable Plastics (Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Polybutylene Succinate (PBS), Polycaprolactone (PCL), Starch-based, and Regenerated Cellulose) Market for Packaging, Textile, Agriculture, Injection Molding, and Other Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023’.
Key segments of the Global Biodegradable Plastics Market
- Biodegradable Plastics Market – Product Segment Analysis
- Polylactic Acid
- Polybutylene Succinate
- Regenerated Cellulose
- Biodegradable Plastics Market - Application Analysis
- Injection Molding
- Others (Including Electronic, Medical, etc.)
- Biodegradable Plastics Market - Regional Analysis
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA
- North America
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