Bioplastics Market: By Type (Bio-based Biodegradables (Starch-based, Polylactic Acid (PLA), Polyhydroxy Alkanoates (PHA), Polyesters (PBS, PBAT, and PCL) and Other), Bio-based Non-biodegradables (Bio Polyethylene Terephthalate (PET), Bio Polyethylene, Bio Polyamides, Bio Polytrimethylene Terephthalate and Other)), By Application Type (Packaging, Agriculture, Consumer Durables, Textiles and Others), and Geography

Bioplastics Market size was valued at USD 9,872.1 million in 2023 and is poised to grow at a CAGR of 24.1% from 2024 to 2030. Bioplastics are plastic derived from renewable biological sources, such as corn starch, sugarcane, and cellulose, rather than petroleum-based sources. They are designed to be more environmentally friendly, offering benefits such as reduced carbon footprint and biodegradability. The market includes a variety of bioplastic types, such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), and bio-based polyethylene (PE).

Awareness of environmental hazards due to plastic pollution, coupled with climate change, is acting as a significant driving factor for the market. Various governments and organizations are focusing on sustainable materials to reduce plastic waste generation. For instance, in the year 2019, the European Union decided to issue a Single-Use Plastics Directive to reduce plastic waste through the ban on certain single-use plastic products, further raising the demand for bioplastics as alternatives. Additionally, there is also the consumer demand that is increasing by the day for product packages and products with reduced environmental impact. The change in consumer preference is, hence, a factor that can spur companies into taking up bioplastics in packaging and product making. For instance, Coca-Cola's "PlantBottle," made of partially bio-based material, is a case in point.

However, bioplastics are often more expensive to produce than traditional plastics due to the costs associated with raw materials, processing technologies, and scaling up production. This cost disparity can hinder the market's growth, especially in price-sensitive markets. On the other hand, continuous R&D in bioplastic production technologies holds immense prospects. Innovations in technology-such as enhancing the efficiency of bio-based feedstock conversion or developing new bioplastic blends-make the end products cheaper and improve performance, expanding the range of opportunities of bioplastics.

Bioplastics Market Key Developments

• In 2022, NatureWorks announced the expansion of its production capacity of PLA by adding a new facility based in Thailand, expected to begin operations in 2024 and meet the growing global demand for sustainable bioplastics.
• In 2021, The FDA sanctioned PLA for use in food contact applications in 2021. The approval by the FDA opened wider use of bioplastics in the food and beverage industry for packaging.