Polybutylene Adipate Terephthalate (PBAT) Market: By Application (Composite Bags, Coatings and Adhesive, Molded Products, Fibers, Bin Bags, Mulch Films, Cling Films, Stabilizers, Others), By End-User Outlook (Packaging, Agriculture and Fishery, Consumer goods and Homecare, Biomedical, Others), By Grade (Thermoforming Grade, Extrusion Grade, Others) and Geography

Polybutylene Adipate Terephthalate (PBAT) Market was valued at USD 1,430.2 million in 2022 and is poised to grow at a significant CAGR of 13.5% over 2023-2029. Polybutylene adipate terephthalate (PBAT) is a copolymer that is a biodegradable, semi-aromatic thermoplastic that is highly flexible, and tough and has a wide range of applications in packaging materials, biomedical products, industrial composting and hygiene products. These novel properties of PBAT make it an ideal choice for manufacturers to make biodegradable products and its packaging to cater to rising environmental issues caused by non-degradable plastics. According to Statista, each year more than 430 million tons of plastic is produced, out of this two third is one time use plastics. In addition, 11 million metric tons of plastic enter our oceans each year. PBAT provides a versatile option for these nonbiodegradable plastics owing to its properties like biodegradability, composability, being a renewable resource and providing a good barrier against gases and liquids helping to extend the shelf life of packaged goods and food items.

Due to its adaptability and hardness, it is used in manufacturing products such as cling films, composite bags, bin bags and mulch films. PBAT products are rapidly gaining popularity in the market owing to the increasing adoption of biodegradable plastics across the globe, increasing awareness among people, demand for high-quality food and preference for biodegradable mulch films in agriculture. But the lockdown imposed due to the COVID-19 pandemic has resulted in decreased demand for PBAT products, also, the revenue growth of PBAT has reduced owing to its high costs, availability of cheaper substitutes, supply chain disruption and more preference for cheaper and conventional non-biodegradable plastics. However, the market is expected to revive owing to the high demand from end-user industries, rise in biodegradable plastic in packaging, increase in preference for packaged food, favourable government policies towards green procurement, profitable opportunities to the market players are expected to fuel the polybutylene adipate terephthalate (PBAT) market in the forecast years. Furthermore, countries like India in 2022, Zimbabwe in 2017 and several countries are imposing a total ban on the use of single-use plastics thus further increasing the polybutylene adipate terephthalate (PBAT) market.

Polybutylene Adipate Terephthalate (PBAT) Market Key Developments:

• In August 2022, Reliance Industries Ltd (RIL) developed a biodegradable and compostable polymer PBAT to replace fossil fuel-based raw material into a sustainable substitute.
• In September 2021, LG signed an MOU for eco-friendly biodegradable material (PBAT) with TK Chemicals