SEA Biodegradable Plastics Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), Starch Blends, and Others), By Application (Packaging, Agriculture, Consumer Durable, Textile, and Others), and Country Forecast 2020-2031

SEA Biodegradable Plastics Market size was valued at US$ 583.5 million in 2024 and is projected to reach US$ 949.3 million by 2031 at a CAGR of 7.2% from 2025-2031. The market refers to the production, distribution, and application of eco-friendly plastics that naturally decompose through biological processes within a short period of disposal.

The market is being fueled by rising environmental awareness, increasing plastic waste regulations, and growing demand for sustainable alternatives across packaging, agriculture, and consumer goods. The region’s governments are pushing bans and taxes on conventional single-use plastics, creating a policy environment that favors biodegradable solutions. Large multinational companies and regional manufacturers are also switching to bio-based packaging to meet sustainability goals. Urbanization, tourism growth, and e-commerce are further adding to plastic consumption, increasing the urgency for greener materials.

However, market growth is hindered by the relatively high production costs of biodegradable plastics, limited industrial composting infrastructure, and inconsistent consumer education. Many consumers remain unaware of how to dispose of biodegradable materials properly, weakening their environmental benefit. Furthermore, the competition from conventional plastic remains strong due to lower pricing and established supply chains. Despite these restraints, continued policy support and innovation in materials like PLA and PHA are expected to drive market expansion in the years ahead.

Facts & Figures

• Decomposition Rate: Most industrial-grade biodegradable plastics like PLA and PBAT degrade within 90 to 180 days under controlled composting conditions—significantly faster than conventional plastics, which can take 500–1,000 years.
• Cost Gap: Biodegradable plastics typically cost 1.5 to 3 times more than traditional polyethylene or polypropylene, depending on the feedstock and region of manufacture.
• Plastic Waste Crisis: Southeast Asia contributes to over 30% of global ocean plastic leakage, with countries like Indonesia, Vietnam, and the Philippines among the top contributors—accelerating the shift toward sustainable alternatives.
• Policy Coverage: At least 5 SEA countries (Thailand, Vietnam, Malaysia, Indonesia, and the Philippines) have implemented or proposed bans on single-use plastics, creating a favorable regulatory landscape for biodegradable materials.

Key Developments

• In June 2025, Total Corbion PLA expanded its PLA production capacity in Rayong, Thailand, aiming to double output and support Southeast Asian demand for compostable plastics in food service and flexible packaging.
• In May 2025, Green Hope partnered with Indonesian retailers to roll out oxo-biodegradable shopping bags nationwide, replacing conventional polyethylene in over 300 store locations.
• In April 2025, Danimer Scientific initiated a feasibility study with Vietnamese stakeholders to set up a localized production unit for PHA-based biopolymers using tapioca starch as feedstock.
• In March 2025, Minima Technology launched compostable multilayer packaging film in Malaysia, designed specifically for small-format snack and food packaging under tropical conditions.

Sea Biodegradable Plastics Market Segmentation

Based on the type

• Polylactic Acid (PLA)
• Polybutylene Adipate Terephthalate (PBAT)
• Polybutylene Succinate (PBS)
• Polyhydroxyalkanoates (PHA)
• Starch Blends
• Others

Polybutylene Succinate (PBS) is a bio-based, biodegradable polyester known for its excellent thermal resistance and processability, making it suitable for injection molding and film applications. In Southeast Asia, PBS is gaining popularity as an alternative to conventional plastics in single-use cutlery, packaging films, and agricultural mulch. It biodegrades efficiently under industrial composting conditions and has a mechanical strength similar to that of polypropylene. PBS’s compatibility with starch blends further enhances its biodegradability and cost-effectiveness. As countries like Indonesia and Thailand invest in green materials, PBS-based products are becoming more common in food packaging and farming. Its balanced properties and relatively stable supply chains make it a viable mid-tier bioplastic option for diverse industries in SEA.

Based on the application

• Packaging
• Agriculture
• Consumer Durable
• Textile
• Others

Biodegradable plastics are gradually finding their place in consumer durable products, particularly in items that blend short- to medium-term use with environmental responsibility. In Southeast Asia, this includes applications such as biodegradable phone cases, electronics casings, cutlery handles, and stationery. These products are designed for daily use but are expected to break down more rapidly after disposal compared to traditional plastics. The growing demand for sustainable lifestyle products, especially among urban youth and eco-conscious consumers, is encouraging manufacturers to explore materials like PLA-PBS blends and PHA for durability combined with biodegradability. Though adoption is still in early stages, innovations in composite bioplastics are likely to push biodegradable materials deeper into the consumer durable segment over the next decade.