Driven by the rising consumption from various end-user industries such as packaging, automotive, electronics, and others, global Biodegradable Plastics Market is forecasted to Cross US$12 Bn by 2028 says Ken Research Study.
Biodegradable plastics are the type
of plastics that can be broken down into water, carbon dioxide, and biomass by
the action of living organisms, usually micro-organisms. Biodegradable plastics
are typically made from renewable sources (such as sugarcane, castor beans,
soy, corn, potatoes, and others), microbes, petrochemicals, or a combination of
all three. Some biodegradable plastics are compostable, which means they
decompose under controlled conditions such as those found in compost or
anaerobic digestion locations.
“Ken Research shares 3 key insights on this
high-opportunity market from its latest research study”
1. Rising
Awareness for Eco-Friendly Plastic Solutions and Reduction in the usage of
Conventional Plastics provide Opportunity for the Market Growth.
According to Ken Research
Analysis, the Global
Biodegradable Plastics Market was valued at ~US$ 5 billion in 2017. It
is estimated to be ~US$ 7 billion in 2022 and is forecasted to reach a market
size of ~US$ 12 billion by 2028, growing at a CAGR of ~9%, due to the shifting
consumer preference towards eco-friendly plastic solutions. Biodegradable
plastics break down faster than conventional plastics. Biodegradable plastics
degrade by 60% in less than 180 days, compared to traditional plastics which
take about 1,000 years to decompose. Growing piles of garbage and landfills
have become a major environmental disaster, with many negative impacts on
ecosystem flora and fauna. Growing consumer awareness of these effects
encourages the use of biodegradable plastics. Hence, this has shifted consumer
preference towards using environmentally friendly plastic products, driving the
biodegradable plastics market.
Furthermore, the stringent
regulations by various governments and federal agencies with the objective to
reduce plastic waste and promote biodegradable plastics usage in packaging are
likely to boost the market demand during the forecast period. The regulations
related to green packaging are increasing. With the increasing packaging waste
generated worldwide, governments across the globe are adapting to alternative
sources such as biodegradable packaging. As a result, various FMCG companies
are required to adopt biodegradable packaging to comply with the standards,
which in turn, is propelling the growth of the market.
- For instance, in July 2020, the German
government announced a ban on the sale of single-use plastic products such
as cutlery, straws, food containers, and other similar products from July
2021 to minimize plastic waste across the country.
Such factors are estimated to
impel the biodegradable plastics market growth, during the forecast period.
2. Increasing
Consumption of Biodegradable Plastics in the Packaging Industry is Fuelling the
Market Globally.
Biodegradable packaging is
generally defined as any form of packaging that disintegrates and decomposes
naturally. The market for biodegradable packaging in the beverage sector is
anticipated to witness growth with the never-ending demand for bottled water
and non-alcoholic beverages. According to the Environmental Audit Committee, an
organization that examines the policies and programs on environment and
sustainable development, stated an estimated 700,000 bottles are being littered
every day in the UK alone, which indicates the severe need for biodegradable
packaging solutions for beverages.
- For instance, in 2021, No Evil Foods, a US-based
food & beverages company, produced compostable packaging made by
Kraftpak and printed with plant-based ink. Kraftpak is a biodegradable,
unbleached carton board sealing with water-soluble adhesives.
- The retailers in Europe, such as Rossmann,
Aldi, Coop, and Carrefour, use single or multi-use carrier bags made from
bioplastics, with the add-on bonus of biodegradability. The certified
biodegradable cups are also used at big events and in major football
stadiums across Europe.
- According to European Bioplastics Association,
the existing total production capacity of Bioplastics in 2021 was 2.4 Mn
Tonnes, distributed across all major end-user segments, within which ~50%
was from packaging industry.
3. High
Price of Biodegradable Plastics as Compared to Conventional Plastics is the
Major Challenge Faced by The Biodegradable Plastics Market
Higher prices of biodegradable
plastics than that of conventional polymers hinder the market's growth in
various application segments. Usually, the manufacturing cost of biodegradable
plastics is 20-80% more than that of traditional plastics. This is attributed
to the high polymerization cost of such plastics as the product is in the
developing stage and therefore has not achieved economic viability.
For instance, biodegradable
plastic such as Polyhydroxyalkanoates (PHA) has numerous applications in
synthetic papers, binders, medical devices, food packaging, electronic parts,
and agriculture that have high production costs, limited availability, and low yields.
Polylactic acid (PLA) polymer is more economical than PHA, but still more
costly than petroleum-based Polypropylene (PP) and Polyethylene (PE).
The price of biodegradable
plastics varies from US$ 2/kg to US$ 6/kg compared with that of conventional plastics,
which is approximately US$ 1/kg to US$ 2/kg. Higher production and R&D
costs because of small-scale production and the substantial price variation in
comparison to conventional petroleum-based plastics are the major factors that
contribute to the low penetration of biodegradable plastics across various
industries.
For More
Information, refer to below link:-
Agriculture
Biodegradable Plastics Market
Related Report
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Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
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