Biobased Biodegradable Plastic Market To Reach USD 15.6 Billion By 2035 Amid Rising Demand For Sustainable Solutions | Future Market Insights, Inc.

2025-02-27 04:30:57

(MENAFN- GlobeNewsWire - Nasdaq) The Biobased Biodegradable Plastic Market is set for a transformative decade, with increasing investments, regulatory support, and technological breakthroughs driving its rapid growth. As the world shifts towards a more sustainable future, bioplastics will play a critical role in reducing environmental impact and promoting a circular economy.

NEWARK, Del, Feb. 27, 2025 (GLOBE NEWSWIRE) -- The global biobased biodegradable plastic market is undergoing a significant transformation, fueled by escalating environmental concerns and the implementation of stringent regulations aimed at reducing plastic pollution. Governments worldwide are enacting policies that ban or limit the use of conventional plastics, thereby accelerating the adoption of biodegradable and renewable alternatives. This shift is further supported by growing consumer awareness and demand for sustainable products, prompting industries to explore eco-friendly materials.

In 2025, the market is projected to be valued at approximately USD 6.3 billion, with expectations to burgeon to around USD 15.6 billion by 2035, representing a compound annual growth rate (CAGR) of 9.5% during this period. This growth trajectory underscores the increasing viability and acceptance of biobased biodegradable plastics across various sectors, including packaging, agriculture, textiles, and automotive industries. Advancements in biopolymer processing and economies of scale are anticipated to further reduce production costs, enhancing the competitiveness of these sustainable materials.

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Poly Lactic Acid (PLA) and Polyhydroxyalkanoate (PHA) Drive Market Growth Amid Rising Demand for Sustainable Materials

PLA and PHA are at the forefront of biobased biodegradable plastic innovations, offering sustainable alternatives to petroleum-based plastics. PLA, derived from fermented plant starch, has gained widespread acceptance in packaging and 3D printing due to its high biocompatibility and compostability. Market leaders are investing in research to enhance PLA's mechanical properties and thermal resistance, expanding its applications beyond conventional packaging.

PHA, produced by bacterial fermentation of organic substrates, is emerging as a key biodegradable polymer with significant potential in medical, agricultural, and marine applications. Unlike PLA, PHA can degrade in natural environments, including oceans, making it an ideal solution to combat plastic pollution. Companies are ramping up PHA production capacities to meet the growing demand from eco-conscious industries and regulatory compliance requirements.

Applications in Packaging and Agriculture Fuel Market Growth

Packaging remains the dominant application segment in the Biobased Biodegradable Plastic Market, driven by increasing consumer awareness and stringent regulations against single-use plastics. Major food and beverage brands are transitioning to bioplastic packaging solutions to meet sustainability targets and reduce their carbon footprint. The emergence of home-compostable packaging materials is further driving market adoption.

In agriculture, biobased biodegradable plastics are replacing conventional plastic mulching films, seed coatings, and plant pots. These materials enhance soil health, reduce plastic waste accumulation, and improve crop yield. The shift towards sustainable farming practices and government initiatives supporting biodegradable agricultural products are contributing to market expansion.

Biobased Biodegradable Plastics Market: Drivers & Trends

Key driving factors identified in the biobased biodegradable plastics market are the regulatory framework for safe waste disposal and management, implementation of environmental conservation initiatives by the government and various institutions, and efforts by manufacturers to reduce dependency on crude oil-derived products.

Some of the restraining factors identified in the market are the low awareness of the consumers and the relatively low durability of these plastics as compared to conventional plastics.

The key trends identified in the global biobased biodegradable plastics market include increasing utilization of these plastics in packaging applications, bottles and food service disposables manufacturing.

Market Growth Drivers

Cost Reductions

Historically, the production of biobased biodegradable plastics has been more expensive than traditional plastics, primarily due to high raw material costs and limited production scales. However, continuous investments in research and development have led to process innovations and technological advancements, resulting in more efficient manufacturing methods.
These improvements are driving down production costs, making biobased plastics more competitive in the market. As economies of scale are achieved and supply chains for renewable raw materials become more established, further cost reductions are anticipated, enhancing the economic feasibility of biobased biodegradable plastics.

Advanced Waste-to-Bioplastic Conversion

Innovations in waste management and biopolymer synthesis are enabling the conversion of organic waste into valuable bioplastics. Technologies such as microbial fermentation and chemical catalysis are being employed to transform agricultural residues, food waste, and other organic by-products into biopolymers like PHA.
This approach not only provides a sustainable feedstock for bioplastic production but also addresses waste disposal challenges, contributing to a circular economy. The integration of waste-to-bioplastic technologies is expected to enhance resource efficiency and reduce the environmental impact associated with both waste management and plastic production .

Corporate Commitments Will Accelerate Adoption

A growing number of corporations are pledging to reduce their environmental footprints by incorporating sustainable materials into their products and packaging. Companies across various industries, including consumer goods, retail, and food services, are setting ambitious targets to transition to biodegradable and renewable plastics.
These commitments are often driven by consumer demand for environmentally responsible products and the desire to comply with evolving regulatory frameworks. As major brands adopt biobased biodegradable plastics, their supply chains and economies of scale will likely influence broader market adoption, fostering innovation and investment in the sector.

"The biobased biodegradable plastic market is experiencing robust growth, driven by stringent environmental regulations and a global shift towards sustainable materials. Innovations in biopolymer processing and increased corporate commitments to sustainability are key factors propelling this expansion," says Nikhil Kaitwade , Associate Vice President at Future Market Insights (FMI).

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Key Takeaways from Cathode Binders Study:

Biobased biodegradable plastic market to reach USD 15.6 billion by 2035, growing at a 9.5% CAGR.
PLA and PHA are key drivers of market expansion.
Packaging and agriculture remain dominant application segments.
Cost reductions and technological advancements support broader adoption.
Corporate commitments to sustainability will accelerate growth.

Key Findings in the Global Biobased Biodegradable Plastic Market Study:

Increasing government regulations favoring biodegradable materials
Rising consumer demand for eco-friendly packaging
Market value projected to reach USD 15.6 billion by 2035
Expanding applications in agriculture, packaging, and medical sectors
Technological advancements in waste-to-bioplastic conversion
Greater corporate commitments toward sustainability

Shifts in the Biobased Biodegradable Plastic Market from 2020 to 2024 and Future Trends (2025 to 2035)

Between 2020 and 2024, the biobased biodegradable plastic market experienced steady growth, primarily driven by heightened environmental awareness and initial regulatory measures. During this period, the market focused on developing and commercializing key biopolymers such as PLA and PHA, with significant applications in packaging and agriculture. Collaborations between research institutions and industry players facilitated technological advancements, improving the performance and cost-effectiveness of biobased biodegradable plastics.

Future trends from 2025 to 2035 indicate accelerated growth, supported by advancements in material science, government policies promoting circular economy initiatives, and increased investments in bioplastic manufacturing. Innovations in biopolymer blending and bio-based composite materials are expected to enhance the mechanical properties and applicability of biodegradable plastics across a broader range of industries. The expansion of industrial composting and bioplastic recycling infrastructure will also play a crucial role in mainstream adoption, ensuring a sustainable end-of-life solution for biobased plastics.

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Industry Country Wise Analysis

United States

The United States is witnessing a robust expansion in the biobased biodegradable plastics sector, with an anticipated Compound Annual Growth Rate (CAGR) of 22.0% from 2025 to 2035.

This surge is primarily attributed to heightened environmental awareness among consumers and proactive government policies aimed at reducing plastic waste. The packaging industry, in particular, is a significant contributor, accounting for over 36.8% of the total demand in 2022.

Major corporations are increasingly adopting sustainable packaging solutions, further propelling market growth.

United Kingdom

In the United Kingdom, the biobased biodegradable plastics market is projected to grow at a CAGR of 6.2% between 2024 and 2034.

This growth is driven by stringent environmental regulations and a strong consumer shift towards sustainable products. The UK's commitment to reducing single-use plastics has led to increased adoption of biodegradable alternatives across various sectors, including food packaging and agriculture.

European Union

The European Union (EU) stands as a frontrunner in the adoption of biobased biodegradable plastics, with an expected CAGR of 21.5% from 2025 to 2035.

This growth is bolstered by the EU's stringent environmental policies, such as the 2021 Single-Use Plastics Directive, which has created a substantial demand for biodegradable plastics in sectors like food packaging, agriculture, and consumer goods. Countries like Germany, France, Italy, and the UK significantly contribute to both the production and consumption of these materials, making Europe one of the most dynamic markets globally.

Japan

Japan's biobased biodegradable plastics market is set to expand at a CAGR of 26.5% through 2033.

The country's rapid industrialization, urbanization, and growing environmental concerns have led to the adoption of strict laws aimed at eliminating conventional plastics. This transition is evident in industries such as packaging, agriculture, and consumer goods, where businesses are increasingly shifting towards compostable and biobased materials.

South Korea

South Korea emerges as a rapidly advancing market, projecting substantial growth with an impressive 22.1% CAGR expected by 2034.

The government's high aspirations for plastic recycling and the promotion of sustainable materials have significantly influenced this growth trajectory. The flourishing e-commerce industry further drives the demand for biodegradable packaging solutions, especially in the online retail and food delivery sectors.

Competitive Landscape in the Biobased Biodegradable Plastic Market

Major players include NatureWorks, BASF, Total Corbion PLA, and Danimer Scientific
Recent developments in bio-based polymer production technologies

Recent Developments

Companies such as NatureWorks, BASF, and Total Corbion PLA are expanding their production capacities.
New product launches in home-compostable packaging solutions.
Strategic partnerships between packaging firms and bioplastic manufacturers to enhance supply chain efficiency.

Explore Polymers & Plastics Insights:

Biobased Biodegradable Plastic Market Segmentation

By Product Type:

Polyester
Starch blends
Poly lactic acid (PLA)
Cellulose
Polyhydroxyalkanoate (PHA)
Other biobased biodegradable plastic

By Application:

Packaging
Fibres
Healthcare
Agriculture
Others

By Region:

North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia Pacific
Middle East and Africa

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About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.

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