Bioplastics refers to plastics derived from renewable biomass sources such as vegetable fats and oils, corn starch, or microbiota. Commonly used bioplastics include polylactic acid or polylactide (PLA), polyhydroxyalkanoates (PHA), bio-polyethylene (PE), and starch blends. These are often used to manufacture biscuit wrappers, baby diapers, mulch film for agriculture, compost and rubbish bags, and teabags. With increased environmental awareness and policies promoting sustainable development, bioplastics are emerging as an eco-friendly alternative to conventional plastics which are made from petroleum.
The global bioplastics market is estimated to be valued at US$2.11 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising demand for sustainable packaging options is expected to drive the growth of the bioplastics market over the forecast period. Various policies and regulations, especially related to single-use plastics, are encouraging end-use industries to adopt biodegradable and sustainable packaging materials. Moreover, consumer preference for eco-friendly products is also increasing. According to a study, over 70% of consumers are willing to pay more for products packaged sustainably. This change in customer behavior is prompting manufacturers to incorporate bio-based packaging made from bioplastics like PLA and PHA.
Another factor fueling the market growth is the performance enhancement of bioplastics. Earlier bioplastics lacked mechanical strength and stability compared to conventional plastics, limiting their applications. However, advancements in material science and production technologies have enabled enhanced performance in terms of durability, printability, heat and moisture resistance equivalent to PET bottles and polystyrene trays. As a result, the use of bioplastics is expanding from disposable cutlery and food packaging to more durable applications like textiles and automotive interior parts.
Segment Analysis
The bioplastics market is dominated by the packaging sub-segment, which accounted for over 40% share of the overall market in 2024. Packaging is the largest application area for bioplastics owing to increasing focus on the usage of sustainable and eco-friendly materials for packaging various food and non-food products. Growing awareness about environmental hazards of petroleum-based plastics is further driving the demand for bioplastic packaging materials.
PEST Analysis
Political: Regulations promoting use of biodegradable and sustainable materials for packaging are encouraging bioplastics production. Various countries have imposed ban on single-use plastics.
Economic: Volatility in petrochemical prices makes bioplastics a cost-effective alternative. However, high production costs of bioplastics compared to conventional plastics could hamper market growth.
Social: Rising consumer awareness about reducing carbon footprint and desire for environment-friendly solutions is fueling the adoption of bioplastics across industries.
Technological: Advancements in biochemical and genetic engineering techniques have enhanced bioplastic production from renewable feedstock. Continuous R&D for improving material properties further supports the market.
Key Takeaways
The Global Bioplastics Market Share was valued at USD 8.7 billion in 2024.
Asia Pacific accounted for around 35% of the overall market share due to rapid industrialization and manufacturing activity in countries like China and India. Packaging was the leading application segment.
Key players related content comprises Key players related content: Key players operating in the bioplastics market are BASF SE, Corbion NV, Danimer Scientific, Eastman Chemical Company, FKuR Kunststoff GmbH, and NatureWorks LLC. BASF’s ecoflex film offers high clarity and moisture barrier for food packaging applications. Corbion produces polyhydroxyalkanoates (PHAs) using sugar cane for producing biodegradable plastics.
