July 14, 2024

Growing Demand For Biodegradable And Compostable Materials Pushing Growth Of The Biopolymers Market

Market Overview:

Biopolymers are polymers produced from renewable biomass sources such as corn starch, vegetable fats and oils, or microorganisms such as bacteria and fungi. Common biopolymers include polylactic acid or polylactide (PLA) derived from corn starch, poly-3-hydroxybutyrate (PHB),PHA, and polyhydroxyalkanoates (PHA) from bacterial fermentation. Biopolymers have distinctive advantages over fossil fuel-based polymers such as reduced dependence on petroleum resources, lower greenhouse gas emissions, biodegradability, and compostability. They are increasingly being used in applications such as food packaging, textiles, bottles, agriculture mulch films and shopping bags to promote sustainability.

Market key trends:

One of the major trends in the Biopolymers market is growing demand for biodegradable and compostable materials due to rising environmental concerns. Plastic pollution has become a severe threat to marine ecosystems and sustainable waste management. Hence, several countries have imposed bans on single-use plastics which is fueling adoption of biodegradable alternatives made from biopolymers. Furthermore, major end-use industries like packaging, food & beverages and agriculture are also promoting sustainable business practices by switching to biopolymer-based products. There is also significant research underway to engineer new biomaterials and widen the range of biopolymer applications. These factors are expected to drive the Biopolymers market growth over the forecast period.
Porter’s Analysis

Threat of new entrants: Low capital requirement and increasing popularity of bio-based products has increased threat of new entrants in the market. However, established players have strong brand image and supply chain which acts as a barrier.

Bargaining power of buyers: Large buyers have significant bargaining power due to the bulk purchases. Switching costs are low.

Bargaining power of suppliers: Suppliers of raw materials have low to moderate bargaining power due to availability of substitutes and less differentiation in raw materials.

Threat of new substitutes: Biopolymers face competition from conventional plastics. However, growing environmental concerns are driving preferences for sustainable options.

Competitive rivalry: The market is competitive with major players investing in R&D and capacity expansion.

Key Takeaways

The Global Biopolymers Market Demand  is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing environmental concerns. The market size for 2023 is estimated to be US$ 17428.96 Mn.

Asia Pacific region is expected to dominate the biopolymers market driven by rapid industrialization and rising environmental regulations especially in China and India. Growing population and increasing disposable incomes also contribute to market growth in the region.

North America is another major market for biopolymers owing to presence of leading players and strong government support for sustainable solutions. Major players are focusing on expanding their manufacturing capacity in the region.

Key players operating in the biopolymers market are BASF SE, NatureWorks LLC, Braskem S.A., Novamont S.p.A., Du Pont, Plantic Technologies Ltd, Archer Daniels Midland Company, Danimer Scientific, Bio-on S.p.A., and Rodenburg Biopolymers B.V. Major players are investing in R&D to develop innovative products from biopolymers and expanding globally.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it