According to the latest report from Allied Market Research titled “World Bioplastics Market Opportunities and Forecast, 2014-2020”, the global market for bioplastics will grow to touch $30.8 billion by 2020, registering a CAGR of 14.8 per cent during 2015-2020. The rising environmental awareness among consumers and the emphasis laid by packaging industries on biodegradability are the key factors responsible for the growing adoption of bioplastics all over. The rigid plastic application would account for more than 40 per cent of the market revenue by 2020.
Bioplastics are plastics derived from the renewable feedstocks such as corn, sugarcane and cellulose, among others. Large availability of renewable feedstocks and the eco-friendly nature of bioplastics boost its market across the globe. Further, increasing adoption in new end-user industries and favorable government policies related to the use of eco-friendly and biodegradable products are factors behind the market growth. However, high production cost is likely to dampen the market growth.
Consumption of “drop-ins” bioplastics (Bio-PE, Bio-PET 30, Bio-PA and others) would continue to dominate the overall bioplastics market through to 2020, owing to its overall properties and wide applications similar to traditional plastics (PE, PET and PA among others).
Bio-PET 30 would be the fastest growing segment in the non-biodegradable bioplastics market as it delivers the same performance as synthetic PET with regard to re-sealability, versatility, durability, appearance, weight and recyclability.
North America and Europe collectively accounted for more than 60 per cent of the market in 2014 and are expected to maintain their lead throughout the forecast period. European policy support for bioplastic manufacturers and increasing health awareness among consumers are the key factors responsible for the market growth within this region. However, Asia Pacific is projected to be the most lucrative market owing to availability of huge renewable feedstocks, coupled with increasing investment made by global bioplastics players.
The leading players in the market are adopting collaboration, partnership and expansion as main key developmental strategies. The prominent players profiled in the report include Novamont SPA, Metabolix Inc., BASF SE, Natureworks LLC, Corbion Purac, Braskem, Cardia Bioplastics, Biome Technolgies Plc, FKuR Kunststoff GmbH and Innovia Films.
The key findings of the study are:
- Rigid plastics would be the fastest growing application segment, at a CAGR of 31.8%, during the forecast period
- Europe was the highest consumer, whereas, Asia Pacific was the largest producer of bioplastics in 2014. Asia Pacific would be the fastest growing consumer during the forecast period.
- Bio-PET 30 segment is expected to have healthy volume growth, at 25.7% CAGR, during the forecast period.
- Polyesters and the starch blends segment collectively accounted for about one-third of the overall bio-degradable bioplastic market in 2014.
- PLA is projected to be the fastest growing segment in the overall bio-degradable plastics market, in terms of revenue and volume.