Global Biodegradable Plastics: Snapshot
The stringent regulatory reforms by several governments across that insist on reduction of plastic usage has augmented the demand for biodegradable plastics. This new type of plastic not only conform to the guidelines but also friendly toward the environment in more ways than one. Thus, the use of conventional plastic is gradually being replaced by biodegradable plastic, increasing the revenue of its global market by leaps and bounds. Owing to these reasons, the global biodegradable plastics market is projected to pace ahead at a CAGR of CAGR of 9.9% between 2015 and 2023. The market is estimated to reach a valuation of US$17.66 bn by the end of 2023 from US$9.10 bn at the end of 2016.
On the downside, the global biodegradable plastics market is negatively affected by the high cost of production of biodegradable plastics. The vast difference between the prices of conventional plastics and biodegradable plastics has discouraged several emerging economies to steer clear from using these products. Furthermore, the requirement of skilled labor, which is a challenge in developing countries, has also restrained the global market in the past few years.
Packaging Industry to Boost Global Market as it Takes a Green Approach
In terms of application, the global biodegradable plastics market is segmented into textile, packaging, agriculture, electronic, medical, and injection molding. Of these, the packaging segment is projected to be the key consumer of biodegradable plastics in the coming years. The demand for biodegradable plastic packaging material will be especially high in the food and beverages industry. The packaging segment will generate a revenue of US$10.59 bn by the end of 2023 in the overall market. The emerging trend of eco-friendly packaging to reduce the pressure on landfills and garbage disposal are expected to drive this segment over the forecast period.
The segments such as injection molding, agriculture, and textiles are also projected to show a steady growth in the overall market. Several textile companies are adopting biodegradable plastics due to increasing awareness about disadvantages of plastics. These plastics are predominantly being used for production of films, fibers, and packaging material. The use of biodegradable plastics in the agriculture segment is seen in production of plastic mulches as well as for packaging of fertilizers.
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Europe to Show Persistent Dominance of Biodegradable Plastics
From a geographic point of view, the global biodegradable market is segmented into Latin America, Asia Pacific, Europe, North America, the Middle East and Africa, and Latin America. Of all these regions, Europe is projected to lead the pack as the regional market is estimated to be worth US$6.08 bn by the end of 2023 in terms of revenue. The increasing pressure on the governing bodies to reduce carbon emissions, landfills, and issues relating to mounting plastic waste have increased the consumption of biodegradable plastics in the region. Furthermore, strong presence of manufacturers is also expected to bolster the region’s stance in the global market over the forecast period.
North America is expected follow Europe’s trail in the coming years as the region focusses on reducing its carbon emissions. In the developing countries, which are high price-sensitive, the demand for biodegradable plastics is expected to remain sluggish due to their high cost of production.
The leading players operating in the global biodegradable plastics market are BASF SE, Mitsubishi Chemical Corporation, NatureWorks LLC, Biome Bioplastics, and Corbion.
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