Biodegradable Plastics Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), Starch Blends and Others), By Application (Packaging, Agriculture, Consumer Durable, Textile and Others) and Region Forecast 2020-2031

Biodegradable Plastics Market size was valued at US$ 5.9 billion in 2024 and is expected to reach US$ 11.0 billion by 2031, growing at a significant CAGR of 9.2% from 2025-2031. Moreover, the U.S. Biodegradable Plastics market is projected to grow significantly, reaching an estimated value of US$ 3,590.2 million by 2032. Biodegradable plastics are a class of plastics that through the action of microorganisms-bacteria, fungi, etc., decompose into natural products, including water, carbon dioxide, and biomass. They can be manufactured from renewable biomass, such as cornstarch, sugarcane, or cellulose, or derived from petrochemicals designed to degrade more rapidly. Biodegradable plastics are found in such applications as packaging, agriculture, consumer products, and textiles.

The market is growing rapidly due to increasing environmental concerns over plastic waste as well as robust support from the regulatory viewpoint for sustainable materials. The packaging sector has dominated this application segment, followed by agriculture and consumer goods. Europe currently leads the market due to strict environmental regulations; Asia-Pacific is expected to grow the fastest. Although the market holds great promise, it also faces some of the most serious challenges, including high production costs and a need for improved composting and recycling infrastructure.

Key Players

The market share of biodegradable plastics is inclusive of several companies such as BASF SE, NatureWorks LLC, TotalEnergies Corbion, Mitsubishi Chemical Corporation, Novamont S.p.A., Biome Bioplastics, Futerro, Danimer Scientific, Plantic Technologies Limited, Toray Industries, Inc. and so on.

BASF SE is one of the top market players in the market. The company heavily involves itself in the development and production of a large variety of biodegradable polymers, dedicating itself to sustainable solutions for each industry.

Clearly, focusing on innovation and sustainable production, BASF SE occupies a prime position in the worldwide. This holistic portfolio and extensive global presence make it an influential actor for the future of biodegradable plastic solutions.

Key Takeaways

• The fastest-growing region is Asia-Pacific
• Based on type, starch-based segment holds the 47.3% market share
• Based on application, packaging segment holds the 59.3% market share

Facts & Figures

• Global production capacity for biodegradable plastics was approximately 1.5 million tons in 2022. This is expected to rise exponentially since there are more investments in new production facilities.
• The European market is dominating the consumption side with over 40% of global demand in biodegradable plastics.
• Packaging dominates the market, which incorporates approximately 60% of the total market share.
• PLA (Polylactic Acid): This is one of the most used biodegradable plastics, accounting for more than 25% of its market share.
• Biodegradable plastics would save between 30-50% or more greenhouse gas emissions than traditional plastics, depending on the materials and the end-of-life management processes involved.

Key Developments

• In 2020, BASF SE acquired Solvay's Polyamide business, in which eight production sites around Asia and the Americas along with their research and development centers were included.
• In October 2023, Versalis acquired Novamont's business in biodegradable plastic.
• In November 2023, Mitsubishi Chemical Holding Corporation introduced BioPBS, a plant-based biodegradable plastic that can be composted.

Biodegradable Plastics Market Segmentation:

By Type: The Starch Blends segment accounted highest market share, particularly in regions requiring biodegradable plastics at low cost. Market leadership can vary as a result of regional factors and regulatory support along with the applications driving demand. Polylactic Acid (PLA) segment held considerable share in the market. It is widely used because of its outstanding properties, such as high biocompatibility and a bio-based origin from sources such as cornstarch or sugarcane. It is, in particular, dominated by the applications in packaging, agriculture, and 3D printing.

By Application: The market of biodegradable plastics is dominated by the packaging segment. It is influenced by increasing demand for sustainable and eco-friendly packing solutions, particularly in food and beverages, consumer goods, and e-commerce. Biodegradable plastics in packaging applications, such as films, bags, and containers, have helped companies align with environmental regulations and consumers' preference for sustainable products.