According to the latest report published by Credence Research, Inc. “Global Biodegradable Plastics Market – Growth, Future Prospects and Competitive Analysis, 2018-2026,” the global Biodegradable Plastics market accounted for US$ 27.57 Bn in 2017, expanding at a CAGR of 19.3% from 2018 to 2026.
The global biodegradable plastics accounted for US$ 27.57 Bn in 2017 growing with a CAGR of 19.3% during the forecast period from 2018 to 2026. Biodegradable plastics are either made from renewable sources that includes sugarcane or corn(biobased) or can be broken down completely via natural sources (bio degradable) or are both biodegradable and biobased. Regenerated cellulose, polylactic acid, starch, polybutylene succinate (PBS), polycaprolactone (PCL) and polyhydroxyalkanoates are used as intermediate raw materials in the production of biodegradable plastics. The manufacturing process involves sugar fermentation into polyhydroxyalkanoates or polylactic acid which is basically converted into biodegradable plastics. This conversion process requires optimum temperatures and favorable environmental conditions.
Biodegradable plastics market is expected to show robust growth owing to the increasing consumer preference for eco-friendly products. Technological innovation, advanced manufacturing processes and increased integration has enabled the consumers to adopt biodegradable packaging. Stringent regulations by various government and federal agencies with an objective to reduce plastic waste and promote biodegradable plastics usage in packaging is also boosting the demand of this market. Increasing application of biodegradable plastics in FMCG industry is also bolstering the market growth. Trend shows that FMCG industry is moving towards portable and small packaging to reduce retail price and increase consumer base. Owing to strict government regulations related to green packaging, various FMCG companies are required to adopt biodegradable packaging to comply with the standards which in turn is propelling the growth of this market during the forecast period from 2018 to 2026.Increasing vast applications of biodegradable plastics ranging from interior parts in automobile industry to beverages bottles in packaging sector to keyboards in consumer electronics industry is also expected to augment the market demand. In addition, unlike conventional plastics, biodegradable plastics aims to reduce carbondioxide emissions which is one of the primary factor driving the growth of this market.
The global biodegradable plastics market has been segmented by type, application and geography. In 2017, starch blend segment dominated the global biodegradable plastics market by type both in terms of value and volume. Rising applications of starch based biodegradable plastics in medical, FMCG and agriculture industry is expected to boost the market demand. In 2017, PLA is expected to be the fastest growing segment by type owing to its ease of processability and advanced mechanical properties. In terms of application, packaging segment held the largest revenue and volume share in 2017 owing to the growing demand for food and beverages packaging. In terms of geography, Europe is the most prominent market and held the largest market share both in terms of value and volume in the global biodegradable plastics market. Growing awareness related to negative environmental impact of conventional plastic products followed by shift in preference of conventional plastics to ecofriendly plastic products are primarily driving the biodegradable plastics market in this region. Strict implementation of environmental regulations followed by ban on petroleum based plastic bags in Italy is also boosting the demand of biodegradable plastics market in this region during the forecast period from 2018 to 2026.
Browse the full report Global Biodegradable Plastics Market – Growth, Future Prospects and Competitive Analysis, 2018-2026 report at https://www.credenceresearch.com/report/biodegradable-plastics-market
Key players operating in the global biodegradable plastics market includes BASF SE, Archer Daniels Midland, E. I. du Pont de Nemours and Company, Mondi Group, Biome Technologies PLC, Stora Enso, Amcor, Rocktenn, Unilever, Mitsubishi Chemical Corporation, Corbion, and Natureworks LLC among others.