NEW YORK, July 24, 2024 /PRNewswire/ -- The global
compostable plastic market size is estimated to grow by
USD 2.88 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 19.16% during the forecast period. Growing use of compostable
packaging is driving market growth, with a trend towards growing
government initiatives encouraging replacement of conventional
plastics with compostable plastics. However, high costs of
compostable plastics compared with conventional plastics poses a
challenge. Key market players include BASF SE, BEWI ASA, Biome
Technologies plc, BioTec Bags India Pvt. Ltd., BOSK Bioproducts,
Cargill Inc., Danimer Scientific Inc., Eastman Chemical Co., Fkur
Kunststoff GmbH, Futerro SA, Green Dot Bioplastics Inc., Kaneka
Corp., KURARAY Co. Ltd., Mitsubishi Chemical Corp., Neste Corp.,
Northern Technologies International Corp., Novamont S.p.A., SK
Chemicals Co. Ltd., Toray Industries Inc., TotalEnergies SE, and
Trinseo PLC.
![Technavio has announced its latest market research report titled Global compostable plastic market 2024-2028 Technavio has announced its latest market research report titled Global compostable plastic market 2024-2028](https://mma.prnewswire.com/media/2467373/Technavio__Global_compostable_plastic_market.jpg)
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Compostable Plastic
Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
19.16%
|
Market growth
2024-2028
|
USD 2885.5
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
15.6
|
Regional
analysis
|
Europe, North America,
APAC, South America, and Middle East and Africa
|
Performing market
contribution
|
Europe at
40%
|
Key
countries
|
US, Germany, UK,
France, and China
|
Key companies
profiled
|
BASF SE, BEWI ASA,
Biome Technologies plc, BioTec Bags India Pvt. Ltd., BOSK
Bioproducts, Cargill Inc., Danimer Scientific Inc., Eastman
Chemical Co., Fkur Kunststoff GmbH, Futerro SA, Green Dot
Bioplastics Inc., Kaneka Corp., KURARAY Co. Ltd., Mitsubishi
Chemical Corp., Neste Corp., Northern Technologies International
Corp., Novamont S.p.A., SK Chemicals Co. Ltd., Toray Industries
Inc., TotalEnergies SE, and Trinseo PLC
|
Market Driver
The global plastic crisis is escalating due to the significant
increase in plastic consumption, particularly in the packaging
industry. Plastics account for over one-third of all global plastic
consumption and contribute to approximately 85% of marine litter,
with this percentage projected to nearly triple by 2040. The
environmental and health consequences of plastic use are becoming
increasingly apparent, leading governments to take action. For
instance, the European Union's Single-Use Plastics Directive (SUPD)
prohibits certain single-use plastic items and mandates increased
recycled content in beverage bottles. India's Plastic Waste Management Rules aim to
ban single-use plastics with low utility and high littering
potential. These regulations, among others, are driving the demand
for eco-friendly alternatives, such as compostable plastics. Given
the growing awareness and stringent regulations, the compostable
plastic market is poised for growth. The market is expected to
expand as businesses and consumers seek sustainable alternatives to
traditional plastics. This trend is expected to continue during the
forecast period, making compostable plastics a promising solution
to the plastic crisis.
The compostable plastic market is on the rise, driven by trends
in biodegradable plastics and the need for more sustainable
solutions. Municipal waste management is a key area of focus, with
governments worldwide promoting initiatives for biobased products.
Polylactic acid (PLA) and starch bags are popular choices, adhering
to the BS N13432 standard. Sugarcane feedstock and renewable
feedstocks are increasingly used, replacing traditional polymers
and petrochemical counterparts. Biodegradable plastics find
applications in various sectors like electronics, medical devices,
implants, and temporary implants, contributing to surgeries and
drug delivery systems. Construction materials, insulation, and
compostable packaging for restaurants, grocery shops, and
e-commerce industries are also growing niches. Consumer awareness
and environmental concerns are driving demand for compostable
plastic bags, containers, silverware, and other products. Ethical
waste management and environmentally friendly packaging are
becoming essential for businesses to stay competitive. Plastic
pollution reduction is a priority, making compostable plastics an
attractive alternative to conventional plastics.
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Market Challenges
- The compostable plastic market faces several challenges,
primarily due to the higher production costs compared to
conventional plastics. The high polymerization cost is a
significant factor, as most compostable plastic production
processes are still in the development stage and have not reached
economies of scale. Additionally, the lack of a well-established
supply chain network at upcoming capacity locations poses a
challenge. The technology for producing compostable plastics is
unconvincing due to its nascent stage, with various raw materials
being tested for optimal production. Currently, compostable plastic
costs between USD2.65 and
USD6.68 per kilogram, whereas
conventional plastic costs USD1.65
per kilogram. Vendors' high research and development costs,
substantial differences in the price of conventional
petroleum-based plastics and bioplastics, and the smaller
production scale contribute to the low demand for bioplastics.
Traditional plastics have become more affordable due to the larger
price disparity and the declining price of crude oil. Technical
barriers to lowering the cost of compostable plastics exist, and
feedstocks account for a significant portion of the price. The
industry is transitioning to bio-based feedstocks, but about
one-third of biodegradable plastics are still made from
petrochemicals. Agricultural products such as corn, potatoes, and
cassava continue to dominate the current bio-based feedstock
market, which may hinder the growth of the global compostable
plastic market during the forecast period.
- The compostable plastic market is growing as businesses seek
eco-friendly alternatives to traditional petrochemical plastics.
However, challenges persist in the form of bio-based materials not
always living up to their compostable claims and the durability and
shelf life concerns. Green procurement policies in various sectors
like electronics, medical, and construction are driving demand for
compostable plastics in niche products. However, plastic waste from
industries like healthcare, particularly from medical devices,
implants, and temporary implants, presents a significant challenge.
Consumer awareness and environmental concerns are on the rise,
leading to increased demand for compostable plastic packaging in
restaurants, grocery shops, and e-commerce industries. Companies
must address carbon footprint concerns through ethical waste
management and material technology advancements. Bioplastics offer
a solution, but their labeling and consumer education are crucial
for success. Homecare and healthcare sectors also present
opportunities for sustainable packaging solutions.
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Segment Overview
This compostable plastic market report extensively covers market
segmentation by
- End-user
- 1.1 Packaging
- 1.2 Consumer goods
- 1.3 Textiles
- 1.4 Agriculture
- 1.5 Others
- Product
- 2.1 Compostable bag
- 2.2 Compostable cutlery
- 2.3 Compostable gloves
- 2.4 Compostable straw
- 2.5 Others
- Geography
- 3.1 Europe
- 3.2 North America
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Packaging- The compostable plastic market is
primarily driven by the packaging industry, particularly in
applications such as bottles, cups, pots, and films. Two main types
of compostable packaging, rigid and flexible, are commonly used in
the food, cosmetics, and material packaging sectors. Brands like
Heinz, Coca-Cola, and Volvic utilize bio-PET for bottle packaging,
while Proctor and Gamble and Johnson and Johnson use
bio-PE for cosmetics. Polylactic acids (PLA) are also gaining
popularity in rigid packaging. The e-commerce industry, which
dominates the packaging sector, is a significant driver of demand
for compostable plastics due to the increasing global online sales.
In 2020, online sales grew by 32.4% compared to the previous year.
India, China, the US, and Japan, leading markets in the food service
industry, require large quantities of food packaging materials due
to their growing populations. The global population was 7.8 billion
as of July 2020, and this rising
population will continue to drive demand for food packaging
materials and, consequently, compostable plastics from the food
service industry segment.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
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The global Biodegradable Medical Plastics Market is witnessing
robust growth, driven by increasing environmental concerns and
advancements in medical technology. The global Bioplastics Market
is also expanding rapidly, supported by growing consumer preference
for sustainable products. Meanwhile, the global Biodegradable Paper
Market is experiencing a surge in demand, fueled by stringent
regulations on plastic use and a shift towards eco-friendly
packaging solutions. Together, these markets represent significant
opportunities for innovation and investment, addressing the global
need for sustainable and biodegradable alternatives.
Research Analysis
The Compostable Plastics market is witnessing significant growth
due to the increasing demand for eco-friendly and sustainable
alternatives to conventional plastics. Biodegradable plastics made
from plant-based materials, such as polylactic acid (PLA) derived
from sugarcane feedstock, starch bags, and other biobased products,
are gaining popularity. The BS N13432 standard ensures the
compostability of these products. Traditional polymers and
petrochemical counterparts are being replaced by these bio-based
materials in various sectors like municipal waste management,
electronics, medical, and consumer goods. Governmental initiatives
and green procurement policies are driving the market forward.
Compostable plastic packaging, containers, silverware, and bags are
widely used in restaurants and other foodservice industries due to
rising environmental awareness and consumer demand for
environmentally friendly alternatives. However, the extraction and
refining processes of these materials need further optimization to
reduce costs and increase efficiency. Despite these challenges, the
market is expected to continue growing as more industries adopt
compostable plastics to address environmental concerns and meet
consumer expectations.
Market Research Overview
The Compostable Plastics market is experiencing significant
growth due to increasing municipal waste and governmental
initiatives towards sustainable waste management. Biodegradable
plastics, made from renewable feedstocks like plant-based materials
and biobased products, are gaining popularity as eco-friendly
alternatives to traditional polymers. These include Polylactic Acid
(PLA) and starch bags, which meet the BS N13432 standard for
compostability. Sugarcane feedstock and corn starch are common raw
materials used in the production of compostable plastics through
extraction and refining processes. The market spans various sectors
such as electronics, medical, construction, and packaging.
Biodegradable plastics find applications in medical devices,
implants, temporary implants, surgeries, and biodegradable sutures,
drug delivery systems, and insulation materials. The market also
caters to niche products like compostable plastic packaging,
silverware, bags, and containers used in restaurants and grocery
shops. Rising environmental awareness and ethical waste management
practices are driving the demand for compostable plastics in
various industries. The e-commerce industry and online shopping are
also adopting compostable packaging, shipping materials, and
mailing bags to reduce their carbon footprint. The durability and
shelf life of compostable plastics are comparable to their
petrochemical counterparts, making them a viable alternative for
various applications. Consumer education and labeling are crucial
for the growth of the market, ensuring transparency and trust in
the use of compostable plastics. Homecare and healthcare sectors
are also adopting sustainable packaging solutions to reduce plastic
waste and contribute to a more eco-friendly future.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- Packaging
- Consumer Goods
- Textiles
- Agriculture
- Others
- Product
-
- Compostable Bag
- Compostable Cutlery
- Compostable Gloves
- Compostable Straw
- Others
- Geography
-
- Europe
- North America
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
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With over 500 specialized analysts, Technavio's report library
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Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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