Biodegradable Plastics Market
By Type;
PLA, Starch Blends, Pha, Biodegradable Polyesters, and OthersBy Process;
Starch Blends, and Polylactic AcidBy End-Use Industry;
Packaging & Bags, Consumer Goods, Agriculture & Horticulture, Textile, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Biodegradable Plastics Market Overview
Biodegradable Plastics Market (USD Million)
Biodegradable Plastics Market was valued at USD 7,515.43 million in the year 2024. The size of this market is expected to increase to USD 21,497.94 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 16.2%.
Biodegradable Plastics Market
*Market size in USD million
CAGR 16.2 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 16.2 % |
Market Size (2024) | USD 7,515.43 Million |
Market Size (2031) | USD 21,497.94 Million |
Market Concentration | Low |
Report Pages | 390 |
Major Players
- Natureworks
- BASF SE
- Total Corbion PLA
- Mitsubishi Chemical Corporation
- Biome Bioplastics
- Plantic Technologies
- Bio-On
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Biodegradable Plastics Market
Fragmented - Highly competitive market without dominant players
The biodegradable plastics market is gaining strong traction as industries and consumers increasingly prioritize sustainability. In response to rising concerns about plastic pollution, over 55% of packaging providers are now transitioning to biodegradable alternatives, particularly in disposable applications. This shift underscores the growing influence of environmental responsibility in product development.
Breakthroughs in Biodegradable Polymer Technologies
Advancements in bio-based polymer engineering have made biodegradable plastics more versatile and efficient. Around 35% of products now incorporate high-performance biopolymers that offer enhanced durability and compostability. These innovations are helping bridge the gap between functionality and environmental impact, making biodegradable solutions more practical.
Broadening Usage Across Diverse Industries
The application of biodegradable plastics is expanding rapidly across sectors such as packaging, agriculture, and consumer goods. More than 50% of compostable packaging solutions currently rely on biodegradable materials due to their low ecological footprint and compatibility with waste management systems. This widespread adoption is reinforcing the material's market relevance.
Eco-Conscious Consumer Trends Fueling Innovation
With over 42% of consumers showing a preference for sustainable packaging, the industry is responding with continued innovation and investment. Public awareness, coupled with brand initiatives to reduce carbon footprints, is generating a robust demand pipeline for biodegradable plastic solutions, ensuring sustained market progress.
Biodegradable Plastics Market Recent Developments
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In May 2025, University of Queensland researchers introduced a biodegradable bioplastic blend of PHAs and Radiata pine wood fibres to produce durable, soil‑ and marine‑compostable strawberry punnets, offering a sustainable alternative to conventional packaging.
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In November 2024, the Financial Times spotlighted the carbon and microplastic risks of certain bioplastics, highlighting issues like incomplete biodegradability, industrial composting requirements, and the unclear distinction between bio‑based and truly eco‑friendly plastics.
Biodegradable Plastics Market Segment Analysis
In this report, the Biodegradable Plastics Market has been segmented by Type, Process, End-Use Industry and Geography.
Biodegradable Plastics Market, Segmentation by Type
The Biodegradable Plastics Market has been segmented by Type into PLA, Starch Blends, Pha, Biodegradable Polyesters and Others.
PLA
PLA (Polylactic Acid) dominates the biodegradable plastics market, accounting for over 35% of the total share. It is derived from renewable resources like corn starch and sugarcane, and is widely used in packaging, disposables, and 3D printing. PLA is favored for its high clarity, compostability, and biocompatibility.
Starch Blends
Starch blends hold nearly 25% of the market, driven by their cost-effectiveness and ability to blend with other biodegradable polymers. These materials are used in agriculture films, carry bags, and food packaging. Their fast degradation rate and abundant raw material availability enhance their market potential.
PHA
PHA (Polyhydroxyalkanoates) contribute about 15% of the market and are produced through the microbial fermentation of sugars and lipids. Known for their marine biodegradability and biocompatibility, PHAs are increasingly used in medical devices, agricultural films, and packaging solutions.
Biodegradable Polyesters
This segment holds around 20% of the market and includes materials such as PBAT (Polybutylene Adipate Terephthalate) and PBS (Polybutylene Succinate). These polyesters offer excellent flexibility and thermal resistance, making them ideal for mulch films, shopping bags, and industrial packaging.
Others
The 'Others' category, including cellulose derivatives and protein-based plastics, makes up roughly 5% of the market. These materials are used in niche applications such as coatings, films, and biomedical products, offering unique functional properties and sustainable alternatives.
Biodegradable Plastics Market, Segmentation by Process
The Biodegradable Plastics Market has been segmented by Process into Starch Blends, and Polylactic Acid.
Starch Blends
Starch blends account for approximately 55% of the biodegradable plastics market by process. These blends combine natural starch with other biodegradable polymers to enhance performance and reduce cost. Commonly used in packaging, mulch films, and disposable items, starch blends are favored for their rapid degradation and renewable sourcing.
Polylactic Acid
Polylactic Acid (PLA) holds around 45% of the market share and is produced through the fermentation of corn starch or sugarcane. PLA is popular for its use in food packaging, biodegradable tableware, and 3D printing. It offers excellent transparency, compostability, and thermal processability, making it suitable for both industrial and consumer applications.
Biodegradable Plastics Market, Segmentation by End-Use Industry
The Biodegradable Plastics Market has been segmented by End-Use Industry into Packaging & Bags, Consumer Goods, Agriculture & Horticulture, Textile and Others.
Packaging & Bags
Packaging & bags represent the largest end-use segment, accounting for approximately 60% of the biodegradable plastics market. These materials are used in food packaging, shopping bags, and disposable containers, driven by increasing demand for sustainable alternatives and regulatory bans on single-use plastics.
Consumer Goods
The consumer goods segment holds about 15% of the market, with biodegradable plastics used in electronics casings, toys, household items, and personal care packaging. The demand is supported by growing consumer preference for eco-friendly products and biodegradable materials in everyday use.
Agriculture & Horticulture
This segment contributes nearly 10% of the market. Biodegradable plastics are applied in mulch films, plant pots, and seed coatings to reduce plastic waste and improve soil health. Rising adoption of sustainable farming practices is fueling demand in this category.
Textile
The textile industry accounts for around 8% of the market, with biodegradable plastics used in biopolyester fibers and nonwovens for clothing, upholstery, and industrial textiles. These materials offer compostability and renewable sourcing, aligning with circular fashion trends.
Others
The 'Others' segment, including applications in medical, automotive, and 3D printing, makes up about 7% of the market. These niche applications benefit from the customizability, biocompatibility, and environmental safety of biodegradable plastic materials.
Biodegradable Plastics Market, Segmentation by Geography
In this report, the Biodegradable Plastics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Biodegradable Plastics Market Share (%), by Geographical Region
North America
North America holds approximately 25% of the biodegradable plastics market. Growth is driven by increasing environmental awareness, stringent regulatory frameworks, and high demand for sustainable packaging solutions in the United States and Canada. The region also sees rising investment in biopolymer R&D.
Europe
Europe leads the market with over 35% share, supported by strong regulatory mandates and consumer preference for eco-friendly materials. Countries such as Germany, France, and Italy are front-runners in adopting biodegradable alternatives across packaging, agriculture, and retail sectors.
Asia Pacific
Asia Pacific represents around 30% of the global market. Rapid industrialization in China and India, combined with growing government initiatives to reduce plastic pollution, is accelerating adoption. The region is also a leading producer of PLA and starch-based biodegradable plastics.
Middle East and Africa
This region accounts for approximately 5% of the market. Although still in the early adoption phase, urbanization, increasing focus on sustainable development, and growth in packaging and retail industries are driving slow but steady demand for biodegradable plastics.
Latin America
Latin America holds an estimated 5% market share, led by growing interest in eco-friendly alternatives across Brazil, Mexico, and Argentina. Rising awareness of plastic waste issues and regulatory efforts to reduce single-use plastics are encouraging local market expansion.
Biodegradable Plastics Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Biodegradable Plastics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Rising environmental concerns and bans
- Increased demand for sustainable packaging
- Supportive government regulations worldwide
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Consumer shift toward eco-friendly products - The global shift in consumer preferences toward eco-friendly and sustainable products is strongly influencing the growth of the biodegradable plastics market. Increasing environmental awareness, rising concerns about plastic pollution, and growing distrust of traditional plastics are motivating individuals to adopt products that leave a minimal ecological footprint.
Today’s consumers are more educated and actively seek out brands that align with their sustainability values. Packaging, in particular, has become a critical factor in purchasing decisions. Biodegradable plastics, which offer both functional utility and environmental safety, are now favored in packaging for food, cosmetics, and consumer goods.
Social media, green labeling, and certification programs are amplifying consumer demand by showcasing the benefits of biodegradable alternatives and holding companies accountable for environmental claims. This grassroots demand shift is pushing retailers and manufacturers to replace petroleum-based plastics with compostable or bio-based substitutes.
As this preference becomes mainstream, businesses that prioritize the use of biodegradable materials are likely to experience stronger brand loyalty, enhanced customer trust, and competitive differentiation in a crowded marketplace.
Restraints
- High production and material costs
- Limited industrial composting infrastructure
- Inconsistent biodegradability across conditions
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Competition from recycled conventional plastics - Recycled conventional plastics present a major competitive restraint for the biodegradable plastics market. As recycling technologies improve and become more cost-effective, recycled plastics are gaining renewed appeal as an environmentally responsible solution without the higher costs often associated with biodegradable options.
In many regions, infrastructure for collecting, sorting, and processing recycled plastics is well-established, giving recycled materials an economic and logistical advantage. Additionally, the lower cost and consistent mechanical performance of recycled traditional plastics make them more attractive for applications where biodegradability is not essential.
Policy emphasis on circular economy and material reuse has further encouraged the use of recycled plastics, particularly in the EU and North America. Government and corporate programs that promote closed-loop recycling systems may unintentionally deprioritize biodegradable plastics as they do not always fit into the same recycling pathways.
Unless biodegradable plastics can demonstrate cost parity, improved end-of-life options, and infrastructure compatibility, they will continue to face strong competition from recycled alternatives, limiting their widespread adoption.
Opportunities
- Innovation in advanced biopolymer blends
- Expansion into agricultural mulch films
- Growth in medical and hygiene applications
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Corporate commitments to plastic reduction - Growing corporate commitments to reduce plastic waste are creating significant opportunities for the biodegradable plastics market. Driven by consumer pressure, ESG mandates, and regulatory oversight, leading companies across industries are pledging to phase out single-use plastics and adopt more sustainable materials in packaging and production.
Major brands in the retail, food and beverage, and cosmetics sectors have already integrated biodegradable plastics into their sustainability roadmaps. These companies are piloting compostable packaging, switching to biodegradable alternatives, and partnering with bio-material startups to co-develop innovative solutions.
Such commitments are also aligned with global initiatives like the UN’s Sustainable Development Goals (SDGs) and the Plastics Pact Network, which aim to create a future where plastic never becomes waste. As a result, corporate demand is helping accelerate investment and scalability in biodegradable plastic technologies.
This trend not only boosts demand but also opens avenues for long-term contracts, public-private collaborations, and co-branding opportunities for manufacturers. It reinforces the role of biodegradable plastics as a strategic solution for brands aiming to achieve genuine environmental progress.
Biodegradable Plastics Market Competitive Landscape Analysis
Key players in Biodegradable Plastics Market include
- BASF
- NatureWorks LLC
- TotalEnergies Corbion
- Mitsubishi Chemical Group Corporation
- Biome Bioplastics
- Plantic Technologies
- FKuR Kunstsoff
- Danimer Scientific
- TORAY Industries, Inc.
- Novamont
- Green Dot Bioplastics
- Synbra Technologies
- Sphere
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Type
- Market Snapshot, By Process
- Market Snapshot, By End-Use Industry
- Market Snapshot, By Region
- Biodegradable Plastics Market Dynamics
- Drivers, Restraints and OpportunitiesPEST Analysis
- Drivers
- Rising environmental concerns and bans
- Increased demand for sustainable packaging
- Supportive government regulations worldwide
- Consumer shift toward eco-friendly products
- Restraints
- High production and material costs
- Limited industrial composting infrastructure
- Inconsistent biodegradability across conditions
- Competition from recycled conventional plastics
- Opportunities
- Innovation in advanced biopolymer blends
- Expansion into agricultural mulch films
- Growth in medical and hygiene applications
- Corporate commitments to plastic reduction
- Drivers
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and OpportunitiesPEST Analysis
- Market Segmentation
- Biodegradable Plastics Market, By Type, 2021 - 2031 (USD Million)
- PLA
- Starch Blends
- Pha
- Biodegradable Polyesters
- Others
- Biodegradable Plastics Market, By Process, 2021 - 2031 (USD Million)
- Starch Blends
- Polylactic Acid
- Biodegradable Plastics Market, By End-Use Industry , 2021 - 2031 (USD Million)
- Packaging & Bags
- Consumer Goods
- Agriculture & Horticulture
- Textile
- Others
- Biodegradable Plastics Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Biodegradable Plastics Market, By Type, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- BASF
- NatureWorks LLC
- TotalEnergies Corbion
- Mitsubishi Chemical Group Corporation
- Biome Bioplastics
- Plantic Technologies
- FKuR Kunstsoff
- Danimer Scientific
- TORAY Industries, Inc.
- Novamont
- Green Dot Bioplastics
- Synbra Technologies
- Sphere
- Company Profiles
- Analyst Views
- Future Outlook of the Market