Biodegradable Plastics Market (Type - Starch-based, Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Polybutylene Succinate (PBS), Polyhydroxyalkanoates (PHA), and Others; End-use Industry - Packaging, Consumer Goods, Textile, Agriculture, Injection Molding, and Others): Global Industry Analysis, Trends, Size, Share and Forecasts to 2032

A recent report published by Infinium Global Research on biodegradable plastics market provides in-depth analysis of segments and sub-segments in the global as well as regional biodegradable plastics market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional biodegradable plastics market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global biodegradable plastics market.

Market Insight:

The global biodegradable plastics market was valued at USD 6.53 billion in 2023 and is expected to reach USD 31.18 billion in 2032, with a CAGR of 19.98% during the forecast period 2024-2032.

The biodegradable plastics market is undergoing a major shift, propelled by rising environmental awareness, stricter regulations targeting conventional plastics, and growing consumer demand for sustainable packaging and products. Biodegradable plastics, including materials such as PLA, PHA, starch-based blends, PBAT, and PBS, are experiencing accelerated adoption across various industries, including packaging, agriculture, consumer goods, and textiles, as brands strive to reduce their environmental footprint and align with both regulatory mandates and public sustainability expectations. Driven by government policies banning single-use plastics and promoting compostable alternatives, the market is witnessing rapid innovation in bio-based polymer technology, making biodegradable plastics more durable, heat-resistant, and cost-competitive while improving their compostability and ease of waste management. Technological advancements are transforming manufacturing processes, with AI-powered production optimization and innovative microbial fermentation techniques driving the development of next-generation biopolymers and functional packaging solutions.

Companies are actively investing in R&D and strategic partnerships to expand production capacities and introduce compostable packaging, helping them meet ambitious sustainability targets and boost brand recognition among environmentally conscious consumers. The food packaging sector, a primary growth driver, is rapidly transitioning to compostable films and containers, while the agriculture and automotive industries are also integrating bioplastics for films and lightweight vehicle components. However, the market faces persistent challenges. High production costs, limited infrastructure for composting, and the lack of standardization around biodegradability and compostability restrict broader adoption, especially in price-sensitive regions. Differences in biodegradable plastic performance across environments and consumer confusion over material capabilities complicate market penetration and regulatory compliance. Regional fragmentation is evident, with Europe leading adoption through programs such as the Green Deal and Circular Economy Action Plan, while Asia-Pacific demonstrates the fastest growth rates due to rapid industrialization and increasingly strict government bans on single-use plastics.

Stringent government regulations and bans on single-use plastics are a major force driving the biodegradable plastics market. Many countries have introduced strict policies, such as the EU’s Single-Use Plastics Directive, India’s plastic bag ban, and restrictions in the U.S. and China, to reduce plastic pollution and carbon footprint. These measures are compelling manufacturers and packaging companies to adopt biodegradable alternatives that comply with environmental standards. As regulatory frameworks tighten globally, demand for biodegradable plastics is accelerating across the packaging, food service, and consumer goods sectors. Additionally, rising consumer demand for sustainable and eco-friendly packaging is significantly boosting the biodegradable plastics market. Growing environmental awareness and concerns about plastic waste have shifted consumer preferences toward greener alternatives, especially in food packaging, e-commerce, and retail. Brands are increasingly adopting biodegradable materials to enhance sustainability credentials, attract eco-conscious customers, and align with corporate social responsibility goals. This demand surge is encouraging investments in biodegradable plastic production, further expanding its use across multiple industries, and strengthening its role in reducing environmental impact.

On the other hand, high production costs compared to conventional plastics are restraining the biodegradable plastics market by limiting their large-scale adoption. Biodegradable plastics require costly raw materials and advanced manufacturing technologies, making them more expensive than traditional plastics. This price gap discourages businesses, especially in cost-sensitive industries, from switching to sustainable alternatives, thereby slowing market growth despite strong regulatory and consumer support. Furthermore, advancements in biodegradable polymer technology are creating lucrative opportunities for the market by enhancing material performance and reducing costs. Innovations in bio-based feedstocks, processing techniques, and polymer blends have improved durability, flexibility, and compostability, making biodegradable plastics suitable for broader applications such as packaging, agriculture, textiles, and healthcare. These developments are helping manufacturers overcome traditional limitations, attract investment, and strengthen competitiveness against conventional plastics in both developed and emerging markets.

Europe is expected to dominate the biodegradable plastics market during the forecast period due to strong regulatory frameworks, high consumer awareness, and well-developed waste management systems. The European Union’s Single-Use Plastics Directive and circular economy strategies are pushing industries to adopt biodegradable alternatives on a large scale. Moreover, leading packaging, food service, and retail companies in the region are investing heavily in sustainable materials, reinforcing Europe’s position as the global leader in biodegradable plastics adoption and innovation. Asia-Pacific is expected to be the fastest-growing region in the biodegradable plastics market during the forecast period, driven by rapid urbanization, rising environmental awareness, and increasing government efforts to curb plastic pollution. Countries such as China, India, and Japan are implementing bans and restrictions on single-use plastics, encouraging the adoption of biodegradable alternatives. Additionally, the booming e-commerce and food delivery industries, coupled with rising middle-class consumption, are further accelerating demand for sustainable packaging solutions in the region.

Report Scope of the Biodegradable Plastics Market:

Segment wise revenue contribution in the global biodegradable plastics market

The report on global biodegradable plastics market provides a detailed analysis of segments in the market based on Type, and End-use Industry.

Segmentation Based on Type

·       Starch-based

·       Polylactic Acid (PLA)

·       Polybutylene Adipate Terephthalate (PBAT)

·       Polybutylene Succinate (PBS)

·       Polyhydroxyalkanoates (PHA)

·       Others

Segmentation Based on End-use Industry

·       Packaging

·       Consumer Goods

·       Textile

·       Agriculture

·       Injection Molding

·       Others

Company Profiled:

·       TotalEnergies Corbion

·       Cargill, Incorporated

·       BASF

·       NatureWorks LLC

·       Danimer Scientific

·        FKuR Kunststoff GmbH

·       Natur-Tec® (NTIC)

·       Novamont S.p.A.

·       PTT MCC BIOCHEM CO., LTD.

·       Eastman Chemical Company

Report Highlights:

The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the biodegradable plastics market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.