Biopolymers Market to reach USD 20.64 Billion by 2021

The three major factors that define the evolution of bio-plastic industry are market demand, government mandates and technical maturity. In order to address the challenges of society’s increasing demand for better sustainable solutions, many companies have started focusing upon the green aspect of the bio-based plastics. As with conventional plastics, bio-plastics have a very broad application spectrum. Bio-plastics tend to have a generally very high consumer acceptance and have end uses in various commercial applications such as packaging, textiles, consumer goods, agriculture & horticulture, automotive and many more. Owing to the innovative packaging solutions with entirely novel functionalities, like biodegradability/ compostability, new materials such as the following along with other cellulose or starch-based materials are being used consistently in packaging:

Bio-PET30 is estimated to have the highest market share of around 30% as well as growing at athe highest CAGR of 28.5% during the forecast period. Bioplastics are rapidly penetrating the overall packaging sector right from a niche product in organic trade to premium packaging for branded goods.

The global biopolymers market in 2015 was around $6.94 billion according to a recent study by IndustryARC and is dominated by Europe, which is poised to exhibit the fastest growth due to favorable microeconomic conditions like government regulations and financial conditions like increasing FDI investments. The European bio-plastics market is projected to grow at a high rate of more than 20% per year owing to internal as well as external bio-plastic factors. Europe is the largest regional market for bio-plastic packaging with 39% of global tonnage consumed in 2015. This is equivalent to 182 thousand tonnes, of which the majority is used for non-food packaging products. Moreover, Thailand and China are the growth frontiers for the biopolymers manufacturers providing a huge market to be tapped in APAC. The bio-plastics industry is an enormous business opportunity in Thailand due to rich supply of biomass, supporting industries, active industry and government cooperation, policies, and the nation’s strategic location. The biopolymers market in Brazil is anticipated to grow at a CAGR of 17.61% during the forecast period 2016 to 2021.

Major firms spent huge amounts of money in the development of efficient technologies and at the same time, new firms are coming up with cutting-edge technological innovations, resulting in tremendous increase in the degree of competition. Consequently, product launches, mergers and acquisitions and partnerships by companies, universities as well as individual researches has been frequenting the bioplastics market headlines.

The overall biopolymers market is characterized by large number of companies but top three companies account for 41% market share due to the wide distribution network and brand reputation. Rapid developments in emerging countries and use of innovative environment friendly products and materials in plastic industry have supported the growth of biopolymers markets. Along with the demand growth, the adoption of new technologies for bioplastics in emerging economies such as China, Thailand and India provides a strong impetus to the market growth. Innovation is a key driver for this segment. The new firms that venture into this market will need huge capital for investment in manufacturing and marketing along with offering product or pricing benefits to customers. The market is poised to exhibit new product launches and strategic acquisitions or partnerships, as major companies explore for new opportunities.

The Biopolymers market report is a comprehensive study of the market for different types, applications and geography.

The market has also been analyzed for four geographic regions which include North America, APAC, Europe and Rest of the World.