Biodegradable Plastic Market Size to Reach USD 7.6 Bn by 2027: Grand View Research
The global biodegradable plastic market size is projected to reach USD 7.6 billion by 2027, rising at a revenue-based CAGR of 9.4% during the forecast period, according to a report by Grand View Research, Inc. Increasing use of biodegradable products, owing to strict governmental laws for prohibiting use of conventional plastics and growing awareness among public toward their ill-effects is boosting the market growth.
Use of Renewable Raw Materials
Biodegradable plastics are made of renewable raw materials and decompose in the environment within a reasonable period. Many of these require biodegradable additives to enhance the biodegradation process and some require a specific environment to disintegrate. Time taken by plastics to decompose depends upon various factors such as raw materials used and environmental conditions such as moisture and temperature.
The starch-based segment led the global biodegradable plastic market, since they are used in various applications such as packaging, consumer electronics, agriculture, automotive, and textiles. Polylactic Acid (PLA) is also one of the most consumed products, which is used in 3D printing, mulch film, and packaging.
Anticipated Growth in Packaging Segment
Ban on plastics by European Commission is anticipated to drive the packaging segment growth over the forecast period. Novel applications of biodegradable products in the medical sector for drug encapsulation and medical surgeries are also being increasingly practiced.
People across the globe, are facing grave issues of waste as conventional plastics take hundreds of years to decompose. To tackle this issue several countries have banned the use of single-use plastic products and are promoting eco-friendly biodegradable products. Ban of non-reusable conventional plastics in many regions, especially in Europe and North America, is estimated to propel the market demand. Additionally, improving standard of living and increasing disposable income in developing countries are likely to augur well for the market in Asia Pacific and Central and South America.
Key players are investing in research and development activities in order to create improved products that are strong and can be easily decomposed in natural environment. Many companies have integrated value chain to serve customers better and improve company profits.