Biodegradable Plastics Market By Type (Polylactic Acid, Polyhydroxyalkanoates, Starch-Based Plastics, Polybutylene Succinate, Polybutylene Adipate Terephthalate, Others), By Form (Films, Sheets, Pellets, Foams, Fibers), By Application (Packaging, Agriculture & Horticulture, Textiles, Automotive, Others), By End-user (Food & Beverage, Retail, Healthcare, Electronics, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Biodegradable Plastics market accounted for USD 5.97 Billion in 2024 and USD 6.58 Billion in 2025 is expected to reach USD 17.5 Billion by 2035, growing at a CAGR of around 10.3% between 2025 and 2035. Biodegradable Plastics Market refers to the plastics that are able to naturally break down in an environment through the help of microorganisms instead of remaining in the ground and polluting the environment into a bigger burning problem. These plastics are obtained using renewable materials such as cellulose, sugarcane, or corn starch.

As more people around the globe become aware of plastic waste and the government initiates laws to ban single-use plastics, the demand is growing fast. Packing, agriculture, and consumer products industries are switching to the use of biodegradable products. Future opportunities also lie in improvements in cost-effective production and the increased material performance to exponentially grow and sustain in markets around the globe. 

Industry Experts Opinion

"The public often misunderstands biodegradable plastics. They require specific conditions to break down, and if not managed correctly, they can persist in the environment just like conventional plastics."

• Dr. Susan Selke, Packaging Science Expert, Michigan State University

Report Scope:

Market Dynamics

Rising bans on single-use plastics drives demand for eco-friendly alternatives globally.

The Biodegradable Plastics Market is being affected by a rise in the number of bans on single-use plastics globally. The governments and environmental bodies are implementing strict guidelines to forbid the involvement of non-degradable plastics in the packaging and retailing of goods. These prohibitions have been related to the fact that the pollution of the environment by traditional plastics poses a significant threat to the environment as plastics continue to degrade in landfills and oceans, many centuries later. Consequently, businesses feel obligated to implement greener substitutes. Biodegradable plastics produced out of renewable materials are considered an auspicious design. The change is especially prominent in packaging, food service, and agriculture. Adoption has been fast-tracked by regulation in the EU, India, and sections of the U.S.

Biodegradable plastics like PBAT, PLA, and PBS account for over 64% (1.5 million tonnes) of global bioplastics production capacity. In contrast, bio-based, non-biodegradable plastics such as bio-PE, bio-PET, and bio-PA make up 36% (0.8 million tonnes). These figures reflect the growing dominance of biodegradable materials in sustainable plastic solutions. The preferences of consumers are also changing too fast. Companies that are not versatile are liable to fines and a decline in market value. Therefore, regulatory pressure is one of the key drivers of this market.

Increased consumer awareness about plastic pollution is boosting biodegradable product adoption.

Increased consumer concern about the environment is fueling the Biodegradable Plastics Market. The current generation is more enlightened than before about the nature of damage that plastic waste causes to sea animals, soil fertility, and the entire ecosystem. Such campaigns as educational campaigns, documentaries, and social media movements have been able to focus on the necessity of sustainable living. This consciousness is going directly into the market as people are showing a preference for biodegradable and compostable products. People are resorting to friendlier options in wrapping, utensils, shopping bags, and even personal cleansers. The brands are adapting to this change by presenting environmentally friendly collections and putting them in clearly labeled sustainable packages.

Certification logos such as compostable or biodegradable have now taken effect on the choice of purchase. Such a behavioral shift does not occur only in developed countries but is also increasing in emerging economies. This change is helping the Biodegradable Plastics Market to gain resources as businesses are adjusting to the values of environmental commitment. Various stores and online shops are also entering the sustainability trend. Product strategies are becoming consumer-led as environmental responsibility as a core value takes hold. On the whole, this is an effective force in the market. It aids in supporting the long-term growth and reinforces the idea of the necessity of innovation.

Higher production costs compared to conventional plastics limit mass-market competitiveness.

Although the Biodegradable Plastics Market has a bright perspective in the future, one of the greatest problems is increased production costs. Renewable raw materials used to make biodegradable plastics are biodegradable, such as starch, PLA, or PHA, which require more complicated processing procedures. Economies of scale do not exist because such materials are not produced in the same mass as petroleum-based plastics yet. The price gap is particularly evident in industries whose cost-efficiency is a major concern, like mass consumer goods and food packaging. The added cost of the biodegradable alternatives is an obstacle to small manufacturers and retailers.

There is also the problem of fluctuation in the supply of agricultural raw materials, which may increase the costs even further. This has also led to the continuation of the use of cheaper non-biodegradable materials by many businesses. The cost disparity is an obstacle to greater penetration and a roadblock to the mainstream of eco-friendly solutions. To achieve a higher market share of the Biodegradable Plastics Market, innovations are required in low-cost feedstocks and production that are scalable. Unless the aspect of cost is taken care of, sustainable materials will not be able to substitute conventional plastics in a global capacity. Thus, affordability is still a significant problem of market development.

Technological innovation in material strength and heat resistance is expanding industrial applications.

The Biodegradable Plastics Market will go through technological expansion that will improve the properties of materials. The first-generation biodegradable plastics were weak during the first aspect of strength, heat resistance, and shelf life. New developments are, however, managing these drawbacks and can be used in more rigorous industrial and commercial work. Such as in the case of biodegradable materials, which can now be exposed to elevated temperatures and moisture since techniques and advanced polymer engineering have been blended together. This will provide new opportunities in other areas such as the manufacture of automotive parts, electronic cases, and durable packaging. Moreover, you can make nano-reinforcements and enzymatic additives to help enhance the structure of technology without sacrificing biodegradability.

The innovations are increasing the competitiveness of biodegradable plastics in comparison with the traditional ones, as far as performance is concerned. The biodegradable plastics market is also witnessing biotechnology companies mixing with those involved in material science towards the formation of special formulations to suit particular applications. These innovations are not only functional, but they also increase their market coverage. Manufacturers will be in a position to design products that will comply with the environmental and mechanical requirements as research and development are going on. This implies that innovation is the enabler of scaling adoption. Finally, technology is making biodegradable plastics go from niche to mainstream solutions.

Growing demand in developing economies for sustainable packaging solutions.

The Biodegradable Plastics Market is showing a tremendous growth potential as the developing economies are tapping their growing potential. The factors to drive demand for consumer goods- and therefore sustainable packaging include the rise of urbanization, the growth of disposable income, and the growth of retailing. The governments of such countries as India, Brazil, or Indonesia are implementing policies to prevent plastic pollution, notably in emulation of developed countries. Coupled with the fact that people are becoming aware of the environment, sometimes using education-driven efforts, other times through social media engagement, the consequences of a more environmentally conscious person are being met by government action.

The local industries also express interest and startups to manufacture biodegradable alternatives using the raw materials available locally, like cassava or rice husk. This renders solutions cost-effective and fruitful to culture. Further, other businesses, such as international brands, have been feeling the heat in these markets due to the need to localize sustainability practices. They are seeking to find biodegradable packaging actively to meet regulatory and consumer demands. With better provisions for waste management and compost in these areas, the Biodegradable Plastics Market will make even faster progress. This shows the possibility of exports too, as these countries develop the capacity for bio-based production. Therefore, the increase in concern about sustainability in new markets is one of the greatest opportunities in global development.

Segment Analysis

Based on the product type, the Biodegradable Plastics market has been classified into Polylactic Acid, Polyhydroxyalkanoates, Starch-Based Plastics, Polybutylene Succinate, Polybutylene Adipate Terephthalate, and Others. PLA enjoys huge demand because of its high transparency, diffusion, mechanical properties, and cost-effective value over other bio-based polymers. Mostly an eco-friendly and renewable product, it is obtained from corn starch or sugarcane.

This has made it highly adoptable in food packaging, cutlery, and 3D printing processes, which has earned it market leadership. It also has an advantage over its competitors as it is compatible with the existing machinery used in plastic processing. Plastics made out of PHA, and plastics made out of starch are on the rise, yet when it comes to commercial viability and wide-scale production, and use, PLA is the most viable option.

Based on the application, the Biodegradable Plastics market has been classified into Films, Sheets, Pellets, Foams, and Fibers. Flexible packaging, shopping bags, agricultural mulch films, and hygiene products rely on films. They are easily broken down through composting processes and are light in weight, hence widely used both industrially and by individuals as well.

To take advantage of these materials, such as PLA, PBAT, and starch, it is common to work the materials into films as a result of their flexibility and processability. With a regulatory push into sustainable packaging, the demand for biodegradable films is constantly on the increase. Other forms, such as pellets and sheets, are useful in downstream processing, though they lag films in volume consumption.

Regional Analysis

Europe Biodegradable Plastics Market holds the largest share due to the presence of firm laws regarding the environment and elevated levels of people favoring the idea of sustainability. The EU regulations involving single-use plastics and circular economy policy have helped speed the trend towards biodegradable packaging components, crop applications, and products.

Germany, France, and Italy are leading producers as well as consuming countries. Composting infrastructure and green material subsidies are very developed too, and European industries can use this advantage. European firms like Novamont and TotalEnergies Corbion have developed strong production capacities in their area and have further strengthened their market leadership.

The Asia-Pacific Biodegradable Plastics Market is observing rapid growth because of the increased environmental expertise, bans on basic plastics by governments, and the flourishing technological advancements. Nations such as China, India, Japan, and South Korea are spending large sums of money on sustainable materials as wider green economic efforts.

Consumption is being supported by growing urbanization and is trying to meet the need for environmentally friendly packaging in food, retail, and agriculture. In addition, high availability of low-cost raw material and increases in local production capacity are facilitating the fast growth in the market. With tightening regulations and altering consumer tastes, Asia-Pacific will become a significant center of innovation and consumption of biodegradable plastics.

Competitive Landscape

Strategic alliances, capacity expansion, and innovation constitute the competitive environment in the Biodegradable Plastics Market as players rush to counter increased demand in the global market. Key companies are BASF SE, NatureWorks LLC, Novamont S.p.A., TotalEnergies Corbion, Danimer Scientific, and Mitsubishi Chemical Corporation, among others. These firms emphasize significant investment in R&D to increase the functional properties of the biodegradable plastics in terms of heat resistance, durability, and compostability, among others. There are also strategic affiliations and common enterprises that allow firms to come together, combining upstream (raw materials) and lower-end (packaging, retail) facilities.

An example was given of NatureWorks that increased its PLA capacity in Thailand, and Novamont that was also making improvements to the product lines of its biopolymers, Europe. Another significant strategy is geographic expansion into the high-growth markets, especially production localization in the Asia-Pacific market. To add, firms are also working with the FMCGs and packaging heavyweights to jointly work on biodegradable packaging. Consumers have come to accept such sustainability labels as home compostable or marine biodegradable as a way of enhancing the value of their brand and creating trust with consumers.

Biodegradable Plastics Market, Company Shares Analysis, 2024

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Recent Developments:

• In June 2024, BASF launched Ecovio® M2351, a marine-biodegradable plastic designed for fishing gear, helping reduce ocean plastic pollution. The material offers high mechanical strength and biodegrades in seawater, effectively addressing marine waste challenges and supporting sustainable fishing practices.
• In January 2024, Mitsubishi Chemical expanded the production of BioPBS™, a bio-based polybutylene succinate (PBS) used for flexible food packaging. The material offers excellent heat resistance and compostability, making it ideal for sustainable packaging applications in the food industry.

Report Coverage:

By Type

• Polylactic Acid
• Polyhydroxyalkanoates
• Starch-Based Plastics
• Polybutylene Succinate
• Polybutylene Adipate Terephthalate
• Others

By Form

• Films
• Sheets
• Pellets
• Foams
• Fibers

By Application

• Packaging
• Agriculture & Horticulture
• Textiles
• Automotive
• Others

By End-user

• Food & Beverage
• Retail
• Healthcare
• Electronics

• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• BASF SE
• TotalEnergies Corbion
• Novamont S.p.A.
• NatureWorks LLC
• Biome Bioplastics
• Danimer Scientific
• Mitsubishi Chemical Corporation
• FKuR Kunststoff GmbH
• Toray Industries, Inc.
• Plantic Technologies Ltd
• TIPA Corp Ltd.
• Green Dot Bioplastics
• CJ Biomaterials
• Minima Technology Co., Ltd.
• Cardia Bioplastics

Frequently Asked Questions (FAQs)