Biodegradable Plastics Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The biodegradable plastics market is projected to grow from USD 5.81 billion in 2024 to USD 12.5 billion by 2035. The growth rate of this market is 7.21 % CAGR from 2025 to 2035. The increasing awareness of the environment, the increasingly strict regulations against the use of single-use plastics and the growing demand for biodegradable alternatives are driving the demand for biodegradable plastics. There is a shift towards new materials and technologies that reduce plastic waste and increase biodegradability. Advances in biopolymer technology have made it possible to develop more efficient and cost-effective biodegradable plastics. Companies such as BASF, NatureWorks and Novamont are investing in research and development to create high-performance biodegradable products. Strategic initiatives such as collaborations and alliances aimed at expanding product portfolios and extending market reach are also contributing to the growth of the market. For example, BASF is collaborating with several packaging companies to include biodegradable materials in their products.

Regional Market Size

Regional Deep Dive

The biodegradable plastics market is experiencing a substantial growth in the various regions, owing to the increasing awareness about the environment and the stringent regulations imposed to reduce plastic waste. The biodegradable plastics market is influenced by the changing preferences of the consumers, government initiatives, and technological advancements in the field of biodegradable materials. Each region has its own opportunities and challenges, varying with the cultural and economic aspects.

Europe

• The European Union's Green Deal and the Single-Use Plastics Directive are pivotal in driving the adoption of biodegradable plastics, pushing manufacturers to innovate and comply with new regulations.
• Leading companies such as Novamont and Total Corbion PLA are collaborating on projects to enhance the biodegradability of plastics, which is expected to significantly impact the packaging industry in Europe.

Asia Pacific

• Countries like Japan and South Korea are implementing policies to promote biodegradable plastics, with government incentives encouraging local manufacturers to shift towards sustainable materials.
• Innovations in biopolymer technology by companies such as Mitsubishi Chemical are paving the way for new applications in agriculture and food packaging, which are expected to drive market growth in the region.

Latin America

• Brazil is leading the charge in Latin America with initiatives to promote biodegradable plastics, supported by local regulations aimed at reducing plastic pollution in urban areas.
• Collaborations between local startups and international companies, such as the partnership between Braskem and the University of São Paulo, are fostering innovation in biodegradable materials, which is expected to enhance market penetration.

North America

• The U.S. has seen a surge in demand for biodegradable plastics due to state-level bans on single-use plastics, with California leading the charge through its stringent environmental policies.
• Companies like BASF and NatureWorks are investing heavily in R&D to develop advanced biodegradable materials, which are expected to enhance product performance and expand applications in packaging and consumer goods.

Middle East And Africa

• The region is witnessing a gradual shift towards biodegradable plastics, driven by increasing awareness of environmental issues and government initiatives aimed at reducing plastic waste.
• Companies like Bioware and Eco-Products are emerging in the MEA market, focusing on sustainable packaging solutions, which are expected to gain traction as consumer demand for eco-friendly products rises.

Did You Know?

“Approximately 300 million tons of plastic are produced globally each year, and only a small fraction is recycled, making the shift to biodegradable plastics crucial for environmental sustainability.” — World Economic Forum

Segmental Market Size

The biodegradable plastics sector is an important part of the overall plastics market, which is growing at a fast rate as a result of the increased awareness of the environment and the growing pressure from the authorities. The European directive on single-use plastics and the growing demand for sustainable products are the main drivers of this growth. These changes in the market are being met by companies like BASF and NatureWorks, which are at the forefront of the industry, developing new biodegradable materials that meet these changing needs. The biodegradable plastics sector is now in the process of rolling out in a number of countries. Some notable examples are Europe and North America, where cities are implementing foodservice packaging solutions based on biodegradable materials. Biome Bioplastics is the leading company in the foodservice packaging sector. The growth of the sector is also being accelerated by the trend towards sustainability and the rise of CSR. New biopolymer materials, such as polylactic acid and polyhydroxyalkanoates, are shaping the evolution of the industry, making biodegradable materials more widely available and effective.

Future Outlook

The biodegradable plastics market is projected to grow at a CAGR of 7.21% from 2024 to 2035. This growth is primarily driven by the growing concern for the environment, the stringent regulations on plastic waste, and the increasing preference of consumers for sustainable products. With governments implementing policies to reduce plastic pollution, the demand for biodegradable alternatives is expected to rise, thereby driving their use in the packaging, agriculture, and consumer goods industries. And as far as the future of the biodegradable plastics market is concerned, technological advancements will play a crucial role. In the coming years, the performance and cost of biodegradable plastics will be improved by innovations in material science, enabling them to compete with traditional plastics. New biopolymers and improved production methods will also enable them to gain a foothold in the market. In 2035, it is expected that biodegradable plastics will account for approximately 15 to 20 percent of the total plastics market, driven by the growing demand for sustainable products and the implementation of regulatory frameworks. The integration of biodegradable materials into e-commerce packaging and the emergence of circular economy initiatives will also drive market growth, making biodegradable plastics a key component in the transition to sustainable materials management.