Compostable Plastic Market Outlook - 2027
The global compostable plastic market was valued at $991.2 million in 2019 and is expected to reach $3,102.6 million by 2027, growing at a CAGR of 15.4% from 2020 to 2027.
Compostable plastics break down under strict control of environmental factors, including higher temperatures, pressure and nutrient concentration unlike biodegradable plastics. Compostable plastics can be decomposed through aerobic and anaerobic decomposition processes in time span of three to six months. However, anaerobic plastics need special treatment such as industrial composting, which costs higher than usual home composting. As in many cases, industry players are reluctant to utilize municipal waste, it leads to landfill; thus, creating environmental hazards.
The global compostable plastic market is in the introductory phase of the industry life cycle and is expected to explore new growth opportunities during the coming years. Some of the basic factors driving the demand for the market include governmental initiatives to eliminate single use plastic and strict regulatory outlook against the use of conventional plastic products.
Industry trends are shifting toward biobased products to reduce dependence on conventional plastics. Compostable bags such as polylactic acid (PLA) and starch bags are widely used as an alternative to conventional, oil-derived plastics. Such bio bags made from natural resources are certified to BS N13432 standard. Compostables degrade easily unlike fossil fuel-based plastic products, which may take more than 500 years to degrade completely. Moreover, most of the manufacturers in industries such as packaging, textile and agriculture are shifting toward biobased plastic due to stringent regulations from the government. Such factors are largely impacting the compostable plastic market growth.
On the other hand, the growth of the market is restrained by high cost of compostable plastic over its conventional counterparts. For instance, polylactic acid based bioplastics are at least eight times as expensive as the petroleum-based plastics. Additionally, compostable plastic bags are not as strong as conventional plastic bags and are waterproof for a limited period of time. However, new products such as Fruitplast, a bioplastic made from the skins of tropical fruits at a lower price, are expected to provide lucrative growth opportunities in upcoming times.
The global compostable plastic market is segmented on the basis of type, application, and region. Based on type, the market is bifurcated into home compostable plastic, and others. Home compostable plastic is further classified into BioPBS FD92, BWC BF 90A, and Ecopond Flex 162.
On the basis of application, the global compostable plastic market is categorized into compostable cutlery, compostable bag, compostable straw, compostable gloves, compostable cup (cold cup), and compostable tray/dish. Based on region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
Some of the major manufacturers studied and profiled in the global compostable plastic market are BASF SE, Dow Inc., Novamont S.p.A., Plantic, Natureworks, Corbion N.V., Biome Technologies plc, Mitsubishi Chemical Holdings, Eastman Chemical Company, and Danimer Scientific.
By Region
LAMEA exhibits CAGR of 18.3%
Compostable Plastic, By Region
Europe accounted for the highest revenue share in compostable plastic market owing to growing concern from Government and European legal framework, and strategies that are expected to boost the extensive use of compostable plastic products and provide growth opportunities for the market. LAMEA is expected to witness fastest growth rate owing to the large presence of sugarcane feedstock, which can be utilized for production of bioplastics.
By Type
Home Compostable Plastic is projected as the most lucrative segment
Compostable Plastic, by Type
The others segment accounted for the highest revenue share in the compostable plastic market. This is attributed to growing penetration of compostable bioplastics instead of petroleum-based plastics in various industrial applications. Others include compostable plastics used for various industrial applications such as textile and agriculture. To be suitable as a compostable plastic for industrial applications, it must meet all the standards of the European norm EN 13432 on industrial compost ability.
By Application
Compostable Gloves is projected as the most lucrative segment
Compostable Plastic, by Application
Compostable bags emerged as the global leader in terms of revenue in the market. This is attributed to shifting trend of consumers from synthetic to biobased products in response to the growing environmental awareness. Compostable bag segment is expected to dominate the market owing to increasing demand for such bags in supermarkets and online shopping stores. In addition, growing concern from government on eco-friendly compostable plastic bags will substitute the conventional plastic bags in the future.
Key Benefits For Stakeholders
- The compostable plastic market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides an in-depth analysis of the compostable plastic market forecast for the period 2020–2027.
- The report provides an in-depth analysis of the compostable plastic market share analysis for the period 2020–2027.
- The report outlines the current compostable plastic market trends and future estimations from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The key drivers, restraints, and market opportunity and their detailed impact analysis are elucidated in the study.
Compostable Plastic Market Report Highlights
| Aspects | Details |
 By Type |
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 By Application |
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 By Region |
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 Key Market Players | DANIMER SCIENTIFIC, BIOME TECHNOLOGIES PLC., DOW INC., BASF SE, PTT GLOBAL CHEMICAL COMPANY LIMITED, NOVAMONT S.P.A, CORBION N.V., MITSUBISHI CHEMICAL HOLDINGS, EASTMAN CHEMICAL COMPANY, KURARAY CO., LTD. |
Analyst Review
Compostable plastic is considered as the major innovation from renewable material as the world is discovering alternatives to single use plastic products. It is being adopted as a perfect substitute to single use plastic as this plastic decomposes after a definite period of time by causing no harm to environment.
Increase in number of manufacturers, favorable government policies for the adoption of sustainable and Compostable products, and rise in availability of renewable feedstock boost the growth of the Compostable plastic market. Rise in consumer acceptance due to various awareness and education programs regarding biobased products is providing a new perspective to eliminate usage of conventional plastic. However, higher price of biobased plastic as compared to traditional plastic coupled with low performance standards hamper the market growth.
At present, use of Compostable plastic in bags is the highest and is projected to remain the same through 2027 on account of its favorable properties. On the other hand, relative inferior performance of Compostable plastic especially PLA plastics against traditional petroleum-based plastics is expected to be the key concern. The production of bioplastics is highest in Asia-Pacific owing to the huge availability of renewable feedstock. Despite being Compostable, one of the key advantages is its properties are similar to the conventional plastic, which makes Compostable plastic a perfect substitute to conventional plastic.
Eco-friendly nature and rise in consumer adoption of Compostable plastics, high demand of compostable plastic in food packaging application, favourable Government Policies towards compostable plastic are the factors that drives Compostable Plastic market growth.
The market revenue for compostable plastic is $ 991.2 million in 2019.
Increase in number of manufacturers, favourable government policies for the adoption of sustainable and compostable products, and rise in availability of renewable feedstock boost the growth of the compostable plastic market. Rise in consumer acceptance due to various awareness and education programs regarding bio based products is providing a new perspective to eliminate usage of conventional plastic. Additionally, development of low cost bioplastics from various renewable sources such as sugarcane and fruit skin is expected to steer the market growth.
Europe is expected to hold the highest market share in Compostable Plastic market.
Product launch, joint venture, partnership are the key growth strategies of Compostable Plastic market players.
Others compostable plastic (textile and agriculture) is the leading segment in compostable market.
Packaging industries, food and beverage, consumer durable, bakeries, agriculture, and textile are the potential customers of Compostable Plastic industry.
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