Polybutylene Adipate Terephthalate Market Expected to Reach $2.7 Billion by 2030

According to a new report published by Allied Market Research titled, “Polybutylene Adipate Terephthalate Market by application: global opportunity analysis and industry forecast, 2021–2030,” the global polybutylene adipate terephthalate market size was valued at $1.1 billion in 2020, and is projected to reach $2.7 billion by 2030, growing at a CAGR of 8.9% from 2021 to 2030.

Polybutylene adipate terephthalate is the biobased co-polymer made up of adipic acid, 1,4-butanediol and dimethyl terephthalate. Polybutylene adipate terephthalate is widely used in packaging, coatings, foams, and others applications in textile, agriculture, packaging and other end use industries. The key advantage associated with polybutylene adipate terephthalate is its compostable nature as compared to polylactic acid. The cost of PBAT is between polylactic acid (PLA) and polyhydroxy alkanoates (PHA).

Packaging industry is the major consumer of global polybutylene adipate terephthalate market. Packaging companies are increasingly using biodegradable plastics to manufacture large number of products including dried snacks & candy packaging, bakery goods packaging, water & juice bottles, meat trays, bags, beverages cups, films & card stock, and others. Regulatory bodies are enforcing manufacturers to come up with innovative substantial prepackaging solutions. As a result, manufacturers are adopting PBAT based biobased and biodegradable plastics in both flexible and rigid packaging applications. However, high cost associated with polybutylene adipate terephthalate (PBAT) is expected to hamper the growth of the market during the analyzed time frame.

On the basis of application, the packaging & bags segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This growth is attributed to quick decomposition of such plastic bags in a time of 3 to 6 months. In addition, lower carbon footprint compared to petroleum-based plastics makes it a more suitable choice for environment. Moreover, rapid growth of the packaged food & beverages industry in the regions such as Asia-Pacific and Europe is expected to boost the demand for biodegradable plastic products such as polybutylene adipate terephthalate during the analyzed time frame.

On the basis of region, the market is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered a dominant share in 2020, and is anticipated to maintain this dominance in during the forecast period. This is attributed to presence of key players and huge consumer base in the region.

In addition, rise in awareness toward the use of biodegradable plastics along with increase in government policies to promote the use of bioplastics is anticipated to fuel the demand for polybutylene adipate terephthalate in the region during the forecast period. Rapid urbanization and rise in consumer spending towards online shopping and food & beverages in countries such as India, Japan, Australia, South Korea and China is further projected to propel the growth of the market in the upcoming years

The global market analysis covers in-depth information of the major polybutylene adipate terephthalate industry participants. The key players operating and profiled in the report include Amco Polymer, BASF SE, Chang Chun Group, Cosmos Plastics & Chemicals, Eastman Chemical Company, Far Eastern New Century Corporation, Go Yen Chemical Industrial Co., Ltd., Hangzhou Peijin Chemical Co., Ltd., Jin Hui Zhao Long High-Tech Co., Ltd. and LOTTE Fine Chemical.

Other players operating in the value chain of the global polybutylene adipate terephthalate market are Jiangsu Tories biomaterials co., Ltd., Novamont S.p.A., K.D. Feddersen, Shanxi Junhui Group, Huaian Ruanke Trade Co, Ltd., FillPlas Co. Ltd., and others.

COVID-19 impact on the market

The global polybutylene adipate terephthalate market has witnessed steady growth in 2020, owing to outbreak of the COVID-19 pandemic. The outbreak has negatively impacted various industries and countries, thereby decreasing manpower across the globe, which decreased consumer spending and thus, decreased demand for bioplastics, packaging products, transportation, textiles, and others. However, owing to the lockdown imposed across the globe, there is a supply-demand gap, which resulted in halt in supply for raw materials used in polybutylene adipate terephthalate production. In Europe, economies, such as Germany, France, Spain, and Italy followed stringent measures, such as maintaining social distance and limiting movements to prevent the spread of coronavirus. Moreover, such safety measures have been witnessed across the globe, which further impacted growth of the global polybutylene adipate terephthalate market.

Key Findings Of The Study

• In 2020, the packaging & bags segment accounted for about 47.4% of the share in the global polybutylene adipate terephthalate market, and is expected to maintain its dominance till the end of the forecast period.
• In 2020, the consumer durables segment accounted for 19.8% polybutylene adipate terephthalate market share in the year 2020, and is anticipated to grow at a rate of 8.5% in terms of revenue, increasing its share in the global polybutylene adipate terephthalate market.
• Packaging & bags is the fastest-growing application segment in the global polybutylene adipate terephthalate market, expected to grow at a CAGR of 9.3% during 2021–2030.
• Europe is expected to grow at the fastest rate, registering a CAGR of 9.8%, throughout the forecast period.
• In 2020, Asia-Pacific dominated the global polybutylene adipate terephthalate market with more than 47.0% of the share, in terms of revenue.