The global bioplastics market is estimated to grow at a double-digit CAGR of 28.8% from 2014 to 2020, as per Future Market Insights (FMI). This market accounted for US$1.9 bln in 2014, and is expected to reach US$43.8 bln by 2020, but constituted a mere 0.1% to the global plastics market in 2014. Currently, with the trend shifting towards the use of eco-friendly products, plastics manufacturers’ main focus is now on environment healthy products made from renewable resources. Therefore, bioplastics have been experiencing healthy growth since the last few years. Despite being a niche segment in the global plastic industry, the bioplastics market is likely to show healthy growth in the next few years. Moreover, stringent regulations from government organizations compelling the material manufacturing industry to use renewable sources have propelled the demand for bio-plastic. In addition, strategic tie-ups between research institutions, market participants and bio-plastic organizations can be credited for the development of new bio-plastics.
By material type, the market is segmented as bio-PET, bio-PE, bio-PA, bio-degradable polyesters, PLA & PLA blends, starch blends, PHA and others. Bio-PET market is expected to contribute US$29.1 bln revenue to the overall bio-plastics market by 2020. Moreover, the bio-PET market is expected to be the fastest growing segment with a CAGR of 31.4% between 2014 and 2020. This growth is attributed to an increasing demand for bioplastics from the beverage packaging industry and effectiveness of bioplastics in one-time use application. On the basis of application, the global bioplastics market is segmented as bottlers, other packaging, food-services, agriculture/horticulture, consumer products, automotive and others. Among all these applications, the bottles application was valued at US$5.6 bln in 2014, and is estimated to be the largest contributor in 2020, followed by automotive and other packaging segments. The bottles segment is expected to register a significant CAGR of 35.3% over the forecast period. The automotive segment is anticipated to exhibit the second highest CAGR of over 27% as compared to other applications in the future. Additionally, an influx of new entrants is predicted to drive the demand for others application segments in the near future. Government support for adopting bio-based materials and rising consumer acceptance for bioplastics are factors expected to contribute to the growth of the global bioplastic market over the forecast period. Moreover, the regulations to reduce dependence on fossil materials have fueled the development of the bio-plastic market. Key regions that contribute to the global bioplastics market are North America, Europe, Asia Pacific and RoW (Rest of the World). According to market research analysts, Asia Pacific is the largest contributor to the global bio-plastics market, followed by Europe, and North America. Moreover, Asia Pacific represents the most lucrative market and is expected to dominate the global bio-plastics market in the future, followed by North America, and Europe. The growth of Europe is supported by the strong influence of regulatory framework and awareness regarding greener products through various media among the consumers. Key players considered for the global bio-plastics market are BASF SE, Arkema, DSM NV, E. I. du Pont de Nemours and Company, Evonik Industries, NaturePlast, NatureWorks LLC, RTP Company, Techno polymer Co. Ltd. and Toray Industries Inc.