Biodegradable plastics market to see CAGR of 13% between 2014 and 2019

14-Jan-15

The biodegradable plastics market is estimated to witness a CAGR of 13.01% between 2014 and 2019, and is expected to generate a global market value of US$3476.87 mln by 2019, as per Research and Markets. Biodegradable plastics have found wide acceptance in various industries because of low carbon footprints and compostability. On the basis of application areas, the market of biodegradable plastics can be broadly segmented into packaging, fibers, agriculture and injection molding. Though packaging is the major application of biodegradable plastics and serves an array of industries due to their desirable properties, injection molding is an emerging market and the demand for the same is growing at a high pace. Currently, the penetration of biodegradable plastics is increasing in packaging and injection molding. The key drivers for increasing demand of biodegradable plastics are favorable government outlook toward green procurement policies, shift of consumer toward green packaging, and compostability of biodegradable plastics. The technological developments and innovations are identified as key strategies to expand the biodegradable plastics market. The North American region is the biggest market of biodegradable plastics, accounting for more than one-third of the total global demand. There is a lot of scope in the Asia-Pacific market as well due to increasing manufacturing base, which is the important end consumer of polylactic acid (PLA) and starch based plastics. With the emerging technological developments and innovations in the region, the demand for biodegradable polymer may further augment at a higher pace.