The Compostable Plastic market witnessed significant growth as it reached 2.45 million Tonnes in 2020 and is anticipated to achieve an impressive CAGR of 7.50% in the forecast period. Compostable Plastic is derived from renewable resources like corn, potato, tapioca starches, cellulose, soy protein, lactic acid, etc., rather than from petrochemicals and fossil fuels. Compostable plastic is non-toxic and can decompose back into carbon dioxide, water, and biomass when composted. Compostable plastic is produced from polylactic acid (PLA) which is further made from dextrose, a sugar produced by plants.
On average, the manufacturing of PLA resin produces 80% fewer greenhouse gases and uses about 52% less energy than petroleum-based resins. Due to the less dependency of Compostable Plastic on petroleum-based products, it creates vast opportunities for market producers around the globe to manufacture a wide range of products using Compostable plastic. The market is moving forward toward biobased products to reduce its dependence on conventional plastic. This Plastic does not completely break down on its own, they are composted under strict control of environmental factors at composting facilities with equipment to grind up and compost material for a longer period of time since it takes up to 180 days for Compostable plastic to break down. Usually, Compostable plastic are tested and certified by a third party to adhere to international standards such as ASTM D6400 (in the U.S.) or EN 13432 (in Europe) for biodegradation in an industrial composting facility environment. The market growth is driven by continuous R&D activities, increased environmental awareness, and the implementation of stringent environmental regulations. However, the expensive cost of Compostable plastic could hinder the growth of the market. Various associations such as SPI (Society of Plastics Industry), NFPA (National Food Processor Association), FDA (Food & Drug Association) and others have thus formed additional regulations for the usage of recycled plastics in food packaging. These regulations and government policies have restricted the usage of fossil-based plastics, in turn promoting the consumption of Compostable Plastic.
Based on various end-use applications, the market is segmented into bags, agriculture and horticulture, medical devices, automotive, consumer electronics, disposable housewares, and others. The bags segment accounts for the largest share in the market owing to the shift in synthetic to biobased products due to rising environmental issues. The growing demand for eco-friendly bags in the market is likely to boost the Compostable Plastic demand in the forecast period. Depending upon the type, the market is divided into home Compostable plastic, and others. Consistently rising demand of Compostable Plastic for numerous industrial applications is likely to drive the others segment over the next ten years.
Compostable Plastic also present challenges and create uncertainty for several stakeholders in the market. Bioplastics comprise less than 1% of the plastic in use today, but the plastic industry’s desire to reduce its reliance on fossil fuel and petroleum-based products, combined with consumers’ increasing demand for environmentally friendly products is predicted to augment the production growth of Compostable plastic.
In 2020, due to the outbreak of COVID-19, the Compostable Plastic market witnessed a positive impact around the globe. Rising demand for packaged food and beverages for safety purposes due to the spread of the novel coronavirus has driven the demand for Compostable plastic around the world. Increased demand for Compostable gloves to contain the spread of covid has also propelled the Compostable plastic demand which fuelled its market value during the first half of 2020.
Among different regions, Europe followed by North America holds the largest share in the Compostable Plastic market and is likely to maintain its dominance in the forecast period as well. The growing demand for Compostable Plastic for food packaging applications in Europe is likely to dominate the market in the forecast period. Rising demand in the automotive and other end-use industries is another factor propelling its demand growth across the European region.
Major players operating in the Compostable plastic market include BASF SE, Mitsubishi Chemical Holdings, Novamont S.p.A., Dow Inc., Natureworks LLC, Biome Technologies plc, Corbion N.V., Eastman Chemical Company, Danimer Scientific, Plantic, and others. BASF has launched a new ‘Futuro Compostable’ initiative that deals in bio-waste management and promotes appropriate use of compostable plastic packaging material to ensure closed-loop disposal system.
Years considered for this report:
Historical Period: 2015-2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022–2035
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Objective of the Study:
• To assess the demand-supply scenario of Compostable Plastic which covers production, demand, and supply of Compostable Plastic market globally.
• To analyse and forecast the market size of Compostable Plastic.
• To classify and forecast Compostable Plastic market based on Type, technology, end-use and regional distribution.
• To identify drivers and challenges for Compostable Plastic market.
• To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in Compostable Plastic market.
• To identify and analyse the profile of leading players involved in the manufacturing of Compostable Plastic.
To extract data for Compostable Plastic market, primary research surveys were conducted with Compostable Plastic manufacturers, suppliers, distributors, wholesalers, and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for Global Compostable plastic market over the coming years.
ChemAnalyst calculated Compostable Plastic demand globally by analyzing the historical data and demand forecast which was carried out considering imported Compostable Plastic, styrene prices, monomers used for production of Compostable Plastic. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Compostable Plastic manufacturers and other stakeholders
• Organizations, forums, and alliances related to Compostable Plastic distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Compostable Plastic manufacturers, customers, and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Compostable Plastic market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
2.End-Use: (Bags, Agriculture and Horticulture, Medical Devices, Automotive, Consumer Electronics, Disposable Housewares, and Others)
3.Sales Channel: (Direct Company Sale, Direct Import, Distributors & Traders)
Regional scope
North America; Europe; Asia Pacific; South America; Middle East & Africa
Country scope
United States; Mexico; Canada; China; India; Japan; South Korea; Taiwan; Singapore; Germany; Belgium; France; United Kingdom; Spain; Italy; Sweden; Austria; Saudi Arabia; Iran; South Africa; Brazil; Argentina
Key companies profiled
BASF SE, Mitsubishi Chemical Holdings, Novamont S.p.A., Dow Inc., Natureworks LLC, Biome Technologies plc, Corbion N.V., Eastman Chemical Company, Danimer Scientific, Plantic, and others.
Customization scope
Free report customization with purchase. Addition or alteration to country, regional & segment scope.
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Member - Board of Directors
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What are the major end-use applications of Compostable Plastic?
Ans:
Compostable plastic are extensively used in various applications including bags, agriculture and horticulture, medical devices, automotive, consumer electronics, disposable housewares.
Q2.
Which region demands the maximum share in the Compostable Plastic market as of 2020?
Ans:
Europe region holds the maximum share of the Compostable plastic market around the globe owing to the developments in the major end-user industries.
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