SAN FRANCISCO, Nov. 23, 2022 /PRNewswire/ — The global biodegradable plastic market size is anticipated to reach USD 10.0 billion by 2030, as per a new report by Grand View Research, Inc., advancing at a steady CAGR of 9.7% during the forecast period. Biodegradable plastics can be decomposed, via actions of microbes as well as other living organisms, into carbon dioxide, water, and biomass. As the number of companies looking to have ‘Green’ credentials grows substantially, the production and demand for this type of plastic is expected to progress at a fast rate. Governments across the globe have been implementing strict regulations regarding the use of conventional plastics, while consumers in several developed and developing economies have become aware of the environmental harms of this product. To support sustainability have been established in recent years, which is a positive factor driving market growth.
Key Industry Insights & Findings from the report:
- Biodegradable plastics, prepared from renewable raw materials, undergo environmental decomposition within a reasonable time period. These plastics generally require the presence of biodegradable additives for enhancing the decomposition process, with some also requiring a specific environment for disintegration.
- As per the UN Environment Programme, 400 million tons of plastic waste is produced annually. The production of conventional plastics is done mainly using fossil fuels, and GHG emissions due to the production, usage, and disposal of such plastics are poised to rise to 19 % of the worldwide carbon budget by 2040. This has given an urgency to eco-friendly alternatives, driving the growth of the biodegradable plastics industry.
- In terms of product, starch-based biodegradable plastics accounted for over 40% of revenue share in 2021, as it is inexpensive and is being used widely in areas such as agriculture, packaging, and automobiles.
- Based on application, the agriculture segment accounts for a substantial share of the market revenue, as biodegradable mulch films offer benefits such as water conservation in soil, minimizing weed growth, and enabling faster development of crops by maintaining optimal soil temperature.
- The United States is a notable revenue generator in the biodegradable plastic market. The food and consumer goods sectors have massively aided in driving the demand for biodegradable packaging and product in the region. Furthermore, the passage of laws to phase out single-use plastics has also played a part in market growth. For instance, lawmakers in California passed a law in June 2022 to phase out the usage of such products…