The Global Market For Biodegradable Plastics Is Expected To Reach 10 Megatons

With the gradual implementation of the global and Chinese plastic restrictions and even ban policies, the degradable plastic market is expected to open up, more than ten times the space, is expected to reach ten million tons of market.The global production capacity of biodegradable plastics is growing rapidly

The global production capacity of biodegradable plastics is growing rapidly

According to the European Bioplastics Association, the annual production capacity of biodegradable plastics worldwide will reach 1.334 million tons by 2024, with a CAGR of 2.7%.

Considering that from the second half of 2019 to the beginning of 2020, a number of new countries around the world have issued plastic limit policies, including China, which accounts for about 20% of the world's plastic production and 15% of the world's consumption, and has a large volume, its biodegradable plastic demand market will drive the accelerated growth of the global market.In the next five years, global production capacity of biodegradable plastics is forecast to exceed the current forecast of the European Bioplastics Association.

In the past two years, the production capacity of biodegradable plastics market increased rapidly for the categories of PBAT, PLA and starch-based plastics respectivelyPLA is a widely used material with excellent barrier performance. PLA with high performance is an excellent substitute for PS(polystyrene) and PP(polypropylene), and the demand will grow rapidly in the future.

High demand for daily food packaging category

 According to research data released by IHS Markit in 2018, the global demand for biodegradable plastics was 269,000 tons in 2012, and 360,000 tons in 2018, corresponding to a market size of $1.1 billion, with a CAGR of 5%.In 2023, the global demand for biodegradable plastics will grow to 550,000 tons, corresponding to a market size of US $1.7 billion, with a CAGR of 9% from 2018 to 2023.

According to the United Nations Environment Programme (UNEP), at least 67 countries and regions around the world have introduced restrictions on single-use plastics.In 2019, more than 15 countries around the world introduced new restrictions on plastic bags.In 2019, the global demand for biodegradable plastics is conservatively estimated to grow by about 28%, with a demand of 461,000 tons.

The food packaging, tableware and bag market, the main growth driver for biodegradable plastics, is expected to grow by double digits in the coming years, benefiting from local restrictions on plastic shopping and the production of handbags.

Composting bags represent the second largest end use of degradable polymers and this market segment will continue to grow strongly as composting systems are progressively expanded.