Bioplastic Market to Record Significant Revenue Growth during Forecast period 2020-2027

Bioplastic Market

Bioplastics are made from renewable resources including sugarcane, maize, cellulose, and cereals. They are environmentally friendly and are in high demand across a wide range of sectors. Bioplastic is widely utilised in applications such as food packaging, disposables, containers, pouches, shopping bags, and so on.  Bioplastic is a sustainable polymer made from renewable feedstocks that may be used instead of petroleum-based plastics. It has the ability to cut carbon dioxide emissions by 30–70%. It represents a 42 percent decrease in carbon footprints. Bioplastic manufacture uses 65 percent less energy than regular petroleum plastic.

The worldwide Bioplastics Market is changing, and players are increasingly concentrating their efforts on improving and consolidating R&D operations, resulting in increased manufacturing capacity. Because of its outstanding technological qualities and capabilities, bioplastic has seen rapid acceptance across a wide range of applications. Because of favourable laws adopted by multiple countries throughout the world, the market for bioplastics has gained tremendous traction in a variety of plastic applications.

According to Coherent Market Insights, the global Bioplastics Market is projected to surpass US$ 215 billion by the end of 2027, in terms of revenue, growing at CAGR of 25.8% during the forecast period (2020 to 2027).

Some of the primary market drivers for bioplastics include its environmentally favourable features, high consumer acceptance of bio-based goods, regulatory support for producing degradable packaging materials, and the availability of renewable raw material sources for the manufacturing of bioplastics. Bioplastic manufacture is an energy-efficient process since it uses 65 percent less energy than traditional plastic. Bioplastics do not affect the earth or the environment because they are non-toxic and readily decompose. Furthermore, the greenhouse gas emissions of bioplastic are negligible throughout the decomposition process. The use of bioplastic reduces carbon footprints by 42%.

Because of these superior technological qualities and capabilities, prominent corporations like Coca-Cola, Nestle, Nike, and Ford are showing interest in the manufacturing and use of bioplastic materials in a variety of applications. Bioplastics are becoming more popular in a variety of uses, including catering, packaging, agricultural, and automotive. Bioplastic is also a good material for organic farming. Biodegradable mulching films are being used by farmers in agriculture and horticulture. Bioplastic packaging material is preferred by consumers over synthetic plastic packaging because it may disintegrate with food. Furthermore, governments throughout the world are enacting favourable legislation and policies to encourage the sustainability and biodegradability of bioplastics.

The European Union is a key political supporter of the bioplastics sector. Furthermore, corn, wheat, maize, and sugarcane are typical feedstocks for the manufacturing of bioplastics. These are widely available in nearly every geographical location on the planet. As a result, fluctuations in the global crude oil price have no effect on the expansion of the bioplastic sector. All of these reasons contribute considerably to the growth of the Bioplastics Market.

Two key challenges limiting the growth of the Bioplastics Market during the projected period are the high final cost of bioplastic products and their restricted performance compared to petroleum plastics. Bioplastics are currently more than twice as costly as traditional petroleum plastics. This is mostly due to expensive R&D costs, high polymer plant building costs, high raw material costs, and limited manufacturing scale. The market price of standard PET resin is $2.1 per kilogramme, but the price of Bio-PET resin is $2.3 per kg. Reduced production costs will lower the final cost of bioplastic packaging, propelling the bioplastics market over the projected period.