The global bioplastics market size is anticipated to witness promising growth on account of the rising awareness about environmental protection worldwide. Fortune Business Insights™ in their report titled, “Bioplastics Market Size, Share & Industry Analysis, By Type (Biodegradable and Non-biodegradable), By Application (Rigid Packaging, Flexible Packaging, Textiles, Automotive & Transportation, Agriculture & Horticulture, Consumer Goods, and Others), and Regional Forecast, 2019-2026,” offers a detailed analysis of the market and throws light on major industry developments.
As per the report, The global bioplastics market size will exhibit a CAGR of 16.2% and reach USD 19.93 billion by 2026. The forecast period is set from 2019 to 2026, and the market value as per 2018 was USD 6.04 billion.
According to the current bioplastics market trend, the market is dominated by the rigid packaging segment with respect to applications. This is on account of high demand from shipping companies that demand sustainable yet sturdy packaging products fit for carrying a heavy load.
Surging Demand for Ready-to-eat Food Products will help Promote market for Bioplastics
A major bioplastics market growth driver is the increasing environmental concerns related to the use of plastic and its harmful effects. This, followed by the rise in demand for alternatives for plastics, is expected to help increase the overall bioplastics market size in the forecast period. Besides this, the increasing demand for bioplastics from industries such as pharmaceutical companies and food industries is anticipated to help attract high bioplastics market revenues in the forecast period. This is owing to the rise in demand for ready-to-eat food products that require safe packaging materials with low environmental impact.
Presence of Robust Automotive Industry to aid in Expansion of Europe Market
Geographically, the global bioplastics market is dominated by Europe holding about 19% bioplastics market share. This percentage is anticipated to reach 25% by the end of 2022 on account of suitable policies adopted by the European state members of France and Italy. Moreover, the presence of a robust automotive industry demanding lightweight vehicles and a rise in demand for bioplastics used for packaging products are further anticipated to help this region continue dominance in the coming years.
On the other side, the European Bioplastics 2018 report states that 56% of the overall production of bioplastic was from Asia Pacific. The Asia Pacific bioplastics market growth is attributable to a new foreign investment law imposed by the Chinese government effective from January 2020. The immensely multiplying packaging industry demands are further expected to help augment the bioplastics market growth in the coming years.
Joint Venture and Merger and Acquisition Strategies to Help Players Attract High Revenues
The key bioplastics market manufacturers are entering into partnerships and joint ventures for attracting high bioplastics market revenue in the forecast period. Some of the significant market players are PTT MCC Biochem, NatureWorks, Succinity GmbH, and Total Corbion NV. For the manufacturing of PLA, a partnership was signed between PHH, an oil company located in Thailand, and Cargill. Similarly, Corbion NV, a joint venture of Corbion and Total also deals with the production of PLA. Additionally, BASF and Corbion entered into a joint venture forming Succcinity GmbH for the production of Succinic Acid and its derivatives.