Green Polymer Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Green Polymer Market Size - Analysis

The green polymer market is segmented by type, application, polymer type, and region. By type, the market is segmented into biodegradable, biobased, recycled, bio-based non-biodegradable, and partially bio-based. The biodegradable polymers segment accounted for the largest share in 2022. The demand for biodegradable plastics is increasing significantly due to stringent government regulations on single-use plastics and plastic waste.

Green Polymer Market Drivers:

• Increasing consumer preference for sustainable materials: The shift in consumer preference towards eco-friendly and sustainable products is a major factor driving the growth of the green polymer market. Consumers, especially millennials, are increasingly concerned about environmental issues like plastic pollution and climate change. This is leading to the rising demand for green polymers and bioplastics as they are made from renewable sources and are compostable or recyclable. For instance, according to a global survey, around 75% of consumers prefer buying products in recyclable packaging. Brands are also recognizing this trend and launching new products or switching packaging to bioplastics. In January 2022, Nestlé (food and Beverage Company) announced plans to source recycled plastics for its packaging and replace virgin plastics with food-grade recycled plastics.
• Stringent government regulations: Governments across the world are implementing stringent regulations on single-use plastics to reduce plastic waste pollution. Several countries have banned certain plastic products or imposed taxes on plastic packaging. Such regulations are compelling manufacturers to adopt eco-friendly bioplastics and driving the market growth. For example, the European Commission has set targets to incorporate 25% of recycled plastic in PET bottles by 2025 and 30% in all plastic packaging by 2030. The UK Plastic Packaging Tax that will come into effect in April 2022 is also expected to encourage the use of recycled plastics.
• Advancements in bioplastics: Continuous advancements in material chemistry and processing technologies are improving the properties and capabilities of bioplastics. Key players are investing significantly in R&D to develop novel bio-based polymers with enhanced mechanical, thermal, and barrier properties. For instance, researchers at McGill University engineered a new bioplastic from wood byproducts that is durable like petroleum-based plastics. New additive manufacturing technologies are also enabling 3D printing with bioplastics. This is broadening their applications across industries.
• Corporate sustainability goals: An increasing number of brands and retailers have set sustainability targets to use eco-friendly packaging and reduce plastic waste footprint. For instance, PepsiCo (multinational food, snack, and Beverage Corporation) aims to achieve 100% recyclable, compostable, or biodegradable for its packaging by 2025. Such commitments by large corporates are expected to drive the usage of bioplastics and recycled plastics over the coming years. Several companies in the plastics value chain like BASF, Dow Chemicals, and Indorama Ventures are investing in bioplastics production and strategic partnerships to meet the growing demand for sustainable solutions.

• Applications in flexible packaging: Bioplastics such as PLA, starch blends, and PBAT have huge potential as renewable and compostable alternatives to conventional plastics used in flexible packaging like plastic wraps, bags and pouches. Key players are developing novel bio-based polymers and barrier materials to improve the properties of bioplastic packaging solutions. For instance, TIPA developed compostable bio-based barrier materials to provide the needed shelf-life for food packaging. The growing trend of sustainable packaging, especially in the food and beverage industry, provides significant opportunities for bioplastics in flexible packaging applications.
• Automotive applications: With a rising focus on fuel efficiency and emission reduction, automakers are using lightweight bioplastics and natural fibers for vehicle interiors and exteriors. PLA, PHA, and natural fiber biocomposites offer sustainability benefits and can reduce vehicle weight by up to 50%. Bioplastics usage in automotive is still in the early stages but with stringent environmental regulations, they hold enormous potential to replace petroleum-based plastics in interior trim, dashboards, insulation, brackets, etc. Leading players like Toyota Tsusho Americas and Ford Motor Company are conducting R&D in this field.
• Novel biopolymers: Advances in synthetic biology and genetic engineering have enabled the development of novel biomaterials like PEF (polyethylene furanoate), PHAs (polyhydroxyalkanoates), and PBS (polybutylene succinate) with superior properties and processability comparable to oil-based plastics. Commercialization of such new bio-based polymers produced from bacterial fermentation or enzymatic processes can provide unique properties to meet the requirements for advanced applications. Their production is also more environmentally sustainable.
• Emerging markets favorable policies: Emerging economies like China, Brazil, and India are implementing policies and incentives to promote bioplastics manufacturing to reduce reliance on imported petrochemicals and tackle plastic pollution issues. For instance, the Indian government plans to mandate the use of compostable plastic packaging in food deliveries to curb plastic waste. The rising middle-class population and industrial growth make these markets highly lucrative for investment in bioplastics production infrastructure.

Green Polymer Market Restraints:

• High production costs: The production costs of most bioplastics continue to be higher compared to conventional plastics derived from petrochemical feedstocks. This is a major challenge hindering the wider adoption of bioplastics. The cost difference stems from the complex extraction processes required for bioplastics and the economies of scale enjoyed by the mature petrochemical industry. However, players are investing to increase production scale and optimize bioplastic production to reduce costs.
• Performance limitations: While bioplastics are suitable for packaging applications, their adoption in durable, engineering applications is limited owing to performance factors like heat resistance, strength, and longevity compared to conventional plastics. For example, PLA starts to deform at temperatures above 60°C, restricting its use in automotive or electronics products. Targeted research and product development are focused on modifying bioplastics to expand their applicability.
• Lack of adequate infrastructure: The recycling of bioplastics like PLA and PHA requires dedicated facilities as they have different chemical structures compared to standard PET and PP plastics. However, recycling infrastructure and public awareness still remain key challenges, especially in developing economies. Without adequate composting and waste segregation facilities, bioplastics end up in conventional plastic waste streams, diminishing their sustainability benefits. Government and industry efforts are crucial to build supporting infrastructure.

Green Polymer Market Trends

• Growing adoption of biodegradable plastics: Biodegradable plastics such as PLA, PHA, PBS, and starch blends are experiencing robust adoption across key industries like packaging, agriculture, textiles, etc. due to their ability to fully decompose into natural substances in landfills, soil, or marine environments. With single-use plastic bans imposed in 60+ countries, biodegradable plastics present a sustainable option as they can be industrially composted after use. Key players are ramping up production capacities to meet the surging demand. For instance, Total Corbion (global leader in the marketing, sales, and production of Poly Lactic Acid (PLA)) announced plans to expand global PLA capacity by 25% in 2022.
• Rising demand for eco-friendly textiles: Bioplastics like PLA and bio-based polyester offer a green alternative to polyester in textile manufacturing. Leading textile companies are adopting bioplastics to produce eco-friendly fabrics to appeal to sustainably-conscious consumers. For example, around 60% of H&M’s fabrics are now made from recycled or biosourced content like recycled PET and lyocell. Several fashion brands like Levis, Diesel, and Foot Locker have also launched apparel and footwear made using recycled plastics or bioplastics.
• Increasing use of bioplastics in 3D printing: PLA is extensively used as a feedstock for 3D printing filaments as it produces rigid printed objects while being biodegradable and non-toxic. With the growing adoption of additive manufacturing across industries, the use of bioplastics like PLA and flexible TPU filament is rising rapidly. Bioplastics allow 3D printing of sustainable prototypes and production parts for applications ranging from construction to medical devices. Advancements in materials are also expanding 3D printing capabilities to flexible and multi-material components.
• Focus on enhancing properties and performance: While the popularity of bioplastics is increasing exponentially, some limitations in properties like heat resistance, strength, and barrier have hampered their adoption for certain applications. As a result, there is extensive research focused on incorporating nanomaterials or developing additives/plasticizers to improve bioplastics’ mechanical properties, thermal stability, moisture resistance, and process ability. For instance, researchers at IIT Guwahati developed nanoparticle-reinforced PLA with superior mechanical performance.

Green Polymer Market Regional Insights:

• North America is the largest regional market for green polymers, accounting for over 35% of the global market in 2022. The high demand for green polymers in this region is attributed to the increasing awareness about environmental sustainability and the growing adoption of green technologies.
• Europe is the second-largest regional market for green polymers, accounting for over 25% of the global market in 2022. The high demand for green polymers in this region is attributed to the stringent environmental regulations imposed by the European Union.
• Asia Pacific is the fastest-growing regional market for green polymers, with a CAGR of over 15% during the forecast period. The high growth of the market in this region is attributed to the increasing production and sales of electric vehicles and the growing demand for sustainable packaging materials.

Figure 1. Green Polymer Market Share (%), By Region, 2023

Competitive overview of Green Polymer Market

Major players operating in the Green Polymer Market include BASF, Dow Chemical, Braskem, NatureWorks, Novamont, Biome Technologies, Indorama Ventures, Metabolix, Bio-On, Plantic Technologies, Danimer Scientific, Toray Industries, Teijin, Unitika, Toyobo, Mitsubishi Chemicals, Purac, Sulzer Chemtech, Myriant Corporation, and BioAmber

Recent Developments in Green Polymer Market

Green Polymer Market Segmentation

• By Type
• • Biodegradable
  • Biobased
  • Recycled
  • Bio-based, non-biodegradable
  • Partially bio-based
• By Application
• • Packaging
  • Agriculture
  • Automotive
  • Electronics
  • Textiles
  • Healthcare
  • Others (construction, consumer goods, etc.)
• By Polymer Type
• • Starch-based
  • Polylactic acid (PLA)
  • Polyhydroxyalkanoates (PHA)
  • Polyethylene terephthalate (PET)
  • Polybutylene succinate (PBS)
  • Polytrimethylene terephthalate (PTT)
  • Others (PUR, PVA, etc.)
• By Geography
• • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa