Bioplastic Recycling Market Size, Share, and Industry Analysis, By Type (Mechanical Recycling, Chemical Recycling, and Others), By Application (Packaging & Films, Agriculture, Building & Construction, and Others), and Regional Forecast, 2025-2032

Bioplastic recycling refers to the process of collecting, sorting, processing, and reusing biodegradable or bio-based plastics for manufacturing new products and materials. This process aims to reduce plastics from environmental impact by diverting them from landfills, minimizing the consumption of fossil fuels, and promoting the use of renewable resources.

The government regulations and policies of different countries aimed at reducing plastic waste and promoting recycling are playing a significant role in driving the demand for bioplastic recycling. Different Measures such as extended producer responsibility (EPR), plastic ban, and incentives for using biodegradable materials across the globe have created a conducive environment for bioplastics and their recycling. For instance, In June 2022, the U.S. government issued Secretary's Order 3407 (SO 3407) to minimize the procurement, sale, and distribution of single-use plastic items & packaging materials, aiming to eliminate these products from lands under the Department's management by 2032.

The lack of adequate infrastructure and technology for efficiently collecting, sorting, and processing bioplastic waste is a barrier to the market's growth. Unlike traditional plastics, which have well-established recycling systems and facilities, bioplastics require separate handling due to their different properties and compatibility with existing recycling infrastructure. 

The COVID-19 pandemic had a positive impact on the market. The pandemic highlighted the environmental consequences of plastic waste, including single-use plastics, such as PPE (personal protective equipment) and packaging for takeout food and online deliveries. This increased awareness has spurred interest in sustainable alternatives, such as bioplastics and recycling solutions.

Key INSIGHTS

The report includes the following key findings:

• Recent Advances in the Bioplastic Recycling Market


• Key Industry Trends


• Regulatory Landscape for the Bioplastic Recycling Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)

SEGMENTATION

ANALYSIS BY TYPE

Based on the type, the market is divided into mechanical recycling, chemical recycling, and others. The mechanical recycling segment holds the largest market share due to its relatively mature technology, lower costs compared to other recycling methods, and compatibility with existing recycling infrastructure. It includes sorting, cleaning, and processing bioplastic waste into reusable pellets or granules.

The chemical recycling segment is growing at the fastest rate owing to its ability to handle mixed or contaminated bioplastic waste streams and the potential to produce high-quality recycled materials. This method involves breaking down bioplastic polymers into their constituent monomers or other chemical feedstock, which can then be used to produce new bioplastic materials.

ANALYSIS BY APPLICATION

Based on application, the market is segmented into packaging & films, agriculture, building & construction, and others. The packaging & films segment holds the majority of the market share due to the increasing adoption of bioplastics as an alternative to traditional plastics in packaging materials, such as bags, wraps, containers, and films. Bioplastic recycling plays a crucial role in the reuse of bioplastic packaging materials, contributing to market growth.

The building & construction segment is growing at the fastest rate in the market due to the rising use of bioplastics in building & construction applications, such as insulation materials, piping, roofing, and decorative panels. Bioplastic products offer advantages, such as thermal insulation, moisture resistance, and recyclability.

The agriculture segment also holds a remarkable position in the market due to the penetration of bioplastics in various agricultural applications, such as mulch films, plant pots, trays, and agricultural textiles. After recycling, these bioplastic products offer benefits such as biodegradability, reduced environmental impact, and compatibility with organic farming practices.

REGIONAL ANALYSIS

The bioplastic recycling market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the major share in the bioplastic recycling market, owing to the rising research & development of advanced techniques for the recycling of bioplastic. For instance, In July 2023, researchers at the University of Washington developed a new bioplastic made from powdered blue-green cyanobacteria cells, also known as spirulina, that degrades as quickly as a banana peel.

Europe also has a significant share in the market owing to the governments of the countries and the European Union’s strong motive toward decarbonization and eliminating plastic waste. In January 2024, Zero Waste Europe, an environmental network headquartered in Brussels, initiated the "Elevating Reuse In Cities" (ERIC) project. Developed on a European scale, ERIC seeks to equip cities with enhanced tools and knowledge to reduce plastic waste.

Asia Pacific is projected to grow at a faster rate owing to the rising awareness about plastic waste among the population, companies and governments of the countries. This region has been a significant contributor to plastic waste, which has alarmed the governments of different countries to take strong initiatives to curb plastic waste and promote bioplastics and recycling efforts.

Latin America is also growing steadily in the market due to the growing interest of the residents in sustainable development, and government support for renewable energy and waste management.

The Middle East & Africa is expected to show lucrative growth in the market due to the launch of several economic diversification plans, which include sustainability efforts and attaining net zero carbon emission goals.

KEY PLAYERS COVERED

Key players in the Global Bioplastic Recycling Market are NatureWorks LLC, Novamont S.p.A., BASF SE, Biome Bioplastics, Total Corbion PLA, BioLogiQ, Inc., Braskem S.A., FKuR Kunststoff GmbH, Danimer Scientific, and Bionatic GmbH & Co. KG.

KEY INDUSTRY DEVELOPMENTS

• In November 2023, Amazon announced its sustainability efforts by transitioning to 100% recyclable paper bags, cardboard envelopes, and boxes for deliveries across Europe. Following the elimination of single-use plastic bags for packaging in 2019 and the discontinuation of its blue and white plastic mailers in the U.S. last July, this move underscores the company's commitment to reducing its environmental footprint.


• In October 2023, Braskem S.A., a prominent biopolymer manufacturer, and FKuR Kunststoff GmbH, a specialist in bioplastics, announced plans to broaden their distribution agreement to encompass additional items from the “I'm green” bio-based portfolio. This portfolio comprises a range of bioplastic materials known for their flexibility, lightweight nature, and durability.