U.S. Natural (Bio-Based) Resin Market Size, Share & COVID-19 Impact Analysis, By Type (Starch Blends, Polylactic Acid (PLA), Bio-Polyethylene Terephthalate (Bio-PET), Polyhydroxyalkanoate (PHA), Bio-Polyethylene (Bio-PE), and Others), By Application (Packaging, Textiles, Automotive & Transportation, Consumer Goods, Agriculture & Horticulture, and Others), and Country Forecast, 2023-2030

The U.S. natural (bio-based) resin market size was worth USD 1.05 billion in 2022 and is projected to grow at a CAGR of 10.6% during the forecast period.

Natural (bio-based) resins are replacing their petrochemical-based counterparts as they are plant-based. The versatility of natural resin ensures no harm to the environment, thereby enhancing its appeal among customers. The market’s growth is primarily driven by the increasing consumption of resin for various packaging applications. The growing initiatives of the U.S. government to support the use of green and sustainable materials are also driving the market's growth.

The U.S. natural resin market suffered a slowdown during the COVID-19 pandemic owing to the restrictions imposed by the government. The U.S. announced a nationwide lockdown, which restricted logistical activities by limiting the supply of raw materials and feedstock.

Natural (Bio-Based) Resin Market Trends

Increasing Adoption of Polylactic Acid in Medical Applications to Emerge as Prominent Market Trend

Polylactic Acid (PLA) is a versatile and biodegradable biopolymer. It can be easily manufactured from abundant renewable resources. This promising biomaterial finds application across various medical and healthcare sectors, including tissue engineering, cardiovascular implants, regenerative medicine, dental niches, orthopedic interventions, drug delivery systems, cancer therapy, skin and tendon healing, as well as in medical tools and equipment. PLA has emerged as one of the most sought-after 3D printable biopolymers. Its usage further increased during the COVID-19 pandemic, notably in the production of Personal Protective Equipment (PPE) and modifications for ventilators.

Natural (Bio-Based) Resin Market Growth Factors

Stringent Regulations Put Forth by Government to Drive Market Growth

In recent years, there has been a significant growth in plastic pollution around the globe. According to the Organization for Economic Co-operation and Development (OECD), the volume of plastic waste doubled across the world, from 156 Mt in 2000 to 353 Mt in 2019.

Single-use plastic products consist of plastic and polystyrene. Food and beverage containers, bottles, straws, cups, cutlery, and disposable plastic bags use single-use plastics as they are designed for use-and-throw purposes. To overcome the problem of plastic pollution, the U.S. government has implemented various initiatives and put forth stringent regulations. Emphasis on environmental pollution problems for solid waste management, legislature, and the prerequisite for environmentally friendly plastics has been increased in the country. The supportive government initiatives will drive the product demand from various industries, especially food & beverage.

For instance, in June 2022, the U.S. government issued the Secretary's Order 3407 (SO 3407), which aims to decrease the procurement, sale, and circulation of single-use plastic packaging and products to eliminate all single-use plastic products on department-managed properties by 2032. However, this situation will drive the demand for bio-based plastics owing to their sustainability and superior properties.

RESTRAINING FACTORS

High Manufacturing Cost to Hinder Market Growth

Currently, the production cost of bio-based polymers exceeds that of petrochemical-based ones. The escalating cost of bio-based polymers stands as a major factor impacting the adoption of bio-based resins. Additionally, consumers' willingness to spend more on greener bio-based alternatives remains low. This factor is expected to hinder the market growth.

Natural (Bio-Based) Resin Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into starch blends, Polylactic Acid (PLA), Bio-Polyethylene Terephthalate (Bio-PET), Polyhydroxyalkanoate (PHA), Bio-Polyethylene (Bio-PE), and others.

The starch blends segment accounted for the largest natural resin market share in 2022 and is expected to maintain its dominance during the forecast period. Starch blends are biodegradable polymeric materials composed of cellulosic-based biomaterials that microorganisms and enzymes can degrade. They find applications in agriculture, medicine, and packaging. Therefore, the growing demand for natural resins in these applications will drive the segment's growth.

The polylactic acid segment is expected to record a significant CAGR during the forecast period. Polylactic acid is an essential natural polymeric material used in the production of a wide array of packaging and consumer products. Rapidly growing packaging and consumer goods industries will boost the segment’s growth in the U.S. market.

By Application Analysis

Based on application, the market is segmented into packaging, textiles, automotive & transportation, consumer goods, agriculture & horticulture, and others.

The packaging segment dominated the U.S. market share in 2022. Growing demand for packaged food products across the U.S. is a significant factor supporting the segment’s growth. With the growing distress about environmental pollution, the study of biodegradable plastics has increased in recent years. Commercialization and rising use as a food packaging material for short shelf-life products, such as containers, drinking cups, salad & sundry cups, and overwrap & lamination films is expected to drive the segment’s growth.

The consumer goods segment is expected to grow significantly by the end of the forecast period due to the increasing consumer preference for eco-friendly products.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the U.S. market depicts the presence of established and emerging natural resin manufacturing companies. Key players include Danimer Scientific, NatureWorks LLC, BASF SE, Polyvel, and others. Industry players are competing mainly on product prices and applications. They are emphasizing product innovations, social media marketing, acquisitions, and collaborations to expand their customer base.

LIST OF KEY COMPANIES PROFILED:

• Danimer Scientific (U.S.)


• NatureWorks LLC (U.S.)


• Entropy Resins (U.S.)


• Polyvel Inc. (U.S.)


• SABIC (Saudi Arabia)


• BASF (Germany)


• Braskem (Brazil)


• Arkema (France)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: BASF expanded its portfolio of bio-based monomers by launching 2-Octyl Acrylate (2-OA). With an industrial-scale production plant set up at Verbund in Ludwigshafen, the company played a revolutionary role in the large-scale production of 2-Octyl Acrylate.


• September 2021: Danimer Scientific, Inc. received a grant of USD 400,000 from the United Soybean Board. This grant was awarded to expand the company’s use of High-Oleic Soybean Oil (HOSO) as a feedstock in the production of polyhydroxyalkanoate (PHA), a sustainable biopolymer that serves as a biodegradable alternative to conventional plastic.


• August 2021: Danimer Scientific, Inc., one of the leading next-gen bioplastics manufacturers focused on the development and production of biodegradable materials, announced the completion of its acquisition of Novomer, Inc. Novomer is a developer of conversion technology that provides functional, transformable, and low net carbon inputs into the production of PHA-based resins and other biodegradable materials.

REPORT COVERAGE

The report examines key factors, such as top companies, products, and applications. It also covers market trends and highlights noteworthy industry advancements. The study provides different variables that have contributed to the market’s growth in recent years. It includes the industry's historical data, the latest market dynamics, opportunities, and revenue growth estimates at the country level.

Report Scope & Segmentation