U.S. Bioplastics Market Size, Share & COVID-19 Impact Analysis, By Type, (Biodegradable and Non-Biodegradable), By Application (Rigid Packaging, Flexible Packaging, Textiles, Automotive & Transportation, Agriculture & Horticulture, Consumer Goods, and Others), and Country Forecast 2023-2030

The U.S. bioplastics market size was valued at USD 1.45 billion in 2022 and is projected to grow at a CAGR of 19.3% during the forecast period.

The market growth in the U.S. is associated with increasing demand for eco-friendly and sustainable plastic materials from the different end-use industries. The bioplastic is derived from bio-based sources such as plant starch, vegetable fats, waste oils, and natural sugars. This plastic can be degraded easily and offers the same benefits as traditional plastic. Thus, all these product properties have generated massive demand from end-use industries to manufacture rigid, flexible packaging material, textile, and automotive components. A rise in product consumption from end-use industries is anticipated to boost the adoption of bioplastics in the U.S.

The COVID-19 pandemic had a negative impact on the U.S. market owing to the halt in manufacturing and transportation of the products and the delay in law imposition on single-use plastics by the government. However, being a sustainable material, bio-based plastics demand from pharmaceutical and food industries grew during the pandemic.

LATEST TRENDS

Increasing Product Consumption from the Automotive Industry is a Prominent Market Trend

The government of the U.S. has imposed rules and regulations on the use of single-use plastic. Therefore, the end-use industries such as automobile & transportation have started to consume recyclable or sustainable plastic materials to produce automotive components. Bioplastic materials offer the same structural properties such as strength, temperature resistance, and flexibility, compared to traditional plastics. On the other side, the increasing popularity of EVs has boosted the consumption of plastic materials, including thermoplastic, bioplastic, and engineering plastic. The consumption of these plastic materials makes the automotive component lightweight and long-lasting. All these factors are anticipated to boost the consumption of the product in the automotive industry.

DRIVING FACTORS

Rising Demand for Green Plastic from End-use Industries to Boost Market Growth

The consumption of bioplastics has increased in the end-use industries. The most important utilization of the product is from the automotive & transportation and packaging industries. Bioplastics offer similar properties to conventional plastic when they are utilized in these applications. Therefore, the product can replace the demand for conventional plastic and is considered the emerging alternative to reduce plastic wastage.

On the other hand, bioplastic is considered an excellent material for the existing farming practices that involve the high usage of agricultural films such as mulching and greenhouse films. The demand for compostable plastic from these applications is gradually increasing. As a result, key plastic film manufacturers produce compostable agricultural films that are technically advanced and economically worthwhile. Aside from promoting properties, these bioplastic films degrade in the soil by enriching it. Therefore, all these factors are anticipated to boost the bioplastics demand from various end-use industries.

RESTRAINING FACTORS

High Cost and Low Product Availability to Hinder the Market Growth

The high manufacturing cost and low product availability are anticipated to hinder market growth. Most bioplastic grades are derived from biomaterial and are dependent on the industrial composting process to disintegrate. As a result, the number of key manufacturers is limited in the market as the product cost is high.  Such economic and availability factors are expected to hinder the bioplastics market growth in the country.

SEGMENTATION

By Type Analysis

Based on type, the market is bifurcated into biodegradable and non-biodegradable. The biodegradable segment accounted for the leading U.S. bioplastics market share in 2022. Biodegradable bioplastics include polylactic acid (PLA), starch blends, polybutylene succinate (PBS), polybutylene adipate terephthalate (PBAT), and polyhydroxyalkanoates (PHA). The growth of the biodegradable segment is associated with the rising awareness of sustainable plastics owing to various environmental advantages. The end-user applications such as rigid packaging, flexible packaging, textiles, automotive & transportation, agriculture & horticulture, and consumer goods utilize the product as it can degrade quickly in nature and has minimal business restrictions in the market.

The rise in the adoption of bio-based packaging materials is expected to boost the non-biodegradable segment growth in the market during the forecast period. The non-biodegradable plastics include bio-polyethylene terephthalate (Bio-PET), bio-polyethylene (Bio-PE), bio-polyamide (Bio-PA), and bio-poly trimethylene terephthalate (Bio-PTT). These bio-based plastics are used to produce bottles, carry bags, automotive housings, and electronic equipment due to their high strength and durability. Thus, increasing the use of these plastics in the consumer goods and food packaging industries will surge the segment growth.

By Application Analysis

Based on application, the market is segmented into rigid packaging, flexible packaging, textiles, automotive & transportation, agriculture & horticulture, consumer goods, and others. The growing e-commerce industry is driving the growth of the rigid and flexible packaging segments. Among these segments, flexible packaging held a larger market share in 2022. After the pandemic, consumers prefer to buy food products online with green or eco-packaging materials. As a result, various packaging manufacturers started to adopt the material as a sustainable alternative. Therefore, the increasing sustainable product demand from the food packaging industry is expected to drive the growth of the flexible packaging segment.

The rise in the demand for lightweight vehicles with sustainable plastic material is anticipated to boost market growth. Bioplastics are the appropriate choice as they offer high strength, low weight, high thermal conductivity, and high flexibility. Such properties have fueled the product demand from automotive applications. Furthermore, the rising demand for bio-based plastic textile products and consumer products is expected to drive the U.S. market growth in the country.

KEY INDUSTRY PLAYERS

The competitive analysis of the U.S. market depicts the presence of established and emerging companies. Key players include Novamont S.p.A., Arkema S.A., NatureWorks LLC, Danimer Scientific, and TotalEnergies Corbion. Companies are emphasizing product innovation, acquisition, partnership, and social marketing strategies for their growth. For instance, in May 2023, TotalEnergies Corbion announced its partnership with Changsu Industrial to develop the advanced adoption of sustainable bio-based BOPLA films.

LIST OF KEY COMPANIES PROFILED:

• Novamont S.p.A. (Italy)


• Arkema S.A. (France)


• NatureWorks LLC (U.S.)


• Danimer Scientific (U.S.)


• TotalEnergies Corbion (Netherlands)


• Solvay S.A. (Belgium)


• LyondellBasell Industries Holdings B.V. (Netherlands)


• Roquette Frères (France)


• SABIC (Saudi Arabia)


• Dow Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:  

• April 2023 – NatureWorks LLC announced the expansion of its bio-based plastic product portfolio. The company offered the biopolymer-based product named Ingeo 6500D, which is expected to be used in hygiene applications.


• January 2023 – Arkema announced the launch of new advances in bio-circular materials during the MIDO show in Milan. The group launched the products with the brand name Rilsan Polyamide 11 g, Pebax Rnew elastomer, and Rilsan Clear Rnew. The product expansion strategy would help maximize sales revenue.

REPORT COVERAGE

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The U.S. bioplastics market research report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities and historical data and revenue growth estimates at the country level.

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