June 22, 2024

Growing Concerns Regarding Environmental Impact to Boost Growth of Starch-blended Bioplastic Market

The global Starch-blended Bioplastic Market is estimated to be valued at US$ 300.6 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Starch-blended bioplastics are plastics in which starch extracted from crops such as corn, wheat, potato and cassava is blended with other petroleum-derived polymers like polyethylene (PE), polypropylene(PP), polylactic acid (PLA), polyhydroxyalkanoate (PHA) etc. to produce biodegradable plastics. They have advantages like renewable source, recyclable and biodegradable nature. They are primarily used in rigid and flexible packaging for foods, consumer goods, agricultural films and industrial applications like clothing, textiles, automotive interior and other consumer durable sectors. Starch-based bioplastics provide enhanced durability, printability and barrier properties compared to petroleum-based plastics and paper at competitive costs.

Market Key Trends:

One of the major trends driving the growth of the starch-blended bioplastics market is increasing concerns regarding environmental pollution from non-biodegradable plastics. Accumulation of plastic waste in oceans, landfills and soils poses severe threat to the global ecosystem. Starch-blended bioplastics are excellent alternative as they degrade quicker in compost conditions compared to regular plastics. However, biodegradation is dependent on end-of-life management in composting or anaerobic digestion facilities. Another trend is growing regulatory support and policies restricting use of non-biodegradable plastics by governments worldwide to promote bio-based economy. Additionally, consumers are showing preference for eco-friendly packaging made from renewable resources which is encouraging brands and manufacturers to adopt bioplastics. However, high production costs and limited technical capabilities compared to petroleum-based plastics continues to limit widespread adoption of starch-blended bioplastics.

Porter’s Analysis:

  • Threat of new entrants: The threat of new entrants is moderate in the Starch-blended Bioplastics market due to the high capital requirements and technologies for production. There are also well established players in the market.
  • Bargaining power of buyers: The bargaining power of buyers is high since there are several established manufacturers in the market supplying similar products. Buyers can negotiate on price if there is adequate supply in the market.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitute raw materials. However, certain raw materials have few alternatives in the market.
  • Threat of new substitutes: The threat of new substitutes is high with introduction of new production technologies and innovation in material sciences. Alternatives like PLA provide competition.
  • Competitive rivalry: The competitive rivalry in the market is high owing to presence of major players.

Key takeaways:

The global Starch-blended Bioplastic market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period 2023 to 2030, driven by increasing awareness regarding environmental sustainability and stringent regulations against usage of single use plastics.

The Asia Pacific region dominated the global market in 2023 with a share of over 35%, led by China, India, Thailand and Indonesia on account of low production costs and supportive government policies. Europe and North America are also significant markets for Starch-blended Bioplastics.

Key players operating in the Starch-blended Bioplastic market are BASF SE, Biome Bioplastics, Cardia Bioplastic, Braskem, Corbion Purac, Novamont S.p.A, NatureWorks LLC, Innovia Films, TORAY INDUSTRIES, INC., and BioBag International AS. Major players are focusing on investments in R&D for new product development and capacity expansions to strengthen their market position.