North America Biodegradable Plastic Market (2022 - 2030)

Report Overview

The North America biodegradable plastic market size was valued at USD 1,039.4 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.6% from 2022 to 2030. Factors, such as growing urbanization, and renewability of bio-based products across multiple industries and the increasing demand from flexible packaging industry are the factors expected to boost the growth of the North America biodegradable plastic market during the forecast period.

Biodegradable plastics are widely utilized across various applications such as packaging, agriculture, consumer goods, and textile owing to higher availability of resources, enhanced thermal resistance, higher flexibility & toughness, and other similar properties. Hence biodegradable plastics such as Polylactic acid (PLA), polybutylene succinate (PBS), polybutylene adipate Terephthalate (PBAT), and others have witnessed a rise in demand from various end-use industries.

The U.S. biodegradable plastics market is expected to raise significantly during the forecast period on account of the growing demand for bio-based packaging in the food and consumer goods sectors. Bio bags and bio-based plastics have higher tensile strength, are eco-friendly in nature, and are convenient for use as compared to conventional plastics.

As a result, the demand for biodegradable plastics is further projected to propel during the forecast period. Moreover, expanding composting infrastructure and rising governmental efforts to reduce landfilling, such as the U.S. 2030 Food Loss and Waste Reduction Goal, are anticipated to augment demand for the bio-based bags or compostable bags used in the collection of food leftovers and other organic waste material during the forecast period.

The U.S. biodegradable plastics market has been witnessing a significant rise in demand owing to the increasing usage of biodegradable plastics used for medical applications. Biodegradable plastics such as PLA are being increasingly used for the manufacturing of personal protection equipment such as masks, face shields, and other medical equipment. Companies are continuously engaged in the production and development of safer and antibacterial biodegradable plastics to cater to the growing demand for PPE, post the impact of COVID-19.

Product Type Insights

Starch-based plastics are produced from widely available natural resources such as potato, tapioca, wheat, rice, and corn. The high availability of resources makes them an ideal alternative to conventional plastics. The aforementioned factors are responsible for making starch-based the largest type segment, in terms of revenue, in the biodegradable plastics market, during 2021. Moreover, the increasing use of starch-based plastics in food packaging is expected to create lucrative growth opportunities for biodegradable plastics during the forecast period.

Polylactic acid (PLA) is manufactured from organic materials such as sugarcane and cornstarch. PLA is strong but brittle and can be processed using conventional processing methods. It is widely used in packaging, textile, cosmetics, agriculture, and other applications. However, the ongoing shortage of personal protective equipment caused by the coronavirus has opened a huge platform for the application of PLA in the medical sector. It is increasingly being used in the manufacturing of 3D-printed medical devices and protective equipment such as face masks and face shields. Companies such as Nature Works LLC and Total Corbion PLA are continuously increasing the production of PLA resin to cater to growing demand from the medical sector.

Polybutylene succinate is a biodegradable plastic that decomposes into carbon dioxide (CO2) and water. PBS offers high heat resistance among general biodegradable plastics. PBS products such as bags and films are used in the packaging of foods and cosmetics. They are also used to produce biodegradable mulch films, which are used in farming to regulate the moisture and temperature of the soil to promote plant growth. PBS is also used in drug encapsulation systems.

Application Insights

The packaging application segment led the biodegradable plastics market in North America in 2021. The dominance of this segment in the market is projected to continue from 2022 to 2030 as well. Biodegradable plastics are widely used for packaging of food & beverages, personal care products, and homecare products. Starch-based Polylactic acid (PLA), polybutylene adipate Terephthalate (PBAT), and polybutylene succinate (PBS) are some leading biodegradable plastics used in packaging applications.

Mulch films, protection bags, and seed strips are the major applications of biodegradable plastics in agriculture. Seed belts & strips are also proven beneficial in farming. Other applications of biodegradable plastics in agriculture include nets, plant baskets, fruit protection bags, and pots. PBAT, PHA, and PBS are some of the widely used biodegradable plastics in agriculture.

Consumer goods application is one of the key segments of biodegradable plastics market in North America. The key consumer goods considered under this segment are electronic devices, household appliances, and others. Several products such as vacuum cleaners, loudspeakers, touch screen computer casings, and mobile casings are also developed from biodegradable plastics.

In the textile industry, biodegradable plastics are used for manufacturing home textiles, bags, clothing, footwear, and technical textiles. Technical textiles are used in the automotive industry for interiors, seats, and other purposes. They offer high material strength along with wear resistance and are 100% compostable.

Country Insights

North America biodegradable plastics market is majorly driven by the growing demand from the packaging industry in countries such as the U.S. and Canada. Rising environmental concerns and a global attempt to reduce pollution is propelling demand for biodegradable plastics in the packaging sector across the region. The U.S. biodegradable plastics market is expected to raise significantly during the forecast period on account of the growing demand for bio-based packaging in the food and consumer goods sectors. Bio bags and bio-based plastics have higher tensile strength, are eco-friendly in nature, and are convenient for use as compared to conventional plastics.

As a result, demand for biodegradable plastics is further projected to propel during the forecast period. Moreover, expanding composting infrastructure and rising governmental efforts to reduce landfilling, such as the U.S. 2030 Food Loss and Waste Reduction Goal, are anticipated to augment demand for the bio-based bags or compostable bags used in the collection of food leftovers and other organic waste material throughout the forecast period.

The textile segment in Canada is expected to grow owing to increased opportunities such as smart fabrics and textiles that assimilate digital monitoring components in various applications such as athletic and health performance, which is further anticipated to create significant demand for biodegradable plastics. The technical textile industry also offers opportunities in the sectors such as medical, automotive, protective, and agriculture textiles.

Key Companies & Market Share Insights

The key players operating in the North America biodegradable plastic market include BASF SE, Eastman Chemical Company, Cargill, Incorporated, SABIC, Dow, Inc., and others along with the presence of a few medium and small regional players. Major players are continuously working on developing polymers for the production of North America biodegradable plastic owing to rising demand from the flexible packaging industry.

A majority of the global companies are expected to increase their polymer offerings to Asia Pacific, Central & South America, and the Middle East & Africa owing to high market growth potential in these regions, which offers expansion opportunities for the North America biodegradable plastic industry. For instance, in September 2021, BASF SE introduced new additive solutions for the mechanical recycling of plastics under IrgaCycle to improve their mechanical properties to cater to the requirements of different industries. This product has been launched to triple the production of plastics developed from mechanical recycling by 2030. Some of the prominent players in the North America biodegradable plastic market include:

• BASF SE

• Eastman Chemical Company

• Cargill, Incorporated

• SABIC

• Dow, Inc.

• Danimer Scientific

• Yield10 Bioscience, Inc.

• Nature Works LLC

• ENSO Plastics

• Green Dot Bioplastics, Inc.

North America Biodegradable Plastic Market