Biodegradable Plastics Market Worth USD 88.71 Bn by 2034

According to researchers from Towards Packaging, the global biodegradable plastics market, estimated at USD 19.36 billion in 2026, is forecast to expand to USD 88.71 billion by 2034, growing at a CAGR of 20.96% over the forecast period.

Ottawa, Sept. 18, 2025 (GLOBE NEWSWIRE) -- The global biodegradable plastics market size, valued at USD 16 billion in 2025, is expected to rise to approximately USD 88.71 billion in 2034, based on a report published by Towards Packaging, a sister firm of Precedence Research.

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The market is experiencing strong growth as industries shift toward sustainable packaging and eco-friendly materials. Rising consumer awareness about plastic pollution, supportive government regulations, and increasing adoption in packaging, agriculture, and consumer goods are key drivers.

North America dominates the market due to robust environmental policies, rapid adoption of green technologies, and the presence of major industry players investing in biodegradable solutions. The region also benefits from strong consumer demand for sustainable products and growing corporate initiatives to reduce carbon footprints.

What is Meant by Biodegradable Plastics?

Biodegradable plastics are a type of plastic material designed to break down naturally into water, carbon dioxide, and biomass with the help of microorganisms such as bacteria, fungi, or algae. Unlike conventional plastics, which can persist in the environment for hundreds of years, biodegradable plastics decompose faster under specific conditions, such as exposure to heat, moisture, or oxygen.

They are commonly made from renewable raw materials like starch, corn, sugarcane, or cellulose, though some may also be petroleum-based with biodegradable additives. These plastics are widely used in packaging, agriculture, textiles, and consumer goods, offering an eco-friendly alternative to traditional plastics.

What Are the Latest Trends in the Biodegradable Plastics Market?

Regulatory Push & Policy Support: Stronger government regulations in North America mandate that packaging and single-use plastics become compostable or biodegradable. Laws at the state/federal levels are encouraging or even requiring the use of such materials.
Growing Demand from Consumers and Brands: Consumers are increasingly favoring sustainable alternatives, pushing brands to adopt biodegradable plastics, especially in food service, packaging, and disposable ware. Corporate ESG and sustainability goals are accelerating this trend.
Innovation in Materials: PLA (polylactic acid), PHA (polyhydroxyalkanoates), and starch-based biodegradable plastics are being improved—especially in terms of mechanical strength, heat resistance, and biodegradability in different environments (industrial composting, marine, soil). Blends (e.g., PLA-PBAT) are also being explored.
Feedstock Diversification & Waste Remediation: Using renewable and waste biomass (corn, sugarcane, starches) for raw materials; also, more efforts to convert organic wastes into bioplastics via microbial or fermentation processes.
Specialized Applications Expanding: In addition to packaging, growth is seen in agricultural uses (mulch films, seed coatings), medical/disposable healthcare products, and in environments where degradation in natural settings (soil, marine) is essential.
Standards, Certification & Scrutiny: As more products claim biodegradability or compostability, there’s more attention to consistent standards, certifications, and ensuring that real environmental benefit is delivered (vs. just marketing claims).

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What is the Potential Growth Rate of the Biodegradable Plastics Market?

Growing Corporate Sustainability Initiatives & Circular Economy Norms

Corporate sustainability initiatives and ESG (Environmental, Social, Governance) commitments are powerful levers driving the growth of the biodegradable plastics market. Many companies face pressure from investors, regulators, and consumers to reduce plastic pollution, greenhouse gas emissions, and waste. By committing to targets such as using compostable or biodegradable packaging, reducing virgin plastic use, and adopting circular-economy practices, firms create demand signals that spur innovation, scale-up, and investment in biodegradable materials.

In 2025 is Alliance Ground International (AGI) launched its “AGI CARES 2028” ESG programme and began converting all plastic sheeting used in cargo shipping to BioNatur biodegradable plastics. This move underscores how corporate pledges not only improve a company’s environmental footprint but also help drive market growth by supporting raw material suppliers, R&D, and infrastructure for biodegradable plastics.

Limitations & Challenges in the Biodegradable Plastics Market

Performance Limitations & Lack of Consumer Awareness

The key players operating in the market are facing issues due to a lack of consumer awareness and performance limitations, which is estimated to restrict the growth of the market. Limited raw material availability since many biodegradable plastics rely on crops like corn or sugarcane, which compete with the food supply. Performance limitations such as lower durability, heat resistance, or shelf life in comparison to traditional plastics.

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Regional Analysis:

Who is the Leader in the Biodegradable Plastics Market?

North America is the dominant region in the biodegradable plastics market due to its strong regulatory framework and rising consumer demand for sustainable products. Government policies banning single-use plastics and promoting eco-friendly alternatives have accelerated adoption across industries.

The presence of leading market players, coupled with significant investments in R&D and innovation, has strengthened the region’s position. Additionally, strong corporate sustainability commitments, along with consumer preference for green packaging in food service, retail, and e-commerce, fuel market growth.

U.S. Market Trends

The U.S. leads the market in North America, driven by strict federal and state-level regulations restricting single-use plastics and promoting sustainable packaging solutions. High consumer awareness of environmental issues, coupled with the growing demand for eco-friendly alternatives in food service, agriculture, and healthcare, accelerates adoption. The strong presence of multinational companies investing in advanced biopolymer technologies and the country’s emphasis on ESG commitments further strengthen the market. Additionally, robust research institutions and partnerships between private players and government agencies contribute to innovation, making the U.S. a central hub for biodegradable plastics development and commercialization.

Canada Market Trends

Canada’s biodegradable plastics market is growing steadily, supported by strong government policies aimed at eliminating plastic waste and achieving zero-plastic goals by 2030. Rising consumer preference for compostable and eco-friendly packaging, particularly in retail and food services, drives adoption.

Canadian companies are increasingly investing in sustainable materials and forming collaborations to enhance local production capacity. Moreover, the country’s emphasis on circular economy practices and improvement of waste management infrastructure boosts the use of biodegradable plastics.

How Opportunistic is the Rise of the Asia Pacific in the Biodegradable Plastics Market?

Asia-Pacific is the fastest-growing market for biodegradable plastics due to rapid industrialization, urbanization, and rising environmental concerns across major economies. Governments in countries like China, India, and Japan are implementing strict regulations and bans on single-use plastics, driving demand for sustainable alternatives.

Expanding food packaging, agriculture, and consumer goods industries further fuel adoption. Additionally, increasing investments in local biopolymer production, coupled with growing consumer awareness and corporate sustainability initiatives, position the region as a key growth engine for the global market.

China Market Trends

China is a key driver of biodegradable plastics growth in Asia-Pacific, supported by strict government bans on non-degradable plastics and policies promoting green alternatives. The country’s massive packaging and e-commerce industries create strong demand for sustainable solutions.

Local manufacturers are scaling up biopolymer production, particularly PLA and PHA, to meet rising needs. Growing consumer awareness and government-backed initiatives for waste reduction further accelerate adoption, positioning China as a leader in advancing large-scale biodegradable plastics production and application.

Japan Market Trends

Japan’s market is driven by its commitment to environmental sustainability and innovation in green materials. The government promotes bioplastics through subsidies and national policies, encouraging industries to adopt eco-friendly packaging. Strong R&D capabilities and advanced waste management infrastructure support the integration of biodegradable plastics in packaging, agriculture, and electronics.

Consumer demand for sustainable goods, along with corporate ESG commitments, further boost adoption. Japan’s technological expertise positions it as a pioneer in high-performance biodegradable plastics with wide applications.

India Market Trends

India is emerging as a fast-growing market for biodegradable plastics, fuelled by government regulations banning single-use plastics and policies encouraging eco-friendly alternatives. The rapid expansion of food packaging, retail, and agriculture sectors creates significant opportunities for adoption. Increasing consumer awareness about sustainability and corporate initiatives to reduce plastic pollution are also driving demand. Despite infrastructure challenges, growing investments in local production and strong regulatory pressure are pushing India toward becoming a major player in biodegradable plastics in Asia-Pacific.

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How Big is the Success of the European biodegradable Plastics Market?

Europe is witnessing notable growth in the biodegradable plastics market, driven by strict environmental regulations and strong commitments to reduce plastic waste. The European Union’s policies, such as the Single-Use Plastics Directive, encourage industries to adopt sustainable alternatives across packaging, agriculture, and consumer goods.

High consumer awareness and demand for eco-friendly products further accelerate adoption. Additionally, Europe’s well-established waste management infrastructure and advanced recycling systems support the effective use of biodegradable materials.

How Crucial is the Role of Latin America in the Biodegradable Plastics Market?

Latin America is growing at a considerable rate in the biodegradable plastics market due to rising environmental concerns and government actions to curb plastic pollution. Countries such as Brazil, Mexico, and Chile are implementing policies to reduce single-use plastics, creating demand for sustainable alternatives.

Expanding food packaging, agriculture, and retail industries further drive adoption across the region. Increasing consumer awareness of eco-friendly products and growing corporate sustainability initiatives are also contributing factors, making Latin America an emerging market for biodegradable plastics.

How does the Middle East and Africa Impact the Biodegradable Plastics Market?

The Middle East and Africa present significant growth opportunities in the market due to increasing regulatory efforts to reduce plastic pollution and promote sustainable alternatives. Rising urbanization and population growth are boosting demand for eco-friendly packaging in the food, retail, and consumer goods sectors.

Countries such as the UAE, South Africa, and Saudi Arabia are introducing sustainability initiatives that encourage the adoption of biodegradable solutions. Additionally, growing environmental awareness, coupled with investments in waste management infrastructure and corporate ESG commitments, creates a favorable landscape for expanding biodegradable plastics usage across diverse industries in the region.

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Segment Outlook

Type of Biodegradable Plastics Insights

The PLA (Polylactic Acid) segment dominates the biodegradable plastics market due to its wide availability, cost-effectiveness, and versatile applications across multiple industries. Derived from renewable resources such as corn and sugarcane, PLA offers excellent biodegradability and is widely used in packaging, agriculture, textiles, and medical products. Its favourable mechanical properties, including transparency, strength, and processability, make it a preferred choice over other bioplastics.

Additionally, continuous advancements in PLA production technology and the rising demand for sustainable packaging solutions strengthen its market position, ensuring its dominance within the biodegradable plastics industry globally.

The PHA (Polyhydroxyalkanoates) segment is the fastest-growing in the market due to its complete biodegradability in diverse environments, including soil and marine ecosystems. Produced through microbial fermentation of renewable feedstocks, PHAs are gaining attention as a sustainable alternative to conventional plastics.

Their versatility allows use in packaging, agriculture, medical devices, and consumer goods, making them highly attractive for industries seeking eco-friendly solutions. Growing regulatory pressures to reduce plastic waste and increasing investment in advanced biopolymer technologies further accelerate adoption.

End-Use Industry Insights

The packaging segment dominates the biodegradable plastics market due to the rising demand for sustainable alternatives to conventional plastic packaging across food, beverages, retail, and e-commerce industries. Increasing environmental concerns and strict regulations on single-use plastics have accelerated the shift toward biodegradable packaging materials.

Consumers are also driving this trend by preferring eco-friendly products with minimal environmental impact. Biodegradable plastics, particularly PLA and starch blends, offer durability, flexibility, and safety for direct food contact, making them highly suitable for packaging applications. With strong corporate sustainability initiatives and global bans on traditional plastics, the packaging segment continues to lead market adoption.

The medical segment is the fastest-growing in the market due to rising demand for biocompatible and eco-friendly materials in healthcare applications. Biodegradable plastics such as PLA and PHA are increasingly used in surgical sutures, drug delivery systems, tissue engineering, and medical implants because they naturally break down in the body, reducing the need for secondary surgeries.

Growing investments in biomedical research, advancements in biopolymer technology, and stricter regulations promoting sustainable healthcare solutions further drive rapid adoption, positioning the medical sector as a key growth contributor.

Processing Technology Insights

The extrusion segment dominates the biodegradable plastics market because of its wide applicability, cost efficiency, and ability to produce films, sheets, and fibers used extensively in packaging, agriculture, and consumer goods. Its compatibility with biopolymers like PLA and starch blends enables large-scale production of high-quality, durable products.

Additionally, extrusion’s versatility, ease of operation, and continuous processing capability make it the preferred technology for manufacturers adopting biodegradable plastics solutions globally.

The injection molding segment is the fastest-growing in the market due to its ability to produce complex, high-precision components for diverse applications such as automotive, medical devices, consumer goods, and packaging.

Biodegradable plastics like PLA and PHA are increasingly used in molded products that require strength, flexibility, and sustainability. The technology’s efficiency, scalability, and adaptability to various designs make it a preferred choice, driving rapid growth in this segment.

Form Insights

The films segment dominates the biodegradable plastics market due to its extensive use in packaging, agriculture, and retail applications. Biodegradable films made from PLA, PHA, and starch-based plastics offer flexibility, transparency, and strength, making them ideal for food wraps, shopping bags, mulch films, and protective coverings.

Increasing regulatory restrictions on conventional plastic films and growing consumer preference for sustainable packaging solutions further drive demand. Additionally, advancements in film extrusion and coating technologies enhance performance, reinforcing the segment’s leadership in the market.

The molded plastics segment is the fastest-growing in the market due to its versatility and ability to produce durable, high-precision products for medical devices, packaging, consumer goods, and automotive components. Biodegradable materials like PLA and PHA are increasingly used in molded items that require strength, flexibility, and eco-friendliness.

Advanced molding technologies, efficient production processes, and rising demand for sustainable alternatives in various industries contribute to rapid adoption, positioning molded plastics as a key growth driver in the market.

Source of Raw Material Insights

The plant-based raw materials segment dominates the biodegradable plastics market due to the widespread availability, renewability, and eco-friendly nature of sources like corn, sugarcane, and starch. These materials serve as sustainable feedstocks for biopolymers such as PLA and PHA, offering excellent biodegradability and reducing dependence on fossil fuels. Their versatility allows use across packaging, agriculture, textiles, and medical applications.

Additionally, growing consumer demand for sustainable products, supportive government policies, and corporate sustainability initiatives further strengthen the adoption of plant-based raw materials in the biodegradable plastics industry.

The microbial-based raw materials segment is the fastest-growing in the market due to its ability to produce high-performance biopolymers like polyhydroxyalkanoates (PHA) through microbial fermentation of renewable feedstocks. These materials offer complete biodegradability in soil, marine, and composting environments, making them ideal for sustainable packaging, medical devices, and agricultural applications.

Increasing investment in biotechnology, advancements in microbial fermentation processes, and rising demand for eco-friendly alternatives in various industries are driving rapid adoption, positioning microbial-based raw materials as a key growth driver in the market.

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Recent Breakthroughs in the Global Market:

In May 2025, Novel PLA copolymers, functional coatings, additives, and green catalysts funded by Horizon Europe offered creative biobased, biodegradable, and recyclable food packaging. By using a safe and sustainable-by-design approach, GRECO seeks to show the food packaging industry the life cycle and techno-economic viability of safer and greener bioplastics value chains. On June 16–17, 2025, the GRECO project kick-off will be held at AIMPLAS in Valencia.
In June 2025, Japanese researchers created a plastic that dissolves in seawater in a matter of hours, potentially providing a remedy for the current problem of ocean pollution and harm wildlife. Researchers from the University of Tokyo and the RIKEN Center for Emergent Matter Science say their new material decomposes much faster and leaves no trace behind, despite scientists having long experimented with biodegradable plastics.

Global Biodegradable Plastics Market Top Players

BASF SE
NatureWorks LLC
Novamont S.p.A.
Total Corbion PLA
Danimer Scientific
Plantic Technologies Limited
Biome Bioplastics
Corbion NV
Mitsubishi Chemical Corporation
Green Dot Bioplastics
Eastman Chemical Company
Toray Industries, Inc.
FKuR Kunststoff GmbH
PolyOne Corporation
BioBag International AS
LyondellBasell Industries N.V.
Sulzer Ltd.
Treo Green Plastics
EarthFirst Films (Solvay)
TPLAST Ltd.

Global Biodegradable Plastics Market Segments

By Type of Biodegradable Plastics

Starch-based Plastics
- Corn Starch Plastics
- Potato Starch Plastics
PLA (Polylactic Acid)
- Pure PLA
- PLA Blends
PHA (Polyhydroxyalkanoates)
- Biopolymer PHA
PBAT (Polybutylene Adipate Terephthalate)
- Conventional PBAT
- Modified PBAT
Polycaprolactone (PCL)
Other Biodegradable Plastics
- Polyvinyl Alcohol (PVA)
- Polybutylene Succinate (PBS)

By End-Use Industry

Packaging
- Food Packaging
- Non-Food Packaging
Agriculture
- Mulch Films
- Plant Pots
Textiles
- Biodegradable Clothing
- Non-Woven Fabrics
Consumer Goods
- Disposable Cutlery
- Biodegradable Bags
Medical
- Medical Packaging
- Biodegradable Implants
Automotive
- Biodegradable Car Interiors
Others
- Electronics
- Construction

By Processing Technology

Extrusion
Injection Molding
Blow Molding
Thermoforming
Casting
Compounding

By Form

Films
Sheets
Pipes
Molded Plastics
Fibers
Foams

By Source of Raw Material

Plant-based Raw Materials
- Corn
- Potato
- Sugar Cane
- Other Crops
Microbial-based Raw Materials
- Fermentation
- Algae-based Plastics
Waste-based Raw Materials
- Food Waste
- Agricultural Waste

By Region

North America
- U.S.
- Canada
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

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About Us

Towards Packaging is a global consulting and market intelligence firm specializing in strategic research across key packaging segments including sustainable, flexible, smart, biodegradable, and recycled packaging. We empower businesses with actionable insights, trend analysis, and data-driven strategies. Our experienced consultants use advanced research methodologies to help companies of all sizes navigate market shifts, identify growth opportunities, and stay competitive in the global packaging industry.

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