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The global biodegradable plastics market size is projected to reach USD 6.73 billion by 2025, according to a report by Grand View Research, Inc., rising at a CAGR of 12.8% during the forecast period. Increasing use of biodegradable plastics, owing to strict governmental laws for prohibiting use of conventional plastics, coupled with growing awareness among public towards ill-effects of plastic waste is stoking the growth of the market. The above factors are expected to spur biodegradable plastics market growth over the forecast period.

Biodegradable plastics are plastics which decompose in the environment within a reasonable period of time. Biodegradable plastics are made up of renewable raw materials. Many of these plastics require biodegradable additives to enhance biodegradation process and some may require a specific environment to disintegrate. Time taken by plastics to decompose depends upon various factors such as raw material used and environmental conditions such as moisture and temperature.

The starch based segment lead the global biodegradable market. Starch based plastics are used in various applications such as packaging, consumer electronics, agriculture, automotive and textiles. PLA is also one of the most consumed biodegradable plastic type. It is used in 3D printing, mulch film, and packaging.

Packaging is the leading end use of biodegradable plastics. Ban on plastics by European Commission is anticipated to drive the segment over the forecast period. Novel applications of biodegradable plastics in the medical sector for drug encapsulation and medical surgeries are being increasingly practiced.

Around the world, people are facing grave issues of plastic waste as conventional plastics take hundreds of years to decompose. To tackle this issue several countries have banned use of single-use plastic products and are promoting use of eco-friendly biodegradable plastics. Ban of non-reusable conventional plastics in many regions around the globe, especially in Europe and North America is estimated to propel the global biodegradable plastics market. Additionally, improving standard of living and increasing disposable income in developing countries are likely to augur well for the market in Asia Pacific and Central & South America.

Key players are investing in research and development activities in order to create improved products that are strong and can be easily decomposed in natural environment. Many of the companies have integrated through the value chain to serve customers better and improve profits of the company.

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Further key findings from the report suggest:

The PHA segment is projected to expand at a noteworthy CAGR of 13.5% in terms of revenue during the forecast period

The packaging is the largest end-use segment, followed by the agriculture sector

Europe is the largest region in terms of value and volume. However, Asia Pacific is expected to emerge as the fastest growing region for biodegradable plastics.

Grand View Research has segmented the global biodegradable plastics market on the basis of type, end use, and region:

Biodegradable Plastics Type Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 – 2025)

Starch Based






Biodegradable Plastics End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2014 – 2025)



Consumer Goods