Biodegradable Plastics Market to Grow at 13.3% CAGR, Driven by Environmental Regulations & Eco-Conscious Packaging

Leander, Texas and Tokyo, Japan - Nov.24.2025
As per DataM intelligence research report" Biodegradable Plastics Market is expected to reach at a CAGR of 13.3% during the forecast period 2024-2031." Sustainability regulations and rising consumer eco-consciousness are boosting adoption of biodegradable plastic alternatives.

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United States: Recent Industry Developments

✅ In November 2025, NatureWorks launched a new generation of Ingeo PLA biopolymers engineered for improved heat resistance and compostability. The upgraded materials expand applications in food packaging and consumer goods. This strengthens NatureWorks' position in the U.S. biodegradable plastics landscape.

✅ In October 2025, Danimer Scientific invested $55 million to scale production of its PHA-based biodegradable resins for packaging and agricultural films. The expansion supports rising demand for fossil-free materials. This solidifies Danimer's role in next-generation bioplastics manufacturing.

✅ In September 2025, Novamont North America introduced enhanced biodegradable polymer blends designed for high-strength shopping bags and food‐service items. The materials offer faster biodegradation and improved performance. This boosts Novamont's competitiveness in sustainable U.S. plastics solutions.

✅ In August 2025, BASF Biopolymers USA advanced its ecoflex and ecovio biodegradable materials through new R&D pilots focused on compostable packaging formats. The developments improve durability and end-of-life performance. This strengthens BASF's footprint in the U.S. circular materials market.

Japan: Recent Industry Developments

✅ In November 2025, Mitsubishi Chemical Group launched high-grade biodegradable polymers with improved moisture stability for food packaging. The innovation targets Japan's shift toward low-impact materials. This reinforces Mitsubishi Chemical's leadership in biobased plastics.

✅ In October 2025, Kaneka Corporation expanded its PHBH biopolymer production with a ¥12.4 billion investment to meet domestic demand for compostable packaging and cutlery. The expansion enhances supply and application versatility. This strengthens Kaneka's dominance in Japan's biodegradable plastics sector.

✅ In September 2025, Toray Industries introduced new biodegradable polyester materials compatible with existing plastic processing lines. The development enables broader adoption across consumer and industrial applications. This elevates Toray's presence in sustainable polymer innovation.

✅ In August 2025, SK Chemicals Japan rolled out high-performance biodegradable resin grades designed for flexible packaging and agricultural mulch films. The formulations provide better strength and soil-degradation balance. This supports SK Chemicals' growing role in Japan's eco-friendly plastics market.

Biodegradable Plastics Market: Drivers
The biodegradable plastics market is witnessing strong growth as governments, industries, and consumers increasingly prioritize sustainable alternatives to conventional petroleum-based plastics. Biodegradable plastics, made from renewable sources such as starch, polylactic acid (PLA), and polyhydroxyalkanoates (PHA), decompose naturally under environmental conditions, reducing plastic pollution and landfill burden. Rising environmental awareness, stringent regulations on single-use plastics, and growing adoption of eco-friendly packaging and disposable products are driving demand across packaging, agriculture, consumer goods, and medical sectors. Technological advancements in polymer synthesis, blending techniques, and compostable formulations are improving material strength, flexibility, and processing compatibility. Additionally, increasing investment in circular economy initiatives and sustainable product design is further supporting market expansion.

Collaboration between polymer manufacturers, research institutions, and end-use industries is accelerating the development of next-generation biodegradable plastics tailored for specific applications. Growth in e-commerce, food delivery, and single-use consumer products is expanding the adoption of sustainable packaging solutions. Integration of biodegradable plastics in agriculture, medical devices, and industrial applications is enhancing environmental benefits and operational efficiency. Government incentives, eco-labeling, and public awareness campaigns are fostering wider acceptance and usage. With rising sustainability initiatives, continuous technological innovation, and expanding regulatory support, the biodegradable plastics market is poised for sustained global growth.

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Biodegradable Plastics Market: Major Players
BASF, NatureWorks, Mitsubishi Chemical, Total Corbion PLA, Plantic Technologies, Biome Bioplastics, Bio-On, Danimer Scientific, Toray Industries, Novamont S.p. A.

Segment Covered in the Biodegradable Plastics Market:
By Type
PLA leads with 35% share, driven by wide adoption in packaging, disposable cutlery, and food service products. Starch blends hold 28%, supported by cost-effectiveness and compatibility with existing processing technologies. Biodegradable polyesters account for 22%, primarily used in films, fibers, and compostable bags. PHA captures 15%, favored for high-performance packaging and specialty applications.

By End-User
Packaging & bags dominate with 40% share, fueled by rising demand for sustainable and compostable packaging solutions. Consumer goods hold 32%, supported by eco-friendly products such as disposable tableware and personal care packaging. Agriculture & horticulture accounts for 20%, driven by mulch films, seedling trays, and soil enhancement applications. Other niche end-users represent 8%, including industrial and specialty sectors.

Regional Analysis
North America - 30% Share
North America leads with 30%, driven by U.S. and Canada, strong sustainability regulations, and growing adoption of eco-friendly packaging. Industrial and consumer segments support market growth.

Europe - 28% Share
Europe holds 28%, led by Germany, France, Italy, and the U.K., with stringent EU packaging directives and incentives for biodegradable materials. Consumer awareness is high.

Asia Pacific - 27% Share
Asia Pacific accounts for 27%, driven by China, India, Japan, and South Korea, supported by rapid urbanization, growing e-commerce packaging, and government policies for biodegradable plastics.

Latin America - 7% Share
Latin America holds 7%, with Brazil and Mexico leading adoption in packaging and agriculture applications. Market growth is steady but limited by cost and infrastructure.

Middle East - 5% Share
The Middle East accounts for 5%, driven by adoption in packaging, retail, and consumer goods, especially in UAE and Saudi Arabia. Industrial use is gradually expanding.

Africa - 3% Share
Africa holds 3%, with South Africa, Egypt, and Morocco leading demand. Market growth remains modest due to limited awareness and manufacturing capabilities.

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