Biodegradable Plastic Market Size and Forecast 2025

Global Biodegradable Plastic Market Overview

The Biodegradable Plastic Market is expected to reach US$ 21.10 billion by 2033, rising sharply from US$ 6.78 billion in 2024, according to Renub Research. With a CAGR of 13.45% from 2025 to 2033, this fast-expanding market is being shaped by growing environmental concerns, stringent regulations, and rising global demand for eco-friendly packaging.

Biodegradable plastics naturally decompose into water, carbon dioxide, and biomass when exposed to microorganisms such as bacteria and fungi. Their breakdown time varies—from months to a few years—depending on material composition and environmental conditions.

These materials can be plant-derived, such as cornstarch, potato starch, and sugarcane, or synthetically engineered to degrade under specific conditions such as heat, oxygen, or UV exposure. Today, biodegradable plastics are used across packaging, agriculture, consumer goods, and medical applications, making them one of the most promising sustainable material categories.

Growing awareness of plastic pollution, particularly microplastics in oceans, rivers, and soil, is accelerating the adoption of biodegradable solutions. Governments worldwide are imposing bans on single-use plastics, enforcing stricter waste management standards, and incentivizing green materials—all of which are fueling market expansion.

Why the Market Is Booming: Key Growth Drivers

1. Rising Environmental Awareness

Environmental consciousness has never been higher. The public increasingly associates conventional plastics with land and marine pollution. The shift toward eco-friendly products—shopping bags, food packaging, cups, straws, and disposable cutlery—is dramatic and global.

Consumers want sustainable options, and companies are responding by integrating biodegradable plastics into their product lines. This widespread demand from individuals and enterprises is one of the strongest drivers of the market.

2. Growing Preference for Sustainable Consumer Products

From retail packaging to household goods, sustainable materials are gaining traction. Millennials and Gen Z, who prioritize eco-conscious shopping, are accelerating this demand shift.

As a result, consumer product manufacturers are rapidly adopting biodegradable alternatives such as PLA, PBS, PHA, and starch blends. Increasingly, biodegradable product labeling—“compostable,” “bio-based,” “plant-derived”—is becoming a selling point.

3. Corporate Sustainability Commitments

Major brands across foodservice, FMCG, e-commerce, and retail sectors are adopting biodegradable plastics to meet zero-waste and carbon-reduction goals. Using compostable packaging improves brand image, aligns with ESG frameworks, and meets rising investor expectations.

Companies like Amazon, Nestlé, Unilever, Walmart, and fast-food chains worldwide are transitioning to greener packaging. Their commitments push suppliers and manufacturers to scale production, accelerating innovation and investment.

4. Strong Government Regulations

Governments globally are enforcing bans on single-use plastic bags, cutlery, and food containers while promoting biodegradable substitutes. Certification standards (such as EN 13432 and ASTM D6400) ensure quality, safety, and verified biodegradability.

Countries across Europe, Asia-Pacific, South America, and the Middle East now mandate biodegradable packaging in select industries. Such policies are giving the market long-term stability and predictable growth.

5. Rising Demand in the Food & Beverage Industry

F&B remains the largest user of biodegradable plastic packaging. Restaurants, cafés, cloud kitchens, and food delivery apps seek greener options to reduce waste and comply with regulations.

Biodegradable trays, cups, flexible films, clamshells, boxes, and wraps are increasingly replacing conventional plastic.

6. Expansion in Agriculture

Biodegradable mulch films, plant pots, and seed coatings eliminate soil contamination issues from traditional polyethylene films. They degrade naturally, reducing labor and disposal costs for farmers. Government subsidies and bans on non-degradable films in Europe and China further boost market demand.

Key Challenges Holding Back the Market

1. Limited Raw Material Availability

Because biodegradable plastics depend heavily on crops such as corn, sugarcane, cassava, and potatoes, fluctuations in agricultural output can affect supply. Climate-related risks and global food security concerns may also restrict long-term scalability.

2. Performance Limitations

Despite improvements, some biodegradable plastics still lack the strength, heat resistance, and moisture barrier properties of traditional petroleum-based plastics. These performance gaps can limit adoption in high-strength applications like heavy-duty packaging or construction materials.

3. High Production Costs

Biodegradable plastics remain more expensive than conventional plastics. Production scale is increasing, but cost parity is still several years away. This slows adoption in price-sensitive markets like fast food, agriculture, and developing nations.

4. Insufficient Composting & Recycling Infrastructure

Many biodegradable plastics require industrial composting to degrade effectively. In regions where such facilities are unavailable, these materials may end up in landfills—reducing their environmental benefits.

Segment Insights

Polybutylene Succinate (PBS) Market

PBS is gaining rapid traction due to its strong mechanical properties and compatibility with industrial composting. It is widely used in food packaging, agricultural films, and disposable items. With tightening environmental regulations, demand for PBS is increasing across Asia-Pacific and Europe. Major manufacturers are expanding PBS production capacities, creating a strong pipeline for market growth.

Polylactic Acid (PLA) Market

PLA is one of the most commercially dominant biodegradable plastics. Derived from renewable resources like corn and sugarcane, it is heavily used in:

Food containers

Disposable tableware

3D printing filaments

Medical implants

High transparency and rigidity make PLA suitable for retail shelf packaging. However, it requires industrial composting conditions for effective biodegradation. Global production capacity is rapidly expanding to keep up with surging demand.

Starch Blends Market

Starch-based biodegradable blends are cost-effective and widely used in:

Mulch films

Trash bags

Compost bags

Packaging films

Their low cost and abundant raw materials provide strong growth potential, although humidity sensitivity remains a challenge. Continuous innovation is enhancing strength and performance.

Application Overview

Biodegradable Plastic Packaging

Packaging is the dominant application segment. Sustainability commitments, regulatory pressure, and consumer trends are driving adoption of compostable packaging for:

Food & beverage

Personal care

E-commerce

Retail

Advances in barrier coatings, mechanical strength, and printability are making biodegradable packaging commercially competitive.

Agriculture

Biodegradable mulch films and plant pots are gaining traction due to labor cost savings and environmental benefits. Several countries have mandated biodegradable films for agricultural applications, providing a strong foundation for market expansion.

Consumer Goods

Daily-use biodegradable plastics—such as toothbrushes, straws, shopping bags, and household items—are gaining popularity as the shift toward eco-conscious lifestyles accelerates.

Country-Level Market Insights

United States

The U.S. market is driven by sustainability commitments from corporations and local bans on single-use plastics. Rising consumer preference for eco-friendly packaging supports growth, although challenges such as higher costs and limited composting infrastructure persist.

United Kingdom

The UK is a fast-growing market, fueled by aggressive anti-plastic legislation and adoption in packaging, agriculture, and foodservice. High costs and limited raw material supply remain challenges, but advances in waste infrastructure are accelerating adoption.

China

China is one of the strongest growth engines for biodegradable plastics. Massive investments in PLA, PBS, and PHA production, along with strict bans on non-degradable plastics, are propelling the market forward. With huge demand from e-commerce and food delivery sectors, China will remain a global leader.

India

India’s market is expanding due to bans on single-use plastics and increasing public environmental awareness. Innovation in green packaging and support for circular economy projects are driving growth. Cost barriers and lack of infrastructure remain concerns.

Australia

Strong environmental commitments and bans on single-use plastic items are fuelling the biodegradable plastic market. Retailers and foodservice companies are transitioning to compostable products.

Malaysia

Government-led initiatives such as the Zero Single-Use Plastics Roadmap support adoption. Growth is steady, supported by startup innovation and foreign investment.

Brazil

With its abundant agricultural biomass and rising sustainability initiatives, Brazil is well-positioned for growth. Composting infrastructure remains limited but is gradually improving.

United Arab Emirates

The UAE is aggressively phasing out single-use plastics, creating strong demand for biodegradable alternatives. Corporate sustainability efforts and rising consumer awareness are key drivers.

Market Segmentation

By Material Type

Polybutylene adipate terephthalate (PBAT)

Polybutylene succinate (PBS)

Polylactic Acid (PLA)

Polyhydroxyalkanoate (PHA)

Starch Blends

Others

By Application

Packaging

Agriculture

Consumer Goods

Others

By Country (24 Viewpoints)

United States, Canada, Germany, United Kingdom, France, Italy, Netherlands, Spain, China, South Korea, Japan, India, Indonesia, Malaysia, Argentina, Brazil, Mexico, Colombia, Saudi Arabia, South Africa, Israel, Australia, UAE, Rest of the World

Company Analysis (4 Viewpoints Each: Overview, Key Persons, Recent Developments, Financials)

Total Corbion

Mitsubishi Chemical Holding Corporation

Toray Industries

BASF SE

GREEN DOT BIOPLASTICS

Amcor Limited

Final Thoughts

The global biodegradable plastic market stands at a pivotal moment of transformation. With governments enforcing stricter rules, corporations embracing sustainability, and consumers demanding greener products, biodegradable plastics are becoming mainstream. While challenges related to cost, performance, and infrastructure remain, rapid innovations and massive investments worldwide are paving the way for a more sustainable future.

As more industries shift toward circular economy models, biodegradable plastics are not just a trend—they are a necessity. And with a projected market size of US$ 21.10 billion by 2033, the next decade will be a defining era for bioplastics globally.