The biodegradable films market is projected to grow from USD 1.1 billion in 2020 to USD 1.5 billion by 2025, at a CAGR of 6.6% from 2020 to 2025. The major reasons for the growth of the biodegradable films market include growing awareness regarding plastic waste and its adverse impact on the environment. Some of the other driving factor for the biodegradable films market growth include, growing demand from the food packaging industry, high demand from the agriculture & horticulture sector.
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Companies such as BASF SE, Futamura Chemical Co. Ltd., Taghleef Industries, Walki Group Oy, Kingfa Sci. & Tech. Co., Ltd., and BioBag Americas, Inc. fall under the winners’ category. These are leading players in the biodegradable films market, globally are some of the leading players operating in the biodegradable films market. These players have adopted the strategies of acquisitions, new product launches, collaborations, expansions, partnerships, and contracts to increase their presence in the global market.
BASF SE is the leading player in the global biodegradable films market and is estimated to have the highest share in the market. In May 2019, BASF SE entered into an exclusive contract with Lactips (France) to market a water-soluble, 100% bio-based, and fully biodegradable film manufactured by Lactips. This biodegradable film is manufactured from natural ingredients and is applicable for home care, industrial, and institutional markets. Under this contract, BASF SE will use its expertise in network and supply chain to market the product. The contract supports BASF SE’s strategy to leverage sustainable solutions to drive business growth.
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The another important player in the global biodegradable films market is Futamura Chemical Co. Ltd.
In October 2019, Futamura Chemical Co. Ltd. launched a new compostable film, NatureFlex 30NVO. This new product is made from renewable wood pulp and is said to be the first certified compostable, heat-sealable film in the biodegradable films market. The product offers the heat resistance required for conventional and microwave ovens. This new product launch helped Futamura Chemical Co. Ltd. widen the market scope of its biodegradable film’s product portfolio
The biodegradable films market is projected to grow from USD 1.1 billion in 2020 to USD 1.5 billion by 2025, at a CAGR of 6.6% from 2020 to 2025. The key factors for the growth of the biodegradable films market include government regulations regarding the ban on single use plastics in various countries around the word and the steadily growing bioplastic industry worldwide.
The increasing regulations and prohibitions against plastic bags and other plastic items are driving the market for biodegradable plastic films worldwide. For instance, restrictions on the use of non-biodegradable plastic shopping bags in Italy and France have led to a significant increase in the consumption of biodegradable plastics in these countries. Governments, worldwide, are encouraging the use of sustainable and eco-friendly products. Manufacturers are also increasingly striving toward developing sustainable solutions, which have minimal environmental hazards. Environmental regulations are becoming more stringent, especially in European countries. Which in turn, is anticipated to promote the biodegradable films market growth.
The starch blends segment has the promising growth potential due to several factors, including the reduced production cost and enhanced biodegradation of the composite materials. For instance, the blending of polyvinyl alcohol (PVA) with starch (ST) enhances its biodegradability and results in cost reduction.
In recent years, starch has been considered as an effective and renewable alternative to the plastics derived from petroleum derivatives. Starch is a biodegradable polymer and is abundantly available in plants with non-toxic and relatively low-cost features. However, it is hard to process because of its high brittleness and limited flexibility. Thus, starch blends are most commonly used for the production of biodegradable films.
Biodegradability, renewability, good oxygen barrier in the dry state, easy availability, and low-cost are the advantages of using starch blends in the production of biodegradable plastic films. Mechanical properties such as tensile strength and elongation and the growing demand for starch blends in various industries are driving this segment.
The food packaging industry is projected to record the highest growth in the global biodegradable films market, during the forecast period. The high growth of the food packaging application segment is majorly attributed to the wide application range of the biodegradable films in this segment. For instance, egg trays, edible coating, paper boards, wrapping films, and food containers are some of the common applications of biodegradable films in the food packaging industry. PLA, starch blends, PBS, PHA, and cellulose are the most widely used biodegradable films in the food packaging industry. Biodegradable films are mainly used in fresh & frozen food packaging as well as the packaging of dried snacks & candy, bakery goods, water & juice bottles, meat trays, and coatings for beverages cups, and films & card stock. Thus, the wide application of the biodegradable films in the food packaging industry is considered as a major factor for this segment growth. Various companies are using biodegradable packaging in the food industry for instance, Loving Earth uses biodegaradable packaging for its chocolates. The packaging of chocolate bar and superfood bar from loving Earth, is made with econic, a compostable film, which is derived from FSC certified wood pulp and non-gmo corn.
Asia Pacific is projected to be the fastest growing market for the biodegradable films during the forecast period. The growing economies such as China and India, largely contributing the growth of the biodegradable films market in the region.
In addition to this, the rising government regulations regarding the ban on conventional plastic bags and global warming initiatives are expected to drive the demand for biodegradable films for packaging applications in Asia Pacific. However, the market price of biodegradable plastic films is higher than the conventional petroleum-based resins, which is considered as a major restraint for the growth of the biodegradable films market in the region. The awareness to use biodegradable films as a viable alternative to traditional plastics and its rising demand from the agricultural industry is another key factor, propelling the demand for the biodegradable films in Asia Pacific. China is the leading producer and consumer of agricultural films in the region, and India is an agriculture-based economy. Due to the depleting arable land, the need for controlled agriculture has increased in these countries. Thus, the demand for agricultural films is anticipated to grow, which, in turn, is expected to fuel the demand for biodegradable agricultural mulch films in the region during the forecast period.
