The North America biodegradable plastic market is accounted to US$ 806.9 Mn in 2018 and is expected to grow at a CAGR of 14.0% during the forecast period 2019 โ 2027, to account to US$ 2,622.4 Mn by 2027.
The North America Biodegradable Plastic Market is witnessing significant growth, driven by increasing environmental concerns and the urgent need to reduce plastic pollution. With rising awareness among consumers and stricter environmental regulations, the shift toward eco-friendly alternatives is more prominent than ever. This shift is especially apparent in the packaging, agriculture, and consumer goods sectors, where the adoption of biodegradable plastics is rapidly increasing. The North America Biodegradable Plastic Market benefits from growing support for sustainable practices, which has led to an increased demand for materials that can break down naturally without harming the ecosystem. Biodegradable plastics offer a viable solution to traditional petroleum-based plastics that persist in the environment for hundreds of years. These environmentally friendly alternatives are designed to decompose under natural conditions, thereby reducing the environmental footprint.
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Government initiatives and policy changes are playing a crucial role in shaping the North America Biodegradable Plastic Market. Local and national regulations promoting sustainability and banning single-use plastics are creating a favorable environment for biodegradable options. Educational campaigns, incentives for green businesses, and growing concern over landfill overflow have all contributed to a rise in demand.
One of the key trends observed in the North America Biodegradable Plastic Market is the increasing preference for compostable packaging materials. These are particularly sought after in the food and beverage industry, where sustainability is becoming a key differentiator for brands. Consumers are more inclined to support businesses that align with their values, and the use of biodegradable packaging sends a strong message about environmental responsibility.
In the agriculture sector, the North America Biodegradable Plastic Market is gaining traction through the use of biodegradable mulch films and other farming products. These help improve soil health while reducing plastic waste on farmlands. Traditional plastic mulch can be harmful to the soil and difficult to remove, but biodegradable options naturally integrate into the environment after serving their purpose.
The North America Biodegradable Plastic Market is also driven by advancements in research and development. New types of biodegradable plastics, such as those derived from starch, cellulose, and polylactic acid (PLA), are being introduced. These materials not only offer effective alternatives to conventional plastics but also enhance the performance and durability of products.
Consumer awareness is a significant force behind the growth of the North America Biodegradable Plastic Market. People are increasingly making purchasing decisions based on environmental impact. The shift in consumer behavior is encouraging manufacturers and retailers to transition toward sustainable materials in their product lines.
Another factor boosting the North America Biodegradable Plastic Market is the surge in e-commerce and online food delivery, which has raised the demand for eco-friendly packaging. Companies are actively seeking biodegradable solutions to meet customer expectations while reducing waste.
Despite the positive momentum, the North America Biodegradable Plastic Market still faces challenges such as higher production costs and limited industrial composting facilities. However, ongoing technological advancements and increasing investments in sustainable infrastructure are expected to overcome these hurdles. In conclusion, the North America Biodegradable Plastic Market is poised for steady expansion as environmental sustainability continues to shape consumer preferences, regulatory frameworks, and industrial practices. The growing need for responsible waste management and reduced plastic pollution is making biodegradable plastics an essential component of a greener future.
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API SpA
BASF S.E.
FKuR Kunststoff GmbH
Green Dot Bioplastics
NatureWorks LLC.
Novamont S.p.A.
Kingfa Sci. & Tech. Co., Ltd.
Mitsubishi Chemical Corporation
Industry Landscape and Market Trends
The market for biodegradable plastics in North America has experienced steady growth, driven by increasing awareness of the adverse environmental effects of traditional petroleum-based plastics. Governments, businesses, and consumers alike are advocating for alternatives that reduce ecological footprints and enhance sustainability. This shift is catalyzing demand for biodegradable plastics derived from renewable resources such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), starch derivatives, and other biodegradable polyesters like PBS and PBAT.
One of the major trends influencing the market is the alignment of corporate strategies with environmental, social, and governance (ESG) goals. Companies are increasingly integrating sustainability into their product development, supply chain, and waste management processes. Additionally, technological advancements in polymer science are making biodegradable plastics more versatile and cost-effective, broadening their applications in industries such as packaging, agriculture, consumer goods, and textiles.
Market Drivers
- Environmental Awareness: Heightened consumer awareness regarding the harmful effects of conventional plastics has spurred demand for sustainable alternatives. Documentaries, public campaigns, and scientific reports have played crucial roles in educating the public and influencing purchasing behavior.
- Government Regulations and Incentives: Federal and state-level regulations banning single-use plastics and promoting compostable materials have accelerated market growth. Incentives for green manufacturing and support for circular economy initiatives further support the sector.
- Corporate Sustainability Goals: Multinational corporations are adopting biodegradable plastics to meet their sustainability targets. Packaging, in particular, is a critical focus area, with companies aiming to reduce their plastic footprint.
- Innovative Materials: Advances in biodegradable plastic formulations have improved performance characteristics, enabling their use in more demanding applications. Enhanced mechanical strength, moisture resistance, and biodegradability are expanding market potential.
Biodegradable Polyesters (PBS, PBAT, etc.):
These synthetic polyesters are designed to degrade more readily than conventional plastics and are often used in combination with natural polymers to balance performance and sustainability. Applications include bags, packaging films, and disposable items.
Regional Insights
In North America, the United States holds the lion’s share of the biodegradable plastics market due to its robust manufacturing base, consumer awareness, and supportive policy framework. Canada is also witnessing steady growth, especially in urban areas with progressive environmental regulations and community-led sustainability initiatives.
Urban centers such as San Francisco, Seattle, and Vancouver are leading the way in banning single-use plastics and promoting compostable alternatives. These municipalities provide case studies in successful policy implementation and public-private collaboration.
Key Players
Several key players are shaping the North American biodegradable plastic market. These include:
- NatureWorks LLC: A leading producer of PLA under the brand name Ingeo, NatureWorks is known for its innovations in biopolymer technology.
- Danimer Scientific: Specializing in PHA-based materials, Danimer Scientific has formed partnerships with major brands to develop sustainable packaging.
- BASF SE: Through its Ecovio product line, BASF offers a range of biodegradable plastics tailored for packaging and agricultural applications.
- Novamont S.p.A.: Known for its Mater-Bi bioplastics, Novamont has a growing presence in North America, emphasizing cradle-to-cradle solutions.
- Biome Bioplastics: With a focus on starch-based blends, Biome is developing materials for various disposable and durable applications.
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