North America Biodegradable Plastics Market: Growth and Key Drivers
The North American biodegradable plastics market is projected to grow from US$ 1,703.17 million in 2022 to US$ 4,904.16 million by 2028, expanding at a CAGR of 19.3% during the forecast period.
𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐏𝐃𝐅 𝐁𝐫𝐨𝐜𝐡𝐮𝐫𝐞 – https://www.businessmarketinsights.com/sample/BMIRE00028395
Government Regulations Driving Market Expansion
Biodegradable plastics serve as an effective alternative to conventional single-use plastics, offering similar technical properties while reducing greenhouse gas emissions. Governments across North America have implemented stringent regulations and policies to curb plastic waste and promote sustainable alternatives.
- The ASTM D6400 standard mandates that all plastic products labeled as biodegradable or compostable must fully decompose in a composting environment within a specified time frame without leaving harmful residues.
- Several plastic bans and restrictions have accelerated the adoption of biodegradable plastics. For instance, Canada has implemented a ban on single-use plastics, including checkout bags, cutlery, and straws, boosting demand for eco-friendly alternatives.
- The US Environmental Protection Agency (EPA) has introduced initiatives supporting the research and development of bio-based and compostable plastics to reduce environmental pollution.
Technological Advancements Enhancing Market Growth
The biodegradable plastics industry is investing heavily in research and development to improve material properties and production efficiency. Innovations such as biodegradable multi-layer films, high-strength bio-based polymers, and enhanced composting techniques are improving the functionality of these materials in various applications, including packaging, agriculture, consumer goods, and healthcare.
Increasing Awareness and Corporate Commitments
- Consumers are becoming increasingly conscious of sustainable packaging solutions, pushing brands and manufacturers to switch to biodegradable materials.
- Leading corporations, including Coca-Cola, Nestlé, and Unilever, have pledged to increase their use of biodegradable and compostable packaging, contributing to market growth.
- Retail chains such as Walmart and Target are exploring alternatives to traditional plastic bags and packaging materials to meet their sustainability goals.
Challenges and Future Prospects
Despite strong growth potential, the market faces challenges, including:
- Higher production costs compared to conventional plastics
- Limited industrial composting infrastructure in some regions
- Need for standardization and certifications to differentiate genuine biodegradable plastics from misleading claims
North America Biodegradable Plastics Market Overview
The North America biodegradable plastics market in North America is further segmented into the US, Canada, and Mexico. The growth in the region is attributed to the presence of several domestic and international players in the market. BASF SE, Eastman Chemical Company, Cargill Incorporated, and SABIC are some of the leading biodegradable plastics players in the region. In addition, the growth of biodegradable plastics is attributed to increasing environmental concerns and rising government initiatives to reduce greenhouse gas emissions, and rising government initiatives. For instance, in January 2022, the U.S. Department of Energy (DOE), announced USD 13.4 million in funding for next-generation plastics technologies to reduce the carbon emissions and energy consumption of single-use plastics. Further, several companies are also pledging to use recyclable or biodegradable packaging as their shift towards eco-friendliness. These factors are expected to surge the growth of the region’s biodegradable plastics market. Moreover, the demand for biodegradable plastic is rising, owing to increasing awareness among people for environment-friendly products. Growing awareness about global warming and plastic pollution propels consumers to opt for biodegradable plastics. Biodegradable plastics substitute conventional plastics in the food packaging industry. Moreover, strict government legislation limiting conventional plastics’ utilization is another factor propelling the growth of the biodegradable plastic market. Several FMCG companies are adopting biodegradable packaging to conform to the standards, which in turn, is propelling the growth of this market. BPI is North America’s premier certifier of compostable products and packaging, encouraging sustainable practices for recovering compostable materials through municipal and commercial composting. The program guarantees that products and packaging representing the BPI logo have been checked, tested, and verified according to scientifically based standards.
Strategic Insights: North America Biodegradable Plastics
The North American biodegradable plastics industry is evolving rapidly, driven by regulatory shifts, consumer demand for sustainability, and advancements in material science. Strategic insights into this sector provide data-driven analysis of market trends, key players, and regional dynamics, enabling stakeholders to stay ahead of the competition.
By leveraging analytics, industry participants—whether investors, manufacturers, or policymakers—can identify untapped opportunities, develop unique value propositions, and anticipate market shifts. A forward-thinking approach is critical for long-term success in this dynamic landscape.
Ultimately, these insights empower businesses to make informed decisions, enhance profitability, and drive sustainable growth in the biodegradable plastics market.
North America Biodegradable Plastics Report Scope
| Attribute | Details |
| Market Size (2022) | US$ 1,703.17 Million |
| Market Size (2028) | US$ 4,904.16 Million |
| Global CAGR (2022-2028) | 19.3% |
| Historical Data | 2020-2021 |
| Forecast Period | 2023-2028 |
| Segments Covered | By Type: PLA, PHA, Starch Blends, PBS, PBAT |
| By End User: Packaging & Bags, Agriculture & Horticulture, Consumer Goods | |
| Regions Covered | North America (US, Canada, Mexico) |
| Key Market Leaders | BASF SE, FKuR Kunststoff GmbH, Green Dot Bioplastics Inc, Novamont SpA, Kingfa Science and Technology Co Ltd, NatureWorks LLC, Mitsubishi Chemical Holdings Corp, Plantic Technologies Ltd, TotalEnergies Corbion BV, API SpA |
North America Biodegradable Plastics Regional Insights
The geographic scope of the North America Biodegradable Plastics refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.
North America Biodegradable Plastics Market Segmentation
The North America biodegradable plastics market is segmented into type, end user, and country.
Based on type, the North America biodegradable plastics market is segmented into PLA, PHA, starch blends, PBS, PBAT, and others. In 2022, the starch blends segment registered a largest share in the North America biodegradable plastics market.
Based on end-user, the North America biodegradable plastics market is segmented into packaging and bags, agriculture and horticulture, consumer goods, and others. In 2022, the packaging and bags segment registered a largest share in the North America biodegradable plastics market.
Based on country, the North America biodegradable plastics market is segmented into the US, Canada, Mexico. In 2022, the US segment registered a largest share in the North America biodegradable plastics market.
BASF SE; FKuR Kunststoff GmbH; Green Dot Bioplastics Inc; Novamont SpA; Kingfa Science and Technology Co Ltd; NatureWorks LLC; Mitsubishi Chemical Holdings Corp; Plantic Technologies Ltd; TotalEnergies Corbion BV; and API SpA are the leading companies operating in the North America biodegradable plastics market.
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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights
