Driven by increasing environmental concerns, the global bioplastics market is expected to see major growth over the next five years, according to a recent report by Allied Market Research (AMR).
AMR, which is headquartered in Portland, Oregon, noted that for the period 2018-2024, the market for bioplastics is expected to reach $68.57bn (€61.25bn), registering a CAGR of 18.8% over the six-year timeframe.
The global bioplastics market generated $24.38bn (€21.7bn) in 2017.
Europe accounted for 40% of the total market share and is expected to continue its lead position throughout the forecast period. Asia Pacific is expected to register the largest growth rate with a CAGR of 20.4%.
Drivers of growth include eco-friendliness, favourable government policies, renewable raw material sources, and high acceptance from consumers.
However, high end-to-end user costs and limited performance hinder the growth of the materials, the report noted.
Based on type, the non-biodegradable plastic segment contributed the largest revenue in 2018, accounting for nearly two-thirds of the total market share. The segment is estimated to continue its leading position through 2024 and to grow at the highest CAGR of 20.2% during the forecast period.
In terms of application, the rigid packaging segment accounted to nearly one-third of the total market in 2018 and is expected to maintain its lead through to the mid-2020s.
The rigid packaging segment, according to the report, is estimated to grow at a CAGR of 28.3% during the forecast period.