Driven by increasing environmental concerns, the global bioplastics market generated $24.38bn (€21.7bn) in 2017 and is estimated to see major growth in the next five years, according to a recent report by Allied Market Research (AMR).
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 years, the report by Portland, Oregon-based AMR added.
While Europe accounted for more than two-fifths - 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 by 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 in terms of revenue through 2025.
The rigid packaging segment, according to the report, is estimated to grow at a CAGR of 28.3% during the forecast period.