The global green polymer market involves manufacturing of polymers from renewable feedstock or through an eco-friendly process to reduce the carbon footprint. Some key green polymers include bio-based polyethylene, bio-polyethylene terephthalate, bio-polyamide, PLA, PHA and others. These polymers are used extensively across various industries like packaging, consumer goods, automotive, medical devices, construction and others. The growing need for sustainable and eco-friendly alternatives to petroleum-based polymers are fueling the demand of green polymers.
The green polymer market size is expected to reach US$ 74.95 Bn by 2030, from US$ 39.46 Bn in 2023, growing at a CAGR of 9.6% during the forecast period.
Key Takeaways
Key players operating in the green polymer market are BASF SE, DowDuPont, NatureWorks, Arkema, Novamont, Plantic, DSM, Evonik etc. BASF is one of the largest manufacturer of bio-polyamide known as Ecoflex.
The key driver boosting the Green Polymer Market is rising environmental concerns among consumers and industries regarding significant usage of petroleum-based polymers. Various regulations are also being introduced to ban certain single-use plastic products which is propelling the demand.
Advancement in biotechnology and engineering techniques have enabled commercial production of new bio-based polymers like PEF, PHA, bio-PET etc. Continuous research is also going on for development of new renewable feedstock to manufacture green polymers on large scale competitively.
Market Trends
Rising preference for biodegradable and compostable polymers - With the ban on single-use plastics, demand for home compostable and industrial compostable polymers is increasing rapidly across food packaging and service ware applications.
Growth in electric vehicles market - Usage of bio-based polymers in electric vehicles is gaining traction to substitute conventional polymers and reduce vehicle weight. Polymers like PLA, PHA, polyamide etc. find increasing usage in EV parts.
Market Opportunities
Replacement of polystyrene and PET bottles - New developments are being made to replace ubiquitous polystyrene and PET bottles with 100% biodegradable and compostable bottles made from PLA, PHA or paper-based materials.
Advancements in carbon capture technologies - Continuous research is being conducted on developing green polymers using captured carbon from industrial waste streams or atmosphere, presenting new opportunities.
COVID-19 Impact on Green Polymer Market Growth
The outbreak of COVID-19 pandemic has adversely impacted the growth of global green polymer market in 2020. Strict lockdown and social distancing measures imposed by various governments led to temporary closure of manufacturing facilities. This disrupted the supply chain and lowered the demand from end use industries like packaging, building & construction, automotive and others. However, with relaxation in restrictions and resumption of operations, the green polymer market is expected to gradually recover from 2021 onwards.
Companies are now focusing on developing bio-based and recyclable green polymers to cater to the rising sustainability demand. Investment in R&D of bio-PET, PLA, bio-PE and other advanced green materials is increasing. The demand from packaging industry is driving faster recovery as more brands are using sustainable and recyclable packaging for products. Recovery in construction activities will also support the rebound of green polymer market globally. To gain lost demand, manufacturers need to strengthen distribution channels, offer innovative products and target emerging economies for future growth.
North America Concentration in Green Polymer Market
North America currently holds the major share of global green polymer market value due to stringent government regulations regarding use of conventional plastics and presence of prominent green material manufacturers. The United States is the largest market followed by copyright due to high consumption of packaged foods, beverages and goods along with construction activities. Advanced technologies allow production of bio-based polymers at competitive prices. Supportive initiatives by EPA and initiatives like Plastics Pact are fueling transition towards sustainable packaging solutions.
Fastest Growing Region- Asia Pacific
Asia Pacific region is expected to witness fastest growth in green polymer market during the forecast period globally. China ranks as top producer as well as consumer of green materials owing to extensive manufacturing base. Initiative like circular economy plan promotes utilization of recyclable materials. Japan, South Korea and India also offer lucrative opportunities for green polymer suppliers. Rising disposable incomes, growing population and increasing health awareness are propelling the demand from food & beverages industry. Supportive government schemes for bioplastics and investment in renewable energy will upsurge production of green polymers across Asia Pacific.
Get more insights on: Green Polymer Market
Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)