The market for bio-polylactic acid is expected to register a CAGR of less than 15% during the forecast period (2024-2029).

Due to the COVID-19 outbreak, nationwide lockdown around the globe, disruption in manufacturing activities and supply chains, production halts and labour unavailability have negatively impacted the market. However, the conditions started recovering in 2023, thereby restoring the growth trajectory of the market studied during the forecast period.

Key Highlights

• The primary factor driving the market's growth is favorable government policies toward bio-plastics.
• On the flip side, the high cost of PLA is expected to hinder the development of the market studied.
• The packaging industry dominated the global market share due to its usage in fruit and vegetable packaging in supermarkets and for bread bags and bakery boxes among others.
• The growing production of genetically modified corn and the increasing usage of bio-PLA in 3D printing are likely to act as opportunities in the future.
• Asia-Pacific dominated the market worldwide, with the most significant consumption from countries like China and Japan.

Key Market Trends

The Packaging Segment is Expected to Dominate the Market

• The packaging industry is one of the largest consumers of bio-PLA. Packaging accounted for a little over 68% of the bio-PLA market in 2023 in terms of revenue. Moreover, concerns about hygiene and food safety in the context of the pandemic have become a higher priority globally.
• The demand for packaging in segments such as groceries, home entertainment products, and household supplies is likely to increase during the pandemic. At the same time, several segments such as packaging for the food and pharmaceutical industries continue to see vigorous demand.
• The demand is expected to increase for dietary supplements, such as vitamins, and essential supplies, such as allergy medication. Moreover, the environmental and climate change concerns are driving countries worldwide to choose biodegradable packaging materials.
• Bio-PLA is majorly used in fruit and vegetable packaging in supermarkets and for bread bags and bakery boxes, bottles, envelopes and display carton windows, and shopping or carrier bags.
• The restaurant chains and food processing industries are increasingly adopting biodegradable materials for food packaging. Consumer awareness is also rising rapidly in terms of food safety, as some plastics are proven carcinogens.
• The post-lockdown numbers indicate a systemic shift in consumer purchasing preferences from offline to online. Customers are increasingly getting used to the comforts of online shopping globally, which is expected to increase the demand in the PLA market during the forecast period.

China is Expected to Dominate the Market in Asia-Pacific

• China is the largest economy in Asia-Pacific region and has one of the largest manufacturing and production base in the world.
• In the country, the packaging industry is witnessing a tremendous growth due to plastic ban and shift toward sustainable and biodegradable packaging. Thus, it is expected to drive the market during the period.
• Furthermore, the Chinese food processing industry is moving toward maturity, witnessing moderate growth. Processed and packaged frozen food products are increasingly becoming popular, especially dairy, baby food, and confectionery products, which is a driver for the food processing industry.
• According to National Bureau of Statistics of China, in 2022, the food industry in China generated a total profit of about 621 billion yuan, increasing from around 577.5 billion yuan in the previous year. The food manufacturing industry contributed approximately 179.1 billion yuan to the total profits.
• China is the largest textile producing and exporting country in the world. The textile industry of China grew steadily during the first nine months of 2023 with collectively profits worth 171.1 billion yuan (approximately USD 26.80 billion), a 31.7 per cent increase year-on-year (YoY), according to the Ministry of Industry and Information Technology (MIIT).
• In 2022, the health expenditure was approx. CNY 7.2 trillion, accounting for ~7.1% of the country’s GDP. The medical and therapeutical market in China has witnessed strong growth due to a growing number of hospitals and the increasing demand for medical assistance.​. Thus, advancements in medical applications are expected to drive the market during the forecast period.
• Furthermore, according to ZVEI Dia Elektroindustrie, the electronics industry of China is about EUR 2,337 billion in 2021, having more than 50% production share in the world, and is forecasted to grow at 4%, 11% and 8% Y-o-Y in 2022, 2023 and 2024.
• Hence, China is expected to dominate the bio-polylactic acid market in Asia-Pacific during the forecast period.

Competitive Landscape

The bio-polylactic acid market is highly concentrated, and the four major players have a share of around 86% market in terms of production capacity. The major players of the market studied (not in any particular order) include NatureWorks LLC, Zhejiang Hisun Biomaterials Co. Ltd, Sulzer Ltd, Total Corbion PLA and Futerro, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

• 1 INTRODUCTION

  • 1.1 Study Assumptions

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Drivers

    • 4.1.1 Favorable Government Policies Promoting Bio-plastics

    • 4.1.2 Other Drivers

  • 4.2 Restraints

    • 4.2.1 High Price and Other Disadvantages

    • 4.2.2 Other Restraints

  • 4.3 Industry Value Chain Analysis

  • 4.4 Porter's Five Forces Analysis

    • 4.4.1 Bargaining Power of Suppliers

    • 4.4.2 Bargaining Power of Consumers

    • 4.4.3 Threat of New Entrants

    • 4.4.4 Threat of Substitute Products and Services

    • 4.4.5 Degree of Competition

• 5 MARKET SEGMENTATION

  • 5.1 By Raw Material

    • 5.1.1 Corn

    • 5.1.2 Cassava

    • 5.1.3 Sugarcane and Sugar Beet

    • 5.1.4 Other Raw Materials(molasses, potato, wheat)

  • 5.2 By End-user Industry

    • 5.2.1 Packaging

    • 5.2.2 Medical

    • 5.2.3 Electronics

    • 5.2.4 Agriculture

    • 5.2.5 Textiles

    • 5.2.6 Other End-user Industries(construction, consumer goods)

  • 5.3 Geography

    • 5.3.1 Asia-Pacific

      • 5.3.1.1 China
      • 5.3.1.2 India
      • 5.3.1.3 Japan
      • 5.3.1.4 South Korea
      • 5.3.1.5 ASEAN Countries
      • 5.3.1.6 Rest of Asia-Pacific

    • 5.3.2 North America

      • 5.3.2.1 United States
      • 5.3.2.2 Canada
      • 5.3.2.3 Mexico

    • 5.3.3 Europe

      • 5.3.3.1 Germany
      • 5.3.3.2 United Kingdom
      • 5.3.3.3 France
      • 5.3.3.4 Italy
      • 5.3.3.5 CIS region
      • 5.3.3.6 Rest of Europe

    • 5.3.4 South America

      • 5.3.4.1 Brazil
      • 5.3.4.2 Argentina
      • 5.3.4.3 Rest of South America

    • 5.3.5 Middle-East and Africa

      • 5.3.5.1 Saudi Arabia
      • 5.3.5.2 South Africa
      • 5.3.5.3 Rest of Middle-East and Africa

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

  • 6.2 Market Share**/Ranking Analysis

  • 6.3 Strategies Adopted by Leading Players

  • 6.4 Company Profiles

    • 6.4.1 BASF SE

    • 6.4.2 BEWiSynbra Group

    • 6.4.3 Cofco

    • 6.4.4 Danimer Scientific

    • 6.4.5 Esun

    • 6.4.6 Futerro

    • 6.4.7 Jiangxi Keyuan Bio-Material Co. Ltd

    • 6.4.8 Musashino Chemical Laboratory Ltd

    • 6.4.9 NatureWorks LLC

    • 6.4.10 Polysciences Inc

    • 6.4.11 Shanghai Tong Jie Liang Biomaterials Co. Ltd

    • 6.4.12 Sulzer Ltd

    • 6.4.13 Weforyou

    • 6.4.14 Total Corbion PLA

    • 6.4.15 Zhejiang Hisun Biomaterials Co. Ltd

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 Emerging Applications in Food Packaging

  • 7.2 Growing Applications for 3D-printed PLA