Polybutylene Adipate Terephthalate (PBAT) Market

Polybutylene Adipate Terephthalate (PBAT) Market Outlook

The polybutylene adipate terephthalate (PBAT) market size was valued at US$ 1.7 billion in 2022, and is projected to reach US$ 3.8 billion by the end of 2032, growing at a CAGR (Compound Annual Growth Rate) of 8.6% during the forecast period from 2022 to 2032.

Manufacturers across the globe are shifting their focus on the use of sustainable packaging for their products. Now-a-days, many retail chains and brands are using biodegradable plastics made from PBAT to increase their brand awareness and distinguish themselves from their competitors by setting up an outstanding product niche and driving exceptional customer experience.

Report Attributes	Details
Polybutylene Adipate Terephthalate Market Size (2022E)	US$ 1.7 Billion
Forecasted Market Value (2032F)	US$ 3.8 Billion
Global PBAT Market Growth Rate (2022-2032)	8.6% CAGR
North America Market Share (2022)	~26.0%
Europe Market Share (2022)	~43.0%
Key Companies Profiled	BASF SE Novamont S.p.A. JinHui ZhaoLong High Technology Co., Ltd. Eastman Chemical Company SK Chemicals Far Eastern New Century Corporation Lotte Fine Chemical Co., Ltd. WILLEAP Jiangsu Torise biomaterials co., Ltd.

Historic to Future Consumer Preference Analysis

It has been observed that the sustainability of any product is fundamentally changing consumer preference. 79% of consumers are changing their purchase preferences based on inclusiveness, social responsibilities, and environmental impact.

Moreover, as a result of COVID-19, consumer awareness and commitment towards sustainable products have increased twofold. Overall 67% of the consumer including 57% of those belonging to the age group between 18-24, have switched to lesser-known brands as they are providing sustainable packaging.

Additionally, 52% of consumers claim to have an emotional bond with companies or organizations that are seen as sustainable. 72% of consumers overall, including 64% of those aged 25 to 35, claim that choosing sustainable products makes them happy with their purchase.

As a result, PBAT-based packaging is being increasingly used by consumer product and retail (CPR) organizations. This, in turn, is increasing PBAT market penetration in the plastic packaging and wrapping sector.

• Short Term (2022 Q2 to 2025): The impact of the government initiatives and policies on the PBAT is significantly less owing to independent standards set by organizations like FDA, OWS, and others, to government, authorities. However, increasing governmental regulations for the use of environment-friendly products are expected to positively impact the market.
• Medium Term (2025-2028): Nowadays, flexible packaging has been gaining ground due to its excellent properties such as lightweight, aroma retention, ease of mobility & disposal, flexibility, resealing, minimal space requirement, and many more. In addition, the increasing push towards biodegradable packaging is forcing packaging companies and food manufacturers to include biopolymers in their cling films. This is poised to further bolster the market for PBAT.
• Long Term (2028-2032): Advancement in technologies shall provide immense opportunity for the PBAT market to burgeon. With new production technology and operational automation, manufacturers will have tremendous opportunities to penetrate untapped markets. Many developed countries have already started deploying this technology in use.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 8.6% CAGR between 2022 and 2032.

PBAT Market share analysis based on application and region is provided in a nutshell in the above image. Under the application segment, the cling films sub-segment dominates with 75.7% of the market share in 2022.

“Tightening Regulations Concerning Plastic Waste: To Supplement Market’s Growth”

As a result of tightening governmental regulations on the use of plastics and the urge to reduce reliance on fossil fuels, manufacturers across the globe are shifting their focus to the use of sustainable packaging for their products.

Mismanaged plastic waste is very detrimental not only to flora and fauna but to humans also. In the marine ecosystem, plastic debris can cause entanglement of aquatic animals which can result in immobilization and eventually death of that creature.

Even on land, animals such as sheep, goats, donkeys, and cattle face a similar danger of plastic ingestion, which can block their gastrointestinal tract leading to its death.

In addition, harmful additives which are added during the manufacturing process, as well as toxins absorbed by the plastics from air or water can cause huge damage to the surrounding environment.

As a result, governments across the globe are banning the use of single-use plastics and instead promoting the use of bio-plastics which are eco-friendly in nature.

This, in turn, is increasing the usage of PBAT in the manufacturing of such plastic products. In 2020, the government of South Africa commissioned a US$ 1.8 million, Japan-funded bio-plastics manufacturing project in collaboration with the United Nations Industrial Development Organization (UNIDO).

“Research in PBAT-based Nanocomposite for Medical and Industrial Application”

PBAT-based nanocomposites are formulated by melt blending PBAT with a 5-10 weight percent of clay nanoparticles. These nanoparticles are composed of fluoro-hectorites, unmodified sepiolites, and montmorillonites.

Particularly in nanocomposites with high clay chemical affinity within the polymeric matrix, all these nanocomposites demonstrated a good level of clay distribution and dispersion into PBAT. PBAT-based materials containing 10% of clay possess good biological safety and almost no cytotoxicity, according to preliminary biocompatibility tests.

For this reason, such nanocomposites are being extensively studied for the manufacturing of medical devices and equipment. In addition, in spite of offering an excellent support matrix for nanoparticles, PBAT-based compounds can also improve the antibacterial performance of the device and can extend the possible applications of bio-nanocomposites to meet the stringent requirements for biomedical applications or medical devices such as vascular & urinary catheters and endotracheal tubes.

Further research has shown that the mechanical properties of PBAT-induced nanocomposites showcase enhanced impact strength, tensile & flexural modulus, and tensile elongation at break.

These properties are very useful for the manufacturing of sophisticated and complicated industrial equipment that operates on a fine margin.

Thus, research in PBAT nanocomposites and the subsequent development of nanoparticles from PBAT has the potential to open up new opportunities for its application in medical and industrial sectors during the forecast period.

“High Cost of Production Affecting Overall Pricing of End-Product”

Compared to traditional plastics, the production of bio-based polymers is very expensive in nature. The manufacturing of pure PBAT requires the usage of sophisticated equipment and devices.

As a result, the manufacturing of such compounds is usually accompanied by a high operational cost. As a consequence, the manufacturing of PBAT at a large scale will only be possible when production costs decrease.

The addition of low-cost materials such as reinforced material and starch. Among reinforced materials, PLA is an effective way to reduce the final cost. It is only during the last ten years PBAT based composites have been developed into commercial products.

Moreover, as a result of weak economic growth caused by the COVID-19 pandemic, industrial production remained well below market expectations. As the sales were lower than the usual target, manufacturers of PBAT had to bare extra costs for inventory management.

For almost a decade, PBAT has been widely used in the packaging industry and agricultural and biomedical sectors. However, its high production cost limits its large-scale production for use in alternative fields of applications.

Country-wise Insights

How is Public Awareness Driving the US Market?

In North America, the USA consumes a significant amount of PBAT. The majority of consumption comes from the country's populace's strict use of PBAT-based compost & garbage bags.

Additionally, the nation's end-use industries actively use PBAT-based packing materials for their goods. The increased demand for PBAT in compostable packaging and PBAT for biodegradable packaging has made all of this possible due to increased public awareness of biodegradable plastics.

The market in the country is expected to expand at a steady rate during the forecast period with increasing consumption of PBAT products in this country.

Why is the Germany Market Anticipated to Be Highly Rewarding?

Based on consumer demand, Germany dominates the market for PBAT. Biodegradable plastics like polybutylene adipate terephthalate are widely used in Germany.

For a greener, cleaner environment, the European Union has been actively involved in the development of such biodegradable plastics.

The main cause of the rise in PBAT consumption in Europe, particularly in Germany, has been the region's regulatory bodies' calls for the public to use such alternatives.

Category-wise Insights

Why Compostable bags are gaining traction?

In recent years the concept of quality and safety of food on the part of the consumer has undergone profound evolution. In general, awareness of the risk associated with waste disposal and the importance of biodegradable products has increased.

Starches derived from sources like corn, PLA, or PBAT are used to make compostable bags. These bags are intended to be decomposed by microorganisms into organic substances like compost, carbon dioxide, and water under particular circumstances.

With the increasing awareness of a cleaner and greener environment, plastic manufacturers are continuing to develop sustainable solutions for people. Nowadays, shopping bags, retail bags, zip lock bags, and courier satchels are all produced in a compostable format.

Supermarkets and retail chains such as Waitrose, Co-operative, Tesco, and others. are all providing compostable bags as an alternative to plastic bags. Growing initiatives from government and regulatory bodies towards the usage of safer products have been stimulating the production and sales of compostable and biodegradable bags.

Currently, compostable bags are witnessing high demand from various industries such as food & beverage, retail, and health & personal care, as they come in a wide range of attractive designs and shapes.

How do Agriculture and Horticulture Support the Market’s Growth?

The concerning drawback of using conventional plastic films in agriculture is the production of a high amount of waste. As a result, in place of traditional non-biodegradable plastic films, films made from natural fibers and biodegradable polymers are now used as mulching material.

• An ETH Zurich study found that PBAT completely biodegrades in soil over the course of six weeks, making it a perfect substitute for PE.

In addition, these mulching films reduces pressure from weed & pathogens, preserves heat & moisture, and conserve water and fertilizer, resulting in sustainable agricultural production and reduced soil contamination.

• According to a recent study, mulch films made from BASF SE's eco via M 2351 can improve weed control and increase tomato yield by 15 to 50% while using less water and herbicide than bare-soil farming.

Mulch films are gaining widespread acceptance from farmers worldwide since their usage contributes to the creation of favorable microclimatic conditions for accelerating crop growth.

Exponential growth in food demand over the studied period is expected to remain a vital factor influencing the sales of agricultural films. Mulch plastic films, on account of their unmatched effectiveness in their agricultural productivity, are anticipated to witness robust demand in line with surging food demand.

Competitive Landscape

Prominent manufacturers in the market are BASF SE, Novamont S.p.A., JinHui ZhaoLong High Technology Co., Ltd., Eastman Chemical Company, SK Chemicals, Far Eastern New Century Corporation, Lotte Fine Chemical Co., Ltd., WILLEAP, and Jiangsu Torise biomaterials co., Ltd.

The global demand for PBAT has increased in recent years as a result of growing awareness regarding the importance of waste disposal. An increase in production capacity is turned out to be a highly lucrative strategy for market players’ growth in forthcoming years.

• The Red Avenue New Materials Group's, biodegradable material project (Phase I), which is built to produce 100,000-ton/year, in cooperation with BASF is currently in a development phase, and it is anticipated to begin feeding and starting by the third quarter, according to Red Avenue New Materials Group Co., Ltd.'s 2022 published report.

• In November 2020, AXT, Inc., a leading manufacturer of compound semiconductor substrates, announced a strategic merger of BoYu and JinMei, which are suppliers of the raw material to AXT.

Fact.MR has provided detailed information about the price points of key manufacturers of PBAT positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Polybutylene Adipate Terephthalate Industry Research

• By Application:

  • Compost & Garbage Bags
  • Cling Films
  • Mulch film
  • Medical Accessories
  • Others

• By End-Use:

  • Packaging
  • Agriculture & Horticulture
  • Consumer & Homecare
  • Coatings
  • Others

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA