PBAT Market By Application (PBAT Compost & Garbage Bags, PBAT Cling Films, PBAT Mulch film, PBAT Medical Accessories), By End Use (PBAT for Packaging, PBAT for Agriculture & Horticulture, PBAT for Consumer & Homecare) - Forecast 2020 to 2030
PBAT Market Outlook
During the forecast period of 2020-2030, the global polybutylene adipate terephthalate (PBAT) market is expected to show remarkable sales prospects and expand at a CAGR close to 9%. This is due to its increased use across different end-user industries such as packaging, agriculture, medical research, and consumer goods.
As a result of tightening governmental regulations on the use of plastic and the urge to reduce reliance over fossil fuels, manufacturers across the globe are shifting their focus on the use of sustainable packaging for their products. Nowadays, many retail chains and brands are using biodegradable plastic made from PBAT to increase their brand awareness and distinguish themselves from their competitors.
Global demand for PBAT is increasing significantly as a result of growing awareness regarding the importance of waste disposal. Higher rate of adoption of biodegradable products, especially in the packaging industry across the globe, is estimated to boost overall global demand for PBAT over the coming years.
In a recently published report by Fact.MR, insights regarding key factors fueling market growth have been offered for the next ten years. The report tracks trends in 20+ high-growth countries, with the regions of Asia, North America, and Europe leading the way. The impact of the COVID-19 pandemic has also been detailed in the report, with exhaustive insights into what the years ahead will offer regarding the usage of PBAT.
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Historical Trends Vs. Future Market Projections
From 2015 to 2019, demand for PBAT increased at a moderate CAGR of around 4%, with packaging and related industries playing a crucial role in driving the overall market. Demand for PBAT is rising due to increasing adoption as a result of myriad benefits such as biodegradable property, etc.
The outbreak of COVID-19 resulted in diminished demand for PBAT across end-use industries such as agriculture, packaging, and coatings. Furthermore, imposition of nationwide and regional lockdowns impacted production and distribution activities related to PBAT. The market in North America and Europe is experiencing maximum downfall, as these regions are prominent markets for PBAT and have been badly affected by the outbreak. Owing to these factors, demand over the long-term forecast period can be estimated by breaking the forecast timeline into three parts.
- Short-run: Recovery growth is set to be observed over this term.
- Medium-run: Demand and price normalization are set to be observed over this period.
- Long-run: Economic cycles and inflation rates to affect demand and pricing of the product.
What are the Upcoming Trends Supporting PBAT Demand?
In recent years, consumer understanding of food quality and safety has changed dramatically. In general, people are becoming more aware about the dangers of improper waste disposal and the importance of using biodegradable products.
Compostable bags are usually made from starches derived from the likes of corn or PLA or PBAT. Under specific conditions, these bags are designed to be broken down by microorganisms into organic materials such as compost, carbon dioxide, and water.
Plastic manufacturers are continuing to develop sustainable solutions for people as public awareness for a cleaner and greener environment has been growing. Shopping bags, retail bags, zip lock bags, and courier satchels are all made of compostable materials nowadays. Waitrose, Co-operative, Tesco, and other supermarkets and retail chains are offering compostable bags as an alternative to plastic bags.
Compostable and biodegradable bags are being produced and sold in greater numbers as government and regulatory bodies are pushing towards using cleaners and greener alternative to plastics.
Compostable bags are currently in high demand in a variety of industries, including food and beverage, retail, and health and personal care, because they come in a variety of appealing designs and shapes as well. This trend, as a whole, is contributing towards increasing demand for polybutylene adipate terephthalate across regions.
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What are the Key Challenges Faced by Top PBAT Suppliers?
The pre-existing consumer base for low-cost plastics is posing a major challenge for key PBAT manufacturers. With many people across the globe unaware about the existence of such biodegradable plastic, the rate of adoption is very low.
Players in the market are investing extra funds in order to create product awareness and highlight the adverse effects of non-biodegradable plastics on the environment, through campaigns. Regulatory bodies across various regions are also playing their part in promoting such products, which is helping in terms of increasing adoption rate of PBAT.
Which are the Potential Markets for PBAT?
Owing to mounting industrial activities and ascending demand from end-use sectors, Europe’s PBAT polymer market is expected to continue its dominance at the global level and is poised to expand at the highest CAGR as compared to other regions. The markets in North America and East Asia are poised to expand at more than 8% CAGR. The market in USA is projected to create an absolute $ opportunity of around US$ 360 Mn over the forecast period.
Latin America and Middle East & Africa countries are expected to experience steady to moderate growth during the forecast period, backed by strengthened regulations by worker safety organizations.
Why is Germany Dominating Demand for PBAT in Europe?
Germany is dominating demand for PBAT from the consumption side. Germany has high adoption of biodegradable plastics such as polybutylene adipate terephthalate. The European Union has been constantly involved in developing such biodegradable plastics in order to reduce production of plastics for a cleaner and green environment. Regulatory bodies in the region have been requesting the public to utilize such alternatives, which have been the major reason for increased consumption of PBAT across Europe, especially Germany.
Is the Market for PBAT Growing in the U.S.?
USA is a major consumer of PBAT in North America. Majority of the consumption is from PBAT-based compost & garbage bags that are rigorously used by the public in the country. Also, end-use industries in the country are actively utilizing PBAT-based packing materials for their products. This is all possible due to more public awareness about biodegradable plastics, thereby increasing demand for PBAT in compostable packaging and PBAT for biodegradable packaging. 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.
Which Application Segment is Expected to Witness Notable?
Cling films is the most prominent segment and is expected to account for 75% of the market share by reaching a valuation of around US$ 1 Bn by 2020-end. Furthermore, the mulch film segment is estimated to account for less than one-tenth of the market revenue share by 2020-end, and is expected to expand at a CAGR of over 7% during the forecast period.
Why is the Packaging Industry Anticipated to Be Crucial for PBAT Demand?
The packaging industry is the largest end user of PBAT. The global packaging industry for biodegradable and sustainable products is projected to rise substantially over the coming years. Growth of the food & beverage sector across the world is reflecting increased global growth momentum and is expected to have a considerable impact on the demand for PBAT. The packaging segment is expected to create an absolute $ opportunity of US$ 1 Bn during the forecast period.
Currently, compostable bags are witnessing high demand from various industries such as food & beverages, retail, and health & personal care, as they come in a wide range of attractive designs and shapes. Supermarkets and retail chains such as Waitrose, Co-operative, Tesco, etc., are all providing compostable bags as an alternative to plastic bags.
What are the Strategies of Key Players in the PBAT Industry?
The market is highly consolidated with only 5 players controlling the supply cycle in a majority of regions. To drive the supply-demand chain, market players are engaged in capacity expansion in order to cater to the growing need from end-use customers across the globe.
Similar instances have be observed among other market players. Such increase in capacity is set to continue during the forecast period, and is also expected to encourage new players to enter the market in future.
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Fact.MR has profiled the following prominent PBAT manufacturers in its report:
- 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.
- Jiangsu Torise biomaterials co., Ltd.
Historical Data Available for
US$ Bn for Value, Kilo Tons for Volume
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Customization & Pricing
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Key Market Segments Covered in Report
- PBAT Compost & Garbage Bags
- PBAT Cling Films
- PBAT Mulch film
- PBAT Medical Accessories
By End Use
- PBAT for Packaging
- PBAT for Agriculture & Horticulture
- PBAT for Consumer & Homecare
- PBAT for Coatings
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa