The global biobased biodegradable plastics market is poised for a transformative decade, with forecasts indicating exponential growth from USD 6.3 billion in 2025 to an impressive USD 15.6 billion by 2035. This market boom, reflecting a CAGR of 9.5%, is driven by global environmental priorities, sweeping regulatory changes, and surging demand for sustainable materials across diverse industries.

Plastic pollution has long plagued our planet, choking oceans, overwhelming landfills, and disrupting ecosystems. In response, industries and governments are racing against time to adopt sustainable practices. Among the most promising solutions emerging is biobased biodegradable plastic a category of materials derived from renewable sources that can safely decompose in natural environments.

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Biobased biodegradable plastics are materials made from biological sources such as corn starch, sugarcane, cellulose, or vegetable fats, which decompose naturally into water, carbon dioxide, and biomass through microbial activity. This combination makes them a powerful alternative for reducing the ecological footprint of single-use plastics and packaging.

Key Takeaways from the Biobased Biodegradable Plastic Market

• The United States is projected to grow at a CAGR of 5.2% from 2025 to 2035 in the biobased biodegradable plastic market.
• The United Kingdom is expected to see a CAGR of 4.8% during the same period.
• The European Union leads with a CAGR of 5.5%, reflecting strong policy and consumer demand for sustainable materials.
• Japan is anticipated to grow at a CAGR of 4.3%, indicating steady but slower adoption.
• South Korea is forecasted to experience a CAGR of 4.9%, showcasing increasing interest in eco-friendly packaging solutions.

Demand Drivers: Why the Market is Booming

Several key factors are driving the strong growth trajectory of the biobased biodegradable plastic market:

• Government Regulations: Many countries are enacting stringent anti-plastic regulations and encouraging bioplastics through tax incentives and subsidies. For example, the EU’s Single-Use Plastics Directive and bans in countries like India and China are catalyzing the shift.
• Corporate Sustainability Goals: Corporations are aligning with sustainability targets to meet both legal requirements and consumer expectations. Eco-conscious brands are now investing heavily in biodegradable packaging, replacing petroleum-based plastics with compostable alternatives.
• Consumer Awareness: Modern consumers are more aware of their ecological impact and are increasingly choosing green products. Bioplastics are gaining favor due to their lower carbon footprint and ability to biodegrade, especially in applications like packaging and disposables.
• Green Technology and Investment: Investments in biopolymer R&D, improved fermentation processes, and scaling production capacities are making biobased biodegradable plastics more affordable and efficient.

Circular Economy and Composting Infrastructure Support Growth

The shift from a linear to a circular economy is pivotal in driving the bioplastics market. Biobased biodegradable plastics align perfectly with circular principles—offering solutions that are compostable, recyclable, and often derived from agricultural waste or renewable sources.

To support this transition, countries are investing in industrial composting facilities and extended producer responsibility (EPR) systems. These initiatives ensure that biodegradable plastics are effectively processed post-use, reducing landfill dependency and facilitating true material circularity.

Competitive Outlook

Given the ever-increasing focus on sustainability, the worldwide bio-based biodegradable plastic market is fast expanding and is likely to develop in the next years. Big firms choose bio-based polymers made from renewable resources like maize starch, sugarcane, and vegetable oils for excellent performance.

We anticipate an increasingly competitive market as prominent global manufacturers spend in R&D, expand production capacity, and develop strategic partnerships to meet rising demand.

Key Company Offerings and Activities

• NatureWorks LLC: Produces Ingeo™ PLA biopolymer, widely used in packaging, textiles, and consumer goods. Invests in end-of-life solutions to enhance compostability.
• BASF SE: Develops Ecovio® and Ecoflex® biodegradable plastics, combining renewable content with high performance for food packaging and agricultural applications.
• TotalEnergies Corbion: Specializes in PLA-based biodegradable plastics with advanced processing capabilities for industrial and consumer packaging.
• Novamont S.p.A Manufactures: Mater-Bi® compostable bioplastics, focusing on applications in agriculture, food packaging, and retail.
• Mitsubishi Chemical Corporation: Produces BioPBS™, a biodegradable polymer used in foodservice products and flexible packaging. Emphasizes circular economy solutions.

Biobased Biodegradable Plastic Market Segmentation

By Product Type:

• Polyester
• Starch blends
• Poly lactic acid (PLA)
• Cellulose
• Polyhydroxyalkanoate (PHA)
• Other biobased biodegradable plastic

By Application:

• Packaging
• Fibres
• Healthcare
• Agriculture
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia Pacific
• Middle East and Africa

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About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.