Global Sustainable Plastics Market Outlook to 2030

Global Sustainable Plastics Market Overview

• The Global Sustainable Plastics Market was valued at USD 362.3 billion in 2023. The market is primarily driven by the growing awareness of environmental issues related to plastic waste and increasing regulations promoting the use of eco-friendly materials. Key industries driving demand include packaging, automotive, construction, and consumer goods.
• Major players in the sustainable plastics market include NatureWorks LLC, BASF SE, Novamont S.p.A., Danimer Scientific, and Braskem S.A. These companies are at the forefront of developing innovative solutions for biodegradable, bio-based, and recycled plastics to meet evolving global regulations and consumer demands.
• Siemens and BASF have launched the SIRIUS 3RV2 circuit breaker, the first electrical safety product utilizing biomass-balanced plastics. This innovation is expected to cut carbon dioxide emissions by around 270 tons annually, supporting both companies' sustainability goals and contributing to a circular economy.
• In 2023, Europe dominated the global market due to stringent regulations on single-use plastics and increasing investments in circular economy projects. Asia-Pacific is also emerging as a major player, driven by increasing consumer awareness and government initiatives in countries like China and India.

Global Sustainable Plastics Market Segmentation

The Global Sustainable Plastics Market is segmented by material type, application, and region.

• By Material Type: The market is segmented into biodegradable plastics, bio-based plastics, and recycled plastics. In 2023, the biodegradable plastics segment held the largest market share, driven by increased adoption in the packaging industry to meet regulatory standards.

• By Application: The market is segmented into packaging, automotive, construction, consumer goods, and textiles. In 2023, packaging held the largest market share due to rising demand for sustainable alternatives from major global brands.
• By Region: The market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2023, Europe held the largest market share, driven by strict environmental regulations and a strong consumer push for sustainable products.

Global Sustainable Plastics Market Competitive Landscape

• Dow Inc.: Dow and SCG Chemicals have signed an MOU to create a holistic value chain solution for circular plastic in Asia Pacific. The partnership aims to process 200KTA of plastic waste by 2030 using advanced and mechanical recycling techniques, expanding their successful 37-year joint venture in Thailand.
• Novamont S.p.A.: Versalis has successfully completed its acquisition of Novamont, a leading Italian bioplastics company. This strategic move aims to enhance Versalis' sustainability efforts and expand its portfolio in the bio-based materials market, aligning with the growing demand for environmentally friendly solutions in the plastics industry.

Global Sustainable Plastics Market Analysis

Global Sustainable Plastics Market Growth Drivers:

• Consumer Preference for Sustainable Products: Sustainable products are growing at a rate 2.7 times faster than traditional goods, fueled by heightened consumer awareness of environmental issues and plastic pollution. This shift is driving demand for eco-friendly packaging solutions, propelling growth in the global sustainable plastics market.
• Consumer Preference for Sustainable Products: Sustainable products are growing at a rate 2.7 times faster than traditional goods, fueled by heightened consumer awareness of environmental issues and plastic pollution. This shift is driving demand for eco-friendly packaging solutions, propelling growth in the global sustainable plastics market.
• Increasing Willingness to Pay Premium for Sustainability: Consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even as cost-of-living and inflationary concerns weigh. Almost nine-in-ten (85%) consumers are experiencing the disruptive effects of climate change in their daily lives and are prioritizing consumption that integrates sustainability-focused practices.

Global Sustainable Plastics Market Challenges:

• High Production Costs: Sustainable plastics can cost 30-50% more than traditional petroleum-based plastics, posing a major challenge for widespread adoption. The higher production costs limit accessibility and affordability for both consumers and businesses, hindering market growth.
• Inadequate Recycling Infrastructure: Many regions lack efficient recycling and composting facilities for biodegradable plastics. Contamination with conventional plastics and complex separation processes increases processing costs and lower recycling rates, limiting the growth of the sustainable plastics market.

Global Sustainable Plastics Market Government Initiatives:

• European Unions Circular Economy Action Plan: The EU aims to ensure that all plastic packaging is reusable or recyclable by 2030. The plan seeks to double the circular material use rate from 11.5% in 2022 and aims to cut the EUs residual waste in half, reinforcing its commitment to sustainability and waste reduction.
• Chinas 14th Five-Year Plan: Under this plan, China has implemented strict plastic waste management policies, aiming to reduce plastic waste by 30% by 2025. The initiative promotes the use of biodegradable and recycled plastics, particularly in key sectors like packaging and construction, to combat plastic pollution and enhance sustainability.

Global Sustainable Plastics Market Future Market Outlook

The Global Sustainable Plastics Market is expected to grow over the next five years, driven by stringent environmental regulations, increasing consumer demand for sustainable products, and advancements in material science.

Future Market Trends:

• Increase in Circular Economy Practices: By 2028, the adoption of closed-loop recycling systems is expected to grow substantially as brands and governments focus on reducing plastic waste. This trend reflects a broader commitment to sustainability and resource efficiency, with increasing investments in circular economy initiatives.
• Growth in Bio-Based Plastic Adoption: The bio-based plastics segment is anticipated to experience substantial growth driven by rising research and development investments and government support. This trend highlights the increasing emphasis on sustainable materials to combat plastic pollution and enhance environmental sustainability across various industries.