USA Biodegradable Plastics Market Outlook to 2030

USA Biodegradable Plastics Market Overview

• The USA Biodegradable Plastics Market reached a market size of USD 8.4 billion in 2023, driven primarily by increasing consumer demand for sustainable alternatives and stringent environmental regulations. Growth is propelled by the rising adoption of biodegradable plastics in packaging, agriculture, and consumer goods sectors.

• Major players in the USA biodegradable plastics market include NatureWorks LLC, BASF SE, Mitsubishi Chemical Corporation, Novamont S.p.A., and Biome Bioplastics. These companies have a significant market share due to their extensive product portfolios and established supply chains.
• In 2023, Versalis completed its acquisition of Novamont, securing full ownership after previously holding a stake. The acquisition was part of a transaction where Mater-Bi, a subsidiary of Investitori Associati II and NB Renaissance, sold the remaining shares to Versalis. Novamont continues to operate under the leadership of CEO Catia Bastioli, focusing on sustainability and innovation in bioplastics and biochemicals.
• Cities like San Francisco, New York, and Los Angeles dominate the biodegradable plastics market in the USA. San Francisco has been a pioneer in adopting biodegradable packaging due to its stringent environmental regulations, while New York and Los Angeles follow closely due to high consumer demand for sustainable products.

USA Biodegradable Plastics Market Segmentation

• By Product Type: The USA biodegradable plastics market is segmented by product type into Polylactic Acid (PLA), Polybutylene Adipate Terephthalate (PBAT), Starch-Based Plastics, and Polyhydroxyalkanoates (PHA). In 2023, Polylactic Acid (PLA) dominated this segment due to its extensive use in packaging and disposable products. PLA's popularity is attributed to its cost-effectiveness and biodegradability, making it a preferred choice among manufacturers and consumers.

• By End-Use Industry: The market is segmented by end-use industry into Packaging, Agriculture, Consumer Goods, and Textile. In 2023, Packaging emerged as the dominant segment, driven by increasing demand for eco-friendly packaging solutions in the food and beverage industry. The push towards reducing plastic waste and enhancing brand sustainability has led to the widespread adoption of biodegradable plastics in packaging applications.

• By Region: The USA biodegradable plastics market is segmented by region into North, South, East, and West. In 2023, the West region dominated this segment, primarily due to the presence of environmentally conscious consumers and stringent regulations in states like California. The West's leadership in environmental initiatives, coupled with a strong industrial base, has made it the leading region in the adoption of biodegradable plastics.

USA Biodegradable Plastics Market Competitive Landscape

• NatureWorks LLC: In 2023, NatureWorks did announce a significant investment of USD 600 million for a new fully integrated Ingeo PLA manufacturing facility, but this facility is located in Nakhon Sawan, Thailand, not in Blair, Nebraska. The new facility in Thailand is designed to have an annual capacity of 75,000 tons of Ingeo biopolymer and is expected to support the rapid market growth for bioplastics in the Asia Pacific region, with full production anticipated in 2025.
• BASF SE: In 2023, BASF SE launched its new biodegradable polymer, ecovio Ecovio EA is a certified compostable expandable particle foam made from BASF's biodegradable polymer ecoflex and polylactic acid (PLA), derived from renewable resources like corn. It features properties similar to expanded polystyrene (EPS), offering excellent impact resistance and energy absorption, which are crucial for transport packaging of delicate goods.

USA Biodegradable Plastics Market Analysis

USA Biodegradable Plastics Market Growth Drivers

• Rising Demand from Packaging Industry: The USA's packaging industry is increasingly adopting biodegradable plastics, driven by consumer demand for sustainability. Leading brands like Coca-Cola support this trend with innovations like their 100% plant-based plastic bottle prototype.
• Legislative Push and Single-Use Plastic Bans: States like California, New York, and Washington have enacted bans on single-use plastics, driving the adoption of biodegradable alternatives. In 2022, California passed the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54), which requires producers to cut single-use plastic waste and ensure that packaging is recyclable or compostable by 2032.
• Corporate Sustainability Initiatives: Major US corporations like Walmart, Target, and Amazon are increasingly adopting biodegradable plastics to meet sustainability goals, integrating them into product lines and packaging to reduce carbon footprints and environmental impact.

USA Biodegradable Plastics Market Challenges

• High Production Costs: The production of biodegradable plastics is significantly more expensive than conventional plastics, with production costs averaging between USD 2,000 to USD 7,000 per ton, depending on the type of bioplastic. For example, polylactic acid (PLA) costs around USD 2,000 to USD 5,000 per ton, while other types like polyhydroxyalkanoates (PHA) can reach up to USD 7,000 per ton. This cost disparity is due to the use of bio-based raw materials, such as cornstarch and cassava, which are more expensive than petroleum-based materials, along with complex manufacturing processes.
• Performance Limitations: Biodegradable plastics often face challenges related to performance and durability. For example, products made from polylactic acid (PLA) may not perform as well in high-temperature environments, limiting their application in certain industries. The U.S. Department of Agriculture (USDA) has noted that ongoing research is necessary to enhance the properties of biodegradable materials to meet industry standards.

USA Biodegradable Plastics Market Government Initiatives

• USDAs BioPreferred Program (2021): The U.S. Department of Agriculture (USDA) has expanded its BioPreferred Program to promote the use of biobased products, which include a wide range of items derived from renewable resources. As of June 2021, the BioPreferred Program Catalog included over 16,000 registered products, emphasizing the program's role in fostering economic development and job creation within the biobased sector.
• National Strategy to Reduce Plastic Pollution (2023): TheDraft National Strategy to Prevent Plastic Pollutionwas indeed released by the U.S. Environmental Protection Agency (EPA) and aims to reduce plastic waste through various initiatives. The strategy emphasizes acircular economyapproach, focusing on reducing, reusing, and recycling plastics, as well as preventing pollution from plastic production and post-use management.

USA Biodegradable Plastics Future Outlook

The USA biodegradable plastics market is poised for significant growth over the next five years, driven by increasing consumer demand for sustainable materials, stringent environmental regulations, and advancements in bioplastic technologies.

Future Trends:

• Increased Integration of Biodegradable Plastics in E-commerce Packaging Over the next five years, biodegradable plastics will play a crucial role in the e-commerce sector as companies seek to reduce their environmental footprint. The shift towards sustainable packaging solutions will be driven by consumer demand and regulatory pressures, particularly in states like California and New York. Biodegradable plastics will become a preferred choice for packaging materials, with e-commerce giants leading the charge in adopting these eco-friendly alternatives.
• Advancements in Biodegradable Polymer Technologies The future of the USA biodegradable plastics market will be marked by significant advancements in biodegradable polymer technologies. Innovations in materials science will lead to the development of next-generation bioplastics with improved performance, such as enhanced durability, flexibility, and faster degradation rates.