The implementation of stringent regulations which monitor the use of conventional polymers so that they are within the permissible limit will also boost the growth of the market. The easy availability of feedstock such as sugar, starch, and natural fibers which are required to produce biopolymers is also aiding the market’s growth. According to a report published by Transparency Market Research (TMR), the global biopolymers market will rise from US$2,422.1 mn in 2016 to US$7,774.7 mn by the end of 2025, expanding at a 14% CAGR from 2017 to 2025.
Strict Regulations Regarding Use of Plastics and Limitation of Carbon Emissions to Spur Demand for Biopolymers
The growing awareness regarding the need to protect the environment and thus, the strict regulations pertaining to the use of plastic will fuel the growth of the global biopolymers market. The stringent regulations regarding carbon emissions along with plastic usage across several nations in the world will fuel the use of biopolymer based products across various industries such as electronics and automotive. The market will also be fueled be the changing lifestyle and rise in the use of eco-friendly and sustainable products, which is pushing the demand for bio-based packaging. All these factors will propel the growth of the biopolymers market. In addition to this, the market players are investing extensively in research and development. R&D is resulting in the introduction of newer biopolymers, which will support the growth of the global biopolymers market.
High Cost of Production to Hamper Growth of Biopolymers Market
Biopolymers eliminate any kind of disposal issues, which is in contrast with conventional polymers. This is one of their biggest advantages. In addition to this, the carbon neutrality and sustainability make biopolymers renewable, which are pushing the growth of the market further. However, the market faces a few challenges too, which will hamper its growth. One of the factors affecting the market negatively is the high cost associated with the production of biopolymers. The insufficient infrastructure for the production of biopolymers in developing nations will also act as a roadblock and restrain the growth of the global biopolymers market.
Europe to Lead in Market on Account of Strict Regulations Laid by European Union
On the basis of geography, Europe held the leading position in the market in 2016. The market in Europe will rise from US$1,097.62 mn in 2017 to US$3,082.38 mn by 2025. The European market will expand at a CAGR of 13.78% from 2017 to 2025. The high degree of awareness regarding environmental conservation coupled with the stringent regulations laid down by the European Union are the factors attributed to the growth of the biopolymers market in Europe. The heightened adoption of eco-friendly products will also fuel the growth of the European biopolymers market. Asia Pacific is anticipated to expand at a high pace in the period from 2017 to 2025. Changing lifestyle and rapid industrialization are the two factors which will aid the growth of the market in emerging economies of this region. With increasing disposable income and high spending power, China and India will emerge leading contributors to the Asia Pacific biopolymers market.
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