North America Biodegradable Plastic Market Segments, Opportunities, Regional Forecast To 2027

 

The North America biodegradable plastic market is accounted to US$ 806.9 Mn in 2018 and is expected to grow at a CAGR of 14.0% during the forecast period 2019 – 2027, to account to US$ 2,622.4 Mn by 2027.

The North America Biodegradable Plastic Market is witnessing significant growth, driven by increasing environmental concerns and the urgent need to reduce plastic pollution. With rising awareness among consumers and stricter environmental regulations, the shift toward eco-friendly alternatives is more prominent than ever. This shift is especially apparent in the packaging, agriculture, and consumer goods sectors, where the adoption of biodegradable plastics is rapidly increasing. The North America Biodegradable Plastic Market benefits from growing support for sustainable practices, which has led to an increased demand for materials that can break down naturally without harming the ecosystem. Biodegradable plastics offer a viable solution to traditional petroleum-based plastics that persist in the environment for hundreds of years. These environmentally friendly alternatives are designed to decompose under natural conditions, thereby reducing the environmental footprint.

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Government initiatives and policy changes are playing a crucial role in shaping the North America Biodegradable Plastic Market. Local and national regulations promoting sustainability and banning single-use plastics are creating a favorable environment for biodegradable options. Educational campaigns, incentives for green businesses, and growing concern over landfill overflow have all contributed to a rise in demand.

One of the key trends observed in the North America Biodegradable Plastic Market is the increasing preference for compostable packaging materials. These are particularly sought after in the food and beverage industry, where sustainability is becoming a key differentiator for brands. Consumers are more inclined to support businesses that align with their values, and the use of biodegradable packaging sends a strong message about environmental responsibility.

In the agriculture sector, the North America Biodegradable Plastic Market is gaining traction through the use of biodegradable mulch films and other farming products. These help improve soil health while reducing plastic waste on farmlands. Traditional plastic mulch can be harmful to the soil and difficult to remove, but biodegradable options naturally integrate into the environment after serving their purpose.

The North America Biodegradable Plastic Market is also driven by advancements in research and development. New types of biodegradable plastics, such as those derived from starch, cellulose, and polylactic acid (PLA), are being introduced. These materials not only offer effective alternatives to conventional plastics but also enhance the performance and durability of products.

Consumer awareness is a significant force behind the growth of the North America Biodegradable Plastic Market. People are increasingly making purchasing decisions based on environmental impact. The shift in consumer behavior is encouraging manufacturers and retailers to transition toward sustainable materials in their product lines.

Another factor boosting the North America Biodegradable Plastic Market is the surge in e-commerce and online food delivery, which has raised the demand for eco-friendly packaging. Companies are actively seeking biodegradable solutions to meet customer expectations while reducing waste.

Despite the positive momentum, the North America Biodegradable Plastic Market still faces challenges such as higher production costs and limited industrial composting facilities. However, ongoing technological advancements and increasing investments in sustainable infrastructure are expected to overcome these hurdles. In conclusion, the North America Biodegradable Plastic Market is poised for steady expansion as environmental sustainability continues to shape consumer preferences, regulatory frameworks, and industrial practices. The growing need for responsible waste management and reduced plastic pollution is making biodegradable plastics an essential component of a greener future.

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𝐓𝐡𝐞 𝐋𝐢𝐬𝐭 𝐨𝐟 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬

API SpA

BASF S.E.

FKuR Kunststoff GmbH

Green Dot Bioplastics

NatureWorks LLC.

Novamont S.p.A.

Kingfa Sci. & Tech. Co., Ltd.

Mitsubishi Chemical Corporation

Industry Landscape and Market Trends

The market for biodegradable plastics in North America has experienced steady growth, driven by increasing awareness of the adverse environmental effects of traditional petroleum-based plastics. Governments, businesses, and consumers alike are advocating for alternatives that reduce ecological footprints and enhance sustainability. This shift is catalyzing demand for biodegradable plastics derived from renewable resources such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), starch derivatives, and other biodegradable polyesters like PBS and PBAT.

One of the major trends influencing the market is the alignment of corporate strategies with environmental, social, and governance (ESG) goals. Companies are increasingly integrating sustainability into their product development, supply chain, and waste management processes. Additionally, technological advancements in polymer science are making biodegradable plastics more versatile and cost-effective, broadening their applications in industries such as packaging, agriculture, consumer goods, and textiles.

Market Drivers

1.     Environmental Awareness: Heightened consumer awareness regarding the harmful effects of conventional plastics has spurred demand for sustainable alternatives. Documentaries, public campaigns, and scientific reports have played crucial roles in educating the public and influencing purchasing behavior.

2.     Government Regulations and Incentives: Federal and state-level regulations banning single-use plastics and promoting compostable materials have accelerated market growth. Incentives for green manufacturing and support for circular economy initiatives further support the sector.

3.     Corporate Sustainability Goals: Multinational corporations are adopting biodegradable plastics to meet their sustainability targets. Packaging, in particular, is a critical focus area, with companies aiming to reduce their plastic footprint.

4.     Innovative Materials: Advances in biodegradable plastic formulations have improved performance characteristics, enabling their use in more demanding applications. Enhanced mechanical strength, moisture resistance, and biodegradability are expanding market potential.

The North America biodegradable plastic market has been witnessing consistent growth, with the United States emerging as the dominant force in the region. This expansion can largely be attributed to rising environmental awareness among consumers, increasing regulatory actions at both city and state levels, and the gradual shift in manufacturing strategies toward more sustainable alternatives. Biodegradable plastics, once a niche concern, are becoming central to discussions around waste management, pollution control, and sustainable urban development.

In the United States, a growing number of consumers are becoming increasingly conscious of the environmental implications of their everyday choices. Among these, the use of traditional plastics—particularly single-use plastics—has faced heightened scrutiny. From shopping bags to food packaging, conventional plastics have been blamed for significant ecological damage, particularly due to their non-degradable nature and persistence in marine environments. This awareness has led to an upsurge in demand for biodegradable alternatives, prompting a cultural and industrial shift toward more eco-friendly materials.

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