Bio-Based Polyethylene Market By Product Type (High-Density Polyethylene (HDPE), Linear low-density polyethylene (LLDPE), & Low-Density Polyethylene (LDPE)), Application (Packaging, Agriculture, Food & Beverage, Pharmaceuticals, Textiles, Cosmetics & Personal Care, and Others), and Material Type (Flexible, and Rigid), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2030

Market Perspective

The global Bio-Based Polyethylene Market size was worth around USD 1.42 billion in 2022 and is predicted to grow around USD 2.21 billion by 2030 with a compound annual growth rate of roughly 14.63% between 2023 and 2030.

Bio-based polyethylene is a type of plastic produced either partially or fully using renewable resources such as sugarcane, corn, and other plant-based extracts rather than depleting resources such as crude oils and others. Development of this product has resulted in decreasing carbon emissions at source and 100% recyclability of bio-based PE. The demand for bioplastics has increased significantly in recent years due to rising awareness of environmental issues such as carbon emissions, plastic waste, recycling of produced PE, and others.

Regulations implemented by numerous countries worldwide are further accelerating the scope for bio-based polyethylene. For instance, the protocols signed in Montreal & Kyoto, issued by regulating organizations such as EC and EPA, would encourage the utilization of bio-based PE, thus propelling the market growth. However, substitute products and price instability are among the factors that could impede the bio-based polyethylene market growth.

Asia Pacific, Europe, and North America are amongst the key regions that have been attributing substantially in terms of production, demand, and revenues. China, the U.S., and Germany are prominent countries with large manufacturing capacities. Strategic collaborations, mergers & acquisitions in companies operating in these regions would accelerate the bio-based polyethylene market value.

Key Insights

• Based on product type, the high-density polyethylene (HDPE) segment held the largest market share in 2022
• Based on application, the packaging segment dominated the market in 2022
• On the basis of region, Asia Pacific accounted largest market share in 2022

Increasing Awareness of Environmental Concerns to Augment Market for Bio-Based PE

Bio-based PE is environment friendly in terms of carbon emissions during production phase and even at end of its life cycle. Even the raw materials utilized during manufacturing are environment friendly, making it a sustainable product. Bio-based PE is not manufactured using fossil fuels or any other depleting natural resources. Consumer awareness regarding plastic waste management, and recyclability of plastics is an important factor that has set uptrends for the demand for bio-based PE.

The recyclability of these products is carried out in simpler processes as compared to single-use plastics. For instance, I’m Green PE which is a bio-based PE manufactured by Braskem absorbs three times carbon from the surrounding atmosphere. Such innovative PE products are augmenting the adoption of bio-based PE globally.

Availability and Affordability of Substitutes to Challenge the Market

Innovative developments in green plastics, and other environment-friendly PE products such as biodegradable PE are observed to gain traction owing to their enhanced eco-friendly characteristics. The production of these bioplastics or green plastics is far less as compared to bio-based PE. However, an increase in demand and the establishment of large companies manufacturing these products and encouraging policies through the forecast period could pose a challenge for the market.

Recent Development

In January 2023 – A major stake of 83.5% in Conser was acquired by Marie Tecnimont. The acquisition was valued at USD 38.8 million, out of which USD 30.8 million was transacted during the acquisition, and the remainder value is due owing to certain situations. The motive of the acquisition is to expand Marie Tecnimont’s technological portfolio in bio-based polyethylene.

In January 2021 – The BioBag Group was acquired by Novamont for an undisclosed value. The aim of this acquisition was to expand downstream low-impact solutions in Novamont’s operations.

Segmentation Analysis

Based on product type, the market is further categorized into high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and low-density polyethylene (LDPE). In 2022, high-density polyethylene (HDPE) dominated segmental share in terms of demand and revenues. It is majorly due to the utility of HDPE in numerous applications. HDPE is widely used in food & beverages, cosmetics & personal care, and pharmaceutical industries owing to its structural features, it can be molded into containers, bottles, and many other structures.

Increasing global demand from the food & beverage, pharmaceutical, and cosmetics industries is directly propelling the production of bio-based HDPE products. China is the largest producer of high-density polyethylene products. Linear low-density polyethylene is anticipated to show significant growth through the forecast period however, HDPE would maintain its dominance throughout.

Based on applications, the market is further categorized into agriculture & industry, food & beverages, cosmetics & personal care, textiles, packaging, pharmaceuticals, and others. In 2022, the packaging application of bio-based PE dominated a significant share of segmental revenues owing to vast demand from various industry verticals. More than 50% of produced bio-based PE is utilized in packaging applications. Following packaging, food & beverages, cosmetics & personal care, and agriculture are amongst application categories that attribute towards revenues and are estimated to increase through the forecast period.

Asia Pacific to hold the largest regional share due to increasing demand from several industry verticals

In 2022, Asia Pacific dominated the regional share in terms of revenues owing to the emergence of developing countries that have created large demand from manufacturing industry verticals. Developing governmental regulations in terms of bio-plastics for reducing environmental concerns is a key factor in consumer preferences for bio-based polyethylene.

The development of food & beverage, cosmetics, and majorly pharmaceutical industries in the region is anticipated to drive market growth. India is estimated to create lucrative opportunities owing to the staggering implementation of mandates for utilizing bio-based polyethylene. China is the most prominent manufacturer of bio-polyethylene products and attributes a significant market share and revenues.

North America to observe substantial growth through the forecast period

North America is estimated to gain traction through 2023 – 2032 owing to increasing investments in R&D, strategic acquisitions, and demand for bio-polyethylene products. The U.S. is a prominent country contributing significantly owing to established manufacturing infrastructure and the presence of key market players. Changing consumer preferences, and the presence of stringent and encouraging government regulations are among the factors that would further drive market growth.

Adoption of sustainable solutions in production units, and increasing focus on environment-friendly packaging solutions are trends that would create opportunities for key market players in the region. Over 50% of bio-based PE produced in the region is utilized for packaging purposes.

Competitive Landscape

• Biome Bioplastics
• Biotech GmbH
• AVERY DENNISON CORPORATION
• BRASKEM
• LyondellBasell Industries Holdings B.V.
• DuPont
• Murdotec Kunststoffe GmbH & Co. KG
• PTT Global Chemical Public Company Limited
• Solvay
• Tetra Pak Group
• 3M

The global Bio-Based Polyethylene Market is segmented as follows:

By Product Type

• High-Density Polyethylene (HDPE)
• Linear low-density polyethylene (LLDPE)
• Low-Density Polyethylene (LDPE)

By Application

• Packaging
• Agriculture
• Food & Beverage
• Pharmaceuticals
• Textiles
• Cosmetics & Personal Care
• Others

By Material Type

• Flexible
• Rigid

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America