Global bio-based polymer market to grow 13 percent annually through 2029

Hürth, Germany – The new market and trend report “Bio-based Building Blocks and Polymers – Global Capacities, Production and Trends 2024–2029,” written by the international biopolymer expert group of the nova-Institute, provides detailed data on capacities and production for 17 commercially available bio-based polymers in 2024 and forecasts for 2029.

The report, updated annually by nova-Institute, spans 434 pages and covers 17 bio-based building blocks and all commercially available bio-based polymers. It includes comprehensive information on capacity development from 2018 to 2029, production data for 2023 and 2024, and analyses of market developments and producers per building block and polymer. Additionally, it features a statistical report on “Mass Balance and Attribution (MBA)” products, a review of the European policy landscape for bio-based polymers, and a summary of biodegradability and biodegradable polymers, supported by 60 figures, 50 tables, and 218 company profiles.

Data published annually by European Bioplastics and Plastics Europe for 2023 are derived from the nova-Institute market report, albeit with different selections of bio-based polymers.

2024 was a strong year for bio-based polymers, with an expected CAGR of 13% to 2029. Bio-based biodegradable polymers have large installed capacities with an expected CAGR of 17% to 2029, but moderate capacity utilization at 65%. Bio-based non-biodegradable polymers have a higher utilization rate of 90%, but will grow by only 10% to 2029.

Epoxy resin and PUR production is growing moderately at 9% and 8%, respectively, while PP and cyclic APC capacities are increasing by 30%. Despite a decline in production of biodegradables, especially PLA in Asia, capacities have increased by 40%, as have PHA capacities. Newcomers like casein polymers and PEF are also expected to grow significantly until 2029.

The total production volume of bio-based polymers was 4.2 million tonnes in 2024, representing 1% of the total production volume of fossil-based polymers. The CAGR of bio-based polymers is significantly higher than the overall growth of polymers, which is 2–3%. This trend is expected to continue until 2029, increasing the share of bio-based polymers to 2%.

Of the 4.2 million tonnes of bio-based polymers produced in 2024, cellulose acetate (CA) and epoxy resins account for more than half of the bio-based production, followed by bio-based polyurethanes (PUR), polylactic acid (PLA), polyamides (PA), and polytrimethylene terephthalate (PTT). Other polymers like aliphatic polycarbonates (APC), PBAT, PE, PET, PHA, and starch-containing polymer compounds (SCPC) have smaller shares.

The increase in production capacity from 2023 to 2024 is mainly due to expansions in PLA capacity and epoxy resin production in Asia, as well as global increases in PUR production. PP, PHA, and PEF are expected to grow continuously by 65% on average until 2029, with capacities increasing mainly in Asia, Europe, and North America.

Despite challenges, especially in Europe, Asia and North America will strengthen their global roles in the supply of bio-based polymers, increasing their market shares by 4% and 5%, respectively, and together accounting for more than 80% of the global supply by 2029. Europe’s market share is expected to decline from 13% to 10% by 2029 due to inconsistent policy frameworks.