Plastics have become an inseparable part of modern life, embedded in everything from toothbrushes to smartphones. However, this convenience comes at a heavy cost. With over 400 million tonnes of plastic produced annually and only a fraction being recycled, pollution has reached critical levels. Microplastics now contaminate our oceans, food supply, and even our fossil records. The solution lies in bioplastics—an industry poised for exponential growth, offering sustainable alternatives that are already reshaping global markets.
The journey of bioplastics began in 1926 when Maurice Lemoigne discovered polyhydroxybutyrate (PHB), a naturally occurring biopolymer. However, with petrochemicals being readily available, bioplastics remained largely overlooked until the 1973 oil crisis reignited interest. Fast forward to today, and only 0.5% of global plastic production consists of bioplastics, yet this market is now valued at approximately $26 billion and is accelerating rapidly. Made from renewable sources like corn, sugarcane, and cellulose, bioplastics present a viable alternative to traditional plastics. However, it is crucial to note that not all bioplastics are biodegradable, and some biodegradable plastics still originate from petroleum.
The bioplastics industry is now at a pivotal moment, driven by technological advancements, regulatory changes, and shifting consumer preferences. Understanding the top trends shaping this market in 2025 is key to identifying emerging investment opportunities.
Bioplastics packaging is experiencing explosive growth, with market projections reaching $14.07 billion by 2032. This surge is fuelled by increasing demand from the food and beverage sector, as companies seek to meet sustainability targets. Unlike petroleum-based plastics, bioplastic packaging decomposes faster and significantly reduces carbon emissions. The pandemic-driven reliance on disposable plastics ironically accelerated the shift towards sustainable alternatives, strengthening the case for bioplastics in mainstream packaging.
Europe is at the forefront of the bioplastics revolution, holding a dominant 38% market share in 2023. Strong governmental regulations, such as the European Commission’s push for bio-based plastics from waste byproducts, are driving this leadership. Major brands are following suit—PepsiCo, for instance, is committed to using 50% recycled plastic by 2030 across Europe, with trials already underway for 100% recyclable snack packaging. Consumer sentiment is equally strong, with 93% of British consumers in favour of using recycled plastic bottles and willing to pay a premium for sustainable choices.
Regulatory changes worldwide are further propelling bioplastics adoption. With 127 countries now implementing laws to curb plastic pollution, governments are taking decisive action. India’s 2022 ban on 19 single-use plastic items set a precedent, followed by Hong Kong’s strict penalties for violations starting in April 2024. Nigeria and the Solomon Islands have also introduced sweeping regulations, creating new growth opportunities for bioplastic producers.
Non-biodegradable bioplastics continue to dominate the market, particularly in food packaging, automotive parts, and consumer goods. These materials offer superior strength, durability, and lightweight properties, making them a preferred choice for manufacturers. A significant milestone was achieved in August 2023 when Mitsubishi Corporation, Suntory Holdings, and ENEOS Corporation collaborated on sustainable PET bottle production using bio-PX from bio-naphtha. This innovation underscores the expanding applications of bioplastics in mainstream production.
Agriculture is emerging as another key sector embracing bioplastics. With a growing focus on soil health and sustainable farming practices, bioplastics are being used for mulch films, plant pots, and protective coatings. Their ability to control soil moisture, reduce weed growth, and enhance crop protection while remaining environmentally friendly makes them an attractive solution for modern agriculture.
The rapid innovation in bioplastics is fuelling market expansion across industries. Advances in polymers such as PLA, PHA, and bio-based PAs are driving new applications, from electronics to textiles. Packaging remains the dominant segment, accounting for 43% of the total bioplastics market in 2023. As production capacities increase, bioplastics are set to disrupt traditional industries, offering sustainable and scalable solutions.
The transition towards bioplastics is not just an environmental necessity—it is a strategic investment opportunity. Companies at the forefront of bioplastics innovation are positioned for significant growth as regulatory and consumer pressures drive demand for sustainable materials. The era of petroleum-based plastics is waning, and bioplastics are leading the charge towards a cleaner, more sustainable future.
Biome Technologies plc (LON:BIOM) is a growth oriented, commercially driven technology group. The Group’s primary activity is the development of its fast growing business in bioplastics. The Group comprises two divisions: Biome Bioplastics and Stanelco RF Technologies.
