Core Insights - The report by Nova Institute highlights the significant growth potential of the biobased polymer industry, with a projected compound annual growth rate (CAGR) of 13% from 2024 to 2029 [2] - Biodegradable biobased polymers are expected to grow at a CAGR of 17%, while non-biodegradable biobased polymers will see a more moderate growth rate of 10% [2] - Asia and North America are set to dominate the global biobased polymer supply, collectively accounting for over 80% of the market by 2029, while Europe’s market share is projected to decline from 13% to 10% [2] Market Growth Potential - The biobased polymer market is anticipated to perform well in 2024, with strong growth expected in the coming years [2] - The average capacity utilization for biodegradable biobased polymers is currently at 65%, indicating significant room for capacity expansion and market development [2] - Non-biodegradable biobased polymers have a high capacity utilization rate of 90%, reflecting strong market demand [2] Product Differentiation - In 2024, a total of 4.2 million tons of biobased polymers are expected to be produced, with cellulose acetate (CA) and epoxy resins leading the market, accounting for 26% and 32% of total production, respectively [3] - 100% biobased PLA is widely used in packaging and medical applications, representing 8% of the total production [3] - The production capacity growth from 2023 to 2024 is primarily driven by the expansion of PLA and epoxy resin capacities in Asia, along with increased polyurethane production globally [3] Industry Challenges and Responses - Global brands are key drivers in the biobased polymer market, actively shifting strategies towards sustainable and climate-friendly solutions [4] - Europe faces significant challenges due to a lack of cohesive policy frameworks, which hampers the full realization of biobased polymers' advantages [4] - The industry also contends with technical bottlenecks and high production costs, making it difficult to compete with traditional fossil-based polymers [4] Future Outlook - The biobased polymer industry is poised for unprecedented growth opportunities, particularly led by Asia's capacity expansion and technological innovations [5] - With ongoing technological advancements, improved policies, and sustained market demand, biobased polymers are expected to capture a larger market share in the future [5] - Collaboration among regions is essential to overcome industry development bottlenecks and elevate the biobased polymer sector to new heights [5]