Global PBAT (Polybutylene Adipate Terephthalate) Market- Market Overview:
The Global PBAT (Polybutylene Adipate Terephthalate) market is expected to grow from USD 1.9 Billion in 2021 to USD 3.8 Billion by 2029, at a CAGR of 9.3% during the Projection period 2022-2029. This market growth is mainly driven by growing awareness about the benefits of adopting environmentally friendly polymers.
Polybutylene adipate terephthalate (PBAT) is a common and widely known copolymer of adipate acid and is a class of biodegradable plastic. It is an elastomeric polymer known for improving mechanical properties. PBAT or Polybutylene Adipate Terephthalate is ductile and tough and can be processed by conventional film extrusion techniques. PBAT is widely used to yield films with mechanical properties similar to LDPE (low-density polyethylene). However, PBAT is relatively stiff when compared to its homopolymers. As such, PBAT incorporation can help improve the toughness of polymer blends that contain brittle polymers, such as thermoplastic starch (TPS) or PLA (Polylactic Acid), without interfering with their biodegradability.
The growing public awareness about the benefits of using environmentally friendly polymers drives the growth of the Polybutylene Adipate Terephthalate Market. Furthermore, the manufacturers of Polybutylene Adipate Terephthalate are largely focusing on important industries such as agriculture for mulch films, packaging, and consumer goods, which adds impetus to the market’s growth.
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Market Dynamics:
Drivers:
The increasing demand for PBAT (Polybutylene Adipate Terephthalate) across various end-user industries, such as medical research, agriculture, packaging, and consumer goods, is expected to propel the market's growth. Polybutylene adipate terephthalate (PBAT) is increasingly being used in various industries such as carpets, consumer goods, coatings, athletic goods, foam materials, agriculture and fisheries, electronics, and packaging applications, which adds impetus to the market’s growth.
Restraints:
The global PBAT (Polybutylene Adipate Terephthalate) market is considerably fragmented, with the presence of several substitute products in the market. Hence, the cost competitiveness of polybutylene adipate terephthalate over conventional plastics will create hindrances to the growth of the market. The global industry is seeing a huge supply of cheap products manufactured using cheap raw materials. Also, several developing countries are seeing the emergence of small players in the market, which manufacture PBAT (Polybutylene Adipate Terephthalate) with cheap products at low prices to attract more consumers. This is a restraint on the growth of the market.
Opportunities:
The increasing focus of manufacturers globally on manufacturing sustainable packaging for increasing the shelf life of the products and making use of environmentally friendly packaging materials is expected to provide an opportunity for the growth of the market during the Projection period. Additionally, the increasing restrictions and policies by the government towards reducing pollution and procuring green packaging are raising awareness about the benefits of polybutylene adipate terephthalate (PBAT). This is further expected to provide growth opportunities for the market.
Challenges
The outbreak of the Covid-19 pandemic disrupted the supply chain of the raw materials as several raw materials were being supplied by China which was completely restricted during the Covid-19 pandemic. This posed a challenge for the market’s growth during the Projection period. Lockdown restrictions were imposed, due to which several manufacturing units were put on hold, and polybutylene adipate terephthalate (PBAT) production was temporarily closed, challenging the market’s growth.
Segmentation Analysis:
The global PBAT (Polybutylene Adipate Terephthalate) market has been segmented based on Product Type, Application, End-User, and regions.
By Product Type
The Product Type segment includes pure PBAT and modified/blended PBAT. The modified/blended PBAT segment led the PBAT (Polybutylene Adipate Terephthalate) market with a market share of around 65.9% in 2021. This is attributed to the multiple advantages of the modified/blended PBAT, as it can be easily bent and given any kind of shape. In addition, such types of PBAT (Polybutylene Adipate Terephthalate) are also useful for manufacturing products in the consumer goods industry, fuelling the segment's growth.
By Application
The Application segment includes shopping bags, food packages, mulch films, garbage/bin bags, and others. The shopping bags segment led the PBAT (Polybutylene Adipate Terephthalate) market with a market share of around 39.85% in 2021. The growth of this segment is mainly driven by the increasing demand for environmentally friendly shopping can bags, which can be reused and decompose easily within a short period. Furthermore, the rapid use of shopping bags for carrying all kinds of consumer goods supplements the market’s growth.
By End-User
The End-User segment includes packaging & bags, consumer durables, food & beverages, agriculture & horticulture, textiles, and others. The packaging & bags segment led the PBAT (Polybutylene Adipate Terephthalate) market with a market share of around 28.17% in 2021. The increasing demand for packaging & bags owing to the fact that the packaging & bags made from PBAT (Polybutylene Adipate Terephthalate) can easily decompose within 3 to 6 months. Furthermore, they also help in lowering the carbon footprint, which adds impetus to the segment’s growth.
By Regional Analysis:
The regions analyzed for the PBAT (Polybutylene Adipate Terephthalate) market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. Asia Pacific region dominated the PBAT (Polybutylene Adipate Terephthalate) market and held a 36.1% share of the market revenue in 2021.
Global PBAT (Polybutylene Adipate Terephthalate) Market- Country Analysis:
Germany's PBAT (Polybutylene Adipate Terephthalate) market size was valued at USD 0.17 Billion in 2021 and is expected to reach USD 0.29 Billion by 2029, at a CAGR of 7.3% from 2022 to 2029. Germany is one of the leading countries in the PBAT (Polybutylene Adipate Terephthalate) owing to the increasing demand for consumer products with a reduced environmental impact in the region. For instance, German multinational chemical company BASF SE has planned on creating soil-biodegradable mulch films for agriculture to achieve sustainability. Competitor companies in Germany operating in the PBAT (polybutylene adipate terephthalate) market are taking note of such innovations to gain a strong research base in PBAT soil-biodegradable mulch films where soil microbes can use the film as food.
China PBAT (Polybutylene Adipate Terephthalate)'s market size was valued at USD 0.24 Billion in 2021 and is expected to reach USD 0.52 Billion by 2029, at a CAGR of 10.3% from 2022 to 2029. China is one of the leading producers of PBAT (Polybutylene Adipate Terephthalate) owing to the presence of prominent market players in the region. In addition, the increasing demand for biodegradable mulch films in the region is driven by the amount of residual film in farmland soil in China. Such trends and demands are helping manufacturers translate the opportunity into revenue in the PBAT (polybutylene adipate terephthalate) market. However, there is an increasing need to improve the mechanical strength in biodegradable mulch films to prevent rupture during various applications. So, in order to achieve this, manufacturers are planning to invest in R&D to improve the mechanical strength of biodegradable mulch films in China.
India PBAT (Polybutylene Adipate Terephthalate)'s market size was valued at USD 0.14 Billion in 2021 and is expected to reach USD 0.26 Billion by 2029, at a CAGR of 8.2% from 2022 to 2029.
India is one of the growing markets for PBAT (Polybutylene Adipate Terephthalate) as there is an increase in the usage of mulch films in soil and a rise in government initiatives to encourage foreign investments in the agriculture industry and for the use of environmentally friendly packaging materials. Farming is a widely adopted profession in the modern economy and it holds a strong position in the Indian economy, propelling the growth of the PBAT (Polybutylene Adipate Terephthalate) during the Projection period.
Key Industry Players Analysis:
To increase their market position in the global PBAT (Polybutylene Adipate Terephthalate) business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute
Details
Study Period
2021-2029
Base year
2021
CAGR (%)
9.3%
Market Size
1.9 million in 2021
Projection period
2022-2029
Projection unit
Value (USD)
Segments covered
Product Type, Application, End-User, and Regions
Report Scope
Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered
Indorama Ventures Public Company Limited, Alpek S.A.B. de C.V., Jiangsu Sanfangxiang Group Co., Ltd., Far Eastern New Century Corporation, DAK Americas, BASF SE, Zhejiang Biodegradable Advanced Material Co. Ltd, Lubrilog, ECCO Gleittechnik GmbH, HUSK-ITT Corporation, among others
By Product Type
By Application
By End-User
Regional scope
Scope of the Report
Global PBAT (Polybutylene Adipate Terephthalate) Market by Product Type:
Global PBAT (Polybutylene Adipate Terephthalate) Market by Application:
Global PBAT (Polybutylene Adipate Terephthalate) Market by End-User:
Global PBAT (Polybutylene Adipate Terephthalate) Market by Region:
Global PBAT (Polybutylene Adipate Terephthalate) market is expected to reach USD 3.8 Billion by 2029, at a CAGR of 9.3% from 2022 to 2029.
Leading market players active in the global PBAT (Polybutylene Adipate Terephthalate) market are Indorama Ventures Public Company Limited, Alpek S.A.B. de C.V., Jiangsu Sanfangxiang Group Co., Ltd., Far Eastern New Century Corporation, DAK Americas, BASF SE, Zhejiang Biodegradable Advanced Material Co. Ltd, Lubrilog, ECCO Gleittechnik GmbH, HUSK-ITT Corporation, among others.
The increasing demand for sustainable packaging is expected to provide opportunity for the growth of the PBAT (Polybutylene Adipate Terephthalate) market over the Projection period.
Shopping bags segment led the PBAT (Polybutylene Adipate Terephthalate) market with a market share of around 39.85% in 2021.
High demand across end-users is projected to influence the market in the upcoming years.