Global Polybutylene Adipate Terephthalate (PBAT) Market  Size (2024 – 2030)

A recent research report highlights the global Polybutylene Adipate Terephthalate (PBAT) Market, revealing a valuation of $1.85 billion in 2022. Projections suggest a significant growth trajectory, with an estimated market size of $3.36 billion by 2030. This growth trend is forecasted to maintain a steady CAGR of 8.9% annually during the analysis period from 2024 to 2030.

Polybutylene Adipate Terephthalate (PBAT) Market Overview

Polybutyleneadipate terephthalate (PBAT), categorized as a biodegradable plastic, is a copolymer of adipate acid renowned for its elastomeric properties. This polymer is recognized for its exceptional mechanical strength, finding applications across various sectors such as packaging, hygiene, biomedical fields, and industrial composting. PBAT emerges as a viable alternative to low-density polyethylene (LDPE) due to its comparable flexibility and resilience, particularly in the production of packaging bags. The growth of PBAT is further propelled by favorable governmental initiatives supporting eco-friendly procurement, the rising preference for biodegradable plastics in packaging, and the increasing consumer demand for packaged food products. Notably, PBAT's low toxicity and heightened biodegradability make it an ideal choice for cling bags, agricultural plastic covers, and waterproof coatings for paper cups. The surge in demand for cling bags is notably driven by the heightened consumer inclination towards packaged food items.

These characteristics position PBAT as a preferred material for manufacturers striving to address environmental concerns posed by conventional plastics. As a fully biodegradable material, PBAT serves as a replacement for low-density polyethylene, finding utility across diverse applications such as packaging, industrial composting, agriculture, fisheries, consumer goods, and hygiene products. Its versatility extends to the production of consumer goods, foam materials, garbage bags, composite bags, mulch films, cling films, and stabilizers. With a rising global awareness regarding environmental issues, a heightened demand for premium-quality food products, an increased adoption of biodegradable plastics worldwide, and a preference for soil-biodegradable mulch films in landscaping, polybutyleneadipate terephthalate materials and products are swiftly gaining traction.

Impact of COVID-19 on the Industry

The onset of the COVID-19 pandemic has significantly amplified the demand for plastic and single-use packaging materials. Manufacturers within the polybutyleneadipate terephthalate (PBAT) sector are witnessing a surge in the production of shopping bags, packaging solutions, and other polymer-based commodities. This trend is driven by a global economic slowdown and a prevailing negative market sentiment towards the demand for goods and services. However, manufacturers are strategically focusing on critical sectors such as agriculture for mulch films, packaging, and consumer goods to sustain economic activities.

The pandemic-induced lockdowns led to a temporary halt in manufacturing, processing, and import/export operations across numerous industries, subsequently reducing consumer demand for PBAT and related products. Consequently, market growth witnessed a decline in the second, third, and fourth quarters of 2020. Nonetheless, with the commencement of COVID-19 vaccination drives in various economies, poised to bolster the global economy, the polybutyleneadipate terephthalate market is anticipated to rebound by the second quarter of 2021.

Market Drivers

Enhanced Toughness of Blends through PBAT Incorporation

PBAT, renowned for its ductility and durability, can be fabricated using standard film extrusion techniques, yielding films with mechanical characteristics akin to low-density polyethylene (LDPE). However, PBAT exhibits greater rigidity compared to its homopolymers. The incorporation of PBAT into polymer blends containing brittle polymers such as Polylactic Acid (PLA) or thermoplastic starch (TPS) serves to enhance their toughness without compromising biodegradability.

R&D Advancements Fuelling Market Growth

Industry players within the PBAT sector are intensifying research and development efforts to create flexible and moldable composites based on PBAT and calcium carbonate. This combination presents a cost-competitive edge compared to other biodegradable plastics, owing to the cost-effectiveness of calcium carbonate. Additionally, producers are ramping up the production of packaging films derived from a blend of PBAT and Polybutylene Succinate (PBS).

Rise in Export of 100% Biodegradable Plastic Bags by Chinese Manufacturers

The spotlight is on biodegradable polymer materials like PLA and PBAT, recognized for their pivotal role in curbing global white pollution stemming from traditional plastics. PBAT and its compounds are frequently employed in the production of biodegradable blown films due to their flexibility and high elongation at break. Chinese manufacturers specializing in PBAT are optimistic about expanding their market share in the 100% biodegradable plastic bag segment, crafted from maize starch, PLA, and PBAT. Among various application types, shopping bags are poised to command a significant revenue share within the industry.

Soil-biodegradable Mulch Films Driven by PBAT

Several enterprises within the PBAT market are striving towards establishing a circular economy in response to climate change. Major players like BASF SE, a leading chemical corporation based in Germany, are actively pursuing sustainability through the development of soil-biodegradable mulch films for agricultural purposes. Competitors within the PBAT sector are closely monitoring these advancements, laying a robust research foundation for PBAT soil-biodegradable mulch films that can be utilized as a food source by soil bacteria.

The carbon present in PBAT-based soil-biodegradable mulch films serves as an energy source for microorganisms, aiding in biomass production. Manufacturers are dedicated to creating PBAT materials that organically decompose in soil, mitigating the persistence of microplastics.

Market Restraints

Challenges with Mechanical Strength in Biodegradable Mulch Films

The demand for biodegradable mulch films is driven by the accumulation of residual film in agricultural soil, particularly prominent in Northwest China compared to other regions. This trend has spurred growth opportunities for PBAT manufacturers. However, to meet varied application requirements and prevent film ruptures, biodegradable mulch films necessitate improved mechanical strength. Consequently, manufacturers are channeling resources towards research and development endeavors aimed at enhancing the mechanical robustness of biodegradable mulch films.

Global PolybutyleneAdipate Terephthalate Market- By Application

• Packaging and Bags
• Consumer Durables
• Agriculture and Horticulture
• Textiles
• Others

The predominant application of polybutyleneadipate terephthalate (PBAT) in 2020 was observed within the packaging and bags industry. This preference is attributed to the rapid degradation of such plastic bags within 3 to 6 months, offering a more environmentally friendly alternative with a reduced carbon footprint compared to petroleum-based plastics. Moreover, the burgeoning packaged food and beverage sectors in regions such as Asia-Pacific and Europe are expected to further drive the demand for biodegradable plastics like PBAT.

Global PolybutyleneAdipate Terephthalate Market- By End-Use

• Packaging
• Agriculture & Fishery
• Consumer Goods
• Others (Polymer)

The packaging sector constituted a substantial share of the PBAT market in 2020 concerning end-use categories. Projections indicate a promising Compound Annual Growth Rate (CAGR) of 9.2% for the packaging segment. Noteworthy profitability is also observed in the consumer goods and agriculture & fisheries segments of the PBAT market.

Global PolybutyleneAdipate Terephthalate Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Asia-Pacific emerged as the leading market for polybutyleneadipate terephthalate in terms of revenue in 2020, a trend expected to persist through the forecast period. This market dominance is attributed to the presence of key players and a sizable consumer base within the region.

Furthermore, the forecast predicts an increase in demand for PBAT due to heightened government initiatives supporting bioplastic usage and growing awareness regarding the benefits of biodegradable plastics. The forthcoming years are poised to witness rapid urbanization and increased consumer expenditure on online food and beverage purchases in countries such as China, India, Japan, Australia, and South Korea.

Global PolybutyleneAdipate Terephthalate Market- By Companies

1. Amco polymers
2. Basf se
3. Chang chun group
4. Cosmos plastics & chemicals
5. Eastman chemical company
6. Far eastern new century corporation
7. Go yen chemical industrial co., ltd.
8. Hangzhou ggggggg chemical co., ltd.
9. Jin huizhao long high-tech co., ltd.
10. Lotte fine chemical

Notable Developments in the Global PolybutyleneAdipate Terephthalate Market:

• Business Partnership: In 2021, SK Global Chemical collaborated with Kolon Industries, Inc. of South Korea to introduce and commercialize PBAT, a biodegradable plastic designed for efficient soil breakdown. The initiative aims to enhance sustainability while reducing the use of conventional plastics harmful to the environment. The joint venture targets a production of over 50,000 tonnes of PBAT by 2030.
• Merger & Acquisition: The completion of BASF SE's acquisition of Solvay's polyamide business (PA 6.6) in 2020 bolstered the corporation's presence across North and South America, as well as Asia. This strategic move included eight industrial facilities spanning Germany, France, China, India, South Korea, Brazil, and Mexico. The acquisition facilitated the establishment of research and development facilities in the Americas and Asia, further solidifying BASF SE's position in the market.
• Product Launch: BASF SE introduced the certified soil-biodegradable ecovioM 2351 for mulch films in 2019. This innovative product aims to enhance food production, improve soil quality, and yield tastier, higher-quality tomatoes. The ecovioM 2351, a certified soil-biodegradable plastic, is designed for mulch films incorporating PBAT and other biodegradable polymers. These mulch films have demonstrated the potential to increase tomato yields by 15 to 50%, reduce water usage, and offer more efficient weed control with fewer herbicides.