The thermoplastic starch market is expected to register a CAGR of over 7% during the forecast period.
COVID-19 harmed the market in 2020. Given the pandemic scenario, manufacturing activities were temporarily halted during the lockdown, reducing the usage of thermoplastic starch as a component and thereby impacting the market. But with the ease of the restrictions, the market started to gather pace over time.
- The increasing demand from the packaging industry and favorable government policies regarding the increased usage of bio-plastics are likely to fuel the market expansion.
- On the contrary, multiple technological constraints and exploitation of food sources as raw materials will likely hinder the market's growth.
- The innovations and advancements in the technological segment are likely to act as an opportunity in the forecast period for the market studied.
- Due to the continuous rise in Asian-Pacific environmental regulations, the region will likely dominate the thermoplastic starch market during the forecast period and witness the fastest CAGR.
Thermoplastic Starch (TPS) Market Trends
Increasing Demand from the Packaging Industries
- The worldwide packaging industry is evolving and expanding at a rapid pace. Factors such as rising pharmaceutical, food processing, manufacturing, FMCG, healthcare sector, and auxiliary industries in emerging nations such as China, India, Brazil, Russia, and other East European countries are driving this rise.
- According to a report published by PMMI, 'The Association for Packaging and Processing Technologies,' the value of the global packaging industry reached USD 42.2 billion in 2021, owing to the increasing population, growing sustainability concerns, more spending power in developing regions, and increasing demand for smart packaging, among others.
- Flexible packaging is used in food packaging applications in low-income South America, Africa, and Asia-Pacific countries. The popularity and demand for flexible packaging are rising in emerging economies, and the demand is supported by continued economic expansion and an acceleration in the food and beverage industry. For instance, according to Statista, the food and beverages industry worldwide is estimated to generate a revenue of USD 740 billion in 2022. The market is expected to grow at a CAGR of 7.14% during 2022-2027 annually, resulting in a projected market volume of USD 1.10 billion by 2027.
- Furthermore, in 2022, the Europe food and beverages industry employed 4.6 million people and generated EUR 1.1 trillion (USD 1.159 trillion) in revenue and EUR 230 billion (USD 242.37 billion) in value-added, making it one of the largest manufacturing industries in Europe. Thereby, increasing the food and beverages industry in the region, the demand for food packaging increases, as well as the market studied.
- Therefore, the growing demand for packaging from various applications, from food to pharmaceutical packaging, will likely drive the thermoplastic starch market during the forecast period.
The Asia-Pacific Region to Dominate the Market in the Coming Years
- In Asia-Pacific, the demand for packaged food is growing, owing to lifestyle changes, the growing disposable income of people, the increasing number of working professionals, and the growing preference for fast food. Consumers prefer ready-to-consume foods because they require considerably less time for cooking, are fresh, and have attractive and sturdy packaging, supporting the demand for the market studied.
- China is the world's largest packaging consumer globally owing to factors such as growing per capita income and rising e-commerce giants. According to Interpak, in China, total packaging in the foodstuff packaging category is expected to reach 447 billion units in 2023, indicating an increased demand for thermoplastic starch from the packaging industry.
- According to the Packaging Industry Association of India (PIAI), the Indian packaging industry is expected to grow at 22% during the forecast period. Moreover, the Indian packaging market is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% between 2020 and 2025.
- In Asia, Japan holds the second-highest packaged food consumption share, next to China. According to the Ministry of Economic Trade, and Industry of Japan, the production quantity of plastic for packaging in the plastic products industry in Japan saw no significant changes in 2021 compared to the previous year, 2020, and remained at around 1.13 million tons.
- As the increasing number of Japanese consumers allocate a higher budget percentage for food, various opportunities await investors and international brands to enter the packaging market and introduce new food packaging preferences for local consumption. Thus, the TPS market holds future opportunities in the Japanese packaging market.
- Therefore, the demand for thermoplastic starch from various end-user industries is expected to increase during the forecast period.
Thermoplastic Starch (TPS) Industry Overview
The thermoplastic starch (TPS) market is consolidated, with a few major players dominating a significant portion. Some major companies are (not in any particular order) Novamont S.p.A, Biotec Biologische Naturverpackungen GmbH & Co. KG, Kuraray Co. Ltd. (Plantic), Biome Bioplastics, and AGRANA Beteiligungs-AG.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Favourable Government Policies Promoting Bio-plastics
- 4.1.2 Increasing Demand from the Packaging Industries
- 4.2 Restraints
- 4.2.1 Multiple Technological Constraints
- 4.2.2 Exploitation of Food Sources as Raw Materials
- 4.3 Industry Value Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Volume)
- 5.1 Manufacturing Type
- 5.1.1 Extrusion Molding
- 5.1.2 Injection Molding
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 188.8.131.52 China
- 184.108.40.206 India
- 220.127.116.11 Japan
- 18.104.22.168 South Korea
- 22.214.171.124 ASEAN Countries
- 126.96.36.199 Rest of Asia-Pacific
- 5.3.2 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Mexico
- 5.3.3 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 Italy
- 188.8.131.52 France
- 184.108.40.206 NORDIC Countries
- 220.127.116.11 Rest of Europe
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 AGRANA Beteiligungs AG
- 6.4.2 Biome Bioplastics
- 6.4.3 Biotec Biologische Naturverpackungen GmbH & Co. KG
- 6.4.4 Cardia Bioplastics
- 6.4.5 Great Wrap
- 6.4.6 Grupa Azoty
- 6.4.7 Kuraray Co. Ltd (Plantic)
- 6.4.8 Novamont S.p.A
- 6.4.9 Rodenburg Biopolymers
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technological Advancements and Innovation