Polybutylene Adipate Terephthalate Market Size, Share, Growth Report 2032

Industry Prospective:

The global polybutylene adipate terephthalate (PBAT) market size was worth around USD 1.11 Billion in 2022 and is predicted to grow to around USD 2.71 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.91% between 2023 and 2030.

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The report analyzes the global polybutylene adipate terephthalate (PBAT) market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the polybutylene adipate terephthalate (PBAT) industry.

Polybutylene Adipate Terephthalate (PBAT) Market: Overview

Polybutylene adipate terephthalate (PBAT) is a type of biodegradable polymer belonging to the polyester family. It is created by copolymerization of two monomers, namely 1,4-butanediol (BDO), adipic acid (AA), and terephthalic acid (TPA). PBAT has become extremely popular in recent years owing to its biodegradable properties along with excellent mechanical strength. This has resulted in the use of PBAT in several applications across industries. The main reason for the higher flexibility of PBAT is due to the combination of adipate and terephthalate units whereas the butylene segment results in its elongation and toughness at break. The polybutylene adipate terephthalate industry refers to all parties that are involved in the production, designing, and distribution of polybutylene adipate terephthalate to the end-users. During the forecast period, the market is projected to grow at a steady pace. 

Key Insights: 

• As per the analysis shared by our research analyst, the global polybutylene adipate terephthalate (PBAT) market is estimated to grow annually at a CAGR of around 8.91% over the forecast period (2023-2030)
• In terms of revenue, the global polybutylene adipate terephthalate (PBAT) market size was valued at around USD 1.11 billion in 2022 and is projected to reach USD 2.71 billion, by 2030.
• The polybutylene adipate terephthalate market is projected to grow at a significant rate due to the growing environmental awareness
• Based on end-user segmentation, packaging was predicted to show maximum market share in the year 2022
• Based on application segmentation, mulch films were the leading application in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

Polybutylene Adipate Terephthalate (PBAT) Market: Growth Drivers

Increasing environmental awareness to propel market growth

The global polybutylene adipate terephthalate (PBAT) market is expected to grow owing to the increasing environmental awareness among consumers. One of the primary reasons for the high demand for PBAT is its biodegradability. The presence of certain functional groups along with its chemical structure is what imparts the environment-friendly quality to the polymer. For instance, the presence of ester linkages, biodegradable monomers, favorable microbial activity, and friendly responses to certain composting conditions are the main reasons for PBAT to act as an excellent alternative to other forms of plastic which are the leading cause of one of the most dangerous kinds of pollution which are plastic waste. Most of the other types of polymers used in end-user verticals live in the environment for multiple decades. They take more than 100 years to completely decompose. It has resulted in a vast amount of plastic waste pile of plastic which is harming the environment in more than one way.

Polybutylene Adipate Terephthalate (PBAT) Market: Restraints

High cost to restrict market expansion

One of the main reasons why the global polybutylene adipate terephthalate market is unable to reach its true potential is the high cost associated with the production of PBAT when compared to traditional and more frequently used non-biodegradable plastics. The production process of biodegradable polymers requires the aid of complex manufacturing processes along with specialized personnel which results in higher cost. In emerging companies or underdeveloped nations, not all people will have sufficient funds to spend on PBAT and they continue to use traditionally available alternatives.

Polybutylene Adipate Terephthalate (PBAT) Market: Opportunities

Increasing demand for sustainable packaging to propel market growth

As consumers are becoming more aware of the repercussions of their consumption patterns on the environment, the demand for sustainable packaging solutions has increased in recent times. This is not only applicable to individual buyers but also to larger firms that are focusing on reducing their carbon footprint to gain higher confidence from their consumers. In addition to this, changing government stance on the pollution created by the packaging sector is likely to push more companies to invest in packaging material made of PBAT.

Polybutylene Adipate Terephthalate (PBAT) Market: Challenges

Standardization to pose a major challenge for the industry players

The polybutylene adipate terephthalate industry may face roadblocks owing to the challenges posed by the absence of standardized testing methods or certification systems acknowledging PBAT biodegradability. The lack of a series of universally accepted or standard guidelines that assess PBAT biodegradability or its compostability can lead to severe confusion in the market. This may also cause inconsistencies in terms of product quality.

Polybutylene Adipate Terephthalate (PBAT) Market: Segmentation

The global polybutylene adipate terephthalate (PBAT) market is segmented based on end-user, type, application, and region.

Based on end-user, the global market segments are agriculture & fishery, packaging, consumer goods, and others. The market registered the highest growth in the packaging segment in 2022. PBAT has wide applications in the production of packaging products such as biodegradable films, bags, and wraps. In recent times, the packaging industry has been actively seeking biodegradable alternatives to otherwise non-environment friendly plastic which is often used as the ultimate packaging material. Further, PBAT offers more advantages as compared to its non-biodegradable counterparts such as improved shelf life and enhanced barrier properties. Low-Density Polyethylene (LDPE), a commonly used polyester for the production of plastic wraps takes around 500 to 1000 years to decompose.

Based on type, the polybutylene adipate terephthalate industry segments are modified/blended PBAT and pure PBAT.

Based on application, the global market segments are mulch films, shopping bags, garbage/bin bags, food packages, and others. The production of mulch films was the leading application of PBAT in 2022. These films are used in the agriculture sector to cover the soil surface around plants. They help to retain soil content while controlling weed growth and regulating soil temperature. They assist in promoting healthy plant growth. PBAT’s biodegradability and compostability are essential factors that are considered during the production of mulch films. In the UK, soil loss due to water erosion is expected to reach 22.5% by 2050, as estimated by the European Commission.

Recent Developments:

• In September 2021, LG Chem, the largest South Korean chemical company, announced its intention to build a new Polybutylene Adipate Terephthalate (PBAT) production facility along with TK Chemical Corp, manufacturers and sellers of synthetic fibers. The facility will be constructed in South Korea and will be equipped with a production capacity of 50,000 tonnes at the beginning
• In January 2023, Maire Tecnimont S.p.A acquired an 83.5% stake in Conser, a company that deals with technology licensing and process engineering based out of Italy. The acquisition was made with the aid of Maire’s subsidiary called NextChem Holding S.p.A., The move has assisted Maire to expand its product portfolio of biodegradable plastic by-products licensing

Polybutylene Adipate Terephthalate (PBAT) Market: Report Scope

Polybutylene Adipate Terephthalate (PBAT) Market: Regional Analysis

Asia-Pacific to emerge as the fastest growing market

The global polybutylene adipate terephthalate market is expected to witness the highest growth in Asia-Pacific. Countries such as China, South Korea, and India are projected to become key contributors during the growth period. Studies have shown that currently manufacturers in China are investing resources in producing 100% biodegradable PBAT using multiple sources.

The country already has the advantage of being one of the most dominant nations in terms of the chemical industry. It has a wide range of large-scale production units and the government is working toward upgrading its production sites and exporting more products to its alliance countries. This could result in greater growth opportunities during the forecast period. Additionally, South Korea is home to some of the largest chemical manufacturers that are diversifying their business portfolios by launching strategic partnerships with other players across the globe.

Polybutylene Adipate Terephthalate (PBAT) Market: Competitive Analysis

The global polybutylene adipate terephthalate (PBAT) market is led by players like:

• BASF SE
• Dow Inc.
• ExxonMobil Corporation
• DuPont de Nemours Inc.
• LyondellBasell Industries N.V.
• SABIC
• Covestro AG
• Arkema SA
• Mitsubishi Chemical Holdings Corporation
• LG Chem Ltd.
• Solvay S.A.
• Formosa Plastics Corporation
• Braskem S.A.
• Sumitomo Chemical Co. Ltd.
• Evonik Industries AG
• Toray Industries Inc.
• Asahi Kasei Corporation
• Sinopec Group
• Mitsui Chemicals Inc.
• Reliance Industries Limited
• Lotte Chemical Corporation
• Celanese Corporation
• Eastman Chemical Company
• Westlake Chemical Corporation
• Indorama Ventures Public Company Limited.

The global polybutylene adipate terephthalate (PBAT) market is segmented as follows:

By End-User

• Agriculture & Fishery
• Packaging
• Consumer Goods
• Others

By Type

• Modified/Blended PBAT
• Pure PBAT

By Application

• Mulch Films
• Shopping Bags
• Garbage/Bin Bags
• Food Packages
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa