Global Polylactic Acid (PLA) Market Snapshot

The bioplastics market includes a diverse range of biobased and/or biodegradable products, including polylactic acid (PLA), polybutylene adipate terephthalate (PBAT), polyhydroxyalkanoates (PHA), and conventional plastics such as polyamide, polyethylene, and polypropylene manufactured using renewable, bio-based feedstocks.  

The key biodegradable plastics PLA, PHA and PBAT have different properties which make them applicable for different products, with PLA primarily offering high strength and impact resistance as well as transparency compared to PBAT and PHA but is less flexible/elastic (i.e., has a low ductility) and becomes more brittle over time.  PLA has a comparatively high oxygen and water transmission rate compared to PHA but is less permeable than PBAT. 

PLA is classified as a “biopolymer”; as the term biopolymer is not tightly defined several classes exist: 

• Biodegradable polymers derived from renewable resources 

• Non-biodegradable polymers derived from renewable resources 

• Biodegradable polymers derived from non-renewable resources 

Biodegradable products are any organic materials that can be broken down by microorganisms and become part of the biosphere. The two important categories of biodegradable polymers are natural and synthetic: 

• Natural Biodegradable Polymers are polymerized from monomers derived from sugars, starches, natural oils, acids, or hydrocarbons made in fermentations or derived from plants or animals, or that are expressed by plants or animals and are extracted. These polymers are biodegradable, generally because they are oxygenated and have even numbers of carbon in their structure. 

• Synthetic Biodegradable Polymers generally comprise synthetic compounds that have the properties of degrading when subject to moisture, UV light, higher than ambient temperature, oxygen attack and can be blended, or not, with such biodegradable natural fillers and reinforcements as starch and cellulosic fibres. Many of these products are blended with the biologically-derived components such as starches or lignocellulosic materials as fillers or structural reinforcements. Some of these products are not truly biodegradable since some of their components may not be digested and fully enter the biosphere. 

PLA is classified as a natural biodegradable polymer, as it is derived from renewable resources, and can be biodegraded under certain environments (e.g., industrial composting).

PLA uses include:

• Packaging, replacing fossil based single use plastics. Flexible packaging is the largest segment. This includes compostable films, pouches, and bags used in foodservice and retail. Rigid packaging follows including products like trays, containers etc.

• Consumer goods where composability and appearance are valued. Fibers, including woven and non-woven textiles, are used in hygiene, apparel, and agriculture. 

• Agriculture and horticulture in mulch films, pots, and clips that benefit from soil biodegradability.

• Automotive and transport use is limited, confined mainly to interior components.

• Various smaller end-uses include electrics and electronics, functional coatings and adhesives and other miscellaneous applications.

Global demand for polylactic acid (PLA) is expected to double by 2035, from 388,000 tons in 2025 reflecting a compound annual growth rate (CAGR) of nearly 7 percent. While this marks a slowdown from growth rates between 2015 and 2025, growth remains robust.  PLA will be driven by accelerating regulatory pressure on conventional plastics and rising demand for compostable, bio-based solutions.  Economic growth in developing markets such as China and Thailand will also be key. 

The largest market for PLA is China, accounting for nearly 40 percent of global demand and will remain the main global PLA consumer throughout the 2025-2035 timeframe supported by new capacity addition within the country and both domestic and also export demand.

However, the global PLA market is entering a prolonged phase of structural oversupply. Total nameplate capacity is projected to more than double by 2030 reaching around 1.4  million tons.   As a result, global operating rates are forecast to decline bottoming out at around 40 percent in 2029/2030. This imbalance is driven primarily by aggressive capacity buildouts in the Middle East, Asia-Pacific and China, outpacing downstream infrastructure and market absorption. 

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Market Insights: Polylactic Acid - 2025

This report provides analysis and forecast to 2035 of the global market for lactic acid and polylactic acid.

• Lactic Acid end-use demand is segmented by PLA, food and beverage, personal care, pharmaceutical and others.

• Polylactic Acid end-use demand is segmented by packaging, fibre, medical, electronics, agriculture and others.

The Market Insights: Polylactic Acid - 2025 includes discussion regarding key market drivers and constraints, as well as supply, demand and trade analysis for nine regions: North America, South America, Western Europe, Central Europe, Eastern Europe, Middle East, Africa, Asia Pacific, and China with forecasts to 2035. Analysis also includes the competitive landscape, capacity listing and price, cost and margin forecasts to 2035 along with latest pricing trends in the key markets

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