Cellulose plastics are bio-based and biodegradable thermoplastic materials derived from renewable and abundant sources like wood and plants. They are utilized in a variety of packaging applications such as food packaging films, bottles for alcoholic and non-alcoholic beverages. Cellulose plastics impart properties like lightweight, clarity, printability, recyclability thus enhancing the shelf-appeal of packaged products. They offer an eco-friendly alternative to petroleum-based plastics. The global shift towards sustainable materials due to environmental concerns is fueling the demand for cellulose plastics in packaging.
The global Cellulose Plastics Market is estimated to be valued at US$ 819.69 Mn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Stringent government regulations regarding the utilization of single-use plastics and plastic waste disposal are expected to accelerate the growth of the cellulose plastics market over the forecast period. Additionally, surging environmental awareness among consumers will further propel the demand for eco-friendly cellulose plastics in place of petrol-based plastics. However, the high production cost of cellulose plastics as compared to traditional plastics may hinder market growth
Segment Analysis
Cellulose Plastics industry can be broadly segmented into CPA (Cellulose Plastic Acetate) and C6H10O5 (Cellulose). CPA dominates the market accounting for around 70% share owing to its lower cost and easier availability as compared to C6H10O5. CPA provides similar properties as conventional plastics while being biodegradable. However, C6H10O5 has better strength and sustainability credentials making it ideal for premium applications in automotive and electronics industries.
PEST Analysis
Political: Stringent regulations around use of non-biodegradable plastics are driving demand. Many countries have imposed bans or tax on single use plastics.
Economic: Developing economies with growing middle class and disposable incomes offer huge opportunities. However, higher costs relative to conventional plastics are a challenge.
Social: Rising awareness about environmental preservation is pushing brands and consumers towards sustainable options. Also, stable demand from end-use sectors.
Technological: Continuous R&D for improving properties like strength, durability at competitive costs. Also, development of newer production processes.
Key Takeaways
The Global Cellulose Plastics Market Size was valued at US$ 819.69 Mn in 2024 and is projected to reach US$ 1,246.26 Mn by 2030, expanding at a CAGR of 6.1%.
Regional analysis: Asia Pacific as the largest and fastest growing market attributed to large population, rapid industrialization and growing environmental concerns.
Key players operating in the cellulose plastics market are Kraig Biocraft Laboratories, Spiber Inc., AMSilk, and Bolt Threads. Key players are focusing on new product launches, partnerships and capacity expansions to gain larger market share. They are investing heavily in R&D to develop high performance cellulose based biomaterials targeting various industries like textiles, automotive and packaging.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
